UNIVERSITY OF CALIFORNIA LOS ANGELES LAW LIBRARY WISCONSIN LIBRARY COMMISSION LEGISLATIVE REFERENCE DEPARTMENT COMPARATIVE LEGISLATION BULLETIN No 16 MADISON WISCONSIN DECEMBER 1008 TELEPHONES INTERCHANGE OF SERVICE LAURA SCOTT COMPARATIVE LEGISLATION BULLETIN No 1ft AUGUST, 1908 Prepared with the co-operation of the Political Science Department of the University of Wisconsin WISCONSIN LIBRARY COMMISSION LEGISLATIVE REFERENCE DBP"T MADISON Wis T CONTENTS REFERENCES 4 METHODS OF ENACTMENT 5 Constitutional 5 Legislative 5 HISTORY OF INTERCHANGE OF SERVICE 6 Foreign countries 6 United States 8 LAWS AND JUDICIAL DECISIONS 9 Foreign 9 United States - 10 Transmission of messages 10 Physical connection 13 SALIENT FEATURES 18 Jurisdiction 18 People 18 Legislature 18 Compulsory interchange 19 Optional interchange 19 Application for interchange of service 19 Expense of connection 20 REFERENCES BENNETT, A. It. The telephone systems of the continent of Europe. 1895. Comparative discussion of the services and the general opera- tion of the telephone systems of Europe. BURGESS, WALTER. Report on the foreign situation before the special telephone commission of the Chicago city council. April 3, 1907. CANADA. Select committee on telephone systems, 1905, 2 vols. Contains minutes of proceeding's; minutes of evidence; interior reports; synopsis of exhibits. CARMICHAEL, E. G. M. Law of the telegraph, telephone and submarine cable. England, 1904. Contains the law of England relating to telephones and the agreements existing between the National telephone company and the Postmaster General of England. CHICAGO. Report of special telephone commission to the city council of Chicago. 1907. Discussion of interchange of service between telephone com- panies. CINCINNATI, (OHIO). Committee's report and action in coun- cil in Cincinnati case. 1906. Contains^ report of committee of city council of Cincinnat on telephones, telegraphs and conduits. JONES, S. W. Treatise on the law of telegraph and tele- phone companies. 1906. UNITED STATES. Department of Commerce and Labor. Monthly consular and trade reports. March, 1907. p. 1983-4. METHODS OF ENACTMENT Interchange of service between telephone com- panies has been required by constitutional and legis- lative enactments. Constitutional Many of the states allow or require interchange of service between telephone companies by provisions in the constitution. Compare the constitutional provisions of Alabama, Const. 1901, sec. 239; Idaho, Const. 1888, art. 11, sec. 13: Kentucky, Const. 1891, sec. 199: Montana, Const, 1888, art, 25, sec. 14; Oklahoma, Const, 1907, art. 9, sec. 5: Washington, Const. 1888, art. 12, sec. 19. Legislative The legislature in some of the states and provinces requires interchange of service between telephone companies by direct enactment or by delegating the power to require such interchange to an administra- tive commission or board. Compare the laws of Connecticut, Gen. St. 1902, sec. 3912; Indiana, Rev. St. 1901. sec. 5529: Louisiana, laws of 1904, p. 28: Maine, Rev. St. 1903, c. 55. sec. 12: Maryland, Code of public and general laws, 1904. art. 23, sec. 336: Missouri. Ann. St. 1906. sec. 1255: Montana, Civil Code. 1895. sec. 1001; New York, laws of 1890, c. 566, art, 8, sec. 103: Ohio, Bates Ann. Rev. St. 1787-1906, sec. 3462, sec. 3471: South Carolina, laws of 1904, p. 496: South Dakota, laws of 1907, c. 239: Texas, laws of 1907, p. 462-3: Vermont, St. 1894, sec. 4257: Virginia, laws of 190(5. c. 310, sec. 2: Saskatchewan (Canada), laws of" 1908. c. 6, sec. 17, 18 and c. 7, sec. 14. 15. TELEPHONES HISTORY OF INTERCHANGE OF SERVICE JToreign countries In most of the foreign countries the telephone "system is owned and operated by the government and : there is intercommunication on the entire system. England?- The government owns the trunk lines and private or municipal corporations own the local exchanges. An agreement exists between the Post- master General and the National Telephone company which provides for the intercommunication between 'the two systems. The trunks for connecting the ex- changes are provided by the Postmaster General, the wires of the postoffice extending to the wall of the building in which the exchange of the National Telephone company is situated. Italy. 2 The government owns the trunk lines and c6nnects private systems. The telephone system of the Scieta Telefonica per I'Alta Italia, which con- trols several companies in upper Italy, connects with the national and the Swiss government lines. 1 Report of Walter Burg-ess on the foreign situation, before the special telephone commission of the Chicago city council. April 3. 1907. *".''! ML S. Department of commerce and labor. Monthly consular and trade reports. March. 