Chicago, Burlington & Quincy Railroad v. Iowa State Commerce Commission

105 N.W.2d 633, 252 Iowa 318, 1960 Iowa Sup. LEXIS 680
CourtSupreme Court of Iowa
DecidedOctober 18, 1960
DocketNo. 50010
StatusPublished
Cited by7 cases

This text of 105 N.W.2d 633 (Chicago, Burlington & Quincy Railroad v. Iowa State Commerce Commission) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Chicago, Burlington & Quincy Railroad v. Iowa State Commerce Commission, 105 N.W.2d 633, 252 Iowa 318, 1960 Iowa Sup. LEXIS 680 (iowa 1960).

Opinions

Garrett, J.

This is an action in equity by certain railroad companies against the Iowa State Commerce Commission to set aside a decision and order of said commission entered July 11, 1958, fixing rates for the transportation of petroleum products by rail in intrastate commerce in Iowa and asking the court to declare that the commission has no power to prescribe minimum rates. Certain motor carriers and the Iowa Motor Truck Association intervened seeking to uphold the order.

The action was brought under section 474.28, Iowa Code, 1958, to set aside an order requiring all railroad carriers of petroleum and petroleum products in tank cars to cancel their tariff, Western Trunk Lines, 442-B, which reduced by 20% to 30% the rail charges previously in effect for the transportation of such commodities between Iowa points for distances in excess of 75 miles.

The commission suspended the new rates for the maximum [320]*320period provided by statute during which period a hearing was held. After the expiration of the statutory suspension period the commission announced it had been unable to reach a decision and was permitting the rates to become effective on April 6, 1958, but that such action did not constitute approval of the new rates.

Less than four months later the commission issued an order directing cancellation of the tariff and prescribing new rates for transportation of such petroleum products. The new order directed that for all shipments moving 150 miles or less, in Iowa, the rates for rail transportation must be on a parity with and not less than the rates published in a particular truck tariff for transportation of such commodities over the highways of the state but that railroad charges for transportation of such products moving distances of more than 150 miles within the state might be 1% cents per 100 pounds below those of the truck lines.

It is of more than passing interest to note that the evidence discloses the almost complete loss by the rails to the truck lines of the transportation business in controversy. Exhibit 12 discloses the percentage of gasoline moving by rail in the years 1940 to 1954. This percentage was 88.31% of the total consumption in 1940; in 1947 it was 23.17% and in 1954 only 2.08%.

In an effort to recapture some of the business they had lost the railroads filed the reduced tariffs applicable to hauls of over 75 miles and proceeded to operate thereunder. The railroads feeling aggrieved by the refusal of the commission after a hearing to allow their reduced rates to stand, brought action in the district court where, pursuant to stipulation, the case was tried upon the record before the commission which included the testimony of witnesses and many exhibits. On September 2, 1959, the trial court entered its judgment and decree sustaining the action of the commission and from that judgment and decree the plaintiffs have appealed.

I. Although its right to do so was challenged, the court proceeded to try the case pursuant to section 474.28 which provides : “Any railroad aggrieved at any rule, order, or regulation made by the commission may institute proceedings in any court [321]*321of proper jurisdiction to have the same vacated. If found by the court, after due trial, not to be reasonable, equitable, or just, and if upon an appeal from any rule, order, or regulation of the commission the complaining railroad is successful in having such rule, order, or regulation vacated, the aforesaid penalty shall be set aside.”

The commerce commission and the intervenors contend this section does not apply to orders of the commission with respect to rates, and rates are not mentioned in the statute. On the other hand, it does provide that “Any. railroad aggrieved at any rule, order, or regulation made by the commission may institute proceedings * * * to have the same vacated.” We hold that this section places upon the courts the duty to determine whether a challenged order of the commission is reasonable, equitable or just. Lowden v. State Commerce Commission, 229 Iowa 526, 294 N.W. 749, and cases cited.

The trial court tried the case as an action in equity and determined that the commission’s order was reasonable, equitable and just. We do not agree with that holding and must therefore reverse.

II. Appellants contend the commerce commission has no power to establish minimum rates as distinguished from reasonable maximum rates to be charged by common carriers by rail within the state. With this contention we agree. The commission has no powers except those expressly given and those incidental to or implied in connection with the powers granted. Incorporated Town of Huxley v. Conway, 226 Iowa 268, 284 N.W. 136; Reed v. Iowa State Highway Comm., 221 Iowa 500, 266 N.W. 47; Chicago, R. I. & P. R. Co. v. State Commerce Comm., 248 Iowa 207, 80 N.W.2d 351.

Section 479.66, Code, 1958, authorizes the commission to conduct hearings concerning the propriety of certain rates. Section 479.68 provides, “On such hearing the commission shall establish the rates, in whole or in part, or others in lieu thereof, which it shall find to be just and reasonable.” This section taken alone appears to be broad enough in its terms to confer power to establish any rate the commission found to be just and reasonable. Taken in connection with other statutes affecting rates, [322]*322however, we must conclude and hold that section 479.68 is a procedural statute and confers no authority to fix other than maximum rates which railroads may charge under the facts in this case.

The Iowa Board of Railroad Commissioners was created by chapter 77 of the Acts of the Seventeenth General Assembly in 1878. It was succeeded by the present commerce commission. This section was adopted in 1923 by the Fortieth General Assembly, along with sections 479.66 and 479.67 relating to the power to revise rates and suspension of rates respectively. The following sections which were in substance embraced in the original Act regulating carriers are still in full force and effect.

Section 479.71 provides in part: “The schedules of- reasonable maximum rates of charges for the transportation of freight and ears, together with the classification of such freights now in effect, shall remain in force until changed by the commission according to law, * * * shall be taken as prima-facie evidence in all courts that the rates fixed therein are reasonable and just maximum rates of charge for which said schedules have been prepared.”

Section 479.72 provides that when complaint is made “that the rate charged or published by any railway company, or the maximum rates fixed by the commission in the schedule of rates made by it, or the maximum rate fixed by law, is unreasonably high or discriminating, the commission shall investigate the matter * *

Section 479.74 provides: “After such hearing and investigation, the commission shall fix and determine the maximum charges to be thereafter made by the railroad company * *

It appears quite obvious that the legislature did not intend to grant the commission power to prescribe minimum rates when it left the above restricting provisions upon the statute books.

In 1934 the Board of Railroad Commissioners, predecessors to the commerce commission, made an order that “* * * this commission is not invested with power to prescribe minimum rates.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

United States v. Utah Power & Light Co.
570 P.2d 1353 (Idaho Supreme Court, 1977)
Tri-County Electric Ass'n, Inc. v. City of Gillette
525 P.2d 3 (Wyoming Supreme Court, 1974)
Bergeson v. Pesch
117 N.W.2d 431 (Supreme Court of Iowa, 1962)
Chicago, B. & QR Co. v. IOWA STATE COMMERCE COM'N
105 N.W.2d 633 (Supreme Court of Iowa, 1960)

Cite This Page — Counsel Stack

Bluebook (online)
105 N.W.2d 633, 252 Iowa 318, 1960 Iowa Sup. LEXIS 680, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chicago-burlington-quincy-railroad-v-iowa-state-commerce-commission-iowa-1960.