Mitchell v. Public Service Commission
Mitchell v. Public Service Commission
Opinion of the Court
Opinion by
The Constitution of this State provides (article XVI, section 12) : “No telegraph company, shall consolidate with, or hold a controlling interest in the stock or bonds of any other telegraph company owning a competing line, or acquire, by purchase or otherwise, any other competing line of telegraph.”
It was decided in the case of Cochranton Telephone Co. v. P. S. C., 263 Pa. 506 (affirming 70 Pa. Superior Ct. 212), that a corporation chartered as a telegraph company but doing only a telephone business could not purchase the lines or stock and franchises of a competing corporation likewise chartered as a telegraph company but doing only a telephone business. The decision rested on the ground that under the then subsisting statutes of Pennsylvania, a telephone company being nothing more nor less than a telegraph company was perforce subject
The legislature of 1919, however, made a new departure. It passed an act for the incorporation of telephone companies and made provision for the acceptance of its provisions by corporations already engaged in the furnishing of telephone service, that is, by telegraph companies actually doing a telephone business; and it was further provided that telephone companies incorporated under said act or having become such by accepting its provisions might with the approval of the Public Service Commission, acquire the lines or capital stock and franchises of other such telephone companies even though they competed in business. See Act of July 22, 1919, P. L. 1128.
The constitutionality of that act was passed upon in Shaffer v. P. S. C., 268 Pa. 456, and it was held that as corporations incorporated as telephone companies, or which had become such by accepting the provisions of the Act of 1919 and formally surrendering their powers as telegraph companies, were telephone companies and not telegraph companies, the constitutional provisions relative to telegraph companies did not apply to them, and the purchase of one such telephone company by another and competing one, both having surrendered all their chartered powers as telegraph companies, was de:clared valid and legal, provided the Public Service Commission formally approved the same and granted its cer
The Act of May 20,1921, P. L. 949, goes a step further. It in effect provides that subject to the approval of the Public Service Commission a telephone company whether incorporated as such or having become such by accepting the provisions of the Act of 1919, supra, and surrendering its powers as a telegraph company, may acquire the capital stock, franchises and lines of a telegraph company incorporated prior to July 22,1919, and engaged in the business of furnishing telephone and telegraph service, or either, but which has not accepted the provisions of the Act of 1919, aforesaid, whether Or not they are competitors in business; and also the converse, that a corporation formed prior to July 22,1919, and engaged in the business of furnishing telephone and telegraph service, or either, subject to the approval of the Public Service Commission may acquire the capital stock, franchises and lines of a telephone ’company, incorporated as such , or having become such by accepting the provisions of the Act of 1919 and surrendering all its powers as a telegraph company.
This appeal questions the constitutionality of this act. The Bell Telephone Company of Pennsylvania is a telegraph company organized under the Act of 1874, prior to July 22, 1919, engaged in the business of furnishing telephone and telegraph service, which has not accepted the provisions of the Act of July 22, 1919, supra. The Pittsburgh & Allegheny Telephone Co. is a telephone company, which has become such by accepting the próvisions of the Act of 1919 and surrendering all its powers as a telegraph company. They are competitors in the telephone business. The Public Service Commission has approved the purchase and granted its certificate of public convenience. The Act of 1921 expressly authorizes it. Does the constitutional provision above quoted forbid it?
The situation must be considered just as if the Pittsburgh & Allegheny Company never had been incorporated as a telegraph company but1 had been chartered as a telephone company by legislative authority and always existed as such. In the absence of proof that there is no essential difference between a telegraph company and a telephone company, which is wholly lacking here — and see Shaffer v. P. S. C., 74 Pa. Superior Ct. 597, 603,— there is no constitutional objection to. the legislature permitting a telegraph company to buy a competing telephone line, or a telephone company to buy a competing telegraph line, any more than there is against a telephone company buying a competing telephone line. We cannot write the word, telephone, into article XVI, section 12 of the Constitution.
Appellant is concerned lest by this procedure, one telegraph company actually engaged in the telegraph business may purchase or acquire a competing telegraph line, by having the latter accept the provisions of the Act of July 22, 1919, become a telephone company and then
The appeal is dismissed and the order of the commission is affirmed at the costs of the appellant.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.