Commonwealth Telephone Co. v. Carley

213 N.W. 469, 192 Wis. 464, 1927 Wisc. LEXIS 217
CourtWisconsin Supreme Court
DecidedApril 5, 1927
StatusPublished
Cited by11 cases

This text of 213 N.W. 469 (Commonwealth Telephone Co. v. Carley) is published on Counsel Stack Legal Research, covering Wisconsin Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Commonwealth Telephone Co. v. Carley, 213 N.W. 469, 192 Wis. 464, 1927 Wisc. LEXIS 217 (Wis. 1927).

Opinion

Doerfler, J.

This action is brought by the plaintiff, a Wisconsin corporation engaged in furnishing telephone service in the city and town of Dodgeville, in Iowa county, pursuant to an indeterminate permit from the state, for the purpose of enjoining the defendants from operating a telephone exchange, for the reason that jhe operation of such exchange constitutes a violation of the anti-duplication provisions of sec. 196.50 of the Statutes.

It is conceded that the defendants at no time applied to the railroad commission for a certificate of public convenience and necessity. In defendants’ answer it is alleged, among other things, that the action being one in equity, for the purpose of securing injunctive relief, the court had no jurisdiction to entertain the same as an original proposition, and that application for remedial relief should first have been made to the railroad commission, which body, it is argued, was vested with full power and authority to investigate the alleged violation and to direct the institution of proceedings under the statutes for the enforcement of sec. 196.50 of the Statutes.

The anti-duplication statute, sec. 196.50, in its present form, was enacted by the legislature in 1913, and reads as follows:

“No license, permit or franchise shall be granted to any person, copartnership or corporation, to own, operate, man[466]*466age or control any plant or equipment for the conveyance of telephone messages, or for the production, transmission, delivery or furnishing of heat, light, water or power in any municipality, where there is in operation under an indeterminate permit, as provided in sections 196.01 to 197.10, inclusive, a public utility engaged in similar service, without first securing from the commission a declaration, after a public hearing of all parties interested, that public convenience and necessity require such second public utility. This subsection shall not prevent or impose any condition upon the extension of any telephone toll line from any municipality into or through any municipality for the purpose of connecting with any telephone exchange in such municipality or connecting with any other telephone line or system. No public utility already engaged in furnishing telephone service shall install or extend any telephone exchange for furnishing local service to subscribers in any municipality where there is in operation a public utility engaged in similar service, without first having served notice, in writing, upon the commission and any other public utility already engaged in furnishing local service to subscribers in such municipality of the installation or extension of such exchange which it proposes to make, or make such installation or extensions if the commission, within twenty days after the service of such notice, shall, upon investigation, find and declare that public convenience and necessity do not require the installation or extensions of such exchange, except that any public utility already engaged in furnishing local service to subscribers within any city or village may extend its exchange within such city or village without the authority of the commission. Any public utility operating any telephone exchange in any city or village shall, on demand, extend its lines to the limits of such city or village for the purposes mentioned and subject to the conditions and requirements prescribed in sections 196.04 and 196.19, subsections (4) and (5).”

It is conceded by both plaintiff and defendants that if the defendants are not public utilities, then the court has no jurisdiction to grant the relief prayed for, and that the railroad commission is not vested with power or authority to interfere in the premises. Defendant companies argue that [467]*467they are mere private corporations or organizations, known as farmers’ mutual companies, and that they are not engaged, either jointly or severally, in performing services either to or for the public, and consequently are not public utilities. The circuit court entertained the action first for the purpose of determining whether defendants were operating a public utility, and then concluded, upon the evidence in the case, that they were not public utilities, but farmers’ mutual companies, and ordered the dismissal of the complaint.

Sec. 196.50 pertains solely to public utilities. Under it, one public utility cannot legally invade the field of another, unless it complies with the requirements of the anti-duplication statute by first obtaining a certificate of public convenience and necessity.

Sec. 196.01 of the Statutes defines the term “public utility,” and under this definition the distinguishing and important feature which stamps a business as a public utility consists of the furnishing of those things specifically embraced in the definition, to or for the public. In determining whether a corporation is a public utility and therefore subject to the control of the railroad commission, its acts, and not the authority conferred by its charter, control. State ex rel. M. O. Danciger & Co. v. Public Service Comm. 275 Mo. 483, 205 S. W. 36. In Chippewa Power Co. v. Railroad Comm. 188 Wis. 246, 205 N. W. 900, it was held' that the legislative definition of a public utility was intended to include all corporations that were functioning as a public utility under the guise of a private utility. So that, applying the holding of the Chippewa Case, above referred to, to the instant case, we must arrive at the conclusion that the defendants herein may be treated as public utilities, even though they were organized as private corporations, where in fact they operated as public - utilities, and notwithstanding the fact that they had not complied with the provisions of [468]*468the public utility act, which includes the anti-duplication statute.

Sec. 196.02 of the Statutes vests in the commission “power and jurisdiction to supervise and regulate every public utility in the state and to do all things necessary and convenient in the exercise of such power and jurisdiction.” The jurisdiction and powers as thus defined by sec. 196.02 are broad, comprehensive, and all-inclusive, and this jurisdiction and power, from the very language of the statute itself, is not confined to a corporation which has obtained a certificate of public convenience and necessity, but it embraces all corporations which perform services to or for the public with respect to those things which are included in the definition of a public utility above referred to. The anti-duplication statute, sec. 196.50, is included in the chapter entitled “Regulation of Utilities.”

From the foregoing it necessarily follows that if the defendants during the period charged in the complaint were in fact operating as public utilities, then their control and regulation vests in the railroad commission. In 1925 the legislature, by ch. 194 of the Laws of 1925, amended sec. 195.48 of the Statutes (formerly sec. 1797 — 31), so that said section now reads as follows:

“Inquiry into violations. The commission shall inquire into any neglect or violation of the laws of this state by any railroad corporation or public utility doing business therein, . . . or by any person operating a railroad or public utility, and shall have the power, and it shall be its duty, to enforce the provisions of sections 195.01 to 195.54, inclusive, as well as all other laws relating to railroads or public

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Bluebook (online)
213 N.W. 469, 192 Wis. 464, 1927 Wisc. LEXIS 217, Counsel Stack Legal Research, https://law.counselstack.com/opinion/commonwealth-telephone-co-v-carley-wis-1927.