Empire Rice Milling Co. v. Railroad Commission

79 So. 833, 143 La. 1036, 1918 La. LEXIS 1566
CourtSupreme Court of Louisiana
DecidedJune 29, 1918
DocketNo. 23047
StatusPublished
Cited by4 cases

This text of 79 So. 833 (Empire Rice Milling Co. v. Railroad Commission) is published on Counsel Stack Legal Research, covering Supreme Court of Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Empire Rice Milling Co. v. Railroad Commission, 79 So. 833, 143 La. 1036, 1918 La. LEXIS 1566 (La. 1918).

Opinion

SOMMERVILLE, J.

The plaintiffs, thirteen in number, are the New Orleans Joint Traffic Bureau of the New Orleans Board of Trade, Limited, six rice mills, and six rice merchants and commercial firms, all located in New Orleans. They allege that they are buyers, sellers, and millers of rice; that they are “parties in interest” in and to order No. 2116 adopted by the Railroad Commission of Louisiana; that order No. 2116 establishes tariffs on dressed and rough rice which are increases in rates over those prevailing at the time of the adoption of said order; that defendant has also ordered the railroads to establish the privilege of milling rice in transit on all of the roads throughout the state; that the' imposition of this burden upon the railroads was the cause of the increase in the tariffs on cleaned and rough rice to be paid by plaintiffs;' and that such increase in rates, due to milling in transit, is unreasonable, unjust, discriminatory, and extortionate when applied to the shipments of rice made by them. They pray:

“That there be judgment in favor of petitioners and against the said Railroad Commission of Louisiana avoiding, annulling, and canceling the said order No. 2116.”

The defendant commission answered .that milling in transit was an ordinary rule and regulation of and for railroad companies and of railroad commissions; that the tariffs on rice established by it were in every way reasonable and just; and that the fixing of rates and the establishing of rules and regulations for the government of railroads were entirely within the power and authority granted it in article 284 of the Constitution.

The Southern Rice Growers’ Association, a Texas corporation, domiciled in the county of Jefferson, state of Texas, and largely composed of rice producers of the states of Louisiana, Texas, and Arkansas, together with seven rice growers of Acadia parish, intervened in the suit, and joined defendant in support of the validity and regularity of order No. 2116.

A second petition of intervention was filed by the Lake Charles Rice Milling Company of Louisiana, which also joined the defendant.

There was judgment in favor of the defendant and interveners, and plaintiffs ha've appealed.

The contest presented in this suit appears to be between the rice millers and merchants of New Orleans, and the rice producers and one or two independent rice millers outside of the city of New Orleans.

[1039]*1039It .is said there are thirty-one rice mills in the state; but only seven or eight have made themselves parties to this suit. It may be that the others are not interested in order No. 2116. Some of them may be simply rice mills which receive rice for milling, and do not pay the shipping rates. They are the consignees, while the producers are the consignors, and the latter pay the freight. The producers, or rice growers, are ashing that the tariffs be maintained. Or, it may be some of the out of town mills receive much of the rough rice which they may have purchased in wagons and barges, which is therefore not affected by the tariffs fixed for railroads. Or, as buyers of rough rice which is received by them over a railroad, they get the benefit of the milling in transit; and therefore they have no cause for complaint against the established rules and rates.

It does not appear how the New Orleans Joint Traffic Bureau of the New Orleans Board of Trade, Limited, is a person interested in the rates i>aid by the shippers of rice. The rice mills of New Orleans, simply as millers of rice, and not as owners and shippers, would not be interested in the freight rates either; but they, together with the other plaintiffs, allege that they are buyers and sellers of rice, and, as owners and shippers, they are required to pay the increased freight rates on rough rice; and they are therefore injured by the adoption of the milling in transit rule, and the increase in the tariff.

Order 2116 is really in two parts, with the two parts depending upon one another. It orders the railroads to grant the privilege of milling rice in transit; and it increases the tlriffs on rice, because of the increased burden of milling in transit placed on the railroads. That is just, and not unjust. It is fair, and not discriminatory. It is, in the opinion of the commission, for the good of the public; and, on its face, order 2116 is valid.

It results from the contentions and concessions of the respective parties that the controversy is reduced to a single issue: What was the nature and character of the order made by the commission? What, in substance, was the power which the commission exercised in making the order?

Plaintiffs on their brief say:

“The issue herein is not as to the correctness of an order of an administrative body, but as to the power of the Railroad Commission to make it, and from this viewpoint the facts upon which the order rests become immaterial.”

They also say:

“The mass of testimony in the record is almost appalling and would have entailed a large amount of work on the court, but fortunately the brief of interveners tenders an issue of law rather than fact, obviating the need of reading all this testimony. An examination of the purpose of the order under attack, as found within the order itself, also shows that the issue here is not the correctness of an order of an administrative body, but the power of that body to make the order. Order 2116 of the Railroad Commission compelled the carriers to grant milling in transit and raised the rates through the whole field of rice transportation. * * * That it is not claimed for the order (by defendant) that its rates are the measure of the services, but its virtue lies in the fact that it equalizes the cost of transportation between millers, irrespective of the value of the transportation each demands. The purpose of the order admittedly is to foster competition and increase the selling price of rice. The defense of order 2116 has rested on no other foundation, and, therefore, in the clear light of this frank statement of the purpose of the order the whole voluminous record of facts disappears, and the question resolves itself, not into a question of the expediency of the order from a transportation standpoint, but a question of the power of the Railroad Commission to make an order that has as its end the regulation of market conditions. Because there is only a question of law involved, it is not even necessary to read tlte voluminous transcripts.”

[1] The State Railroad Commission is an administrative body, as was decided in the case of Morgan’s Louisiana & T. R. R. & S. S. Co. v. Railroad Commission, 109 La. 247, 33 South. 214. It was further said in that case:

“It is a matter not debatable that the state, subject to certain limitations, has, in further[1041]*1041anee of its object of advancing the public good, a power of regulation and control over the action and conduct of those to whom she has granted these rights and franchises. From the very nature of things, there must arise from time to time differences between the corporation, seeking to derive from its corporate rights the utmost personal advantage it can, and the state, seeking to obtain through its conduct and action the greatest good possible for the public. These differences may arise at any time. between them upon matters of detail or administration more or less important.

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Bluebook (online)
79 So. 833, 143 La. 1036, 1918 La. LEXIS 1566, Counsel Stack Legal Research, https://law.counselstack.com/opinion/empire-rice-milling-co-v-railroad-commission-la-1918.