Georgia Railway & Power Co. v. Railroad Commission

98 S.E. 696, 149 Ga. 1, 5 A.L.R. 1, 1919 Ga. LEXIS 89
CourtSupreme Court of Georgia
DecidedMarch 15, 1919
DocketNo. 1174
StatusPublished
Cited by25 cases

This text of 98 S.E. 696 (Georgia Railway & Power Co. v. Railroad Commission) is published on Counsel Stack Legal Research, covering Supreme Court of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Georgia Railway & Power Co. v. Railroad Commission, 98 S.E. 696, 149 Ga. 1, 5 A.L.R. 1, 1919 Ga. LEXIS 89 (Ga. 1919).

Opinion

Beck, P. J.

The plaintiff in error, hereafter called the railway company, filed a petition to the Bailroad Commission of Georgia, for an increase in street-railway fares. In the application it was claimed that an increase of rates for street-car and suburban fares was absolutely essential in order for the applicant, in view of the unusual war conditions which had prevailed for more than a year, to effectively discharge the obligations of the company to the public. The facts upon which this claim of the necessity for a raise in the rates of street-ear fares was based were fully and elaborately set forth in the petition to the commission. TJpon hearing the application the commission held, that, by reason of certain contracts between the railway company and the Cities of Atlanta, Decatur, East Point,-and College Park, it had no jurisdiction to grant increased fares; and reached the conclusion, that, having found the contracts referred to to be physically existent, their validity was not a question for the commission, but for the courts to decide; that when dealing with the rates of a street-railway under the terms of the act of 1907, embraced in the Civil Code, § 3663, they were brought face to face with a contract or an ordinance in existence at the time of the passage of that act, and still subsisting; and that the commission could go no further in dealing with the rates until the obstacle should be removed by legal procedure before a court of competent jurisdiction, or until the General Assembly should further act. The_ commission, having concluded that there were contracts in existence which were an obstacle to their further proceeding, stated as their opinion that the applicant was entitled [3]*3to an increase in street-car fares, and that a six-eent fare would be reasonable and just “so long as existing abnormal war conditions prevailed,” and recommended to the municipal authorities of Atlanta, Decatur, and College Park the justice of granting the increase “by amendment to existing contracts or ordinances.” The railroad company then brought to the superior court of Fulton county its petition against the commission, and prayed that the writ of mandamus issue, requiring the commission to take jurisdiction in the matter of fixing the rates, it being insisted that the commission had'erred in declining to take jurisdiction in the matter, for thé reason that there were no contracts, valid or otherwise, between the City of Atlanta and the petitioner fixing the street-railroad fares, and that there was in existence in 1907 no ordinance, valid or otherwise, passed hy the City of Atlanta fixing street-railroad fares; and that if there existed at said time any such contracts or ordinances, the same were invalid because the City of Atlanta lacked the charter power to make such contracts or ordinances; and because, if the City of Atlanta had charter power to make such contracts and ordinances, they would be void because violative of art. 4, section 3, par: 1, of the constitution of the State'of Georgia, conferring upon the General Assembly alone the power of regulating passenger tariffs, preventing-unjust discrimination, and fixing reasonable and just rates.' Applicant also insisted that the alleged contracts between applicant and the towns of Edgewood, East Point, Decatur, and College Park were invalid, because these towns were without charter power to make such contracts, and that if they had such power the contracts would be void because in violation of that section of the constitution referred to. The further contention was made that even if there were valid contracts between the petitioner and one or more of the municipalities referred to, the existence of such, valid contracts would not prevent the commission from exercising its jurisdiction to fix street-railroad fares in eases other than those covered by such valid contracts; and that if there were with the cities, whose streets were occupied by petitioner, valid existing contracts, the act of the commission in fixing and approving just and reásonable rates would not be an impairment of such contracts under the constitution of this State.

1. We will first consider the question as to whether, if there [4]*4were contracts in existence on the 23d day of August, 1907, between the municipalities named, or any of them, by the terms of which the street-railroad fares were fixed as to that municipality, such a contract would prevent the fixing of the street-railroad fares by the commission. The act to revise and enlarge the powers and duties of the Railroad Commission of Georgia, etc., approved August 23d, 1907, contains the statutory ¡provision now embraced in section 2662 of the Civil Code, and, so far as relates to the questions under consideration in this ease, reads as follows: “The powers and duties hereinbefore conferred by law upon the railroad commission are hereby extended and enlarged, so that its authority and control shall extend to street-railroads and street-railroad corporations, companies, or persons owning, leasing, or operating street-railroads in this State: Provided, however, that nothing herein shall be construed to impair any valid subsisting contract now in existence between any municipality and any such company; and provided that this section shall not operate as a repeal of any existing municipal ordinance.” Until the passage of the act of 1907 the commission was without authority to deal with the subject of fixing fares for street-railways. Until the enactment of that statute they did not exercise, as to street-railway companies, the powef' to make the rates of charges for transportation of passengers on the lines of street-railways operated by street-railway companies, like that of the applicant in this ease. But the act of 1907, as indicated by its caption, extended and enlarged the powers and duties of the commission, and embraced in these enlarged and "extended powers and duties there was,' among other things, the authority to fix fares upon street-railroads, and to otherwise exercise control over street-railroad corporations or companies operating street-railways, but in section 5 (the section of the act of 1907 extending the powers of the commission so as to embrace authority to fix fares upon street-railroads) the legislature enacted as a part of that section the proviso “that nothing herein [in the statute extending the powers and duties of the commission] shall be construed to impair any valid subsisting contract now in existence between any municipality and any such company” (street-railroad company). In our opinion the effect of the proviso is to leave the commission where it was before the enactment of the statute, as to its power and [5]*5authority to determine and fix fares upon street-railroads in any municipality which had a valid subsisting contract covering that subject with the street-railroad company.

Counsel for the railway company contend in their arguments that it was not competent for the municipality to enter into a contract with the street-railroad company upon this subject; that the fixing of fares upon street-railroads and other railroads is a matter that falls within the police -power of the State; and that under the provisions of the constitution of the State, especially that part of the constitution which declares that the exercise of the police power of the State shall never be abridged (Civil Code, § 6464), the municipality and the railway company could not make a binding contract upon this subject. "We cannot agree with this contention in full.

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Bluebook (online)
98 S.E. 696, 149 Ga. 1, 5 A.L.R. 1, 1919 Ga. LEXIS 89, Counsel Stack Legal Research, https://law.counselstack.com/opinion/georgia-railway-power-co-v-railroad-commission-ga-1919.