1907. p. 183-4. TELEPHONES 7 The telephone systems in Sweden are principally government owned, but there are a few sys- tems privately owned, similar to co-operative systems in the United States. There is, however, one large pri- vate company in Stockholm which controls the systems of the Bell Telephone company of Stockholm and the Stockholm General Telephone company. Both com- panies operate in conjunction and are practically one system. In 1889 the government built an exchange in Stockholm and began active competition with the private company. Intercommunication was given be- tween the private and the government systems until 1903, for which a charge was made of 2.7 cents per message. In 1903 difficulty arose as to the charge for such connection. The goverment wished to reduce the price and the company desired to retain the charge as it then existed. The question became very acute and re- sulted in the discontinuance of the intercommunica- tion. The city authorities refused further grants of rights of way to either company until the connec- tion was renewed. As the result of the controversy and the great demand brought to bear by the public the- companies established an "Exchange Bureau," each: company renting a phone of the other and employ- ing an operator to transmit each other's messages for which the goverment made a charge of 1.37 cents and the private company 2.7 cents per message which rates correspond with the pay station rates, of each 1 ReiK>rt of Walter Bursresson the foreign situation, before the siieoial telephone commission of the Chicago city council. April 3. 1W. 8 TELEPHONES company respectively, for a three minute conversa- tion. United States Interchange of service by telephone companies is accomplished either by the transmission of each other's messages or by actual physical connection of their respective lines. Interchange of service in the toll traffic has been furnished for many years whenever satisfactory con- tracts could be entered into by noncompetitive com- panies. Compulsory interchange between competitive as well as noncompetitive companies has been agitated for the last ten years, or practically ever since the ap- pearance of competition in the telephone field. As early as 1897 a bill (No. 357 S.) was intro- duced in the Wisconsin legislature requiring toll companies to furnish connection with their toll lines to local exchange companies. Since that time bills requiring such connections and also connections be- tween local exchanges of competitive companies have been introduced every regular session of the Wiscon- sin legislature. Many of the other states have had the same exper- ience. Bills have been introduced in Illinois, Michi- gan, Missouri, Mississippi, Montana, New Jersey, New York, Ohio, Oklahoma, South Dakota and Texas. TELEPHONES LAWS AND JUDICIAL DECISIONS Foreign countries Saskatchewan (Canada), laws of 1908, c. 6, sec. 17. Every municipal council has power to enter into any agreement or agreements with any person con- trolling, owning or operating any private, foreign, rural or other telephone system for the purpose of providing for connection, intercommunication, joint operation, reciprocal use or transmission of business as between any such system and any municipal tele- phone system and make such arrangements as are deemed advisable for the proper apportionment of expenditures and commissidns, the division of re- ceipts and profits, payment of compensation or such other adjustments as may be necessary under any such agreement. sec. 18. In case for any cause any person control- ing, owning or operating any private or rural tele- phone system refuses, fails or neglects to enter into an agreement with a municipal council for any or all of the purposes mentioned in section 17 the coun- cil reports the matter to the commissioner of rail- ways, telegraphs and telephones, who has power to take all steps necessary or expedient to provide there- for upon such terms and conditions as may be deter- mined by him. 10 TELEPHONES c. 7, sec. 13, 14. The same provisions are made in regard to the interchange of service between rural systems as are made by chapter 6 in regard to the interchange of service between municipal companies and rural companies. England. 62 and 63 Viet., c. 38, sec. 5. If the license of an existing company is, under the provision of this section, extended in respect of any exchange area for a period of not less than ten years beyond the term existing at the passing of this act (1899), the company is required, at the request of any other licensee of the Postmaster General under circum- stances and on such terms and conditions as may be prescribed by the Postmaster General, to furnish proper facilities for the transmission of messages from the patrons of one system to the patrons "on another. United States Transmission of messages Connecticut. Gen. St. 1902, sec. 3912. Requires telephone companies to receive dispatches for any other telephone company and transmit them in the order received on payment of their usual charge. Penalty for violation $100 for every neglect so to do, Kentucky. Const. 