Clinton-Dunn Telephone Co. v. Carolina Telephone & Telegraph Co.

159 N.C. 9
CourtSupreme Court of North Carolina
DecidedApril 17, 1912
StatusPublished
Cited by14 cases

This text of 159 N.C. 9 (Clinton-Dunn Telephone Co. v. Carolina Telephone & Telegraph Co.) is published on Counsel Stack Legal Research, covering Supreme Court of North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Clinton-Dunn Telephone Co. v. Carolina Telephone & Telegraph Co., 159 N.C. 9 (N.C. 1912).

Opinion

IÍOKE, J.,

after stating tbe case: On tbe bearing it was made to appear that, in 1901, E. F. Young and wife owned and operated, for charge, a local telephone system in tbe town of Dunn, N. O., and plaintiff, a corporation acting under a <¿"was¿-public franchise, owned and operated a like system in tbe town of Clinton, N. C., and was extending its line towards Dunn. That oil 15 February of that year tbe said Young and Avife entered into a contract with plaintiff, in consideration of $10 and that plaintiff company would pay for two-thirds of tbe poles from tbe corporate line of Dunn to tbe local exchange in tbe town and of mutual stipulations in tbe agreement whereby tbe said plaintiff company could physically connect its system with tbe local exchange in Dunn and tbe patrons of tbe Dunn system, for a single charge of 25 cents, could send messages to Clinton and haA^e service for local delivery, in that town, without further charge, and plaintiff and its subscribers should have like privilege and service in reference to local delivery in Dunn. Tbe agreement stipulated further: “That tbe parties shall quietly enjoy tbe same and that this contract shall remain in full force and effect from and after tbe signing and sealing of [13]*13tbe same, and tbe successors and assigns of eacb shall forever quietly enjoy tbe privileges granted by tbe contract; tbat tbe toll fees of eacb shall be 25 cents from exchange to exchange and tbat local messages shall be settled and established by eacb so tbat tbe fee,s charged shall not exceed 25 cents. . . . Tbat this contract shall not be revoked or changed without tbe consent and tbe same mutually agreed to by eacb, their successors and assigns. In testimony whereof,” etc. Tbat tbe physical connection was then made, tbe parties entered into the enjoyment and exercise of tbe privileges conferred by tbe contract and continued therein until October, 1901, when Young and wife sold and conveyed their system and all rights, etc., held by them to defendant company, a corporation acting also under a quasi-public franchise and owning and operating an extended system of telephone lines in the eastern part of the State; that the purchaser entered into the exercise of the rights conferred by the contract with plaintiff, and physical connection being continued, and stipulated service afforded by each until February, 1910, when defendant, having, as stated, acquired the plants of various companies in the eastern part of the State and claiming to have spent large sums of money in improving these lines, giving them better equipment and affording a higher order of service, wrote plaintiff company, saying that the con-' tract was not considered as binding on defendant; that it had not been made by the company; that it was unfair in its obligations and burdens and discriminative in its terms and operation. The letter stated, further, that the rights conferred had been abused on the part of plaintiff company, by extending the privileges granted to other lines and systems not included in the agreement, and contained formal notice that, unless within thirty days plaintiff entered into a contract agreeing to pay $72 per annum for service in Dunn to plaintiff and its subscribers and $72 additional per annum for each additional system exercising the privileges of the contract, and by plaintiff’s permit or procurement, the connection with plaintiff company would be discontinued. That this demand not having been complied with, defendant severed the connection with plaintiff’s system, depriving plaintiff and its subscribers and [14]*14patrons of all service and telephone connection with Dunn and its inhabitants or any possibility of procuring the same except on defendant’s terms.

On these, the facts chiefly relevant to the inquiry, we think the court below correctly ruled that plaintiff was entitled to have the connection restored and service afforded, but that the order should be modified or so interpreted that the rate at which this service shall be rendered must be made to depend upon further findings of fact to be had and made in the cause.

It is very generally recognized that a telephone company, acting under a gwasi-public franchise, is properly classified among the public-service corporations, and as such is subject to public regulation and reasonable control and is required to afford its service at uniform and reasonable rates and without discrimination among its subscribers and patrons for like service under the same or substantially similar conditions. Godwin v. Telephone Co., 136 N. C., 258; Leavell v. Telegraph Co., 116 N. C., 211; Horner v. Electric Co., 153 N. C., 535; Griffin v. Water Co., 122 N. C., 206; Telegraph Co. v. Telegraph Co., 61 Vt., 241; Telephone Co. v. Telegraph Co., 66 Md., 399; Yancy v. Telephone Co., 81 Ark., 486; Telegraph Co. v. Kelly, 160 Fed., 316.

In the absence of constitutional or statutory requirement, this obligation to afford service at reasonable rates and without discrimination to all who will “pay the charges and abide by the reasonable regulations of the company” does nót as a rule extend to making physical connection with the company’s lines, but there is high authority for the position that, when such physical connection has been voluntarily made, under a fair and workable arrangement and guaranteed by contract, and the continuous line has come to be patronized and established as ’a great public convenience, such connection shall not, in breach of the agreement, be severed by one of the parties. In that case the public is held to have such an interest in the arrangement that its rights must receive due consideration. This position finds approval in S. v. Cadvallader, 112 Indiana, pp. 619-636, and is stated in the elaborate and learned opinion of Chief Justice Myers as follows: “Such physical connection cannot [15]*15be required as of right, but if such couuectiou is voluntarily made by eoutraot, as is here alleged to be tbe case, so that tbe public acquires au interest in its continuance, tbe act of tbe parties in making sucb connection is equivalent to a declaration of a purpose to waive tbe primary right of independence, and it imposes upon tbe property sucb a public status that it may not be disregarded,” citing Mahan v. Telephone Co., 132 Mich., 242; and tbe reasons upon which it is in part made to rest are referred to in tbe same opinion as follows: “Where private property is by tbe consent of tbe owner invested with a public interest or privilege for tbe benefit of tbe public, tbe owner can no longer deal with it as private property only, but must bold it subject to tbe rights of tbe public in tbe exercise of that public interest or privilege conferred for their benefit.” Allnut v. Inglis (1810), 12 East, 527. Tbe doctrine of this early case is tbe acknowledged law. It is stated somewhat differently in Munn v. Ill. (1876), 94 U. S., 113, 24 L. Ed., 77, where it is said: “Property does become clothed with a public interest when used in a manner to make it of public consequence and affects tbe community at large. "When, therefore, one devotes bis property to a use in which tbe public has an interest, be, in effect, grants to tbe public an interest in that use, and must submit to be controlled by tbe public for tbe common good, to tbe extent of tbe interest be has thus created. He may withdraw bis grant by discontinuing tbe use; but so long as be maintains tbe use be must submit to tbe control.” See, also, Telephone Co. v. Telephone Co., 118 Ky., 277; 37 Cyc., pp. 1621-1658.

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Cite This Page — Counsel Stack

Bluebook (online)
159 N.C. 9, Counsel Stack Legal Research, https://law.counselstack.com/opinion/clinton-dunn-telephone-co-v-carolina-telephone-telegraph-co-nc-1912.