STATE EX REL. UTIL. COM'N v. GENERAL TEL. CO.

No. 43.

208 S.E.2d 681 (1974)

285 N.C. 671

STATE of North Carolina ex rel. UTILITIES COMMISSION et al. v. GENERAL TELEPHONE COMPANY OF the SOUTHEAST.

Supreme Court of North Carolina.

October 10, 1974.


Attorney(s) appearing for the Case

Robert Morgan, Atty. Gen., I. Beverly Lake, Jr., Deputy Atty. Gen., and Jerry J. Rutledge, Associate Atty., Raleigh, for the Using and Consuming Public.

Edward B. Hipp, Commission Atty., Maurice W. Horne, Asst. Commission Atty., and John R. Molm, Associate Commission Atty., Raleigh, for North Carolina Utilities Commission.

Claude V. Jones, Durham, for the City of Durham, intervenor.

Ward W. Wueste, Jr., Newsom, Graham, Strayhorn, Hedrick, Murray & Bryson by A. H. Graham, Jr., and K. Byron McCoy, Durham, Power, Jones & Schneider by John Robert Jones and William R. White, Columbus, Ohio, for Gen. Tel. Co. of the Southeast.


LAKE, Justice.

The crucial question upon this appeal is: When, upon substantial evidence, a public utility is found to be rendering grossly inadequate service, due to bad management and managerial indifference, and the rates presently charged by it yield a return sufficient to pay the interest on its indebtedness and a substantial dividend upon its stock, but less than that which would be deemed a fair return upon the fair value of its properties were the service...

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