California Adj. Co. v. Atchison, Topeka & Santa Fe Ry.

175 P. 682, 179 Cal. 140, 13 A.L.R. 274, 1918 Cal. LEXIS 709
CourtCalifornia Supreme Court
DecidedOctober 5, 1918
DocketSac. No. 2584.
StatusPublished
Cited by26 cases

This text of 175 P. 682 (California Adj. Co. v. Atchison, Topeka & Santa Fe Ry.) is published on Counsel Stack Legal Research, covering California Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
California Adj. Co. v. Atchison, Topeka & Santa Fe Ry., 175 P. 682, 179 Cal. 140, 13 A.L.R. 274, 1918 Cal. LEXIS 709 (Cal. 1918).

Opinion

LORIGAN, J.

This is an appeal by the defendant from a judgment against it for $34,242.31. The complaint set up 15,207 causes of action, each based on the alleged violation by defendant of the long and short haul clause of the constitution of this state; and representing an alleged illegal overcharge collected by defendant from shippers of freight over its road, the claim for damages thereon against the defendant having been by said shippers assigned to plaintiff.- The freight shipment in each instance was over the road of the defendant from San Francisco to some point or station along the line between San Francisco and Los Angeles, and the allegation *142 was that the rate charged, demanded, and paid on each shipment to said intermediate point exceeded the rate contem- . poraneously charged for like shipment from San Francisco to Los Angeles. The demand in each cause was for the difference between the through rate from San Francisco to Los Angeles and the rate paid, and the total amount of these excessive charges on the 15,207 shipments amounted to about twenty-five thousand dollars with interest. Many of these freight shipments were made before October 10, 1911, and the, rest after that date and up to June 12, 1912. The significance of the date of October 10, 1911, it may be mentioned here, is that on that date the long and short haul clause of the state constitution was amended. As it stood before October 10, 1911, that clause (section 21, article XII) read:

“No discrimination in charges or facilities for transportation shall be made by any railroad or other transportation company between places or persons, or in the facilities for the transportation of the same classes of freight or passengers within this state, or coming from or going to any other state. Persons and property transported over any railroad, or by any other transportation company or individual, shall be delivered . at any station, landing, or port, at charges not exceeding the charges for the transportation of persons arid property of the j same class, in the same direction, to any more distant station, port, or landing. Excursion and commutation tickets may be issued at special rates. ”

As amended October 10, 1911, said section 21 reads:

“No discrimination in charges or facilities for transportation shall be made by any railroad or other transportation company between places or persons, or in the facilities for the ¡ transportation of the same classes of freight or passengers within this state. It shall be unlawful for any railroad or other transportation company to charge or receive any greater compensation in the aggregate for the transportation of passengers or of like kind of property for a shorter than for a longer distance over the same line or route in the same direction, the shorter being included within the longer distance, or to charge any greater compensation as a through rate than the aggregate of the intermediate rates: Provided, however, that upon application to the railroad commission provided for in this constitution such company may, in special cases, after in-, vestigation, be authorized by such commission to charge less *143 for longer than for shorter distances for the transportation of persons or property, and the railroad commission may from time to time prescribe the extent to which such company may be relieved from the prohibition to charge less for the longer than for the shorter haul. ...”

Another section amended at the same time and applicable to the matter under consideration here is section 22 of said article XII, which, as amended, is as follows:

“. . . No provision of this constitution shall be construed as a limitation upon the authority of the legislature to confer upon the railroad commission additional powers of the same kind or different from those conferred herein which are not inconsistent with the powers conferred upon the railroad commission in this constitution, and the authority of the legislature to confer such additional powers is expressly declared to be plenary and unlimited by any provision of this constitution. The provisions of this section shall not be construed to repeal in whole or in part any existing law not inconsistent herewith, and the 'Railroad Commission Act’ of this state, approved February 10, 1911, shall be construed with reference to this constitutional provision and any other constitutional provision becoming operative concurrently herewith. And the said act shall have the same force and effect as if the same had been passed after the adoption of this provision of the constitution and of all other provisions adopted concurrently herewith, ■ except that the three commissioners referred to in said act shall be held and construed to be the five commissioners provided for herein. ”

Defendant in its answer, among other things, set up several defenses, one of which was that all rates collected for transportation of each and all shipments described in the causes of action were rates fixed by, the railroad commission of the state pursuant to section 22, article XII, of the constitution as it stood-from the year 1879 up to October 10, 1911, and that such rates were at the time of their collection and are now conclusively just and reasonable and the only lawful rates. As a further separate defense defendant set up that on or about October 26, 1911, it applied to'the railroad commission of the state under section 21, article XII, as amended October 10, 1911, for permission to maintain the higher rates at intermediate points and to maintain lower rates from San Francisco to Los Angeles for all shipments moving after *144 October 26, 1911, and that on or about February 15, 1912, the railroad commission, after investigation, made its order permitting the defendant to maintain such higher and lower rates and that such order has ever since been in full force and effect. As to these defenses the findings of the court were against them.

Preliminarily to considering the points presented by appellant for a reversal, it may be stated that an action—California Adjustment Co. v. Southern Pac. Co., 226 Fed. 349—practically identical with this but against another transportation company for similar overcharges—was commenced in the district court of the United States about the time this suit was instituted and judgment there went for plaintiff. That judgment was affirmed by the circuit court of appeal—Southern Pac. Co. v. California Adjustment Co., 237 Fed. 954, [150 C. C. A. 604],—and on writ of certiorari the cause is now pending in the supreme court of the United States. All the points made here for a reversal were likewise urged in the United States district and circuit courts and determined adversely to the defendant there.

Proceeding now to a consideration of the grounds urged for a reversal.

1. It is insisted first that the court had no jurisdiction of this action. The specific point made under this general objection is that jurisdiction to award any reparation for deviation from the long and short haul clause is with the railroad commission in the first instance and not with the courts. In this regard it is urged that since March 23, 1911, when the Public Utilities Act [Stats. 1911 (Ex. Sess.), p.

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Bluebook (online)
175 P. 682, 179 Cal. 140, 13 A.L.R. 274, 1918 Cal. LEXIS 709, Counsel Stack Legal Research, https://law.counselstack.com/opinion/california-adj-co-v-atchison-topeka-santa-fe-ry-cal-1918.