Denver & New Orleans Railroad v. Atchison, Topeka & Santa Fe Railroad

3 Colo. L. Rep. 317
CourtU.S. Circuit Court for the District of Colorado
DecidedFebruary 15, 1883
StatusPublished

This text of 3 Colo. L. Rep. 317 (Denver & New Orleans Railroad v. Atchison, Topeka & Santa Fe Railroad) is published on Counsel Stack Legal Research, covering U.S. Circuit Court for the District of Colorado primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Denver & New Orleans Railroad v. Atchison, Topeka & Santa Fe Railroad, 3 Colo. L. Rep. 317 (circtdco 1883).

Opinion

Hallett, J.

OPINIÓN.

The duty of common carriers to give equal service on equal terms and upon reasonable compensation to all who may apply to them to carry persons or property, is as well established as any rule of common law. As to railroads it is expressed in Sec. 6. Art. 15, of the constitution of this State, in the following language:

“All individuals, associations and corporations shall have equal rights to have persons and property transported over any railroad in this State, and no undue or unreasonable discrimination shall be made in charges or in facilities for transportation of freight or passengers within the State, and no railroad company,, nor any lessee, manager or employee thereof [324]*324shall give any preference to individuals, associations or corporations in furnishing cars or motive power.”

As a rule of law, it must carry with it all that is essential to its due observance and enforcement. It is good for what' is fully expressed in it, and for all that may arise therefrom by necessary implication. Whatever is inconsistent with it, or with the purposes for which it was adopted, is against public policy, and cannot be upheld. It is a rule of conduct for carriers which is designed to give the public the largest use of public conveyances which may be consistent with the service, and one which leaves to carriers only such powers as are necessary to the business. Thus the carrier maj charge for his services, because he cannot work without pay; but he is allowed only a reasonable price, such as will be fair compensation for his labor;' he may exclude from, his carriage explosive compounds which may be dangerous to other goods and the carriage itself; he may also exclude thieves and gamblers and other mischievous persons who may be traveling for an unlawful purpose. These and the like things, for the good of the servióe the carrier may do, but in general he must have regard for the public interest in all that he does; for, as said by the Supreme Court, “ he is in the exercise of a sort of public office, and has public duties to perform from which he should not be permitted to exonerate himself without the assent of the parties concerned.” New Jersey Steam Navigation Co. v. Merchants’ Bank, 6 How., 382; Munn v. Illinois, 4 Otto, 130.

If, then, a common carrier can set no limits to the service in which he is engaged except such as are inherent in it, the position of the defendant in this controversy is made plain. The defendant refuses to carry to or from Denver and points between Denver and Pueblo, except in connection with the Rio Grande road; not absolutely indeed, but for the price charged in connection with that road. To say to the public that the rate shall be less by the Rio Grande road than by any other line , is, in effect, to say that the public shall use that road only. A very little difference in the tolls will prohibit traffic over other lines; and clearly'enough such was the effect in this case. It is admitted that defendant refuses to carry in connection with complainant at the same rate of charges as with the Rio [325]*325Grande Company, and that it charges for such carriage a.much higher rate; for all practical purposes that course of proceeding amounts to a refusal to carry except in connection with the Rio Grande road.

In support of its refusal to deal with complainant as a connecting road, defendant avers that it has entered into a contract with the Rio Grande Company for making a “through line” and doing “through” business between the Missouri river and Denver, which is of great advantage to defendant, and which cannot be maintained, except on the theory of exclusive dealing between the parties thereto. So understood, the contract is open to the objection that it gives no choice of route to travelers and shippers of goods, of which something will be said hereafter. The answer, however, gives no intimation as to the true character of the contract as it appears in evidence. It is an agreement between the Union Pacific Company of the first part, the defendant and its leased lines of the second part, and the Rio Grande Company of the third part, for a division of territory and traffic in Colorado and New Mexico. At the time it was made, March 22, 1880, these companies owned or controlled all the railroads in Colorado and the northern half of New Mexico, and they assume in this agreement to divide the country and to allot to each of the parties its separate portion for the purpose of building new railroads. The parties are severally bound not to trespass on the territery of other parties as defined in the agreement, and each stipulates with the other that it will not “voluntarily connect with or take business from or give business to, any railroad which may be hereafter constructed ” in the territory of the other. After settling the question of new roads, the parties proceed to. a division of traffic in paragraphs four, five and six of the contract, as follows:

" Fourth—All traffic to and from the Missouri river, and all competitive local traffic, both passenger and freight, to and from the territory south and west of Denver, reached and covered by the Denver and Rio Grande Railway Company or the Denver, South Park and Pacific Railroad Company, and lines controlled or constructed or to be constructed by them or ¿ither of them, or promoted by and connected with them or [326]*326either of them, shall be pooled between the Union Pacific Railway Company and the Atchison, Topeka and Santa Fe Railroad Company, one-half to each. Also all traffic to and from the Missouri river, and to and from competitive local points, both freight and passenger, to and from Denver, shall be divided, three-quarters to the Union Pacific Railway Company, and one-quarter to the Atchison, Topeka and Santa Fe Railroad Company, each company in each case to deduct forty per cent, as cost of operating; it being understood and agreed that all local business, both passenger and freight, to and from the Denver, South Park and Pacific Railroad Company, east of and including Weston station, shall be treated as Denver business, and divided accordingly. It is also understood that the party of the third part is not to do any through business to and from Trinidad, or to and from New Mexico via Trinidad or El Moro.
“Fifth—That as long as the parties of the second part, and each of them, shall keep the agreements on their behalf herein contained, one-half of all the traffic, both passenger and freight, originating in Colorado, and also in New Mexico at points as far south as the party of the third part is authorized to build under article two of this agreement, and coming or delivered to the party of the third part for transportation over any of the lines of the party of the third part, constructed or to be constructed or promoted by it, or coming or delivered to it for transportation from lines connecting with it, and destined for points east of the line between Denver and El Moro, and said line extended northerly and southerly, shall be delivered at South Pueblo for . transportation over the railroads controlled by the parties of the second part, and the other half at Denver for transportation over the railroads controlled by the party of the first part, as far as the party of the third part can legally control such traffic.

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Dayton v. Lash
94 U.S. 112 (Supreme Court, 1876)
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Cite This Page — Counsel Stack

Bluebook (online)
3 Colo. L. Rep. 317, Counsel Stack Legal Research, https://law.counselstack.com/opinion/denver-new-orleans-railroad-v-atchison-topeka-santa-fe-railroad-circtdco-1883.