Atlantic Coast Line Railroad v. Commonwealth

118 S.E. 257, 136 Va. 134, 1923 Va. LEXIS 75
CourtSupreme Court of Virginia
DecidedJune 14, 1923
StatusPublished
Cited by1 cases

This text of 118 S.E. 257 (Atlantic Coast Line Railroad v. Commonwealth) is published on Counsel Stack Legal Research, covering Supreme Court of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Atlantic Coast Line Railroad v. Commonwealth, 118 S.E. 257, 136 Va. 134, 1923 Va. LEXIS 75 (Va. 1923).

Opinion

Pkentts, J.,

delivered the opinion of the court.

This proceeding involves the proposed demurrage, storage and car service rules and charges applicable to intrastate traffic in Virginia, which by order of the State Corporation Commission were to become effective August 1, 1921. After the termination of Federal control, the State Corporation Commission, pursuant to the laws of the State of Virginia, issued notice to forty common carriers by rail and water of its purpose [139]*139to consider the prescription of new demurrage, storage and car service rules applicable to intrastate traffic, as required by Code, section 3774.

The defendants appeared and asked that the national demurrage and storage rules, and supplements, applicable to interstate traffic, be adopted and applied also to intrastate traffic. These national rules are formulated, and from time to time changed as experience shows to be expedient, by a demurrage committee of the American Railway Association (officials and agents representing the carriers) and a similar committee of the National Industrial Traffic League (which is an association representing a large number of shippers). At the hearing the defendant carriers were invited to sumit evidence indicating the reasons for their objections to the rules which were proposed by the Virginia Commission for intrastate business. In effect, they declined to do so, but have consistently claimed that the Virginia Commission is without power to do more than to apply the national rules to intrastate traffic, claiming that the proposed distinctions or differences between the two sets of rules will, in effect, create discriminations against interstate commerce, which are prohibited by the Federal statutes.

The Commission rejected this view, and finally adopted the rules and regulations here challenged, after making substantial changes in those which were originally proposed. From that action this appeal is taken by twelve of the larger railway companies doing interstate business in Virginia.

The question presented by the errors assigned and'the arguments of counsel, assumes two aspects, which should be considered separately: First, as to whether these rules were within the police power of the State, as it existed prior to the amendments of the act to [140]*140regulate commerce by the transportation act of 1920, (41 Stat. 456); and, if so, secondly, whether this authority of the State has been rescinded and by that legislation hereafter denied.

[1] 1. In the first aspect stated, it seems to us that it is only necessary to direct attention to a previous decision of this court, Atlantic Coast Line Railroad Co. v. Commonwealth, 102 Va. 599, 46 S. E. 911. There the storage, demurrage and car service rules which had been prescribed by the Virginia Commission were under review by this court on appeal. We refer to it as expressing our views upon this aspect of the question. Having there held, and supported the view by the impregnable authority of the Supreme Court of the United States, that it is within the power of the State to make such valid enactments in the exercise of its legislative power to promote the welfare and convenience of its citizens, although in their operation they may have some effect upon interstate commerce, and hence that the Commission had the authority to prescribe those rules, this is said:

“It is impossible for us on this appeal to make a wholesale exposition of the constitutionality of the rules and regulations in question, so far as they may, in their varied application and enforcement, affect the rights of persons and corporations engaged in interstate and foreign shipments and transportation, or violate rights protected by the Federal Constitution. To hold that they are invalid, so far as they apply to interstate and foreign commerce, as the appellants insist should be done, might have the effect of depriving the State of her undoubted right, under her reserved powers, to make provisions for the purpose of enforcing the obligations of transportation companies to accommodate the public, and for regulating the relative rights and duties of [141]*141all persons and corporations within its jurisdiction, and, therefore, to provide for the public convenience and the public good, when such regulations are in aid of, or only incidentally affect, interstate commerce, and do not violate any right protected by the Constitution of the United States. To hold, on the other hand, that the rules would not, in their operation, directly intrench upon the authority of the United States, nor violate any right protected by the Federal Constitution, might result in our denying transportation companies and others their just rights under the Constitution and laws of the United States, and drive them to the Federal courts for the assertion and maintenance of rights which ought to be guarded and enforced by the courts of the State, whose government they support, and from which they are entitled to protection. For these and other reasons, which might be given, we are of opinion that we.ought not, upon this appeal, to attempt to decide to what extent, if at all, the said rules and regulations, in their operation, may directly infringe upon the commerce clause of the Constitution of the United States, or violate any right of the appellants under that instrument, and that the decision of those questions can only be properly made as they arise in concrete cases, and upon the particular facts of each case.”

[2] The rules prescribed and here now under review are twenty in number, with many subsections, and fill thirty-one pages of the .printed record. Many of their provisions are identical with the national rules which the carriers prefer, and we are here asked to condemn and reverse the action of the Commission because there may be requirements which will, in their operation, deny some substantial right of the carriers, or in some way discriminate against interstate commerce. We decline to do this in the absence of evidence tending to [142]*142show such discrimination. If we were to attempt to select those specific provisions, which if improperly construed and applied might possibly lead to such unlawful discrimination, we would have to do so with few if any helpful suggestions from the carriers. Our conclusion, therefore, is that we will not delay the enactment of these rules, but will leave the constitutional questions raised, which are not now decided, to be determined when and if concrete cases shall hereafter arise in which it may be claimed that some substantial right is denied. That this remedy is sufficient and efficient has already been demonstrated.

The case of Southern Railway Co. v. Commonwealth, 107 Va. 771, 60 S. E. 70, 17 L. R. A. (N. S.) 364, involved one of the rules which had been under review in the case previously cited. A shipper desiring cars to be delivered to him at a Virginia station for an interstate shipment sought to recover from a carrier who had failed to furnish the cars in the quantity or within the time prescribed the charges imposed by one of those rules. The carrier defended upon the ground that the rule imposed an unreasonable burden on interstate commerce, and was in conflict with the act to regulate commerce. The Commission declined to sustain this defense, but upon appeal their judgment imposing a fine upon the carrier was reversed, and the rule was held to be inapplicable under such circumstances.

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Related

Atlantic Coast Line Railroad v. Commonwealth
133 S.E. 883 (Supreme Court of Virginia, 1926)

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Bluebook (online)
118 S.E. 257, 136 Va. 134, 1923 Va. LEXIS 75, Counsel Stack Legal Research, https://law.counselstack.com/opinion/atlantic-coast-line-railroad-v-commonwealth-va-1923.