Chamber of Commerce v. Chicago, Rock Island & Pacific Railroad

249 S.W.2d 8, 220 Ark. 631, 1952 Ark. LEXIS 763
CourtSupreme Court of Arkansas
DecidedMay 26, 1952
Docket4-9777
StatusPublished
Cited by2 cases

This text of 249 S.W.2d 8 (Chamber of Commerce v. Chicago, Rock Island & Pacific Railroad) is published on Counsel Stack Legal Research, covering Supreme Court of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Chamber of Commerce v. Chicago, Rock Island & Pacific Railroad, 249 S.W.2d 8, 220 Ark. 631, 1952 Ark. LEXIS 763 (Ark. 1952).

Opinion

Ward, J.

This appeal challenges the order of the Arkansas Public Service Commission granting appellee permission to discontinue its passenger train No. 151 running from Little Rock to Hot Springs and train No. 152 returning to Little Bock. The Commission’s ruling was appealed to the Circuit Court of Pulaski County and there affirmed, hence this appeal.

The determination of the Commission was based on questions of fact. It is our duty to try the cause de novo but not to reverse the Commission unless its findings are contrary to the weight of the evidence. Wisinger v. Stewart, 215 Ark. 827, 223 S. W. 2d 604.

On March 22, 1951, appellee, which had for many years operated the train service mentioned above, petitioned the Commission for authority to discontinue the service. The allegations in the petition were to the effect that train No. 151 leaves Little Bock at 11:45 a. m. and arrives at Hot Springs at 1:20 p. m., and train No. 152 leaves Hot Springs at 2:45 p. m. and arrives at Little Bock at 4:20 p. m.; for more than two years said trains have operated at a heavy loss with no reasonable prospect for improvement in the foreseeable future; the only scheduled intermediate stop is Benton which is served by adequate transportation facilities; Hot Springs is more than adequately served by other transportation facilities, and the public convenience and necessity would not be affected by the discontinuance of said trains; and the mail and express service would likewise not be affected.

The City of Little Bock and the City of Hot Springs entered formal protests, but only the latter has appealed. The evidence introduced at the hearing before the Commission is substantially as set 'out below.

Witnesses who were employees of appellee testified: Trains No. 151 and No. 152 operated on the schedule mentioned above, but stopped on signal for fare-paying passengers at Bauxite, Butterfield and Jones Mill; the Bock Island Motor Transit Company, a subsidiary of appellee, could handle the small amount of mail and express; with the exception of one year, there has been a decrease in passenger revenues in spite of increases in rates granted for railroads generally since the end of world War II, and the number of appellee’s passengers is also decreasing, caused by the increasing number of automobiles since the war and by competition by buses and airplanes. Arkansas Trailways, Continental, and Missouri Pacific Trailways operate daily a total of 18 trips each way between Little Rock and Hot Springs, and there is also one air flight from Little Rock to Hot Springs and two flights from Hot Springs to Little Rock each day. The Missouri Pacific Railroad’s train No. 219 leaves Little Rock each day at 11:20 a. m., arriving at Hot Springs at 12:45 p. m., and its train No. 220 leaves Hot Springs each day at 1:45 p. m., arriving at Little Rock at 3:00 p. m.; and said trains carry a sleeper to and from Chicago. Appellee’s trains also carry a sleeper for connection at Memphis, but this connection is frequently not made. Appellee has no passenger trains on this route other than the ones mentioned above. Company records relative to the operation of the two trains between Little Rock and Hot Springs for the years 1949 and 1950 show [broken down in detail] the following:

1949 1950

Total Revenues .............................................$34,347.90 $24,449.63

Total Expenses............................................. 67,322.12 67,043.22 ’

Net Loss............................................................... 32,974.22 42,594.09

Average Revenue per Train Mile .................................................................. .852 .584

Average Expense per Train Mile .................................................................. 1.670 1.601

Net Loss per Train Mile..................... .818 1.017

The above figures on total expenditures do not include $4,747.08 paid by appellee to the Arkansas Motor Coaches for transportation of passengers from. Memphis to Hot Springs who failed to make train connections at Memphis during the period from November 1st, 1949, to February 28th, 1951; and neither do the expense figures include anything for property taxes, maintenance and replacement of the track and right-of-way, or supervisory salaries.

In opposition to the above, evidence on behalf of appellant was substantially as follows: The service sought to be discontinued is necessary to the convenience of the Hot Springs community; that Hot Springs is a health resort, dependent almost wholly on its visiting population, and drawing 55 per cent of its patronage from the area served by appellee; that the many hotels and motels in Hot Springs would suffer by such lessening of rail service; that in the immediate future large industries will construct factories near Hot Springs in the Jones Mill area which is served only by the Bock Island; that many visitors to Hot Springs come there for treatment and therefore cannot travel by auto or bus; that the train services of the Missouri Pacific do not parallel that of the Bock Island although its service is first class, and many ill persons coming to Hot Springs are unable to transfer from one carrier to another. It was also stated that with a war coming on there is a possibility of gasoline, tire and auto rationing; and that in 1950 approximately 10,000 more people came to Hot Springs by rail than in 1940. It was shown however that the number of rail passengers- in 1950 was approximately 15,000 less than in 1949, 32,000 less than in 1948, 36,000 less than in 1947, 125,000 less than in 1946, 90,000 less than in 1945, and also less than in 1942 and 1943.

1. Expense of Operation.- — Appellant insists that certain items of expense should not have been charged by appellee to its cost of operating in 1950, pointing out $13,689.55 for maintenance of equipment, $12,870.68 for train fuel, $399.21 for water, lubricants, and supplies for steam locomotives, and $4,945.14 for injuries to persons. Some of these expenses, it says, would be eliminated if diesel equipment were installed. This might be true, but we are furnished with no figures to show how much if any saving would be thus effected. Also it is pointed out by appellee that modern equipment is already in use. The item of personal injury expense may be less in future years, but that is problematical. In all events it must be concluded that appellee has been operating at considerable loss and will continue to do so under the same situation.

2. Method of Accounting. It is next contended that appellee should not be permitted to discontinue said trains No. 151 and No. 152 without showing a loss after an accounting of revenues and expenses for freight hauled aud after an accounting of its operations over its entire system. In support, appellant cites Ft. Smith Light and Traction Co. v. Bourland, 160 Ark. 1, 254 S. W. 481; Ft. Smith Light & Traction Co. v. Ward, 169 Ark. 519, 275 S. W. 757; Railroad Com. v. Saline River Ry. Co., 119 Ark. 239, 177 S. W. 896; and St. Louis S. F. Ry. Co. v. Norris, 178 Ark. 940, 12 S. W. 2d 915. In the last cited case the decision rested principally on the fact that appellant made only a partial accounting of its operations, and the other cases involved an attempt to abandon the track or lines. No such abandonment of appellee’s track is here involved.

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Bluebook (online)
249 S.W.2d 8, 220 Ark. 631, 1952 Ark. LEXIS 763, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chamber-of-commerce-v-chicago-rock-island-pacific-railroad-ark-1952.