($80,000.00) for that portion of the service consisting of engineering, installation, and monthly service charges.
19. That portion of the service, to be rendered by AT&T to the Committee, consisting of toll charges, is incapable of determination until the telephone service is put to actual use by the Committee.
20. Any portion of the total service to be rendered by AT&T, for which no payment has been made, shall not be provided to the Committee until the Committee has made such payment in advance, in the form of a security deposit.
21. It is within the province of the officers of AT&T to make judgments concerning how to collect debts owed to the corporation; and when to cut off service to a recalcitrant customer.
22. The officers of AT&T responsible for the collection and approval of conditions respecting indebtedness due AT&T by its customers, such as the Committee, have considered the present representations and efforts of the Committee to satisfy the 1968 indebtedness, the history of the customer, the likelihood of future fund raising successes of the Committee, and other similar criteria, and have concluded that the ultimate expectancy of payment of the 1968 indebtedness is fully justified and in keeping with standard acceptable AT&T business policy.
23. A national political convention is a matter of public interest and concern.
24. On June 15th, 1972, a hearing was held on the Motion for a Preliminary Injunction.
At the outset of this hearing, the defendant, AT&T, made several Motions to dismiss the Amended Complaint and to deny the plaintiffs' Motion for a Preliminary Injunction as a matter of law. Due to the nature of the circumstances surrounding this action,
the Court deemed an expedient determination essential, and, therefore, denied all of the defendant's Motions without prejudice and with leave to the defendant to renew them at a later time, if necessary.
An essential prerequisite to the granting of a Preliminary Injunction is the showing by the plaintiffs that they will suffer irreparable injury if the Preliminary Injunction is denied. Kontes Glass Company v. Lab Glass, Inc., 373 F.2d 319 (3rd Cir. 1967); Instant Delivery Corp. v. City Stores Company (Lit Brothers Division), 284 F. Supp. 941 (E.D. Pa. 1968). In this case, the plaintiffs failed to meet this burden.
The plaintiffs' evidence consisted of two witnesses and several documents stipulated by the parties to be admissible as exhibits in this proceeding. The first witness, plaintiff Russell P. Miller, testified that he was a stockholder in AT&T, and that his personal knowledge of the matters alleged in the Complaint came from reading an article in "The Wall Street Journal." He was concerned about the fact that, with the Committee already in debt to AT&T in an amount of approximately One Million Five Hundred Thousand Dollars ($1,500,000.00), AT&T was about to render further service without first collecting this debt. Based on this concern, Mr. Miller consulted with his attorneys, and thereafter a stockholders' derivative suit was instituted, out of which this Motion for a Preliminary Injunction arose.
Plaintiffs' second witness was P.D. Loser, Assistant Vice-President of AT&T in charge of the Commercial Division of the Operations Department. Plaintiffs called Loser as under cross-examination. Loser testified that he was one of the officers of AT&T authorized to review the debt situation of the Committee, as well as other customers of AT&T similarly situated. He testified further that in deciding whether to suspend service of a delinquent customer (particularly a business customer as opposed to an individual), one of the main factors to consider is whether the earning ability of the customer will be substantially impaired as a result of the suspension of service. Many businesses and other customers depend on the telephone as an integral part of their trade. AT&T reasons that without the telephone the earnings of the customers will diminish, and, therefore, the possibility of the customers ever being able to satisfy the indebtedness owed to AT&T is considerably lessened. Loser stated that the 1968 debt of some One Million Five Hundred Thousand Dollars ($1,500,000.00) had been discussed recently with the Committee and that the Committee promised to pay the debt soon from funds raised through a telethon and other fund raising techniques.
With regard to the telephone service to be rendered throughout the 1972 Convention and subsequent campaign, AT&T is requiring payment in advance for all service to be rendered. In a letter to the Comptroller of the Democratic National Convention, AT&T stated this requirement as follows:
"A. We will request a deposit in the amount of two months billing (local service and estimated tolls) for the permanent service due to be put in the latter part of this month. This deposit will be held through the life of the service and then either refunded or applied to any outstanding bills. If, after the service goes in, the amount of usage increases beyond what is covered by our two month deposit, we will ask that it be increased. In reality, you will almost always have a two month outstanding bill since we bill one month in advance. So, we are really only asking to be covered for what will be outstanding.
"B. We will request advance payment for the main service to be supplied during the Convention. This advance payment will be asked for in two stages.