Chicago, R. I. & P. Ry. Co. v. State

1909 OK 157, 103 P. 617, 24 Okla. 370, 1909 Okla. LEXIS 53
Supreme Court of Oklahoma·Decided July 13, 1909·No. 670·Published·Cited by 39 cases

Opinion

*372 Williams, J.

In the ease of Western Union Tel. Co. v. Mississippi Railroad Commission, 74 Miss. 80, 21 South. 15, the third plea averred that:

“Its lines were constructed and, maintained, and its business carried on, in Mississippi at a very great expense, while the receipts from its business were small and unremunerative; that a large majority of 'its offices in the state are maintained under agreement with the various railroad companies, whereby the railroad companies maintain the offices and pay the operators, and but for this arrangement it would be unable to maintain its business in the state; that, notwithstanding said contracts, and its earnest efforts to economize in every way consistent with efficient public service for some time prior to the closing of said office, defendant was doing business in the state at a loss, owing to competition with other lines, and owing to the tariff established by the Railroad Commission, and from other causes; that at Fayette it had no arrangements with the railroad company, and could make none; and that the receipts of that office, at the time it was closed, were insufficient to pay the expenses of keeping it open for business, and, if it was maintained, it would 'be at a loss to defendant, without its fault, and it could be maintained only at a loss to defendant in the expenditure of money and the consumption of its property, for which it could get no return. Wherefore to require it to reopen the office would be violative of the Constitution of Mississippi, in that* it would be taking private property" for public use without due compensation.”

The fourth plea averred, in addition to the foregoing allegations of the third plea, that “to require defendant to further keep open and maintain said office would be to deprive it of its property without process of law, and violative of section 1 of the fourteenth amendment of the Constitution of the United States.” A general demurrer was interposed to each of said pleas, and the court sustained the same. The Supreme Court of Mississippi in that case held that facts set up by said pleas, and admitted to be true by>- the demurrer, furnished ample justification for the actions of the telegraph company in closing its office at Fayette.

■' In the case of Chicago, St. Paul, Minneapolis & O. Ry. Co. v. Becker et al. (C. C.) 35 Fed. 886, Mr. Justice Brewer, sitting as circuit judge, in delivering the opinion of the court, said:

*373 “It is not within the power of the state, directly or indirectly, to pnt in force a schedule of rates, when the rates prescribed therein will not pay the cost of service. In this case the defendant took no testimony, and ' the complainant’s testimony shows that the actual cost of the service — that is, wages of employees, rent of engines, keeping the track in repair — exceeds 'per car by 14 cents the amount allowed in the schedule as compensation. In other words, it costs the complainant $1.14 per car to do the work, and the defendant proposes to allow' it to charge only $1. ‘The state cannot require a railroad. corporation to carry persons or property without reward.’ Railroad Commission Cases, 116 U. S. 331, 6 Sup. Ct. 334, 29 L. Ed. 636.”

In the ease of Atlanta Coast Line v. North Carolina Corporation Commission, 206 U. S. 20, 27 Sup. Ct. 585, 51-L. Ed. 933, the court of ultimate resort in this republic said:

“As the public power to regulate railways and private right of ownership of such property co-exist, and do not the one destroy the othér, it has been settled that the right of ownership of railway property, like other property rights, finds protection in constitutional guaranties, and therefore wherever the power of regulation is exerted in such an arbitrary and unreasonable way as to cause it to be in effect not a regulation, but an infringement upon this right of ownership, such an exertion of power is void because repugnant to the due process and equal protection clauses of the fourteenth amendment.”

In the light of the foregoing excerpts as authority, we now pass to the question as to whether or not the order made by the commission in this record is reasonable and just. The order recites:

“ * * * The commission finds that the defendants maintain a station at the town of Eerguson, and keep an agent there, who performs all the duties of a regular agent other than telegraph service. The commission further finds from the evidence that shippers and buyers of grain and cotton are greatly discommoded and at many times sustain loss by reason of the failure of this service and that the defendant railroad has been compelled to phone to other stations for the purpose of securing orders fox-trains tied up for want of orders at the town of Ferguson. It is further shown by the evidence that considerable business in the shipment of various farm products is done at the town of Fer *374 guson, and that the - reasonable necessity of the public requires telegraphic service. The defendant railroad company contends that Ferguson as a commercial telegraph station does not pa}r a sufficient amount to enable it to maintain a telegraph office; that the defendant telegraph company is willing to maintain telegraph service at any station where the railway company maintains an operator who is telegrapher. Conceding the contention of the defendant railway company that receipts from commercial services ' are inadequate to pay for the maintenance of an agent, it must he remembered that there are but few stations in the state of Oklahoma where this service alone pays sufficient to maintain an agent, yet telegraph service is maintained throughout the state by the joint use of the railroad operator, and the commission is of the opinion that it is the duty of the defendant to maintain this service, inasmuch as the people of the town of Ferguson and vicinity have no means of ascertaining the arrival or departure of passenger trains, which is required by the order of this commission at stations where tickets are sold. It is therefore ordered by the commission that the defendants, the Western Union Telegraph Company and the Chicago, Eock Island & Pacific Eailwav Company, install and maintain telegraph service for commercial and other purposes for which such service is commonly used, and maintain the same until further ordered by this commission. That this service shall be maintained on and after the 15th day of September, 1908.”

Section 22, art. 9 (Bunn’s Ed. § 234; Snyder’s Ed. p. 259) of the Constitution, in part provides:

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Chicago, R. I. & P. Ry. Co. v. State, 1909 OK 157, 103 P. 617, 24 Okla. 370, 1909 Okla. LEXIS 53 (Okla. 1909).

1909 OK 157 (Chicago, R. I. & P. Ry. Co. v. State) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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