In the Matter of Best Re-Manufacturing Co., Debtor. Don Rothman, Receiver v. The Pacific Telephone and Telegraph Company

The question here presented is whether, in arrangement proceedings under Chapter XI of the Bankruptcy Act (§§ 301-399), 11 U.S.C. 701-799, Pacific Telephone and Telegraph Company can summarily be ordered to provide service to the receiver under the telephone number currently being used by the debtor. The Referee refused to enter such an order and, on petition for review, the District Court affirmed. This appeal was then taken. We affirm.

The Telephone Company is perfectly willing to provide service to the debtor under a new number and has, indeed, submitted without opposition to an order that it do so. It rebels, however, against having to provide service under the old number until satisfactory arrangements have been made for taking care of sums owing to it by the debtor.

Rules and regulations respecting the telephone company as filed with the Public Utilities Commission of the State of California support the telephone company. They deal with conditions under which a new customer (here the receiver) may “supersede the service of a subscriber discontinuing that service.” This may be done “where an arrangement acceptable to the company is made to pay outstanding charges against…