Gilman v. Somerset Farmers Co-Operative Telephone Co.

151 A. 440, 129 Me. 243, 1930 Me. LEXIS 68
CourtSupreme Judicial Court of Maine
DecidedJuly 26, 1930
StatusPublished
Cited by18 cases

This text of 151 A. 440 (Gilman v. Somerset Farmers Co-Operative Telephone Co.) is published on Counsel Stack Legal Research, covering Supreme Judicial Court of Maine primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gilman v. Somerset Farmers Co-Operative Telephone Co., 151 A. 440, 129 Me. 243, 1930 Me. LEXIS 68 (Me. 1930).

Opinion

Dunn, J.

Upon complaint and after notice and hearing, the Public Utilities Commission ordered and required a physical connection of the lines of the Maine Telephone and Telegraph Company and those of the Somerset Farmers Co-Operative Telephone Company, in localities where both maintain exchanges, to afford public telephone service, beyond the reach of either line alone, chiefly for other than local conversations.

The Commission also required the transfer of messages from the lines of the Maine Company to those of the Somerset Company, and vice versa, “at the point of connection nearest the origin of the call.”

[245]*245The Maine Company, to abbreviate its name for convenience of expression, noted ten exceptions. By agreement of the parties, the exceptions are here on certification. R. S., Chap. 55, Sec. 55.

The exceptions may be readily grouped into three classes. In the first class is a single exception. This exception attacks the jurisdiction of the Commission on the ground that the Somerset Company is not a public utility. Exceptions in the next class assert findings of fact to be unsupported by any substantial evidence. In the third class, exceptions allege that the requirement, respecting the transfer of messages, exceeds the delegation of regulatory power.

The statute, R. S., Chap. 55, Sec. 41, enacted in 1913, conferring on the Commission jurisdiction over public utilities of this kind, is as follows:

“Whenever the commission, after a hearing had upon its own motion or upon complaint, shall find that a physical connection can reasonably be made between the lines of two or more telephone companies . . . whose lines can be made to form a continuous line of communication, by the construction and maintenance of suitable connections, for the transfer of messages or conversations, and that public convenience and necessity will be subserved thereby, . . . the commission may, by its .order, require that such connection be made, except where the purpose of such connection is primarily to secure the transmission of local messages or conversations between points within the same city or town, and that conversations be transmitted and messages transferred over such connection under such rules and regulations as the commission may establish . . .”

The Maine Company, the brief of its counsel concedes, is a public utility.

The Somerset Company, so to refer to it, was incorporated in 1904, under the general incorporation laws of this State, to establish telephone lines on the public highways in the towns of Somerset county.

Without quoting verbatim the wording of the certificate of organization, the principal corporate purpose is to facilitate tele[246]*246phonic communication by and between residents in the farming districts,to whom service shall be at cost.

The corporation owns and operates eleven central offices, or exchanges, through which, in an area comprising twenty-three towns and plantations, flat-rate telephone service, and no other, is, in conformity to a by-law of the corporation, furnished stockholders only.

Each service user provides the facilities from the street to his premises, and together the users pay the company an amount sufficient to cover upkeep and operating expenses. The by-law restricts a user to not more than two telephones. Nine hundred and twenty-five is the approximate number of telephones in use. The stretch of wire is, in round numbers, one thousand miles.

The Somerset Company also operates pay stations, open to the general public, under a schedule of toll rates, filed, as are the other schedules of the company, with the Public Utilities Commission. Of gross annual receipts averaging, it is accurate enough to say, $18,000, approximately one-eighth is from the pay stations.

Is the Somerset Company a public utility?

To the consideration of this question this opinion, after recitals to make the whole outline of the case visible, will return.

In Skowhegan and Madison, the only two Somerset county towns where the Maine competes with the Somerset Company, the former has upwards of fifteen hundred subscribers.

The Maine Company also owns and operates toll lines reaching from town to town within, and even beyond, Somerset county. And, by arrangement with the New England Telephone and Telegraph Company (the New England being of the Bell system), the Maine Company furnishes connection to the telephone world.

In 1926, the Maine and Somerset companies entered into a joint traffic agreement, terminable by either party on notice to the other.

On one day in 1928, the Somerset Company had notification that, eight days later, the Maine Company would cancel the agreement. Not to inconvenience the public, ran the notice, the Maine Company would continue interchanging traffic, but on different terms. Actual severance'6f the connected lines was by the Somerset Company, an February 10,1929.

[247]*247The complaint bears date February 11, 1929.

Many, perhaps all, of the twenty-six complainants, were then users of the Somerset service.

To return to the question whether, within the meaning of the statutes, the Somerset Company is a public utility, the statutes make every person, natural or artificial, owning, conducting, operating, or managing a telephone line for compensation, a telephone company, and every such telephone company, a public utility. R. S., Chap. 55, Sec. 15.

The test, then, as to whether telephone service is being furnished by a public utility, is whether the owner or. operator, furnishing the service, has a right to transmit, and is ready to transmit, conversations and messages, not necessarily for the benefit of the whole public, or even a large part thereof, but to all persons similarly situated, without partiality or unreasonable discrimination, in equality of right, to the extent that capacity may admit of use, for compensation.

Whether, in a legal sense, the term, “compensation,” of the statute, and the word, “cost,” used in the by-law, are in meaning not the same, it is unnecessary to decide, because decision of this case turns on another hinge.

It may, indeed, be that, merely in serving-its stockholders “at cost,” the Somerset Company is not a public utility.

But, alone, this would not preclude furnishing service as a public utility.

In affording, not in main corporate purpose, but, nevertheless, in corporate purpose, means for telephonic communication from pay stations, and inviting the general public to use such stations, under an established schedule of toll rates, the Somerset Company has impressed its property by a public use, and, in consequence thereof, its business, certainly in such regard, is that of a public utility.

What a telephone company does, not what its by-law says, neither affirmative provision of the corporate charter nor other provision of law prohibiting, is the important thing. Terminal Taxicab Company v. Kutz, 241 U. S., 252, 60 Law. ed., 984.

[248]

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Bluebook (online)
151 A. 440, 129 Me. 243, 1930 Me. LEXIS 68, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gilman-v-somerset-farmers-co-operative-telephone-co-me-1930.