BEFORE THE FEDERAL COMMUNICATIONS COMMISSION In the Matter of WASHINGTON, D. C. CLASSIFICATION OF TELEPHONE COMPANIES DOCKET No. 2809. (SEC. 2 (b) (2)). Submitted March 25, 1935. Decided September 18, 1935 1. Every wire telephone carrier owning, maintaining, or operating a toll line which crosses a state or national boundary is subject to all the provisions of the Communications Act of 1934. 2. A wire telephone carrier which neither demands nor receives any charge, compensation, or commission on interstate communications or service is not subject to the Act. 3. Every wire telephone carrier with one or more exchanges, or one or more toll lines within a single state, participating in interstate communication by physical connection with another wire telephone carrier within the same state, is subject to Sections 201 to 205 only of the Act, except when the matter of control referred to in Section 2 (b) (2) of the Act is involved. 4. The phrase "directly or indirectly controlling or controlled by, or under direct or indirect common control with" as used in Section 2 (b) (2) of the Act contemplates a mixed question of fact and law to be determined in each case heard and considered by the Commission. Paul D. P. Spearman, Frank Roberson, and Albert E. Stephan on behalf of the Federal Communications Commission; John E. Benton on behalf of National Association of Railroad and Utilities Commissioners; Alvin C. Reis on behalf of Public Service Commission of Wisconsin; Alfred L. Geiger on behalf of U. S. Independent Telephone Association; John P. Boylan and T. Carl Nixon on behalf of Rochester Telephone Corporation; J. G. Ihmsen on behalf of UpState Telephone Association of New York; F. B. MacKinnon; E. C. Bloomyer on behalf of U. S. Independent Telephone Assn; Louis Pitcher on behalf of Illinois Telephone Association and Dixon Home Telephone Co.; Frank E. Bohn on behalf of The Home Tel. & Tel. Co. and Indiana Telephone Assn.; L. E. Durham and J. L. Milligan on behalf of Missouri Telephone Co. et al.; J. H. Agee on behalf of Lincoln Telephone & Telegraph Co.; Curtis M. Shelter on behalf of The Lima Telephone & Telegraph Co.; Frank C. Dunbar on behalf of Ohio Standard Telephone Company, Lorain Telephone Com pany, and Champaign Telephone Company; Frank A. Knapp, C. L. Jones, Frank L. McKinney, Herman E. Hageman, and A. V. Hageman on behalf of Ohio Independent Telephone Assn.; J. W. Ealton on behalf of Oklahoma Telephone Co. and Oklahoma Utilities Assn.; B. L. Fisher on behalf of Lee Telephone Co., N. C. State Telephone Assn., and Virginia State Telephone Assn.; G. Fred Switzer on behalf of Harrisonburg Mutual Telephone Co. and Virginia Independent Telephone Assn.; W. N. McAnge, Jr., on behalf of InterMountain Telephone Co. BY THE COMMISSION: REPORT TELEPHONE DIVISION, Commissioners Walker, Chairman, Brown, and Prall. By notice given February 28, 1935, the Telephone Division has had under consideration: the matter of jurisdiction of the Commission under the Communications Act of 1934 over telephone companies engaged in the business of wire telephone communication; and particularly the application of Sec. 2 (b) (2) of the Act. Many telephone carriers claiming exemption from the jurisdiction of the Commission, except as to Sections 201-205 of the Communications Act of 1934, requested of the Commission an opportunity to present arguments in support of their construction of Section 2 (b) (2) of the Communications Act; and the Commission placed this matter on the docket "for the purpose of hearing arguments by such telephone companies claiming exemption under 2 (b) (2) of the Act and any State regulatory commission desiring to be heard." Briefs were filed and oral arguments were heard on behalf of all parties requesting to be heard. Section 2 of the Communications Act of 1934 provides: (a) The provisions of this Act shall apply to all interstate and foreign communication by wire (b) * * * nothing in this Act shall be construed to apply or to give the Commission jurisdiction with respect to (1) charges, classifications, practices, services, facilities, or regulations for or in connection with intrastate communication service of any carrier, or (2) any carrier engaged in interstate or foreign communication solely through physical connection with the facilities of another carrier not directly or indirectly controlling or controlled by, or under direct or indirect common control with, such carrier; except that sections 201 to 205 of this Act, both inclusive, shall, except as otherwise provided therein, apply to carriers described in clause (2). Section 3 (u) provides that for the purpose of the Act, unless the context otherwise requires: "Connecting carrier" means a carrier described in clause (2) of section 2 (b). |