Gulf, M. & O. R. v. Louisiana Public Service Commission

120 F. Supp. 250, 1954 U.S. Dist. LEXIS 3784
CourtDistrict Court, E.D. Louisiana
DecidedApril 9, 1954
DocketCiv. A. No. 1343
StatusPublished
Cited by4 cases

This text of 120 F. Supp. 250 (Gulf, M. & O. R. v. Louisiana Public Service Commission) is published on Counsel Stack Legal Research, covering District Court, E.D. Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gulf, M. & O. R. v. Louisiana Public Service Commission, 120 F. Supp. 250, 1954 U.S. Dist. LEXIS 3784 (E.D. La. 1954).

Opinion

WRIGHT, District Judge.

■ The plaintiff railroad discontinued the operation of its passenger trains Nos. 1 and 2 between Slidell, Louisiana, and [251]*251New Orleans, Louisiana, without having obtained authority from the Louisiana Public Service Commission or the Interstate Commerce Commission. The Louisiana Public Service Commission ordered the service between these two points restored, and the railroad is asking this court for an injunction restraining the enforcement of the order on the ground that the Louisiana Commission is without jurisdiction, and on the further ground that compliance with the order would deprive the railroad of its property without due process of law and deny it equal protection of the law in violation of the 14th Amendment of the United States Constitution. The railroad also alleges that the order is in violation of Article 1, Sections 2 and 5, and Article 6 of the Constitution of the State of Louisiana.

The defendants have moved to dismiss on the ground that the Louisiana Commission had authority to issue the order restoring the service and that since adequate appeal therefrom to the state courts is provided by Louisiana law, this court, though having jurisdiction, should not exercise it as a matter of sound equitable discretion.

From 1935 until February 1, 1954 the railroad, an interstate as well as an intrastate carrier, operated its passenger trains Nos. 1 and 2 from Jackson, Tennessee, through the State of Mississippi to New Orleans, Louisiana. As of February 22, 1954 the operation of these trains through the State of Mississippi was discontinued and authority for that discontinuance was subsequently obtained on March 18, 1954 from the Mississippi Public Service Commission. On February 20, 1954 the railroad filed with the Louisiana Public Service Commission a petition for authority to discontinue the operation of its passenger trains Nos. 1 and 2 between the Louisiana-Mississippi state line and Slidell, Louisiana. It was the intention of the plaintiff at that time to discontinue all operations of these trains in the State of Louisiana, including the operation between Slidell and New Orleans. Reference to the railroad’s intention to discontinue the operation of the trains between Slidell and New Orleans was contained in its application filed with the Louisiana Public Service Commission, though no permission for the discontinuance of the trains between Slidell and New Orleans was sought for the reason that it was the railroad’s position that jurisdiction over this part of the line was in the Interstate Commerce Commission and not the Louisiana Public Service Commission. The railroad’s position in this regard is predicated on the fact that the discontinuance of the trains between Slidell and New Orleans would result in the termination of certain lease of trackage agreements and the complete abandonment by it of four and one-half miles of the line from Terminal Junction to the Canal Street Station in New Orleans. The railroad would continue to use the balance of the line between Terminal Junction and Slidell for its freight traffic.

Under Section 1(18-20) of the Interstate Commerce Act, 49 U.S.C.A. § 1(18-20), the Interstate Commerce Commission has exclusive authority over abandonment of a line of railroad by a carrier. State of Colorado v. United States, 271 U.S. 153, 46 S.Ct. 452, 70 L.Ed. 878. Where, however, the railroad is merely discontinuing a portion of its service, whether it be passenger or freight, there is no abandonment undei Section 1(18-20), State of Colorado v. United States, supra, and the Interstate Commerce Commission has held that it has no authority under 49 U.S.C.A. § 1(18-20) to authorize a partial discontinuance of intrastate service. Kansas City Southern Railroad Co., 94 I.C.C. 691; New York Central Railroad Co. Abandonment, 254 I.C.C. 745, 765. In the case at bar, therefore, the question of jurisdiction of the Interstate Commerce Commission under Section 1(18-20) is presented only as to the four and one-half miles of line between Terminal Junction and the Canal Street Station.

The Louisiana Commission scheduled a hearing on the railroad’s petition of [252]*252February 20, 1954 to discontinue the operation of passenger trains Nos. 1 and 2 between the Louisiana-Mississippi state line and Slidell, Louisiana, on March 25, 1954. In the meantime on March 8, 1954 the railroad discontinued the service between Slidell and New Orleans. Three days thereafter the railroad applied for permission from the Interstate Commerce Commission to abandon the line between Terminal Junction and the Canal Street Station. Final action on this request has not been taken by the Interstate Commerce Commission. Gulf, Mobile and Ohio Railroad Company, I.C.C. Finance Docket No. 18,845.

On March 17, 1954 the Louisiana Public Service Commission issued its citation requiring the railroad to show cause on March 25, 1954 why it should not be required to reinstate the operation of its passenger trains Nos. 1 and 2 between Slidell, Louisiana, and New Orleans, Louisiana, and on March 25, 1954 the Commission issued its order which is the subject of these proceedings requiring the restoration of the service.

Before the Louisiana Public Service Commission, the railroad took the position that the Commission was without jurisdiction to issue its order of March 25th. And the disposition of the case here will turn on that issue. If the Commission had jurisdiction to issue the order, a review of that order should be sought through the state courts, and this court, though having jurisdiction, must refuse to exercise it as a matter of equitable discretion. Alabama Public Service Commission v. Southern Railway Co., 341 U.S. 341, 71 S.Ct. 762. On the other hand, if the Louisiana Commission is without jurisdiction in the premises, and jurisdiction thereof is in the Interstate Commerce Commission, this court must protect that jurisdiction under the Commerce Clause of the Constitution of the United States. Art. 1, Sec. 8, United States Constitution.

There can be no doubt that the facts; of this case are almost identical with the facts of the Alabama case. There the railroad sought to enjoin an order of the Alabama Commission requiring it to operate certain local intrastate trains on the ground that the order would deprive the railroad of property without due process of law and deny it equal protection of the law. The Supreme Court held that the regulation of intrastate railroad service is “primarily the concern of the state.” State of North Carolina v. United States, 325 U.S. 507, 511, 65 S.Ct. 1260, 1263, 89 L.Ed. 1760; Palmer v. Commonwealth of Massachusetts, 308 U.S. 79, 60 S.Ct. 34, 84 L.Ed. 93. And Congress has provided “That nothing in the [Interstate Commerce Act] shall impair or affect the right of a state in the exercise of its police power to require just and reasonable freight and passenger service for intrastate business, except insofar as such requirement is inconsistent with any lawful order of the [Interstate Commerce Commission]. 49 U.S.C.A. § 1(17)(a).

It would seem, therefore, that the Louisiana Commission did have authority to issue the order of March 25th, unless it can be shown that order is inconsistent with a lawful order of the Interstate Commerce Commission.

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Bluebook (online)
120 F. Supp. 250, 1954 U.S. Dist. LEXIS 3784, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gulf-m-o-r-v-louisiana-public-service-commission-laed-1954.