Illinois Cent. R. Co. v. Vest

39 F.2d 658, 1927 U.S. Dist. LEXIS 1836
CourtDistrict Court, E.D. Kentucky
DecidedMay 16, 1927
StatusPublished
Cited by1 cases

This text of 39 F.2d 658 (Illinois Cent. R. Co. v. Vest) is published on Counsel Stack Legal Research, covering District Court, E.D. Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Illinois Cent. R. Co. v. Vest, 39 F.2d 658, 1927 U.S. Dist. LEXIS 1836 (E.D. Ky. 1927).

Opinion

PER CURIAM.

This cause is before the court on motion for a temporary injunction enjoining the defendants from enforcing an order of -the Railroad Commission of Kentucky. The order was entered upon a complaint filed May 1, 1924, by certain shippers, codefendants with the Railroad Commission in this proceeding, alleging that the rates from the coal producing mines on the lines of the Illinois Central Railroad Company in Western Kentucky to Mayfield and Claybum were excessive and*extortionate, and praying for reasonable rates in the future and reparation on shipments made during the pendency of and for the period of two years prior to the filing of the complaint. Upon the hearing the commission held that the existing rates, [659]*659$1.58 per ton on steam eoal to Mayfield, $1.69 per ton on eoal to Clayburn, and a like rate on domestic or coal other than steam to Mayfield, were unreasonable, and entered an order fixing the rates for the future for both points at $1.35 per ton on steam eoal and $1.58 per ton on domestic or other eoal. The order also directed the railroad company to pay to complainants the sums that it had collected in excess of the rate so fixed on shipments made by complainants subsequent to July 1,1922, but did not undertake to determine the amount of the several awards made because complainants had not placed before the commission,. at that hearing, the evidence as to the alleged excessive payments. On a subsequent hearing proof of the amounts paid by the complainants in excess of the rate found by the commission to be reasonable was offered, and an order was entered directing the railroad company to pay to complainants the specific amounts thus shown.

The motion before us seeks to restrain the enforcement of this order on the following grounds: (T) It is not supported by substantial evidence; (2) the commission did not find the old rate excessive or extortionate for any definite period prior to the entry of its order; (3) it had before it, at the first hearing, no evidence as to shipment charges collected, and at the second hearing refused the railroad company the right to a full hearing on the question of reparation or damages; and (4) because of the passage of the Transportation Act the commission was not authorized to award reparation on shipments made in the past.

The first ground, dealing with the rate order, requires a consideration of the evidence, which consisted of a comparison of rates, ear mile and ton mile earnings on the same commodity for comparable distances in the same general territory. These earnings, with engine ratings, are generally accepted as indicia of transportation conditions, and the evidence pertaining to the Illinois Central lines from the mines to May-field and Clayburn, as compared to similar data concerning its lines from the same mines in other directions, clearly shows that, if favorable transportation conditions are to be considered in fixing rates, those to May-field and Clayburn, other conditions being equal, should be lower than in other directions. Obviously, however, such conditions alone would afford no basis for determining the reasonableness of • the rates charged. Additional evidence, in connection with which these earnings and ratings become important, was offered in the form of proof of rates from the same group of mines for comparable distances within the same general territory. It was not to be expected that it could be proved that transportation conditions or distances of other such comparable hauls were exactly similar to those under investigation; but, nevertheless, certain rates were proved by complainants which afford a reasonable basis of comparison with the rates in question after due allowance is made for differentials resulting from competitive and other conditions.

The commission fixed the rates, as we have said, at $1.35 per ton for steam eoal and $1.58 per ton for domestic or other coal for a haul averaging 122 miles. This is supported, as defendants contend, by proof that from the same group of mines to Evansville, a distance of 156 miles, the rate was $1.26; to Nashville, a distance of 170 miles, $1.35; to Louisville and Camp Knox, the distance to the latter point being 121 miles, $1.26; to St. Louis, a distance of 280 miles, $1.48%. It was further shown that the rates from Illinois mines to Cairo, a distance of 117 miles, was $1.34, and from Tennessee mines to Richard City, Tenn., 131 miles, $1.24. As against this the railroad company claims that the rates to Paducah and Louisville were fixed under an order of the Railroad Commission; that the Nashville, Richard City, and St. Louis rates were either fixed by the Interstate Commerce Commission, or were voluntarily made to meet rates that the commission had fixed on some other line. Some such similar claims are made as to the Cairo, Camp Knox, and Evansville rates, though the record fails to disclose what the competitive conditions and rates were as to these points as well as to,Louisville. The railroad company also introduced proofs of rates higher for comparable distances than-those fixed by the commission on shipments from Illinois mines to Kentucky and from Illinois mines to Missouri, which, however, we think, has little bearing on the reasonableness of the rates in controversy because of dissimilar transportation conditions, including river crossings and, in some instances, two line hauls.

The test of the reasonableness of a rate order, so far as the courts are concerned, is whether there was substantial evidence before the commission to support its finding. Interstate Commerce Commission v. Union Pacific R. Co., 222 U. S. 541, 32 S. Ct. 108, 111, 56 L. Ed. 308; L. & N. R. R. Co. v. Finn, 235 U. S. 601, 35 S. Ct. 146, 59 L. Ed. [660]*660379; New York v. United States, 257 U. S. 591, 42 S. Ct. 239, 66 L. Ed. 385. If there is substantial evidence supporting the order, the expediency or wisdom of it, or, as said in the Union Pacific Case, “whether, on like testimony,” the court would have made a similar ruling, is not to be considered by the courts, for, although the commission’s conclusion is subject to review, it is, “when supported by evidence, * * * accepted as final.” This, we take it, does not mean a scintilla but substantial evidence. While a comparison of rates, ear earnings, and engine ratings does not of itself necessarily tend to establish the reasonableness of a rate, it may, nevertheless, especially where some of the comparable rates, as here, were fixed by the Interstate Commerce Commission, afford substantial evidence upon which a commission may legally act in establishing a rate. L. & N. R. R. Co. v. United States, 238 U. S. 1, 35 S. Ct. 696, 59 L. Ed. 1177. When the commission’s order based thereon is attacked, however, it is the duty of the court to look to the comparisons, and determine whether, as it views their effect, there was substantial evidence to support the order. We have no trouble in believing that there was such evidence before the commission in this ease, and hence there is no power in this court, under the eases cited, to enjoin the enforcement of the order on the ground that it was arbitrarily made.

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Bluebook (online)
39 F.2d 658, 1927 U.S. Dist. LEXIS 1836, Counsel Stack Legal Research, https://law.counselstack.com/opinion/illinois-cent-r-co-v-vest-kyed-1927.