Chicago, Rock Island & Pacific Railroad v. Thompson

135 F. Supp. 43, 1955 U.S. Dist. LEXIS 3831, 1955 WL 76310
CourtDistrict Court, E.D. Arkansas
DecidedOctober 12, 1955
DocketNo. 3043
StatusPublished
Cited by5 cases

This text of 135 F. Supp. 43 (Chicago, Rock Island & Pacific Railroad v. Thompson) is published on Counsel Stack Legal Research, covering District Court, E.D. Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Chicago, Rock Island & Pacific Railroad v. Thompson, 135 F. Supp. 43, 1955 U.S. Dist. LEXIS 3831, 1955 WL 76310 (E.D. Ark. 1955).

Opinion

LEMLEY, District Judge.

This cause was tried to the Court, and was submitted upon the pleadings, pretrial briefs, oral testimony, documentary evidence, and oral argument; the following memorandum incorporates our findings of fact and conclusions of law, and all requests for such findings and conclusions are denied, except to the extent that they are incorporated herein.

The plaintiff, Chicago, Rock Island & Pacific Railroad Company, hereinafter called Rock Island, brought this action for the primary purpose of enjoining the defendant, hereinafter referred to as the Missouri Pacific, from constructing a line of railroad track from a point on its main line in Pulaski County, Arkansas a short distance southwest of Little Rock to the northeast corner of certain property owned by AMF Cycle Company where that company is engaged in the construction of a plant for the manufacture of bicycles. It is the theory of the plaintiff that the proposed trackage constitutes an extension of the defendant’s line of railroad within the meaning of paragraph 18 of Section 1 of the National Transportation Act,1 and that it cannot be lawfully constructed without a certificate of public convenience and necessity from the Interstate Commerce Com[45]*45mission, which, admittedly, the Missouri Pacific has not obtained.

In its original complaint the plaintiff in addition to praying for the issuance of an injunction against the Missouri Pacific’s proposed construction, prayed in the alternative that if we should determine that the trackage in question is not an extension of the defendant’s line, but is simply a spur or industrial track within the exemption set forth in paragraph 22 of Section 1 of the Act,2 we then enter a declaratory judgment to the effect that the Rock Island is free to build trackage into and through the so-called “industrial area” in which the cycle company’s plant is located, which area will be hereinafter more fully described. In the course of the trial the Rock Island sought and obtained leave to amend its complaint so as to set up a second alternative prayer for relief, namely that if we should hold that the Missouri Pacific’s trackage is a spur or industrial track, and if we should further hold that the Rock Island is not free to build a track designed to serve the entire industrial area without first obtaining a certificate of public convenience and necessity, we then enter a declaratory judgment to the effect that plaintiff is free to build a track designed to serve the AMF plant alone on the theory that such track would likewise be simply a spur or industrial track. Jurisdiction of plaintiff’s primary claim for relief is based upon 49 U.S.C.A. § 1, paragraph (20); and its claims for alternative relief are based upon 28 U.S.C.A. § 2201, diversity being present, and the amount in controversy being in excess of $3,000.

The position of the defendant is that the trackage which it is proposing to build is nothing but a spur or industrial track designed to serve the AMF plant alone, and that no certificate from the Commission is necessary for such construction. The defendant further contends, in opposition to plaintiff’s prayers for alternative relief, that any trackage which Rock Island may build, either to serve the industrial area as a whole or the AMF site solely, would be an extension of its line of railroad, and that since Rock Island has no certificate of public convenience and necessity, such construction would be unlawful. It sti'll further contends that in point of fact the Rock Island does not at this time actually contemplate building any track into the area, and that for that reason there is no actual controversy existing between the two carriers as to any Rock Island trackage, and that the latter road stands in no need of declaratory relief at this time.

Before discussing the conflicting theories of the parties, we deem it well to set out some of the background facts surrounding this controversy:

Both of the contending carriers have main line tracks running into and through the City of Little Rock; south and southwest of that city the two main lines are roughly parallel, and run generally from northeast to southwest, the distance between them being, as far as we are here concerned, from a little more than a mile to more than two miles. A short time ago the Industrial Development Company of Little Rock, an Arkansas corporation, the stockholders of which are Little Rock business men, acquired a tract of land, consisting of approximately 600 acres, and known as the Little Rock Industrial District, and which we shall call the “industrial district” or the “industrial area,” located about two miles southwest of the city limits and lying between the main lines of plaintiff and [46]*46defendant. When viewed as a unit, this area is about equi-distant from both main lines.

It was the purpose of the Development Company when it acquired these lands to develop the same for industrial purposes and to induce industries to locate there. At the time of the purchase3 said lands were wild, unimproved and unenclosed, and were physically separated from Little Rock by Fourche Creek, a substantial stream. Furthermore, they were separated from the Rock Island main line on the east by Little Fourche Creek, which is also a substantial stream. In order to carry out its designs the Development Company expended very substantial sums of money to bring in utilities and open up the district for industry, and it has been successful in inducing the AMF Cycle Company to locate there. No other company, however, has yet come in or firmly agreed to do so, although the evidence is to the effect that negotiations with another company are in their final stage.

In connection with its project the Development Company employed a firm of planning engineers in Dallas, Texas, and was advised by that firm that in order to attract industry to the area it would be at the least highly desirable that the area be served by both the Missouri Pacific and the Rock Island so that industries locating there would have the benefits of multi-line service. And in its contract with AMF the Development Company contracted that the former company would have such service from both roads by November 30 of the current year.

During a part of 1954 and up until June of the current year the Development Company conducted negotiations with representatives of the industrial departments of both the plaintiff and the defendant looking toward the construction of a line of track running through the district from the main line of the Rock Island on the east to the main line of the Missouri Pacific on the west and connecting with those carriers, such line to be jointly owned and operated by the two roads. The Rock Island was agreeable to this proposal, and it appears that the negotiating representatives of the Missouri Pacific were also agreeable thereto; finally, however, in June of this year the top managing officials of the Missouri Pacific refused to enter into any joint operation with the Rock Island, and the plan had to be abandoned. Whether, in view of the negotiations that had taken place and the alleged representations of the Missouri-Pacific’s representatives, the action of the Missouri Pacific in refusing to go ahead with the original plan was legally justified or not is not an issue in this case.

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Bluebook (online)
135 F. Supp. 43, 1955 U.S. Dist. LEXIS 3831, 1955 WL 76310, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chicago-rock-island-pacific-railroad-v-thompson-ared-1955.