1891, sec. 199. Requires tele- phone companies operating exchanges in different towns or cities or other public stations to receive and transmit each other's messages without reasonable delay or discrimination. Louisiana. Laws of 1904, p. 28. The railroad TELEPHONES 11 commission has power to require all telephone com- panies upon demand of any person to attach and make joint rates for the transmission of messages by telephone between all points in the state but a telephone company is not required to connect its wires and apparatus with the wires and apparatus of another company. Missouri. Ann. St. 1906, sec. 1255. Telephone companies are required to receive and transmit dis- patches for other companies under a penalty of $200. sec. 1256. When a person sending the dispatch desires to have it forwarded over the lines of other telephone companies, whose termini are respectively within the limits of the usual delivery of such com- panies, to the place of final destination and tenders to the first company the amount of the usual charges for the distance to the place of final delivery, it is the duty of the company to receive the same and without delaying the dispatch, to pay to the suc- ceeding line the necessary charges for the remain- ing distance. It is the duty of the succeeding line or lines to receive the same and forward the dis- patch in the same manner as if the person sending the same had applied in person to the agent of such line or lines and paid to him the usual charges. A company must have refused to transmit a written dis- patch. It is not liable to the penalty for the refusal to place party in direct personal connection with another over its tele- phone system. Pollard v. Missouri and K. Telephone Com- pany (1905), 90 S. W. 121. New York. La ws 18 9Q, c . 566, art. 8, sec. 103. Requires every telephone corporation to receive and 12 TELEPHONES transmit dispatches from and for .other telephone corporations. A reasonable construction of this statute does not require one telephone company to supply connections with its system to another company so that the latter may utilize the con- nected system as a part of its own and transmit thereover its own messages on payment of the merely nominal sum required of ordinary subscribers. People ex rel. Postal Tel. Cable Co. v. Hudson River Tel., (1887), 19 Abb. N. C. 466. Ohio. Bates Ann. Rev. St. 1787-1906. sec. 3462. Requires every company operating a telegraph line to receive dispatches from and for other telephone com- panies. sec. 3471. The provision of the statutes relating to telegraph companies applies to telephone companies. Virginia. Laws of 1906, c. 310, sec. 2. It is the duty of every telephone company doing the business of transmitting and receiving messages for compen- sation in this state to transmit dispatches and mes- sages from and for every telephone company upon the payment of the established charges therefor, under a forfeiture- of $100 for a refusal to the per- son wishing to send such message. Washington. Const. 1888, art. 12, sec. 19. Any association or corporation organized for the purpose, or any individual may have the right to construct and maintain line of telegraph and telephone within the state. Such companies are required to receive and transmit each other's messages without delay or dis- crimination. This provision of the constitution is not self executing. State v. City of Spokane, (1901), 63 Pac. 1116. TELEPHONES 13 Physical connection Alabama. Const. 1901, sec. 239. Telephone com- panies shall have the right to construct and maintain lines of telephone within this state and connect the same with other lines. Idaho. Const. 1888, art. 11, sec. 13. Any tele- phone company shall have the right to connect its line of telephone with other lines and l the legisla- ture shall by general law of unifofm operation provide reasonable regulations to give full effect to this sec- tion. Indiana. R ev . St. 1901, sec. 5529. Requires every telephone company to supply all applicants for the telephone connections and facilities with such con- nections without discrimination against any individ- ual or company engaged in the same business by re- quiring as a condition for furnishing such facilities that they shall not be used in the business of the ap- plicant. Telephone companies are required not only to furnish a telephone instrument and connections but also facilities to use such instrument. Central Union Telephone Co. v. Fehr- In?, 1896, 140 Ind. 189. Maine. R ev . St. 1903, c. 55, sec. 12. Requires every corporation operating a telephone line within the state to allow any other telephone corporation con- nection between such lines upon the same rates as charged for the same distances upon the lines of the corporation so connecting and the same charges for the use of telephone exchanges as for the patrons of such corporations. Maryland. Code of Public and General Laws of 14 TELEPHONES 1904, art. 23, sec. 33G. Requires every telephone company engaged in the general telephone business to supply all applicants for telephone connections and facilities with such connections and facilities without discrimination ; nor shall such companies discriminate against any individual or company engaged in the same business by requiring as a condition for furnish- ing such facilities that they shall not be used in the business of the applicant or otherwise for any law- ful purpose. Montana. Const. 