Kemp Lumber Co. v. Atchison, T. & S. F. Ry. Co.

9 P.2d 387, 36 N.M. 126
CourtNew Mexico Supreme Court
DecidedMarch 17, 1932
DocketNo. 3630.
StatusPublished
Cited by1 cases

This text of 9 P.2d 387 (Kemp Lumber Co. v. Atchison, T. & S. F. Ry. Co.) 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
Kemp Lumber Co. v. Atchison, T. & S. F. Ry. Co., 9 P.2d 387, 36 N.M. 126 (N.M. 1932).

Opinion

BICKLEY, C. J.

Appellant commenced an action against appellee to recover alleged overcharges on a number of shipments of coal, between October 1, 1925, and January 19, 1928. The suit grows out of the fact that the State Corporation Commission, by an order made March 13, 1928, and approved by the Supreme Court on August 16, 1928, and after rehearing, becoming effective October 18, 1928, reduced the rates on coal between the points mentioned in the complaint. Artesia Alfalfa Growers’ Ass’n v. Atchison, T. & S. F. R. Co., 33 N. M. 468, 270 P. 796. The purpose of the action, in substance, is to recover the difference between the rates finally and affirmatively fixed by the commission and the rate theretofore charged hack to the time when complaint against the existing rates was made to the State Corporation Commission, by the appellant and other shippers on October 29,1927. Such complaint prayed that the carrier be required: “To cease and desist from the violation of the laws of the State of New Mexico in charging said unreasonable, unjust and discriminatory rates, and that the defendants be required to immediately publish and establish, and in the future to maintain such just, reasonable and non-discriminatory rates as to this commission may seem equitable and proper and that the defendants be required to pay to complainants as a damage, any amounts unlawfully and unjustly collected from them on shipments of coal heretofore made or that shall be made during the pendency of this action.”

After due hearing and investigation, an order was made by the commission stating the opinion and finding: “That the present rates on lump coal from origin points named to the destination points involved in this case have been, are and for the future will be unreasonable to the extent that they exceeded, exceed or may exceed the rates set out below.”

It was further ordered that: “Rates which shall not exceed the rates herein found reasonable” should be established by the defendants on or before 40 days after the date of the order.

The order also contained the following recital : “Complainants’ prayer for reparation has not been given any consideration and no order with relation thereto will be made.”

The complaint in the action at bar alleges ■ that the rates complained of were “unreasonable, discriminatory, unlawful, unjust and extortionate.” Appellees demurred to the complaint on the ground, among others, that it does not state facts sufficient to constitute a cause of action, in that it does not appear in the complaint that the rates charged by the defendant railway company, and complained of, were not the rates'authorized as set forth in the tariff schedule duly filed and published and approved by the State Corporation Commission, and that it was not alleged in the complaint that the rates charged were discriminatory against any like shipments, or that the rates were unauthorized.

The district court sustained the demurrer, and, the appellant electing to stand upon its complaint, the court dismissed it. Hence this appeal.

Appellant’s position is that a common carrier owes a duty to transport the goods of the shipper at reasonable rates, and that, if unreasonable rates are exacted, an action may be maintained at common law to recover the excess over a reasonable charge.

' Appellant cites in support of its contention, Santa Fé G. & C. M. Co. v. A., T. & S. F. Ry. Co., 21 N. M. 496, 155 P. 1093, 1094, wherein section 7 of article 11 of our Constitution is interpreted as not to authorize the State Corporation Commission to award reparation for past excess and unreasonable charges for transporting freight. The language of the opinion relied upon by appellant is as follows: “In the first place the recovery of money unreasonably exacted in cases like this is by means of a common-law remedy, and the party against whom the claim is made, whether a natural person or a corporation, has the right, ordinarily, to a trial by jury before its repayment can be enforced.”

Appellee does not dispute, and we do not doubt, that at the common law the shipper was entitled to have his goods transported at reasonable rates and to go to court to recover extortionate charges. It is not necessary to say that such remedy does not now exist. There arises no occasion to doubt that a shipper may recover charges exacted in excess of the legally established rates. Our decision must turn on “what are legally established rates.”

Appellee says that the common law has been to an extent, at least, superseded. Both parties agree that the principle of the right of organized society to regulate the rates and practices of public carriers has been long recognized. It is well established that: “The rate-making power is a legislative power and necessarily implies a range of legislative discretion; and the question to be determined by a tribunal to which this power has been delegated is ‘is the rate just and reasonable?’ ” Watkins, Shippers and Carriers, 4th Edition, page 91, citing the Minnesota Rate Cases, 230 U. S. 352, 33 S. Ct. 729, 57 L. Ed. 1511, 48 L. R. A. (N. S.) 1151, Ann. Cas. 1916A, 18, and other decisions of the Supreme Court of the United States.

As early as 1912, Attorney General Clancy, in an opinion furnished to the State Corporation Commission, said: "The only real restriction, therefore, upon your powers as to the fixing of railroad rates is that they shall be reasonable.” In the same opinion, the Attorney General cites the opinion of the court in Lake Shore & M. S. R. Co. v. Smith, 173 U. S. 684, 19 S. Ct. 565, 569, 43 L. Ed. 858, wherein it is said: “Prima facie, the maximum rates as fixed by the legislature are reasonable.”

In Atchison, T. & S. F. Ry. Co. v. Arizona Grocery Co., 49 F.(2d) 563, the Circuit Court of Appeals of the Ninth Circuit, considering orders of the Interstate Commerce Commission, decided: “Order fixing maximum rate amounted to decision that rates below maximum were just and reasonable.” We.have decided a number of times that rate-making is a legislative power vested in the Legislature and in the State Corporation Commission, and a power which the courts may not assume. Our latest expression on this subject being in Seaberg v. Raton Public Service Co., 36 N. M. 59, 8 P.(2d) 100. Appellant conceded this with respect to new rates, but not as to past rates. It says that, in the determination of the reasonableness of a past rate, a regulatory commission having the power to make such determination acts in a judicial capacity, and from this he argues that the courts may make such a determination.

The Circuit Court of Appeals of the Ninth Circuit in Atchison, T. & S. F. Ry. Co. v. Arizona Grocery Co., supra, said: “The fixing of a past rate by the Commission for purposes of awarding reparations certainly has some of the attributes of a legislative act, notably that it is of universal application to all past transactions, whether the shippers are parties to the proceedings or not. It is binding upon . both the carrier and its shippers, and this because any other rule would destroy uniformity, which the act endeavors to establish and maintain.”

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

Related

Seaberg v. Raton Public Service Co.
87 P.2d 676 (New Mexico Supreme Court, 1939)

Cite This Page — Counsel Stack

Bluebook (online)
9 P.2d 387, 36 N.M. 126, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kemp-lumber-co-v-atchison-t-s-f-ry-co-nm-1932.