Clear Creek Oil & Gas Co. v. Fort Smith Spelter Co.

255 S.W. 903, 161 Ark. 12, 1923 Ark. LEXIS 509
CourtSupreme Court of Arkansas
DecidedNovember 5, 1923
StatusPublished
Cited by10 cases

This text of 255 S.W. 903 (Clear Creek Oil & Gas Co. v. Fort Smith Spelter Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Clear Creek Oil & Gas Co. v. Fort Smith Spelter Co., 255 S.W. 903, 161 Ark. 12, 1923 Ark. LEXIS 509 (Ark. 1923).

Opinion

Hart, J.

This is the third appeal in this case. The opinions on the former appeals dealt with questions of law and of practice, and reference is made to the opinions for the particular- questions decided. Clear Greek Oil & Gas Co. v. Fort Smith Spelter Co., 148 Ark. 260, and Fort Smith Spelter Co. v. Clear Creek Oil & Gas Co., 153 Ark. 170.

The present appeal is prosecuted to reverse a judgment of the circuit court overruling the rate established by the tribunal or commission which was vested with the power to establish rates.

The Legislature of 1921 abolished the Arkansas Corporation Commission, which had the power to regulate public service corporations and to establish rates therefor, and created the Arkansas Railroad Commission. General Acts of 1921, p. 177.

, The rates involved in- this appeal were established by the Arkansas Corporation Commission, which had jurisdiction to establish rates for pipe line companies for the transportation of oil, gas, or water. In the former appeal it was held that the Clear Creek Oil & Gas Company was a public service corporation engaged in the transportation and sale of natural g*as. It was also held that the Corporation Commission in establishing the rates at which the gas should be transported and sold to customers acted in a g-wa-si-judicial capacity and that its orders establishing rates were subject to review by the court in the manner prescribed by statute. Clear Creek Oil & Gas Co. v. Fort Smith Spelter Co., 148 Ark. 260.

When the rates established by the Commission came on for hearing in the circuit court, the Arkansas Corporation Commission had been abolished and the present Railroad Commission created. The new act gave the Railroad Commission authority to establish rates for common carriers, including pipe line companies for the transportation of oil, gas,- or water. The act also provides for an appeal from the Railroad Commission to the Pulaski Circuit Court from any order made by the Railroad Commission.

Section 20 of the act provides that, when the appeal is taken, the secretary of the Commission shall at once ' make a full and complete transcript of all proceedings had before such Commission in such matter, and of all the evidence before it, including all files therein, and ■ deposit the same forthwith in the office of the clerk of the circuit court. Continuing, the section provides as follows:

“The said circuit court shall thereupon review said order upon the record presented as aforesaid in the case and enter its finding and order thereon and cause to be certified' forthwith to such Commission the said order, therein directing that action be taken by said Commission in conformity therewith, unless an appeal from said order to the Supreme Court of this. State shall be taken within the time hereinafter specified, and, in case of such appeal, to. await further orders of said circuit' court.” General Acts of 1921, p. 177.

Thus it will be seen that the statute provides a fair opportunity for submitting the reasonableness of the rates established by the Commission to a judicial tribunal for determination upon its own independent judgment as to both the law and the facts, and it cannot be said that the order in establishing the rates was void because it is in conflict with the ‘due process’ clause of the Constitution of the United States. Ohio Valley Water Co. v. Ben Avon Borough, 253 U. S. 287.

This brings us to a discussion of what consideration the circuit court should have given to the finding of fact by the Commission. It will be noted that the statute does not fix any rule of evidence to govern the court in the premises.

In Louisville & N. Railroad Co. v. Behlmer, 175 U. S. 648, Chief Justice White, speaking for the court in a discussion of the weight to be given to the finding of the Interstate Commerce Commission, said:

“But the law attributes prima facie effect to the ' findings of fact made by the Commission, and that body, from the nature of its organization and the duties imposed upon it by the statute, is peculiarly competent to pass upon questions of fact of the character here arising.”

Again, in Illinois Central Railroad Company v. Inter. Com. Com., 206 U. S. 441, it was said that the finch ings of the Commission are made by law prima facie true, and that the Supreme Court of the United States ascribed to them the strength due to the judgments of a tribunal appointed by law and informed by experience. In Darnell v. Edwards, 244 U. S. 564, it was said that it is well established that, in a question of rate-making, there is a strong presumption in favor of the conclusion reached by an experienced administrative body after a full hearing.

In Railway Co. v. Smith, 60 Ark. 221, it was held that the courts can inquire into the reasonableness of passenger rates, and that, in such cases, the presumption is that they are reasonable, and that the burden is on those contesting them to affirmatively show that, as to them, they are not.

■Therefore the presumption is that the rates fixed by the Commission are reasonable, and the burden of proof is upon the company contesting the rates to show to the contrary. Our statute contemplates a judicial review by the circuit court of the law and the facts as presented to the Commission, and it is the duty of the circuit court to try the questions of law and fact upon the same record as the Commission, bearing in mind that the Commission is a rate-making body created by the Legislature, and its orders are prima facie correct, and that this presumption in their favor will yield only to the probative force of the evidence in the record. It is not the duty of the court to establish the rates, but to determine whether the rates as established by the Commission, when considered in the light of the evidence, are reasonable.

Upon appeal to this court we are called upon to inquire into the weight of the evidence for the purpose of determining whether or not the judgment of the circuit court is against the preponderance of the evidence. In other words, on appeal the findings of fact by the circuit court are allowed to stand unless they are against the preponderance of the evidence when tested by the presumption in favor of the finding’s of the Commission, as outlined above. Fort Smith Light & Traction Co. v. Bourland, 160 Ark. 1.

In this connection it may be stated that neither the' circuit court nor this court sits as a board of revision to substitute our judgment for that of the Commission. Minnesota Rate Cases, 230 U. S. 352; 48 L. R. A. (N. S.) 1151.

This brings ns directly to a consideration of whether the judgment of the circuit court overruling the finding of the Commission and establishing a new rate should be allowed to stand. No special finding of fact was made either by the Commission or by the circuit court.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Household Goods Carriers v. Arkansas Transportation Commission
562 S.W.2d 42 (Supreme Court of Arkansas, 1978)
State v. Washington Utilities & Transportation Commission
403 P.2d 73 (Washington Supreme Court, 1965)
State Ex Rel. Pac. Nw Bell Telephone Co. v. Wa. U. & T. Com.
403 P.2d 73 (Washington Supreme Court, 1965)
State Ex Rel. Pac. T. T. Co. v. D.P.S.
142 P.2d 498 (Washington Supreme Court, 1943)
Camden Gas Corp. v. Camden
41 S.W.2d 979 (Supreme Court of Arkansas, 1931)
St. Louis-San Francisco Railway Co. v. Norris
12 S.W.2d 915 (Supreme Court of Arkansas, 1929)
Fort Smith Spelter Co. v. Clear Creek Oil & Gas Co.
267 U.S. 231 (Supreme Court, 1925)
Arkansas Natural Gas Co. v. Norton Co.
263 S.W. 775 (Supreme Court of Arkansas, 1924)

Cite This Page — Counsel Stack

Bluebook (online)
255 S.W. 903, 161 Ark. 12, 1923 Ark. LEXIS 509, Counsel Stack Legal Research, https://law.counselstack.com/opinion/clear-creek-oil-gas-co-v-fort-smith-spelter-co-ark-1923.