Southwestern Bell Telephone Co. v. State
| Decision Date | 25 March 1919 |
| Docket Number | 10480. |
| Citation | 181 P. 487,75 Okla. 42,1919 OK 93 |
| Parties | SOUTHWESTERN BELL TELEPHONE CO. v. STATE ex rel. FREELING, Atty. Gen. |
| Court | Oklahoma Supreme Court |
Rehearing Denied June 3, 1919.
Syllabus by the Court.
An injunction against the collection of telephone rates prescribed by the Postmaster General and payable to him for services rendered by a telephone system, in his possession and under his control, and used for the public benefit and welfare as an instrumentality of war under congressional resolution (July 16, 1918, c. 154, 40 Stat. 904 [U. S. Comp St. 1918, § 3115 3/4x, appendix), and proclamation of the President of the United States (July 22, 1918), cannot be granted in an action against the agents of the Postmaster General, carrying out his orders in the operation of such system, as they have no individual interest in the controversy, but the relief is in fact asked against the Postmaster General.
In an action for injunction, where the effect of the decree would be to control the action of the Postmaster General in the operation of a telephone system, in his possession and operated as a governmental agency for the public benefit and welfare in time of war, the Postmaster General is an indispensable party, his agents through whom he directs the operation having no individual interest and being without authority to grant the relief asked for.
Additional Syllabus by Editorial Staff.
In actions of equitable cognizance, the general rule is that all parties materially interested, either legally or beneficially, in subject-matter of suit must be made parties either as plaintiffs or defendants, so that a complete decree may be made binding upon all parties, as unless necessary and indispensable parties are before the court that cannot be done.
Error from District Court, Oklahoma County; Geo. W. Clark, Judge.
Action for injunction by State of Oklahoma, on relation of S. P Freeling, Attorney General, against the Southwestern Bell Telephone Company, a corporation. Judgment for plaintiff, and defendant brings error. Reversed, with directions to dissolve the injunction.
In action to enjoin collection of telephone rates in which effect of relief would be to control action of Postmaster General in operation of telephone system in his possession as a governmental agency and an instrumentality of war, the Postmaster General is an indispensable party; his agents through whom he directs operation having no individual interest or authority to grant such relief.
S. H. Harris, J. R. Spielman, and J. I. Howard, all of Oklahoma City, for plaintiff in error.
John A. Fain, U.S. Atty., of Lawton, for the United States.
S. P. Freeling, Atty. Gen., W. R. Bleakmore, Asst. Atty. Gen., and Paul A. Walker of Oklahoma City, for defendant in error.
This action was brought by the Attorney General in the district court of Oklahoma county, for an injunction to restrain the Southwestern Bell Telephone Company, a corporation, and its managing officers, Pottingill, Nims, Reed, Noble, and Westervelt, from charging or collecting from the people of Oklahoma, for service in the use of the telephone lines of the corporation within the state, any sum or amount in excess of that prescribed and established by the Corporation Commission of the state as set forth in the schedule of rates and charges in its order of February 1, 1918. A temporary injunction was issued, and the Telephone Company appeals to this court.
The Attorney General alleged that the telephone company and the other defendants, officers, and employés of the corporation conformed in all respects to the regulations of the Corporation Commission as to rates established prior to the 21st day of January, 1919; that since that date the employés and officers of the telephone company, in subservience to an order made by the Postmaster General of the United States, have been charging rates for all telephone service other and in excess of the rates fixed by the Corporation Commission. It is alleged that the President of the United States, on July 22, 1918, assumed possession and control of the telephone system of the defendant company, through Postmaster General Burleson, by virtue of a joint resolution of Congress (July 16, 1918, c. 154, 40 Stat. 904 [U. S. Comp. St. 1918, § 3115 3/4 x, appendix]), and ever since said time the defendants claim to have been operating the business and telephone system of the defendant company under the supervision and control of the Postmaster General. It is alleged that the Postmaster General is purporting to act in pursuance to the proclamation of the President made in virtue of the joint resolution of Congress, and, acting as such, has made and promulgated a certain order or bulletin, fixing rates and charges for toll service in the transmission of messages over the telephone system of defendant company between persons and places within the state different from the rates prescribed and established by the Corporation Commission. It is alleged that the defendants, assuming to act as the agents of the Postmaster General and under his direction, will continue to exact these rates for whatever service they render to the citizens of the state unless enjoined from so doing. It is also alleged that all revenues of the telephone company are in the possession and are daily being taken into the possession of the Postmaster General, and such revenues collected from the people of the state are not liable to seizure upon execution, and to seize or restrain any of the property of the defendant company would operate to interfere with the transmission of communications of the national government, and would therefore constitute the use of force beyond the power of the state, and would be an interference with a governmental agency.
The prayer is that the defendants be enjoined from charging or collecting any sum greater or in excess of the amount prescribed by the order and regulation of the Corporation Commission.
The defendants by way of special plea to the jurisdiction of the court pleaded the joint resolution of Congress by the terms of which the President was authorized to take possession and assume control of the telephone system, and to operate the same in such manner as may to him appear to be needful or desirable for the duration of the war; the proclamation of the President taking possession, assuming control and supervision, and directing that such supervision, possession control, and operation should be exercised by and through the Postmaster General, and that such duties imposed upon the Postmaster General should be exercised through the owners, managers, board of directors, officers, and employés of the telephone system until otherwise ordered, not beyond the date of the proclamation of the President of the exchange of ratifications of the treaty of peace; that pursuant to...
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