The Associated Press v. The Federal Communications Commission and United States of America, American Telephone and Telegraph Co., Intervenor

452 F.2d 1290, 22 Rad. Reg. 2d (P & F) 2210, 146 U.S. App. D.C. 361, 1971 U.S. App. LEXIS 7953
CourtCourt of Appeals for the D.C. Circuit
DecidedSeptember 22, 1971
Docket22860
StatusPublished
Cited by15 cases

This text of 452 F.2d 1290 (The Associated Press v. The Federal Communications Commission and United States of America, American Telephone and Telegraph Co., Intervenor) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
The Associated Press v. The Federal Communications Commission and United States of America, American Telephone and Telegraph Co., Intervenor, 452 F.2d 1290, 22 Rad. Reg. 2d (P & F) 2210, 146 U.S. App. D.C. 361, 1971 U.S. App. LEXIS 7953 (D.C. Cir. 1971).

Opinion

SPOTTSWOOD W. ROBINSON, III, Circuit Judge:

The Associated Press (AP), our petitioner, challenges a memorandum opinion and order of the Federal Communications Commission dismissing AP’s complaint against the American Telephone and Telegraph Company (AT&T), the intervenor, 1 by which AP sought reparations for and other relief from alleged overcharges on seven interstate private line teletypewriter channels leased full-time for the transmission of news information. 2 The questions on our review, 3 as before the Commission, relate to the proper construction and the legality of AT&T’s tariffs setting special press rates for the provision of that service. We uphold the interpretation which the Commission gave the tariffs and its ruling sustaining the lawfulness of the rates.

I

AT&T has for many years marketed private line service in teletypewriter and other forms of communication. 4 Service of that type, by the Commission’s definition, equips subscribers “with the means of continuous communication without the necessity for the carrier to establish connections for each individual call or message.” 5 Prior to 1963, press users disseminating news shared with all other commercial users the same rates for intercity private line teletypewriter channels, and those rates varied with distance and length and hour of use. 6 Part-time service drew a lower rate than full-time, and off-peak service was ratably less expensive than service during peak hours. 7 The full-period rate was $1.45. 8

*1293 In 1956, the Commission launched an extensive investigation — known as the Private Line Case 9 - — into private line services generally. 10 An initial decision in 1961 11 and a final decision in 1963 12 effected drastic changes in the structure and level of rates therefor. The Commission found that the then existing rates for private line telephone and telegraph — including teletypewriter — service did not provide an adequate margin of return, and that the differentials between full- and part-time use and between off-peak and peak-hour use were not justified by the costs of supplying the service. 13 To eliminate those ills, the Commission devised several cures. Higher earnings level for intercity teletypewriter channels were specified. 14 Lower charges for part-time and off-peak channels were scrapped. 15 A single flat rate — $1.10 per mile per month — for full-period channels was set. 16

The Commission’s action drew a strong protest from press users. After' the initial decision, two groups 17 petitioned for reconsideration, alleging that the greater cost of private line teletypewriter service which the new pattern occasioned would impair the distribution of news information. 18 Both petitioners requested retention of the old rates, in lieu of the new, for press users. 19 On reconsideration, the Commission resolved to embark upon a separate investigation to ascertain whether the new rate would inhibit the dissemination of news. 20 The Commission inaugurated the new flat rate for non-press users but continued in force, pending completion of the investigation, the existing variable rates for private line teletypewriter service furnished press users. 21

So it was that in May, 1963, the press rate investigation got under way 22 and on August 1, 1963, AT&T’s new tariffs went into effect. Conformably with the Commission’s decision, the new rate scheme excluded press service. In Tariff No. 134, the term “press,” as a separate classification, was defined, and in Tariff No. 208 two sets of rates for intercity private line teletypewriter channels were established. One, for “Other Than Press,” was the new flat full-period rate; the other, for “Press,” was the preexisting group of variable rates. Later, these and other tariffs were consolidated into and superseded by Tariff No. 260, effective April 17, 1966. The parties are agreed that neither the new omnibus tariff nor any revision of it or its predecessors made any substantive change relevant to this case. 23

*1294 II

The series of events generating this litigation began in October, 1964, when AP applied to AT&T for a lease of 175 intercity private line teletypewriter channels for the carriage of news information. AP sought press rates for 160 of the channels destined for part-time use, and other-than-press rates for the remaining 15, for which full-period use was contemplated. AT&T informed AP that in light of its representation that all channels would transmit news, the press rate was a tariff requirement.

AP responded with an informal complaint 24 to the Commission asserting a privilege to choose other-than-press rates for press channels when cheaper, and urging that AT&T had misinterpreted the tariffs in reaching the opposite conclusion. By a letter ruling, the Commission sustained AT&T’s construction of the tariffs. AP then filed a petition for reconsideration 25 maintaining its earlier position, and later a formal complaint 26 against AT&T in which its thesis was somewhat broadened. The refusal to allow other-than-press rates for channels devoted to full-time press use, it said, was a misinterpretation of the tariffs; alternatively, it argued that application of press rates for full-time channel use, though for news transmission, was unreasonable and unduly discriminatory to the extent that press rates exceeded other-than-press rates. 27 AP requested reparations, based on the excess, for alleged overcharges on seven circuits 28 and related declaratory and injunctive relief. 29

AT&T filed an answer contesting AP’s claims 30 and a motion for judgment.

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Bluebook (online)
452 F.2d 1290, 22 Rad. Reg. 2d (P & F) 2210, 146 U.S. App. D.C. 361, 1971 U.S. App. LEXIS 7953, Counsel Stack Legal Research, https://law.counselstack.com/opinion/the-associated-press-v-the-federal-communications-commission-and-united-cadc-1971.