Board of Commissioners v. New York Tel. Co., 271 U.S. 23 (1926)
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General SummaryThis case is from a collection containing the full text of over 16,000 Supreme Court cases from 1793 to the present. The body of Supreme Court decisions are, effectively, the final interpretation of the Constitution. Only an amendment to the Constitution can permanently overturn an interpretation and this has happened only four times in American history.
Board of Commissioners v. New York Tel. Co., 271 U.S. 23 (1926)
Board of Public Utility Commissioners v. New York Telephone Company No. 567 Argued January 18, 19, 1926 Decided April 12, 1926 271 U.S. 23
APPEAL FROM THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF NEW JERSEY
Syllabus
1. The just compensation safeguarded to a public utility by the Fourteenth Amendment is a reasonable return on the value of the property used at the time that it is being used, for the public service. And rates not sufficient to yield that return are confiscatory. P. 31.
2. Constitutional protection against confiscation does not depend on the source of the money used to purchase property; it is enough that the property is used to render the service. Id.
3. The relation between a public utility and its customers is not that of partners, or agent and principal, or trustee and beneficiary. The amount of money remaining after paying taxes and operating expenses, including the expense of depreciation, is the company’s compensation for the use of its property. Id.
4. The law does not require the company to give up for the benefit of future subscribers any part of its accumulations from past operations. P. 32.
5. Assets of a public utility represented by a credit balance in the reserve for depreciation cannot be used to make up the deficiency in current rates which are not sufficient to yield a just return after paying taxes and operating expenses, including a proper allowance for current depreciation. Id.
Affirmed.
Appeal from a decree of the district court granting a temporary injunction, in a suit by the Telephone Company to restrain the Board of Public Utility Commissioners of New Jersey from enforcing confiscatory rates.
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Chicago: U.S. Supreme Court, "Syllabus," Board of Commissioners v. New York Tel. Co., 271 U.S. 23 (1926) in 271 U.S. 23 271 U.S. 26. Original Sources, accessed November 22, 2024, http://originalsources.com/Document.aspx?DocID=QJDGQMEBUEV4Q98.
MLA: U.S. Supreme Court. "Syllabus." Board of Commissioners v. New York Tel. Co., 271 U.S. 23 (1926), in 271 U.S. 23, page 271 U.S. 26. Original Sources. 22 Nov. 2024. http://originalsources.com/Document.aspx?DocID=QJDGQMEBUEV4Q98.
Harvard: U.S. Supreme Court, 'Syllabus' in Board of Commissioners v. New York Tel. Co., 271 U.S. 23 (1926). cited in 1926, 271 U.S. 23, pp.271 U.S. 26. Original Sources, retrieved 22 November 2024, from http://originalsources.com/Document.aspx?DocID=QJDGQMEBUEV4Q98.
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