Chicago Great Western Railway Co. v. Illinois Central Railroad

275 F. Supp. 909, 1967 U.S. Dist. LEXIS 8664
CourtDistrict Court, N.D. Iowa
DecidedNovember 8, 1967
DocketCiv. No. 67-C-2022-C
StatusPublished

This text of 275 F. Supp. 909 (Chicago Great Western Railway Co. v. Illinois Central Railroad) is published on Counsel Stack Legal Research, covering District Court, N.D. Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Chicago Great Western Railway Co. v. Illinois Central Railroad, 275 F. Supp. 909, 1967 U.S. Dist. LEXIS 8664 (N.D. Iowa 1967).

Opinion

MEMORANDUM AND ORDER

HANSON, District Judge.

This action was instituted under the Interstate Commerce Act by the Chicago Great Western Railway Company to enjoin the Illinois Central Railroad Company from constructing certain railroad trackage to the plant of the Celotex Corporation near Fort Dodge, Iowa. On October 12,1967, this Court issued a Temporary Restraining Order enjoining the defendant from further construction. On the same day, the Fort Dodge, Des Moines & Southern Railway Company petitioned the Court to intervene as a party plaintiff. The petition was granted on October 12, 1967. On October 18, 1967, a final hearing was held upon the question of whether or not a permanent injunction should be granted against the completion of the disputed line.

A single issue is decisive of the propriety of permanent injunctive relief: Whether the track in question constitututes an extension under 49 U.S.C., Section 1(18) or a spur or industrial track under Section 1(22).

[911]*911The basic facts of the case at hand are clear and are primarily undisputed. The proposed track is to be located in the “area of Gypsum” approximately four miles east of Fort Dodge. It would originate at a point on an Illinois Central main line and extend for a distance of 3,888 feet to the Celotex Corporation plant. Approximately 3,308 feet of the line would be on Celotex property. The main line runs in an easterly direction adjacent to the southern boundary of the Celotex Corporation property and the proposed line would angle northward until it connected with a side track owned by Celotex. The cost of the facility is estimated to be $53,334.00. Ninety pound used rails are to be utilized in the project. A switch engine currently operating in the area would be assigned to serve the Celotex plant. No special financing or condemnation proceedings will be required for its completion.

The Great Western tracks run in an easterly direction to the north side of the Celotex plant, roughly parallel to the Illinois Central main line. The Great Western has various facilities at the plant, including two tracks and storage and stub tracks. It had a line south of the plant between that line and the main line of Illinois Central but abandoned it twenty years ago.

The Celotex Corporation owns 480 acres of property and leases an additional 200 acres. The property has a great deal of gypsum bearing ore. The only other industry on the Celotex land is a Northern Propane Company building south of the Celotex plant. It has not been served by any carrier. The proposed track will deviate slightly from its course in order to avoid the Northern Propane plant. Although there was testimony to the effect that the area east of the Celotex plant would be a desirable industrial area subsequent to mining and rehabilitation, the Division Engineer for defendant unequivocally stated that the track would serve only one shipper. Also, the General Traffic Manager for Celotex stated that Celotex has no plans to sell any of the property.

The Illinois Central previously served the Wassem Plaster Company, the predecessor of the Celotex Corporation. Transportation services to the Wassem industry were begun in 1912 by the Illinois Central and the trackage was connected to the main line in question. The now abandoned Wassem plant is located about 1800 feet to the southwest of the present Celotex plant on the same property. The Illinois Central still uses the two tracks in that span for car storage. The Great Western did not carry freight for Wassem but the Fort Dodge, Des Moines & Southern had tracks leading into the Wassem plant from the northwest.

In 1950, the Wassem Company sold its property to the Celotex Corporation. The Illinois Central continued to fulfill the needs of Celotex until 1958 when the new plant was completed. The operation was moved because of the availability of ore. The Great Western and the Fort Dodge, Des Moines & Southern took over such services in the same year. At the present time, the Illinois Central hauls for National Gypsum Company and the Bestwall Gypsum Company which are from three-fourths to one mile from the Celotex plant. It also ships for numerous other industries in Fort Dodge proper. In the future, the Illinois Central will provide direct line service to United States Gypsum Company whose property lies west of that controlled by Celotex.

The Illinois Central indirectly hauls cars from the Celotex plant after a double switch operation by the Great Western and the Fort Dodge, Des Moines & Southern. In 1966, the Illinois Central handled about 500 cars from the Celotex plant and billed a little over five million dollars under Illinois Central bills of lading. The Illinois Central pays about $18.00 in switching charges to the plaintiffs for each car.

If the contemplated track were completed, it is envisioned that the Illinois Central would gain an additional 500 cars a year from the Celotex operation. Part of this increase would derive from cars which are now hauled by other railroads [912]*912but which could be conveyed more efficiently by the Illinois Central. The railroads which handle outbound cars from Celotex are the Illinois Central, the Great Western, the Fort Dodge, Des Moines & Southern, and the Chicago Northwestern. There is as much as a twenty-four hour delay in the double switch method and it is not able to effectively reach markets that it could competitively serve with a direct line provided by Illinois Central. Buyers of their product desire fast shipment. Celotex has at times been forced to use the trucking industry at a higher cost due to these obstacles. It has requested the Illinois Central to construct the rail facilities. The Celotex plant would continue to patronize the Great Western and the Fort Dodge, Des Moines & Southern as they serve other markets which Celotex supplies.

Turning to the legal principles governing this case, Section 1(18) provides as follows:

“No carrier by railroad subject to this chapter shall undertake the extension of its line of railroad, or the construction of a new line of railroad, or shall acquire or operate any line of railroad, or extension thereof, or shall engage in transportation under this chapter over or by means of such additional or extended line of railroad, unless and until there shall first have been obtained from the Commission a certificate that the present or future public convenience and necessity require or will require the construction, or operation, or construction and operation, of such additional or extended line of railroad, and no carrier by railroad subject to this chapter shall abandon all or any portion of a line of railroad, or the operation thereof, unless and until there shall first have been obtained from the Commission a certificate that the present or future public convenience and necessity permit of such abandonment. Nothing in this paragraph or in section 5 of this title shall be considered to prohibit the making of contracts between carriers by railroad subject to this chapter, without the approval of the Commission, for the joint ownership or joint use of spur, industrial, team, switching, or side tracks.”

Section 1(22) provides in part that:

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Bluebook (online)
275 F. Supp. 909, 1967 U.S. Dist. LEXIS 8664, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chicago-great-western-railway-co-v-illinois-central-railroad-iand-1967.