Fallon v. Illinois Commerce Commission

84 N.E.2d 641, 402 Ill. 516, 1948 Ill. LEXIS 476
CourtIllinois Supreme Court
DecidedNovember 18, 1948
DocketNos. 30436-7. Reversed and remanded.
StatusPublished
Cited by22 cases

This text of 84 N.E.2d 641 (Fallon v. Illinois Commerce Commission) is published on Counsel Stack Legal Research, covering Illinois Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fallon v. Illinois Commerce Commission, 84 N.E.2d 641, 402 Ill. 516, 1948 Ill. LEXIS 476 (Ill. 1948).

Opinion

Per Curiam :

This is a consolidated case from Cook County, involving two applications by the Chicago Junction Railroad Company to the Commerce Commission of Illinois. A petition in No. 30437 was filed by the railroad company with the commission in 1943, seeking authority and permission to operate a common carrier system over its own streetcar lines, then operated under order of the bankruptcy court by the Chicago Rapid Transit Company, a previous long-term lease by the latter having been terminated by order of court. A short time later the railroad company filed another petition with the Illinois Commerce Commission to require the Chicago Rapid Transit Company, hereafter referred to as the transit company, to permit the use of 1743 feet of its track jointly with the said railroad company, in this court as No. 30436.

The order in No. 30436 was entered by the commission September 11, 1945, and upon appeal was affirmed by the circuit court of Cook County on June 17, 1947. After this order was entered by the commission, and the matter still pending in the courts, the properties of the Chicago Rapid Transit Company were sold by order of the United States District Court to the Chicago Transit Authority, appellant, hereafter referred to as the Authority. The Chicago Transit Authority was created by an act of the General Assembly in May, 1945, and it prayed leave to intervene in both of said causes. The leave to intervene was allowed, but the circuit court held the orders were properly binding upon it, because the commission had jurisdiction over the Chicago Rapid Transit Company, and consequently binding upon the Chicago Transit Authority, the purchaser of such properties. The Authority appeals directly to this court under section 69 of the Public Utilities Act. Ill. Rev. Stat. 1947, chap. 111⅔, par. 73.

Prior to the filing of the petitions mentioned above, the transit company operated a system of street railways in the city of Chicago, and also leased the tracks and properties of the Chicago Junction Railroad Company, and under said lease operated a railway system for carriage of passengers over the same as a part of its own transit system.

The railroad of the Chicago Junction Railroad Company ran in an east and west direction at Indiana Avenue in Chicago. The transit company operated its railroad in a general north and south direction and when it reached Indiana Avenue coming from the north, ran easterly, 1743 feet, and thence in a southerly direction. The easterly part of the property of the Junction Railroad Company terminated at Indiana Avenue, the east end of this 1743 feet, while the Stockyards Branch of the Chicago Junction Railroad Company operating west of the transit company lines had its beginning at the west end of this 1743 feet. Thus, the railroad company had no track or right-of-way for a space of 1743 feet between the easterly end known as the Kenwood Branch, and the westerly end known as the Stockyards Branch. By virtue of a lease made in 1903 the transit company operated its cars over the property of the railroad company, and used its own track for 1743 feet as the connecting link between the two separate parts of the Junction system.

The transit company became bankrupt, and the United State District Court appointed Fallon and others, trustees, to operate the property under section 77b of the Bankruptcy Act. The transit company claimed it operated the junction property under its lease at a loss, and the district court ordered and directed the trustees to disaffirm the lease, and thereafter the Chicago Junction Railroad Company elected to operate its own property, and filed the first above-mentioned petition with the commission to obtain a certificate of convenience and necessity to operate as a common carrier. Since the railroad company had no rights over the x 743 feet of transit company property it filed the second petition to require the transit company to permit the railroad company to have the joint use with the transit company of the 1743 feet of tracks. Both petitions were allowed and orders entered accordingly. Although such orders were entered by the commission in 1943 and 1945, respectively, neither has been in actual effect for various reasons, among which is the fact that the Chicago Junction Railroad Company has no cars, no electrical power, no maintenance equipment, terminal facilities, or operating personnel. When these orders were confirmed by the circuit court the appeal to this court followed. The causes have been consolidated for hearing and opinion.

Each party makes several contentions. Those upon the part of the appellant Authority include the claim that the Commerce Commission had no jurisdiction to enforce the, order against it because it is a municipal corporation, and by statute is exempted from regulation by the Commerce Commission. Also, the Chicago Junction Railroad Company had no franchise from the city of Chicago to operate, and, in fact, had no facilities for operating a railway, and hence is not a public utility under the law. Also, if the commission has jurisdiction to enter the orders, the same are uncertain, incomplete, and not based upon findings of fact; that the order to use the 1743 feet is not based upon a statute, because the railroad is not a crossing or a connecting carrier and is not entitled to use the'terminal facilities of said appellant. Other claims are made, but probably included within the above objections.

On the other hand, the appellee Commerce Commission claims that it has jurisdiction to enter the orders allowing the petitions because they are not prohibited by the statute creating the Chicago Transit Authority, and also contends that even though appellant Authority is exempt from the jurisdiction of the Commerce Commission, still, the appellant Authority purchased the property of the Chicago Rapid Transit Company, which was subject to the orders of the commission, while these proceedings were pending,' and therefore was bound by such orders the same as its vendor could have been bound.

There is a further contention made by appellee that the order of sale and the bill of sale of the property of the Chicago Rapid Transit Company were made subject to certain easements, and that the rights acquired by the Chicago Junction Railroad Company by reason of the orders made by the commission were such rights as come within the exceptions mentioned in the order and deed of assignment.

The statute known as the Metropolitan Transit Authority Act, enacted April 12, 1945, (Laws of 1945, p. 1171,) created the Chicago Transit Authority as a municipal corporation. We upheld the validity of this act as an independent, separate, complete act in People v. Chicago Transit Authority, 392 Ill. 77. In that case every conceivable objection as to its constitutionality was raised and argued, and the validity of all of its provisions settled beyond doubt.

On the same day the Metropolitan Transit Authority Act was enacted the legislature enacted another act amending section 10 of the Public Utilities Act, (Ill. Rev. Stat. 1945, chap. par. 10,) exempting from control and regulation of the Commerce Commission public utilities owned and operated by any political subdivision, or by a municipal corporation of the State.

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Bluebook (online)
84 N.E.2d 641, 402 Ill. 516, 1948 Ill. LEXIS 476, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fallon-v-illinois-commerce-commission-ill-1948.