In Re Atchison, T. & S. F. Ry. Co.'s Protest of Rates

107 P.2d 123, 44 N.M. 608
CourtNew Mexico Supreme Court
DecidedOctober 23, 1940
DocketNo. 4565.
StatusPublished
Cited by12 cases

This text of 107 P.2d 123 (In Re Atchison, T. & S. F. Ry. Co.'s Protest of Rates) is published on Counsel Stack Legal Research, covering New Mexico Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re Atchison, T. & S. F. Ry. Co.'s Protest of Rates, 107 P.2d 123, 44 N.M. 608 (N.M. 1940).

Opinion

MABRY, Justice.

This case is before us on removal from the State Corporation Commission, upon a record showing an incompleted hearing, but one which the Commission and protestants claim is sufficient for the purposes of the case.

The Atchison, Topeka and Santa Fe Railway Company ^ undertook to publish a tariff showing reduced rates intrastate in New Mexico to meet what the company called the competitive rates of Motor Carriers operating interstate and intrastate in New Mexico. The tariff was published to become effective April 2, 1940, but on protest of the New Mexico Motor Carriers Bureau, Incorporated, prior to such date, a hearing was had before the State Corporation Commission on the question, of whether the proposed rates should be permitted to become effective as scheduled. This hearing was opened on March 29, 1940, and considerable .testimony taken. The hearing was not closed, however, but an adjournment was had and continuance granted the railway company until June 24th, 1940, in order to permit it to secure and assemble data and evidence desired by the Commission upon the question of establishing the compensatory nature of the proposed rates published, and for other purposes. Upon the adjournment of the hearing, the Commission, over the protest of respondent railway company, and without a full and complete hearing, entered an order suspending the rates so published and to become effective on April 2nd, the suspension to continue until further hearing by and order of the Commission. This order was ignored by the respondent company and the Commission removed the case here for hearing looking to the enforcement of the order.

The Motor Carriers Bureau, hereinafter to be referred to as protestants, challenged the proposed tariff and schedule of rates as being discriminatory, preferential and prejudicial. Discriminatory and preferential in that all points in the state upon its lines were not given the benefit of the proposed new and lower rates, and prejudicial to the protestants because such rates were non-compensatory, and were to be established only at certain preferential points, suggestive of a rate war with protestants.

The railway company, hereinafter to be referred to as respondent, contends that the case before the Commission is one to determine the reasonableness and fairness of the proposed rates so published, and that the Commission is without authority to suspend such proposed rates until the hearing thereupon has been concluded and the protestants háve sustained the burden of proof of showing the rates to be unreasonable and unjust. Since the respondent company refused to obey the order of the Commission, the tariff and new and reduced rates as to the points in question were put into effect as scheduled and published, on April 2, 1940, and the Commission removes the case to this court under authority of Section 7, Article XI, of the New Mexico Constitution, authorizing such removals to this court for the purpose of a hearing upon the record made and securing obedience to the order of the Commission -

The question presented is whether or not the State Corporation Commission has the power under the Constitution and laws of the state to suspend rates published by a rail carrier prior to their effective date, upon an incomplete hearing upon the question of whether the rates are reasonable and just, even though evidence presented ttp to the time of the continuance of hearing might be sufficient to establish ¿ prima facie case in favor of the protestants.

Respondent company takes the position that the hearing before the Commission is still pending, that there has been in fact no final and completed public hearing as enjoined upon the Commission by Section 8, Article XI, of the New Mexico Constitution, and' that any order it now attempts to enforce is void and of no effect.

It is apparent from Section 7, Article XI of the Constitution that the Commission, having power to fix, determine, supervise, regulate and control all charges and. rates of railway and other transportation companies, and having the power to change and alter such rates, to the end that such rates shall not be “unjust, excessive or unreasonable”, it has the power to fix or revise rates and charges downward in the interest of the public. But, it may not be so apparent, as is suggested by respondent, that the Constitution makers reposed in the Commission the power to revise upward a rate of which a competing carrier complains as being too low, and which it cannot meet. But, this question is not at this time before us and is therefore not decided.

Respondent relies upon the case of In re Coal Rates in New Mexico, 23 N.M. 704, 171 P. 506, wherein it was held that no burden rests upon a railway company or a public utility corporation to justify a rate or a proposed tariff.

Protestants, the motor carriers, urge upon us a consideration of the fact that some evidence had been introduced by both the protestants .and respondent going to the question of the justness and reasonableness of the rates. proposed, and that upon an examination of the whole of the uncontradicted evidence so received, a prima facie case is made for the protestants; and, the Commission was, therefore, upon the condition of the record then, justified in entering its order of suspension pending a final determination of the case. We are wholly unimpressed with such argument whether the adjournment of the obviously incompleted hearing was at the instance of one party or the other, a point upon which the parties do not agree. Under the circumstances of this case as disclosed by the record before us, we are asked by the protestants and the Commission to suspend and vacate the proposed rates and tariff of the company. This is urged because it may be said that the evidence produced by the protestants up to the point of adjournment, including some offered on behalf of the respondent company, is sufficient to sustain the burden the protestants bear to show the rates proposed are discriminatory, unreasonable, preferential and prejudicial.

Such partial and incomplete hearing, under the circumstances, is not a compliance with the • constitutional provision which prohibits the determination of any question or the issuance of any ord.er by the Commission until after a “public hearing” upon notice. The constitutional provision here referred to (Sec. 8, Art. XI) reads: “The commission shall determine no question nor issue any order in relation to the matters specified in the preceding section, until after a public hearing held upon ten days’ notice to the parties concerned, except in case of default after such notice.” We said in Woody v. Denver & R. G. R. Co., 17 N.M. 686, 132 P. 250, 47 L.R.A.,N.S., 974, that an order against a company which has not been given the hearing provided for in this section is unenforcible.

The following propositions may be taken as admitted: (1) Any common carrier has the unquestioned right to place in-effect a new rate or tariff without having secured the consent of the Commission. (2) ■ If thereafter, objection or protest against said rate or new tariff be made by any interested party entitled to object thereto, the carrier is not called upon in the first instance to sustain by evidence the reasonableness or fairness of the said rate or new tariff, but the burden is upon the Commission, or interested party objecting, to produce evidence striking down said rate or new tariff. In re Coal Rates in New Mexico, 23 N.M.

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Bluebook (online)
107 P.2d 123, 44 N.M. 608, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-atchison-t-s-f-ry-cos-protest-of-rates-nm-1940.