Atchison. T. & S. F. R. Co. v. State

1922 OK 45, 206 P. 236, 85 Okla. 223, 1922 Okla. LEXIS 71
Supreme Court of Oklahoma·Decided February 14, 1922·No. 12175·Published·Cited by 15 cases

Opinions

MILLER, J.

A complaint was filed with the Corporation Commission by the Dewey Portland Cement Company against the Atch-ison, Topeka & Santa Fe Railway Company, the Kansas, Oklahoma & Gulf Railway, the Missouri, Kansas & Texas Railway Company, and C. E. Schaff, receiver thereof, and the St. Louis-San Francisco Railway Company, asking that the Corporation Commission adjust and fix rates to be charged by the defendant railway companies on coal in car lots transported by the said railway companies from what is known as the Tulsa district and Henryetta district to the complainant’s plant at Dewey, Oklahoma. A hearing was had before the Corporation Commission, after which it made its order No. 1813, which order adjusted and fixed the rates on a basis of the length of the haul. The railway companies affected by this order have joined in an appeal to this court to reverse the ruling of the Corporation Commission, and appear here as appellants.

They make five assignments of error, in which they claim that the rate is unreasonable, unjust, and not based upon sufficient evidence; is contrary to law; is confiscatory ; is unjust discrimination, and that the Corporation Commission erred in entering and promulgating the order. In their brief they say:

“The assignments of error above numbered may for convenience be considered together.”

A large amount of documentary evidence was'introduced on the hearing, and the Corporation Commission made its findings of fact, which are very exhaustive, and, based upon these findings of fact, made its order, No. 1813, as follows:

“This case being at issue upon complaint and answers on file, and having been duly heard and submitted by the parties, and full investigation of the matters and things involved having been had, and the commission having on the date hereof made and filed a report containing its findings of facts and conclusions thereon, which said report is above referred to and made a part hereof;
“It is Ordered, That the above-named defendants, according as they participate in the transportation, be and they are hereby notified and required to cease and desist, on or before December 15th, 1920, and thereafter to abstain from publishing; demanding or collecting for the transportation of mine run and slack coal, in carloads from mines in Oklahoma group No. 3, designated as follows: Collinsville, Mohawk, Dawson, Rudd and Broken Arrow to Dewey, Oklahoma, rates which exceed $1.21 1-2 per net ton on home run or lump coal as designated in SWLT 83-C and $1.08 per net ton on coal designated as slack in SWLT 83-C, and from Henryetta group involving mines located at Henryetta and Dewar, $1.62 per net ton on mine run (lump coal) and $1.21 1-2 on coal designated as slack in SWLT 83-C.
“It is Further Ordered, That the rates above designated from the various mines in Oklahoma to Dewey, Oklahoma, shall be published on or before 15th day of December, 1920, upon notice of this commission and to the general public, by not less than 5 days, and that they shall continue in .effect until the rates from the mines above described in Kansas to Dewey, Oklahoma, have been increased or changed in such a manner as to warrant further orders from this commission.
“Done at Oklahoma City, this the 24th day of November, 1920.”

The appellants, complaining of said order,, say that it discriminates in favor of certain shippers and localities, making a lower rate than the general uniform scale applicable in the state. They also say that this impairs the general rate scheme in Oklahoma which was worked out after great difficulty. In appellants’ brief they say:

“The basis for this action, according to-the complaint, the evidence and the order of the commission is briefly this: It is-claimed that the complainant, Dewey Portland Cement Company, located at Dewey, Oklahoma, was in active competition with various cement mills located in the state of Kansas ; that the rates on coal from the Kansas coal mines to the Kansas cement mills were formerly lower than the rates on coal from the Kansas mines to the mill at Dewey; that complaint having been made to the Interstate Commerce Commission, that commission ordered a reduction in the interstate rate between the Kansas mines and Dewey to approximately the basis of the Kansas intrastate rate; that while this reduction enabled the Dewey mill to compete with the Kansas mills in securing coal from the Kansas mines, that when the Dewey plant desired to secure coal from Oklahoma mines in *225 tlie Dawson and Henryetta districts, the rate was higher than from the Kansas mines to the Kansas mills for the transportation of coal within Kansas. Complainant therefore seeks a reduction in the Oklahoma rate to the basis of the Kansas rate. The evidence further showed that unduly low rates on coal within the state of Kansas had been fixed years ago in order to encourage the establishment of certain smelter plants; that thereafter cement plants were located in that territory and took advantage of these coal rates; that the Interstate Commerce Commission in fixing the interstate rate between Kansas and Oklahoma did not consider or pass upon the reasonableness, sufficiency or compensatory character of the rate, but made the adjustment for the sole purpose of placing the Dewey plant on a parity with the Kansas mills in securing a supply of • coal from the Kansas mines.
“The contention of the defendants is that the Dewey plant having thus been placed on a parity with the Kansas plants as to the common source of coal supply, the interstate rate cannot be used as a basis for reducing the Oklahoma intrastate rates, since the Dewey mill already enjoys an advantage over the Kansas mills with respect to coal-secured from Oklahoma mines; the rates for the transportation of coal from Oklahoma to the Kansas mills being materially higher than the rates in effect for the transportation of coal from these Oklahoma mines to the Dewey mill; and that to reduce the Oklahoma intrastate rates into Dewey simply increases this advantage of the Dewey plant over its Kansas competitors at the expense of the railroads, and also gives the Dewey plant an unjust and unreasonable preference and unjustly discriminates against all of the other cement plants, industries, shippers and localities in the state of Oklahoma, who as hereinafter pointed out are required to pay materially higher rates for the transportation of coal from Oklahoma mines than are to be paid by tlie Dewey plant under this order for similar distances.”

The contentions of the Dewey Portland Cement Company are very concisely set forth in its opening statement before the Corporation Commission, which is as follows:

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Atchison. T. & S. F. R. Co. v. State, 1922 OK 45, 206 P. 236, 85 Okla. 223, 1922 Okla. LEXIS 71 (Okla. 1922).

1922 OK 45 (Atchison. T. & S. F. R. Co. v. State) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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