Chicago, R. I. & P. R. Co. v. Gist

1920 OK 238, 190 P. 878, 79 Okla. 8, 1920 Okla. LEXIS 7
CourtSupreme Court of Oklahoma
DecidedJune 15, 1920
Docket8820
StatusPublished
Cited by14 cases

This text of 1920 OK 238 (Chicago, R. I. & P. R. Co. v. Gist) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Chicago, R. I. & P. R. Co. v. Gist, 1920 OK 238, 190 P. 878, 79 Okla. 8, 1920 Okla. LEXIS 7 (Okla. 1920).

Opinion

RAMSEY, J.

(after stating the case above). By the act of Congress apivroved February 18, 1888 ( 25 St. L. 35), the Choctaw Coal & Railway Company, a corporation created under the laws of the state of Minnesota, was granted the right of constructing, owning, equipping, and operating a line of railroad through the Indian Territory, beginning at a point on Red River (southern boundary line), at Rocky Cliff in the Indian Territory, and running thence by the most practicable route through the Indian Territory to the western line of the state of Arkansas ; it was also authorized to construct and operate a branch line from its main line in a northwesterly direction to the leased coal veins of the Choctaw Coal & Railway Company in the Choctaw Nation. Section 4 of said act is as follows:

“That said railway company shall not charge the inhabitants of said territory a greater rate of freight than the rate authorized by the laws of the state of Arkansas and Texas for services and transportation of the same kind: Provided, That passenger rates on said railway shall not exceed three cents per mile. Congress hereby reserves the right to regulate the charges for freight and passengers on said railway and messages on said telegraph and telephone lines, until a state government or governments shall exist in said Territory within the limits of which said railway, or a part thereof, shall be located; and then such state government or governments shall be authorized to fix and regulate the cost of transportation of persons and freights within their respective limits by said railway; but Congress expressly reserves the right to fix and regulate at all times five cost of such transportation by said railway or said company whenever such transportation shall extend from one state into another, or shall extend into-more than one state. * * * ”

The Choctaw Coal & Railway Company becoming financially embarrassed, Congress by an act approved August 24, 1894 (28 St. L. 502), in furtherance of its reorganization, for the purpose of completing the road, pro *12 vided that the purchasers of the rights >of way, railroad, etc., at any sale made under or hy virtue of any process or decree of court having jurisdiction “shall he, and are hereby, constituted a corporation and shall be vested with all the right, title, interest, property, possession, claim, and demand in law and equity, of, in and to such rights of way, railroads, mines, coal leasehold estates, and property of the said Choctaw Coal & Railway Company, and with all the rights, powers, immunities, privileges, and franchises which have been heretofore granted to or conferred upon said company by any act or acts of Congress, or which it possesses by virtue of its charter under the laws of Minnesota.” Section 4 of that act provided that it would be lawful for such new corporation “to lease its railroads and mines and other property to any company owning or operating a railroad connecting with the railroad of said new corporation on such terms and conditions as may be agreed upon.”

The Choctaw, Oklahoma & Gulf Railroad Company, one of the plaintiffs in error, became the purchaser.

The coal hauled over the lines of defendants for the plaintiff and his assignors was shipped from within a radius of'about-50 miles, including McAlester and IVilburton, Indian Territory, over the railroad line belonging to the Choctaw, Oklahoma & Gulf Railroad Company (successor to Choctaw Coal & Railway Company) to El Reno, Oklahoma Territory, where physical connection was made with the line of railroad owned by the defendant Chicago, Rock Island & Pacific Railway Company, and thence to Enid over tlie line of road belonging to the latter company. The Chicago, Rock Island & Pacific Railway Company purchased, under the authority of an act of Congress approved June 27, 1890, granting the Chicago, Kansas & Nebraska Railway Company power to sell and convey to the Chicago, Rock Island & Pacific Railway Company, all railway property, rights, and franchises of the Chicago, Kansas & Nebraska Railway Company “in the territory of Oklahoma and in the Indian Territory.” Congress, by act approved March 2, 1887 (24 St. L. 446), granted a right of way to the Chicago, Kansas & Nebraska Railway Company, a Kansas corporation, through the Indian Territory, beginning at a point in the northern line of said territory near the state of Kansas crossed by the one hundred -and first meridian, thence southwesterly toward El Paso, and also a right of way beginning at a point on the south line of Kansas, near Caldwell, in Sumner county, thence to or near Port Reno, and from thence in a southerly direction to the south line of the Indian Territory in the direction of Galveston, Texas. Section 4 of said Chicago, Kansas & Nebraska Railway Company right of way act, approved March 2, 1887, provides:

“That said railroad company shall not charge the inhabitants of said territory a greater rate of freight than the rate authorized by the laws of the state of Kansas for services or transportation of the same kind: Provided, that passenger rates on said railway shall not exceed three cents per mile. Congress hereby reserves the right to regulate the charges for freight and passengers, on said railway and messages on said telegraph and telephone lines, until a state government or governments shall exist in said territory, within the limits of which said railway, or a part thereof, shall be located; and then such state government or governments shall be authorized to fix and regulate the cost cof transportation of persons and freights within their respective limits by said railway; but Congress expressly reserves the right to fix and regulate at all times the cost of such transportation by said railway or said company whenever such transportation shall extend from one state into another, or shall extend into more than one state. * * * ”

The coal shipped from points in the Indian Territory to Enid, for excessive freight charges ou whicli plaintiff sues in this ease, traveled over the line of the Choctaw, Oklahoma & Gulf Railroad Company to Ml Reno, and thence over the line of the Chicago, Rock Island & Pacific Railway Company to Enid. Before any of the shipments of coal complained of wore made, the Chicago, Rock Island & Pacific Railway Company obtained a 999-year lease on the road of the Choctaw, Oklahoma & Gulf Railway Company and was operating the leased line with its other lines as a unit.

Plaintiff’s contention is this: That the act of Congress of February 18, 1888, granting the right of way to the Choctaw Coal & Railway Company, the predecessor of the Choctaw, Oklahoma & Gulf Railway Cbmpany, limited the maximum freight rate chargeable 'by that company and its successors to a rate equivalent to the rate for services and transportation of the same kind prescribed by the laws of Arkansas and Texas, and if there be a difference between the rates of Arkansas and Texas for the same service, “the lower of these two rates is the maximum, beyond which the railroads shall not charge”; using the language of plaintiff’s counsel. In other words, if Texas has a higher rate than Arkansas for the same services and transportation, the rate prescribed by Arkansas controls, and vica versa.

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Bluebook (online)
1920 OK 238, 190 P. 878, 79 Okla. 8, 1920 Okla. LEXIS 7, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chicago-r-i-p-r-co-v-gist-okla-1920.