Detroit & Mackinac Railway Co. v. Michigan Railroad Commission

240 U.S. 564, 60 L. Ed. 802, 36 S. Ct. 424, 1916 U.S. LEXIS 1483
CourtSupreme Court of the United States
DecidedApril 3, 1916
DocketNo. 68
StatusPublished
Cited by10 cases

This text of 240 U.S. 564 (Detroit & Mackinac Railway Co. v. Michigan Railroad Commission) is published on Counsel Stack Legal Research, covering Supreme Court of the United States primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Detroit & Mackinac Railway Co. v. Michigan Railroad Commission, 240 U.S. 564, 60 L. Ed. 802, 36 S. Ct. 424, 1916 U.S. LEXIS 1483 (1916).

Opinion

Mr. Justice Van Devanter

delivered the opinion of the court.

This was a petition to the Supreme Court of Michigan by the Railroad Commission of that State for a writ of mandamus to enforce obedience to an order of the commission directing the Detroit & Mackinac,Railway Company to relay one-half mile of rails removed by it from a five-mile logging spur, called Tubbs Branch, and to resume service thereon. The railroad company answered, and, after a Rearing, the court granted the writ subject to a condition presently' to be stated. 178 Michigan, 230.

The commission’s action was invoked by a complaint presented by the Fletcher Paper Company, of which the railway company had due notice. Before the commission the railway company insisted that the logging spur was not a part of its railroad system and that its use had been only that of a private convenience; but the commission concluded from the pleadings and evidence that the fact was otherwise and made the order with the purpose of correcting what it deemed an unreasonable and unjust discrimination and an inadequate service within the meaning of the local statute, 3 Howell’s Ann. Stat., 2nd ed., §§ 6526, 6537, 6545. Thereupon the railway company filed a bill in equity in the Circuit Court of Wayne County praying that the order be vacated and asking that its enforcement be temporarily and permanently enjoined. In the bill the railway company repeated its insistence [567]*567that the logging spur was not a part of its railroad system but only a private convenience, and charged that an adequate hearing was denied by the commission in that the issues were determined upon the evidence presented by the paper company and in contravention of an understanding, assented to by the commission, that if an objection of the railway company in the nature of a plea of res judicata should be overruled, as it afterwards was, the company would be afforded a further opportunity to present evidence in opposition to that of the paper company. The bill invoked the due process of law clause of the Fourteenth Amendment. Apparently the prayer for a temporary- injunction was not insisted upon.

. It was during the pendency of that suit that the mandamus proceeding was begun and carried to judgment in the Supreme Court. In this proceeding the railway company again asserted that the logging spur was only a private convenience and not a part of the, railroad system used by it as a common carrier and that the commission had denied it an adequate opportunity to be heard upon that question, and further insisted that to require it to give effect to the commission's order in advance of a hearing and decision upon that question in the suit in equity would deprive it of the due process of law guaranteed by the Fourteenth Amendment.

In the course of its opinion the Supreme Court said, pp. 243-246:

“We are not called upon to consider and determine the merits of the controversy between the Fletcher Paper Company and respondent railway company upon the order of August 3, 1911. Such questions are involved in the case now pending before the circuit court for the County of Wayne in chancery, wherein the respondent railway company seeks to review, annul and set aside said order. The sole question before this court in this proceeding is whether the order of the railroad commission shall [568]*568take effect and bécome operative pending the hearing and determination of that chancery cause. . . .
“Relative to an order made by this commission this court has said: ‘ . . . Its orders stand until modified or set aside by it or by the courts. . . . Presumptively, the findings and orders of the commission are right. If attacked, the complainant has the burden of showing by clear and satisfactory evidence that the order of the commission complained of is unlawful or unreasonable, as the case may. be.’ Detroit &c. R. R. v. Railroad Commission, 171 Michigan, 335, 346.
“The petitioner in the instant case before the railroad commission offered,' and upon this hearing before this court keeps such offer good, to indemnify respondent for all costs and expenses incurred in re-laying the track taken up by it, with interest, and to pay all rates that may be fixed or charged by the railway company and approved by the commission, in case this order is vacated and set aside by the Wayne circuit court in chancery, or by this court, if an appeal is taken. This indemnity would save respondent harmless from any possible loss , in complying with the order, and save petitioner, from claimed irreparable damage to 21,000,000 feet of forest products diming the probable term of years occupied in this litigation.
“It was held by this court that an order of the railroad commission is enforceable by mandamus, although a proceeding in equity to review it is pending. Michigan R. R. Comm. v. Railroad Co., 159 Michigan, 580.
“This order is prima facie not unreasonable. There is no question but that the legislative intent clearly expressed in this statute was that the orders of the commission should be and continue in- force during all subsequent proceedings until modified or set aside by the commission or by the courts.
“The statute provides a remedy by mandamus to en[569]*569force the orders of the commission, and this court has granted such writs. Upon the facts presented, the writ should be granted in this case.
“Upon furnishing bond by the petitioner before the railroad commission, the Fletcher Paper Company, in the penal sum of $10,000 to indemnify respondent in manner and form as herein stated, with two sureties to be agreed upon between the parties, or approved by the clerk of this court, a writ of mandamus will issue as prayed.”

And in the course of a separate opinion one of the Justices said, p. 248:

“So long as the respondent was operating the spur, accepting thereon and transporting over it freight for those who offered it, and so long as it published tariffs affecting such service, it was undoubtedly, as to such operations, within the scope of the act in question, and this we held in Detroit &c. R. R. v. Railroad Commission, 171 Michigan, 335. But whether the Michigan railroad commission has power under the statute to require respondent to continue to operate such a spur, or branch, against its will, and in face of its efforts to abandon it, is quite a different question. It is a question which we assume is presented in- the pending chancery proceeding to set aside the order which in this proceeding is sought to be enforced. It need not be answered now.”

The local statute, 3 Howell’s Ann. Stat., 2nd ed., provides: (§ 6545) Orders of the commission shall take effect and become operative twenty days after service; (§ 6547) the commission may upon application rescind or alter any order; (§ 6548) all regulations, practices and services prescribed by the commission shall be in force and be prima facie lawful and reasonable until finally held otherwise in a suit brought for the purpose under § 6549, or until rescinded or altered by the commission under § 6547; (§ 6549) a carrier may, within thirty days after notice of an order, commence'a suit in equity to vacate [570]*570it, the burden being upon the carrier to show that the-order is unlawful or unreasonable.

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Bluebook (online)
240 U.S. 564, 60 L. Ed. 802, 36 S. Ct. 424, 1916 U.S. LEXIS 1483, Counsel Stack Legal Research, https://law.counselstack.com/opinion/detroit-mackinac-railway-co-v-michigan-railroad-commission-scotus-1916.