Chicago, Milwaukee, St. Paul & Pacific Railroad v. Public Service Commission

61 N.W.2d 24, 338 Mich. 9
CourtMichigan Supreme Court
DecidedNovember 27, 1953
DocketDocket No. 19, Calendar No. 45,789
StatusPublished
Cited by3 cases

This text of 61 N.W.2d 24 (Chicago, Milwaukee, St. Paul & Pacific Railroad v. Public Service Commission) is published on Counsel Stack Legal Research, covering Michigan Supreme Court 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. Public Service Commission, 61 N.W.2d 24, 338 Mich. 9 (Mich. 1953).

Opinion

Butzel, J.

The Chicago, Milwaukee, St. Paul & Pacific Railroad Company, a Wisconsin corporation,, plaintiff herein, operates a large railroad system running through a number of States, including Michigan, where it is authorized to do business. It maintains a branch line 93 miles in length between Channing and Ontonagon, Michigan, which runs through several small settlements. Ontonagon, the northern terminal of the branch, has no other railroad facilities. Channing, the other terminal, is a connecting point with one of plaintiff’s main roads whereby transportation may be had to other points and other railroads, and thus to all parts of the country. Plaintiff runs one passenger train, the Copper Country Limited, daily in each direction between Chicago, Illinois, and Champion, Michigan. Its route includes Channing, Michigan. At Champion, it is taken over by the Duluth, South Shore & Atlantic Railroad, which runs this same train between Calumet and Champion, Michigan. Since 1937, plaintiff has also run the Chippewa-Hiawatha, also known as trains No 14 and No 21, daily in each direction between Chicago and Ontonagon, Michigan, using the branch line between Channing and Ontonagon. Plaintiff petitioned the Michigan public service commission, defendant and appellee, for permission to discontinue the Chippewa-Hiawatha between Channing and Ontonagon. After hearings, the commission denied the petition, whereupon plaintiff appealed to the circuit court of Ingham county, Michigan, in accordance1 with statute, CL 1948, § 462.26 (Stat Ann § 22.45).. The circuit court after further hearings entered a decree affirming the order of the commission and plaintiff has appealed to this Court.

The record shows that plaintiff has made efforts-to build up its passenger business to Ontonagon, but possibly due to general conditions affecting the passenger business of so many railroads, as well as the [12]*12partial depletion of mines and forests in the particular areas and a decline in the population, the passenger business over the branch line has constantly decreased until it is now operated at a very large loss because of poor patronage. What particularly brought the question of discontinuance to a focus is the fact that between Channing and Ontonagon, the train frequently consists of a gasoline motor car, which also handles the mail, express and baggage business, and 1 passenger coach attached as a trailer, whereas between Milwaukee, Wisconsin, and Channing, it consists of a cafe lounge car, 2 to 5 passenger coaches (depending on seasonal demands), a mail car and express and baggage car, which are normally pulled by a diesel engine. Plaintiff has only 1 gasoline motor car available for this train and finds it necessary to periodically suspend its operation so that it can be inspected, serviced and repaired, whereupon steam power is used. The latter is much more costly, particularly because of the additional highly skilled employees required. The purchase of an additional gasoline motor car for use when the present one is out of service would involve an estimated expenditure at today’s prices of approximately $170,000, almost a prohibitive amount when considered in the light of the very large losses plaintiff is being put to in the operation over the "branch line at the present time. Even the addition ■of another gasoline motor car would not completely eliminate the use of steam power, because the latter may still become necessary in times of very bad weather or mechanical difficulties. Except for a few of the war years, there has been a steady decline in the number of passengers carried over the branch, ■so that in 1951, the average number of intrastate passengers canned in one direction was 1.9 per trip .and 2.6 in the other direction, or a total of only 3.5 passengers per day for both trips. These figures [13]*13only included intrastate passengers, but in 1951 the average number of all passengers carried, both intra- and interstate was still only 8.8 a trip. Plaintiff lost $53,304 on the branch-line operation of trains No 14 and No 21 in 1948, and this amount has increased so-that in 1951, it became $68,897. In determining this loss cognizance was taken of all passenger revenues,, both inter- and intrastate, as well as express, mail and milk revenues, and of only out of pocket or’ relievable expenses, i.e., those expenses which would be eliminated by the discontinuance of the branch-line service. Many expenses such as road-bed maintenance, depreciation of equipment and wages of station attendants were not included. The commission suggested that possibly fares could be increased and further economies be considered for the reduction of the losses. It is quite obvious that plaintiff would, in its own interest, bring about all economies possible. If the fares could be and were raised, in all probability such action would further discourage the modicum of patronage still left. In view of the sparse usage of the service involved we believe there has been a virtual, although not complete, abandonment of the use of the service involved by the public, rather than that plaintiff is seeking to abandon its use.

Discontinuance of the branch line was denied principally because there was no other public carrier serving Ontonagon and the communities between it and Channing. In Chicago & North Western R. Co. v. Public Service Commission, 329 Mich 432, there were other existing public services which provided' travel with little inconvenience, and we, therefore, held that where substantial losses result from an operation, the test to be applied is whether such economic waste outweighs any public benefit or convenience.

[14]*14; There is some dispute in the present case as to the condition of the highways serving the .communities involved. One witness, a county engineer, testified that almost every mile of road is kept open during the winter months. However, practically all of the highways are gravel surfaced and there is no doubt that during a severe winter the highways in places may heave- up and break and in the springtime a motor car or truck might have some difficulties. It is too speculative to say what might happen. The public authorities should properly keep the roads in. good condition. It is not unlikely that there might be motor service between the termini were there any demand for it. It is further shown that there is a very limited taxicab service available at Ontonagon, and also that since the time of the hearing before the commission a new tri-weekly permit has been issued to a new bus line running from Houghton to Ontonagon and Mass, Michigan, which is a short distance from Ontonagon on the branch line. Houghton is on one of the main lines of the Duluth, South Shore & Atlantic Railroad Company and is on the route of the Copper Country Limited. Sidnaw, located approximately midway between the termini of the branch, is also on one of the Duluth, South Shore & Atlantic’s main lines, and passenger service is available from there to Champion, Michigan, which also connects with the Copper Country Limited. The testimony shows that the use of private motor ears has increased to such an extent today that the passenger business of railroads generally, including plaintiff, has materially suffered. Representatives of both the postal authorities and the express company testified that each of them would find some way •of maintaining postal and express service to the communities along the branch if the branch line operations were discontinued. . ■.. .

[15]

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Related

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116 N.W.2d 914 (Michigan Supreme Court, 1962)
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Bluebook (online)
61 N.W.2d 24, 338 Mich. 9, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chicago-milwaukee-st-paul-pacific-railroad-v-public-service-mich-1953.