Louisville v. Cumberland Tel. & Tel. Co. - 225 U.S. 430 (1912)
U.S. Supreme Court
Louisville v. Cumberland Tel. & Tel. Co., 225 U.S. 430 (1912)
Louisville v. Cumberland Telephone & Telegraph Company
Argued March 7, 8, 1912
Decided June 7, 1912
225 U.S. 430
Quaere, and not determined, whether an ordinance cutting the earning of a telephone company down to six percent per annum would, under the circumstance of this case be confiscatory and unconstitutional under the Fourteenth Amendment.
This Court requires clear evidence before it will declare legislation, otherwise valid, to be void as an unconstitutional taking of property by reason of establishing rates that are confiscatory.
In this case, the evidence is not sufficient to justify enjoining enforcement of an ordinance fixing rates of a telephone company, and the decree granting an injunction is reversed, but without prejudice.
The facts, which involve the question of whether an ordinance of the City of Louisville fixing rates for telephone service in that city was unconstitutional as confiscatory of the property of the companies, are stated in the opinion.