1888, art. 25, sec. 14. Telephone companies have the right to connect their lines of telephone with other lines of telephone within the state and the legislature shall by law of uniform operation provide reasonable regulation to give full effect to this section. Civil Code, 1895, sec. 1001. Telephone companies have the right to connect their respective lines with other lines and in case such corporations cannot agree as to the compensation to be paid for the privilege of connection, the acquiring of the right by the one to use the line of the other, may be had in proceedings under the Code of Civil Procedure and the damages assessed and the right of connection granted as pro- vided in the Code of Civil Procedure. Under the Montana constitution and statutes a telephone company is compelled to furnish physical connection and the use of its line to any other telephone company. If no agree- ment is reached the damages must be assessed as provided under Code of Civil Procedure, sec. 2220. Billings Mutual Tel. Co. v. Rocky Mountain Bell Tel. Co., (1907), 155 Fed. 207. Oklahoma. Const. 1907, art. 9, sec. 5. All telephone companies operated for hire shall transmit each other's TELEPHONES 15 messages and make physical connections with each other's lines under such rules and regulations as may be prescribed by law or by any commission created by this constitution, or any act of the legislature for that purpose. Since the adoption of the constitution the telephone com- panies are complying with this provision and the corporation commission which has the power to regulate telephone com- panies has not found it necessary to make any order prescrib- ing- rules and regulations regarding physical connection. South Carolina. Laws of 1904, p. 496. The railroad commission has the power to require reasonable con- nections to be made and maintained when practicable between the lines, stations or exchanges of telephone companies and the lines or stations of private individ- uals, firms or corporations desiring such connections and fix and regulate tolls and charges therefor. South Dakota. Laws of 1907, c. 239, sec. 8. The board of telephone commissioners have jurisdiction to compel the connection of different telephone lines in the state of South Dakota and any company so desir- ing is to make application to the board of telephone commissioners. If the commission after investigation determine public convenience demands such connec- tion and the lines of the applicant are in proper con- dition, the commission shall order such connection to be made and shall apportion the expense thereof, pro- vided no toll wire used exclusively for through busi- ness shall be compelled to connect except at its termi- nal points. Where the applicant is a competing com- pany, no company shall be compelled to connect to 16 TELEPHONES furnish service to points where its own lines run and where it can furnish the service itself. sec. 9. Every telephone company whenever re- quired by the board of telephone commissioners shall connect its lines with the lines of any other -telephone company doing business in the same vicinity and shall furnish all reasonable and proper facilities for the exchange and switching of messages between such lines for a reasonable compensation and without dis- crimination and under such rules and regulations as the board of telephone commissioners may prescribe. Texas. Laws of 1907, p. 462-3. Requires all tele- phone companies doing business in the state to make physical connections between their toll lines at com- mon points for the transmission of messages or con- versation from one line to another. Such connection to be made through the switchboard of such companies so that the persons so desiring may converse from points on one of such lines to points on another. sec. 4. The city council or commissioner's court of any city shall upon the application of 100 resident citizens, or upon its own motion, hear such evidence as they think necessary, and determine whether or not it would be necessary for public convenience and just to the telephone companies to make such connection, whereupon they shall enter on record their findings and shall set out in such order the conditions upon which such arangements shall be made and shall de- cide what proportion of the expense of such connec- tion shall be paid by each company. sec. 5. Any company failing to so connect forfeits TELEPHONES 17 to the state $10 for each day they so neglect, the penalty not to be operative against a company which is prevented from making connections through the fault or omission of another company so long as such fault or omission shall cause such failure on its part to so connect. Right of appeal to the court having jurisdiction is provided. Vermont. St. 1894, sec. 4255. Requires a telephone company receiving a message directed to any person off from such company's lines, if such person resides on the line of another telephone company, to transmit such message to such other