Hocking Valley Railway Co. v. Public Utilities Commission

92 Ohio St. (N.S.) 362
Ohio Supreme Court·Decided July 2, 1915·No. No. 14739·Published

Opinion

Johnson, J.

The rate on commercial coal in force at the time of filing the complaint by the New York Coal Company from Nelsonville to Toledo was one dollar per ton. This was the rate in force as to all stations beyond Marion. The rate to Marion was eighty-five cents, and from that point south lower rates prevailed.

On the hearing before the commission, at which considerable testimony was introduced, the rate to Toledo was reduced to eighty-five cents per ton, with .proportional rates to the intermediate points.

The proceeding in the court of common pleas was brought under Section 543 et seq., General Code. It is provided in those sections that a certified transcript of all of the proceedings had and testimony taken before the commission shall be filed in the court of common pleas, and that a party to the action may introduce original evidence in addition to the transcript of the evidence offered before the commission.

Section 550, General Code, provides that in actions under the preceding sections to vacate or set aside such order of the .commission, the burden of proof shall be upon the plaintiff to show by clear and satisfactory evidence that such order is unlawful or unreasonable. Since this action was begun, the procedure has been changed by^the act to create the public utilities commission of Ohio (103 O. L., 804, Section 33)..

The courts below, after the performance of their duty to fully examine the evidence and consider the claims of counsel with reference thereto, did [366]*366not sustain the contention of the plaintiff in error that the order was unlawful or unreasonable.

We have also examined the record, not for the purpose of passing on conflicts in the testimony of witnesses, nor of deciding upon pure questions of fact, but to determine from the record, including the evidence, whether the conclusions of fact, as found by the commission and sustained by the courts below, were so dependent upon questions of law as to be in substance and effect a decision of the latter.

The court will not substitute its judgment for that of the legislature or of an administrative board created by it as to matters within its province. It must appear that the order complained of was unlawful or unreasonable. Until the contrary is shown by the degree of proof required by the statute, the presumption is that rates fixed by the railway commission or its successors, for intrastate traffic, are reasonable and just and yield a compensatory return to the carrier.

In the recent case of Northern Pacific Ry. Co. v. North Dakota, 236 U. S., 585, which involved intrastate rates for transportation of coal, the court say: “The general principles to be applied are not open to controversy. (The railroad property is private property devoted to a public use. As a corporation, the owner is subject to the obligations of its charter. As the holder of special franchises, it is subject to the conditions upon which they were granted. * * * The state may prescribe rules to insure fair remuneration and to prevent extortion, to secure substantial equality of treatment in [367]*367like cases, and to promote safety, good order and convenience.”

In concluding the opinion it is said: “It is presumed, — but the presumption is a rebuttable one— that the rates which the state fixes for intrastate traffic are reasonable and just. When the question is as to the profitableness of the intrastate business as a whole under a general scheme of rates, the carrier must satisfactorily prove the fair value of the property employed in its intrastate business and show that it has been denied a fair return upon that value. With respect to particular rates, .it is recognized that there is a wide field of legislative discretion, permitting variety and classification, and hence the mere details of what appears to be a reasonable scheme of rates, or a tariff or schedule affording substantial compensation, are not subject to judicial review. But this legislative power cannot be regarded as being without limit. The constitutional guaranty protects the carrier from arbitrary action and from the appropriation of its property to public purposes outside the undertaking assumed; and where it is established that a commodity, or a class of traffic, has been segregated and a rate imposed which would compel the carrier to transport it for less than the proper cost of transportation, or virtually at cost, and thus the carrier would be denied a reasonable reward for its service after taking into account the entire traffic to which the rate applies, it must be concluded that the state has exceeded its authority.”

We assume that the above may be taken as a fair and concise statement of the position of the [368]*368federal supreme court upon this important subject after full consideration of a number of rate cases which have been recently before it.

The defendant in error points out that it is shown by the record that the Hocking coal district constitutes one of the valuable resources of the state of Ohio; that large amounts of capital are invested in it, large numbers of citizens are.directly employed in its development, and the prosperity and welfare of many industrial and commercial enterprises are dependent-upon the continued existence and growth of the mining operations in the locality; that these are adversely affected by the high rates charged by the defendant for the transportation of coal from this field, and that to remedy these conditions, the complaint was originally filed before the commission. And further, that considerations of public interest suggest a low rather than a high rate on the traffic.

We are not unmindful of the great desirability of the - development of those resources and the highly beneficial results that would accrue to the people of Ohio if all the industries referred to should prosper. Every proper effort of the people and the government should be exerted to bring about this beneficent result. The considerations suggested may be properly, invoked as a ground for the enforcement of reasonable rates; but we are likewise admonished that the rights of the plaintiff railway company are also entitled to consideration, and it is the duty of the state and its administrative agency, as well as of the court, to [369]*369see that no injustice is done it. The same matter is referred to in the Northern Pacific case, supra.

The court say: “The state insists that the enactment of the statute may be justified as ‘a declaration of public policy.’ In substance, the argument is that the rate was imposed to aid in the development of a local industry and thus to confer a benefit upon the people of the state. The importance to the community of its deposits of lignite coal, the infancy of the industry, and thé advantages to be gained by increasing the consumption of this coal and making the community less dependent upon fuel supplies imported, into the state, are emphasized. But, while local interests serve as a motive for enforcing reasonable rates, it would be a very different matter to say that the state may compel the carrier to maintain a rate upon a particular commodity that is less than reasonable, or — as might equally well be asserted — to carry gratuitously, in order to build up a local enterprise;”

The railway commission, on the hearing of the complaint referred to in this case, was only empowered to fix a rate that was reasonable and that would furnish to the plaintiff company a fair and just compensation.

Free access — add to your briefcase to read the full text and ask questions with AI

Hocking Valley Railway Co. v. Public Utilities Commission, 92 Ohio St. (N.S.) 362 (Ohio 1915).

92 Ohio St. (N.S.) 362 (Hocking Valley Railway Co. v. Public Utilities Commission) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Simpson v. Shepard
230 U.S. 352 (Supreme Court, 1913)