Kansas City Southern Railway Co. v. Arkansas Railroad

299 S.W. 761, 175 Ark. 425, 1927 Ark. LEXIS 487
CourtSupreme Court of Arkansas
DecidedNovember 21, 1927
StatusPublished
Cited by1 cases

This text of 299 S.W. 761 (Kansas City Southern Railway Co. v. Arkansas Railroad) is published on Counsel Stack Legal Research, covering Supreme Court of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kansas City Southern Railway Co. v. Arkansas Railroad, 299 S.W. 761, 175 Ark. 425, 1927 Ark. LEXIS 487 (Ark. 1927).

Opinion

"Wood, J.

On the 7th of October, 1926, the Bailroad Commission of Arkansas issued the following order:

‘ ‘ There came on for hearing before the Commission the application and amended application of the Kansas City Southern Bailway Company, asking that the Commission issue an order to permit the Kansas City Southern Bailway Company to discontinue its agent at Bavanna, Arkansas, and, after due consideration of said application and all facts in the premises, doth find: That, by a special act of the General Assembly of the State of Arkansas, approved February 23,1905, the Kansas City Southern Bailway Company, under the provisions of said act, was required to erect a depot at Bavanna and keep an agent therein, .to supply tickets, to receive freight for shipment, issue bills of lading, and to attend to all other services required of a station agent. The Commission holds that it does not possess the power to-authorize the Kansas City Southern Bailway Company to discontinue its agent at Bavanna, Arkansas, so long as the special act of the Legislature establishing the agent at Bavanna is in force. It is therefore by the Commission on tins day ordered that the original and the amended application of the Kansas City Southern Bail-way Company, for authority to discontinue its agent at Bavanna, Arkansas, be and it is hereby dismissed from the docket of the Commission for the want of jurisdiction. ’ ’

The railroad company appealed to the circuit court, and, on the 27th of January, 1927, the circuit court entered a judgment which recites, in part, as follows:

“This cause was submitted to this court upon the record duly certified to by the Bailroad Commission of Arkansas, as required by law, and upon briefs of counsel. The court, being well and sufficiently a'dvised in the premises, finds that this cause must he affirmed, for the reason that the Arkansas Bailroad Commission did not have .jurisdiction, because no petition signed by fifteen bona fide citizens residing in the territory at the station of Bavanna, Miller County, Arkansas, was filed for the discontinuance of the agency at that place. This court holds that, under § 1638 of Crawford & Moses’ Digest, the Arkansas Bailroad Commission is without jurisdiction, unless a petition for the relief prayed for is signed by at least fifteen bona fide citizens residing in the territory sought to be affected by the petitioners. It is therefore by the court ordered, adjudged and considered that the decision of the Arkansas Bailroad Commission be affirmed and the case herein dismissed.”

Prom the above judgment the railroad companies duly prosecute this appeal.

It will be observed that the only question for decision is whether or not the Bailroad Commission has jurisdiction to entertain the petition of appellants to discontinue their station agent at the town of Bavanna, Arkansas. The Bailroad Commission held that it had no power to discontinue, because of the special act of the Legislature of 1905 requiring the maintenance of an agency at Bavanna, while the circuit court held that the Bailroad Commission had no jurisdiction because no petition was filed signed by fifteen bona fide citizens residing in the territory at the station of Bavanna for a discontinuance of the agency at that place. Both decisions are wrong.

1. Act 149 of the Acts of 1907, as amended by No. 338 of that session, provides, in part, as follows:

“Section 1. That the Bailroad Commission of Arkansas be, and the same is, hereby authorized, empowered and required to hear and consider all petitions for train service, depots, stations, ispurs, sidetracks, platforms, and the establishment, enlargement, equipment and dis-continuance of the same along and upon the right-of-way of any railroad in this State; provided, said petition shall be signed by at least fifteen bona fide citizens residing in the territory sought to be affected.”

Section 2 requires tlie Railroad Commission, within thirty days after filing of the petition, to make a personal inspection of the conditions complained of and to investigate the objects sought to be accomplished by the petitioners, and gives the Commission power to hear testimony to determine the amount, degree and character of construction,, equipment, changes, enlargements of stations and depots which should be supplied by said railroad, railroad company, its lessees or operator. Section 2 concludes as follows: “And shall have the power and authority to require a reasonable train service for each and every railroad station and depot within the State of Arkansas, and their* finding shall be binding upon all such railroads within the State of Arkansas.”

Section 3 provides for the filing of the findings and decrees of the Commission with the Secretary of State, Attorney General, and circuit clerk of the county where the decree is granted, and for notice upon the defendant railroad company of such decree by delivery of a copy of its findings and decrees to the nearest local station agent, and to the superintendent, general manager, or other operator of such railroad or railroad company.

The 4th section provides foi; the penalty wherein a railroad company shall refuse to comply with the findings and decrees and mandates of the Railroad Commission, and provides that no order for doing anything under the act shall be made by the Commission until all parties concerned shall have received ten days’ notice of such proposed change.

The 5th section provides that the act shall not repeal any other act now in force or limit or curtail the powers and duties of the Railroad Commission of the State of Arkansas. See §§ 1638-.1641, inclusive, C. & M. Digest.

In the absence of a statute, railroad corporations authorized to do business in this State would have plenary power over the matters set forth in the above statute. A consideration of all of its provisions convinces us that it was not the purpose of the Legislature to take away or to curtail these powers, except in so far as railroad companies might attempt to exercise them in a manner detrimental to the public they serve. The only justification for the lawmaking body or the courts to place limitations or restraints upon the rights and powers of railroad companies under their charters is because such corporations may, in the absence of such limitations or restraints, in some manner seek to promote their own private and financial interests to the detriment of the public. The administrative functions of these corporations in the matters .specified in the statute are peculiarly within the power and discretion of their managing boards, and it was not the purpose of the Legislature to interfere with their power and discretion to serve as best they may the financial interests of these corporations and their stockholders, so long as, by so doing, they do not conflict with the duty which they owe the public in such matters.

In Northern Pacific Ry. Co. v. Washington Territory, 142 U. S. 492, 12 S. Ct. 283, 35 L. ed. 1092, the Supreme Court of the United Stales, among other things, said:

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Bluebook (online)
299 S.W. 761, 175 Ark. 425, 1927 Ark. LEXIS 487, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kansas-city-southern-railway-co-v-arkansas-railroad-ark-1927.