Chicago, Milwaukee, St. Paul & Pacific Railroad v. Chicago Great Western Railway Co.

130 N.W.2d 56, 268 Minn. 500, 1964 Minn. LEXIS 736
CourtSupreme Court of Minnesota
DecidedJuly 17, 1964
DocketNo. 39,010
StatusPublished

This text of 130 N.W.2d 56 (Chicago, Milwaukee, St. Paul & Pacific Railroad v. Chicago Great Western Railway Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Chicago, Milwaukee, St. Paul & Pacific Railroad v. Chicago Great Western Railway Co., 130 N.W.2d 56, 268 Minn. 500, 1964 Minn. LEXIS 736 (Mich. 1964).

Opinion

Thomas Gallagher, Justice.

The Chicago, Milwaukee, St. Paul and Pacific Railroad Company, hereafter referred to as the Milwaukee, appeals from an order of the District Court of Ramsey County, affirming an order of the Railroad and Warehouse Commission, which granted the Chicago Great Western Railway Company, hereafter referred to as the Great Western, the right to use certain side trackage and1 certain spur trackage of the Milwaukee at Cannon Falls. The order of the commission dated April 24, 1961, affirmed by the district court, was based upon a petition of the Great Western and provides as follows;

“That the Great Western and the Milwaukee shall have the joint use of that certain side track and spur track serving the Minnesota Malting Company at Cannon Falls, Minnesota, * * * shown in yellow on Respondent’s Exhibit No. 3 * * *.
“* * * That the Great Western shall have operating rights over Milwaukee tracks in the vicinity of said spur tracks, to be worked out between the railroads by agreement, and for the division of costs, if any, heretofor incurred by the Milwaukee, by the Great Western, and on such terms as said railway companies may agree.
“* * * That the Great Western will have transit or running rights which will provide for sufficient tail room on Milwaukee interchange tracks * * * for its operations in the use of said side track or spur track.”

[502]*502By stipulation the sole issue determined by the district court was whether the above order is “unlawful for lack of jurisdiction.” The facts as stipulated by the parties are as follows: On August 25, 1937, the Milwaukee and the Great Western were authorized by the United States Interstate Commerce Commission to give effect to an agreement between them dated April 8, 1937, under which they agreed to own and operate jointly the Great Western tracks and to abandon the Milwaukee tracks between Red Wing and Cannon Falls, each to continue to serve its respective customers in Cannon Falls, but providing that:

“The Milwaukee Company shall not have the right to serve industries which are now served exclusively by the Great Western Company at Red Wing, Cannon Falls and Welch.”

Prior to August 25, 1937, Minnesota Malting Company, a firm located at Cannon Falls, was served exclusively by the Great Western from a side track on the southerly side of its plant. This continued until about 1960, when the malting company requested the Milwaukee to construct a side track on the northerly side of the plant to assist in the handling of its increased business. This the Milwaukee refused' to do because of provisions in the contract of April 8, 1937, which prohibited it from serving any industry in Cannon Falls then served exclusively by the Great Western. The malting company thereupon petitioned the commission for an order directing the Milwaukee to construct such trackage. On November 8, 1960, after a hearing before the commission the latter determined that it was in the public interest that the Milwaukee do so and accordingly ordered that the side track be constructed. The Milwaukee complied with this order, the construction costs for the side track being paid for jointly by it and the malting company.

Thereafter at times, because of floods affecting the Milwaukee, the railroad service available to the malting company under this arrangement with the two carriers became inadequate for its requirements. The Great Western thereupon instituted the present proceedings before the commission resulting in the order of April 24, 1961, authorizing it to jointly use the Milwaukee’s side tracks to the industry. At the hearing [503]*503the Milwaukee’s motion for dismissal on the ground that the commission lacked jurisdiction therein was denied1. The appeals followed.

Under Minn. St. 218.041, subd. I,1 and § 218.041, subd. 2(3 and 5),2 the Railroad and Warehouse Commission has power:

To make appropriate orders relating to continuation, modification, or extension of services and facilities to properly promote the security and convenience of the public;
To prescribe ample facilities by track connection or joint use of tracks over which general merchandise is handled or forwarded for the handling or transfer of such merchandise between railroads and warehouses where two railroads are not more than V2 mile apart;
To direct construction, maintenance, and operation at any points prescribed by law of all side tracks connecting any road with any manufactory adjacent thereto and prescribe the terms therefor.

Thus § 218.041 would seem to prescribe ample authority for the commission’s order from which the present appeal is taken. This order [504]*504definitely relates to an “extension of services and facilities” to promote “the security and convenience of the public” in so far as the latter might require the products of the malting company. It prescribes facilities — by joint use of a side track over which the general merchandise of the malting company is handled — for the “handling” of such merchandise by the two carriers (which are less than 1/2 mile apart). It makes provisions for apportioning the construction and maintenance costs of such track as determined by agreement between the two carriers. At most it is but an extension of the order of November 8, 1960, under which the Milwaukee was ordered to construct the side track notwithstanding that it had agreed with the Great Western that the latter only would serve the malting company. The commission’s authority to make this prior order was at no time challenged by the Milwaukee and appears to have ample support in the decisions of this court. State v. Chicago, M. & St. P. Ry. Co. 115 Minn. 51, 131 N. W. 859; Ochs v. Chicago & Northwestern Ry. Co. 135 Minn. 323, 160 N. W. 866, affirmed, 249 U. S. 416, 39 S. Ct. 343, 63 L. ed. 679; Range S.-L. Brick Co. v. G. N. Ry. Co. 137 Minn. 314, 163 N. W. 656, L. R. A. 1918B, 784.

The Milwaukee contends, however, that, if this authority falls within the powers delegated to the commission under § 218.041, that statute is unconstitutional in so far as it may require one railroad to permit another to use its property without its consent and without compensation. With this we do not agree. Railroads by virtue of their franchises, as well as their statutory grants of powers of eminent domain, are quasi-public corporations which have been accorded rights and privileges such as those described in consideration of their rendition of transportation services in the best interests of the public. Farwell F. W. Assn. v. Minneapolis, St. P. & S. S. M. Ry. Co. 55 Minn. 8, 56 N. W. 248. As stated in Chicago G. W. Ry. Co. v. Jesse, 249 Minn. 324, 328, 82 N. W. (2d) 227, 231:

“* * * A common carrier serves both the public and itself. It has its public and its private functions. The public part is the exercise of its franchises for the accommodation of public travel, and whatever is necessary to the exercise of the franchise is for the benefit of the public.”

[505]*505Here the commission’s order did not direct taking of the side track in its entirety without compensation in violation of constitutional guarantees.

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Cite This Page — Counsel Stack

Bluebook (online)
130 N.W.2d 56, 268 Minn. 500, 1964 Minn. LEXIS 736, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chicago-milwaukee-st-paul-pacific-railroad-v-chicago-great-western-minn-1964.