company's line to be by it transmitted to the place of destination, if both com- panies have offices in the same village or city in this state. No extra charge shall be made for said trans- fer within the usual limits of delivering messages in said city or village and the company receiving the same shall make no extra charge for an additional date construed by them to be necessary because of the transfer. sec. 4257. A person or corporation owning or operating a telephone exchange or service in this state is required on application of a telephone company to furnish such company with the use of a telephone or telephones and telephone service and connection with the respective exchanges and the subscribers using them upon reasonable terms without discriminating be- tween telegraph or telephone companies as to the con- nection, service or use of instruments furnished and charges made. 18 TELEPHONES SALIENT FEATURES The requirements for interchange of service by the transmission of each other's messages or by actual physical connection of the respective systems in most states are very general. Montana, South Dakota and Texas have enacted laws which enter more into detail. Jurisdiction People. In Montana, Oklahoma, Idaho, Kentucky and Washington the people have retained jurisdiction by requiring interchange of service under constitu- tional provisions. See Montana, Const. 1888, art. 25, sec. 14: Oklahoma, Const. 1907, art. 9, sec. 5; Idaho, Const. 1888, art. 11, sec. 12; Kentucky, Const. 1891, sec. 199; Washington, Const, 1888, art. 12, sec. 19. Legislature. In states where there is no constitu- tional provision requiring interchange of service the legislature has exercised jurisdiction by direct re- quirement or by delegating the power to require such service to an administrative body, such as telephone commission, railroad commission, corporation commis- sion or municipal authority. Telephone commission. South Dakota, laws of 1907, c. 239 sec. 8. Railroad Commission. Louisiana, laws of 1904. p. 28: South Carolina, laws of 1904, p. 496. Corporation commission. Oklahoma, Const. 1907, art. 9, ;sec. 5. Municipal authority. Texas, laws of 1907, p. 402-3. TELEPHONES 19 Compulsory interchange In some of the states telephone companies are com- pelled to furnish interchange of service. By '*tatute*. See Connecticut, Gen. St. 1902, sec. 3912; Ohio, Bates, Ann. Rev. St. 1787-1900, sec. 3462, 3471: Oklaho- ma, Const. 1907, art. 9, sec. 5; Kentucky, Const, 1891. sec. 199; Missouri, Ann. St., 1906, sec. 1255; *Xew York, laws of 1890, c. 566, art. 8, sec. 103: Saskatchewan (Canada), laws of 1908, c. 6, sec. 17, 18 and c. 7, sec. 13, 14; Vermont, St. 1894, sec. 4257; Virginia, laws of 1906, c. 310, sec. 2. By administrative body. See Louisiana, laws of 1904. p. 28: South Carolina, laws of 1904, p. 496: South Dakota, laws of 1907, c. 239. Optional interchange In many states the interchange of service is optional. See Alabama, Const. 1901, sec. 239: Idaho, Const. 1888, art, 11, sec. 13; Indiana, Rev. St. 1901, sec. 5529; Maine, Rev. St. 1903, c. 55, sec. 12; Maryland, code of public and general laws, 1904, art, 23, sec. 336: Montana, Const, 1888. art. 25, sec. 14, St. Civil Code, 1895, sec. 1001. Application for interchange of service Telephone company. The application must come from a telephone company desiring interchange of service in many of the states. See Alabama, Const. 1901, sec. 239; Idaho, Const, 1888, art. 11, sec. 13; Indiana, Rev. St. 190i, sec. 5529; Maine, Rev. St. 1903, c. 55, sec. 12; Maryland, Code of public and general laws, 1904, art. 23, sec. 336; Montana, Const. 1888, art. 25, sec. 14, St. Civil Code, 1895, sec. 1001; Saskatchewan, (Can- ada), laws of 1908, c. 6, sec. 17, 18 and c. 7. sec. 13, 14: South Dakota, laws of 1907, c. 239. Citizens or municipal authority. In Texas the municipal authority upon its own motion or upon the application of 100 resident citizens must determine the 20 TELEPHONES necessity and justice of the physical connection for which application is made. See Texas, laws of 1907, p. 462-3. Expense of connection Special commission. In Montana, in case the com- panies cannot agree, the expense of connection is as- sessed by a commission appointed by the court as provided in eminent domain proceedings, under the code of civil procedure. See Montana, Civil Code, 1895, sec. 1001. Telephone commission. In Saskatchewan (Canada) and in South Dakota the telephone commissioners ap- portion the expense between the connected companies. See Saskatchewan, laws of 1908, c. 6, sec. 17, 18 and c. 7, sec. 14, 15; South Dakota, laws of 1907, c. 474. Railroad commission or corporation commission. In South Carolina the railroad commission and in Oklahoma the corporation commission apportion the cost of the connection. See South Carolina, laws of 1904, p. 496; Oklahoma, Const. 1907, art. 9, sec. 5. Municipal authority. In Texas the city council or commissioners court of any city decides what propor- tion of the expense of the connection is to be paid by each company. See Texas, laws of 1907, p. 462-3.