Show Utilities Board Enjoined From Enforcing Orders Calling for Reductions T Telluride Company's s 's Claim Is Upheld by y Federal i t t I C Court urt INJUNCTION IS IS' IS GRANTED Decision n Con Concurred tn In by 3 Judges The Telluride Power company I Thursday won a fight tIght against a Utah public utilities commission order reducing reducing reducing re re- re- re rates in southern Utah 10 II per cent when a judge federal court granted the concern an interlocutory inter inter- injunction restraining the commission from enforcing the order The federal court upheld a company company com com- pany contention that rates charged at atthe a athe the time the reducing order was is issued issued is is- sued were already an end and ruled against a state claim that value of the company's service was not worth the rates charged We cannot agree that any opinion of ot the United States supreme court sustains the proposition that in fixing fair and reasonable rates the consumers consumers consumer's ers cr's ability to pay and nd the value o of the service to him are paramount and c controlling the ruling said Concurred in lu by 3 1 Judges The opinion was written by Robert Robe RobertE E E. Lewis Lvis presiding judge of the tenth circuit court of ot appeals and was concurred in by Judge Sam G G. Bratton and arid Judge Tillman D D. John John- son The three judges judges' took the c case se under advisement June 14 after 3 a hearing in the chambers of f the federal led fed era eral district c curt urt here herc The e. e decision n jn cited an opinion by bya a similar Out court In let a case against the Georgia Georgi p public service c commission mi which held if if the complainants complainant's company's service is costing more than i is worth we see no remedy but for the consumer to find finda a tut tute tut In In ln view of the possibility of 01 appeal by the Utah utilities commission to the United States supreme court the opinion ruled that a bond posted post post- ed cd by the he Telluride company when temporary r restraining straining order was Wasl issued last January 23 by Judge Johnson be maintained The bond bone was ordered to protect customer customers of the utility who would benefit by a arate arate arate rate reduction I I Cites Federal l Court Ruling puling If U rates are so low as to be con con- con i the decision said they are condemned by the federal tion If It they are so high as to yield a greater return on the value of property property property prop prop- erty used and useful than other Investments investments investments in in- vestments mad with made with equal risk they are unfair to the consumer and should be reduced He is entitled to have them reduced H A A plant of excessive size or cost cannot be imposed on him with an obligation to furnish a return on on the excess The decision n cited a federal court ruling involving the St. St Louis OFallon Railway company which referred referred re re- re- re to tc a a statement that the function function unc tion of a commission is not to act as asan asan asan an arbitrator in economics but to apply the law The decision then recalled that the Utah commission in th the Telluride ride Continued on Pare Page Two PHONE COMPANY WINS IN COURT COURTS S Continued from Pate Page One Mr Rice that the federal court was without jurisdiction on the grounds the he am amount involved was only about Jt n was contended the decision said that the commission order should be regarded only as temporary temporary tempo tempo- and be modified at the conclusion of a statewide in in- The order itself made the reduction reduction reduction tion pending further hearing and further order of the commission But Buti i if the order were not stayed it would take effect a as' as of ot April The state inquiry will not be resumed until October and the confiscation will go goo goon on Statewide Case Pending From progress in ithe Ithe state in inquiry it does doe not seem probable it will be closed for r many months Fur Furthermore the statute imposes heavy penalties day by day for for- failure to comply with the commission order These penalties would amount to many thousands of ot dollars in a very short time We believe the contention contention conten conten- tion lion there is no jurisdiction is without without with with- out merit The Logan case was brought by residents who later asked that it be made part of an action by the com corn mission itself against the statewide rate structure of the company Meanwhile the statewide case Is pending r resumption of oC the Ithe hearing having been set for or Octo October tier 15 At that time G. G R. R Kenney Los Lo Angeles utility rate expert will assist assist as as- the state in attempts to show that Utah telephone rat rates are Ire excessive ive and are bringing more than a lair fair air return Lack of funds probably will prevent pre pre- vent the state from appealing t to the United States State supreme court from the I Logan case decision E. E E. E Corfman of ot the commission said Final decision on this question must await action by the commission commission commis commis- sion slon as a whole he said However appeals cost mon money y and the commission commis commis- s sion ston on is b in no position to ti finance ance a further court court- fight It may be he that if U funds arc found appeal will be made This will depend upon reading read read- ing Irig o of the decision and advice of the attorney general Mr Rice said tha that tha under the Las Logan Lo La- Iso Iso- s gan n case cue decision tb the company will willbe willbe willbe be allowed wed to charge chare on a basis of costs a in a c certain than upon statewide co costs coats of the system tem |