Lehigh & New England R. R. v. Public Service Commission

121 A. 205, 277 Pa. 493, 1923 Pa. LEXIS 444
CourtSupreme Court of Pennsylvania
DecidedApril 30, 1923
DocketAppeal, No. 244
StatusPublished
Cited by8 cases

This text of 121 A. 205 (Lehigh & New England R. R. v. Public Service Commission) is published on Counsel Stack Legal Research, covering Supreme Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lehigh & New England R. R. v. Public Service Commission, 121 A. 205, 277 Pa. 493, 1923 Pa. LEXIS 444 (Pa. 1923).

Opinion

Opinion by

Mr. Justice Hephart,

This is an appeal from an order of the Superior Court affirming the action of the Public Service Commission reducing a rate for intrastate shipments of coal. The opinion of Judge Linn (79 Pa. Superior Ct. 540) recites the facts, and decides finally many questions involved; we will consider those on which this appeal was allowed. The main question concerns the jurisdiction of our state commission, under section 208 (a) of the Federal Transportation Act of 1920, over a complaint against an intrastate rate for the guarantee period fixed by section 209, and its power to make any reduction order without first being authorized by the Interstate Commerce Commission.

[498]*498During federal control, this carrier filed an intrastate rate of forty cents a net ton, affecting intervening appellee. Complaint was filed at Washington prior to March 1, 1920, the state commission’s powers over intrastate movements having been suspended during the period of federal control. The Transportation Act of 1920 returned to the state the control of intrastate rate regulation ; Congress, however, fixed a guarantee period, from March 1, to September 1, 1920, within which existing rates could not be disturbed without the approval of the Interstate Commerce Commission. Appellee, after March 1st, filed an additional protest with the Pennsylvania commission covering the same rate previously complained against. The State had then resumed regulatory control of these rates. The Pennsylvania commission, October 25, 1921, found the fair and reasonable rate from March 1, 1920, to August 25, 1920, to be twenty-five cents per ton; and that, after August 25th, with the horizontal in-increase of forty per cent applicable to group rates or levels (see Increase Rate Case known as “Ex Parte 74,” 58 I. C. C. 220), thirty-five cents was the fair rate. This latter rate, at the carrier’s request, was continued to December 17, 1921, when the rate became effective for the future by the final order of the commission.

The Public Service Act, article Y, section 3, governs the time when the final order shall begin to operate. It reads, “When the commission shall determine, after hearing......upon complaint, that the rate......[is] unjust ......[it shall] determine and prescribe by specific order the......reasonable rate......to- be thereafter established, demanded, exacted, charged or collected.” This fits in harmoniously with reparation adjustments, and other matters in the act. The order of October 25, 1921, provided for rates after December 17, 1921; it included the findings of fact upon which the order was based; these covered the time from March 20, 1920, to October 25, 1921. By “specific order,” respondent was to [499]*499file a new tariff to supersede the rate in effect prior to December 17,1921.

Tbe appeal to tbe Superior Court opened all challenged findings relating to the contested rate; the final decree was not the only matter to consider. There wereincluded not only the basis for the rate from December 17th onward, but retroactively the basis for the finding that, from December 17,1921, back to March 1,1920, the rate was unjust if the commission so found it. Questions on the findings are not to be taken up piecemeal,— that is for the future under this appeal, and the reasonableness of the past rate on an appeal from a reparation award, though in the latter the commission may limit recovery to any damage actually sustained. See Mr. Justice Simpson's opinion in N. Y. & Pa. Co. v. N. Y. C. R. R. Co., 267 Pa. 64. The Superior Court did not err in considering all questions presented to the commission or arising under the complaint.

The Transportation Act, while authorizing the Interstate Commerce Commission to initiate, modify, establish and adjust rate structure affecting carriers in groups or zones (see section 15 (a) of the Interstate Commerce Act, aided by paragraphs 2, 3 and 4 of section 422 of the Transportation Act), and such power was duly exercised by the commission by order Ex Parte 74, above referred to, the act and orders issued thereunder revived in the State the regulatory control over intrastate rates, subject of course to the limitations imposed by the act. This appears not only from the preceding legislation and judicial decisions, wherein it was held federal authority could interfere with state control only to prevent discrimination against interstate commerce (Minnesota Rate Cases, 230 U. S. 352, 402; Houston, East and West Texas Ry. Co. v. United States, 234 U. S. 342; Missouri, Kansas & Texas Ry. Co. of Texas v. Harris, 234 U. S. 412, 419; Carey v. State of South Dakota, 250 U. S. 118; Corn Products Refining Co. v. Eddy, 249 U. S. 427, 435), but also from the sections of the Transportation Act, de[500]*500pended on by appellant for a contrary view. Section 208 (a) provides that rates shall continue in effect under the act until changed by state or federal authority. “Section 15 (a),” says Chief Justice Taft in Railroad Commission of Wisconsin et al. v. Chicago, Burlington & Quincy Railroad Company, 42 Sup. Ct. Rep. 232, 236, “confers no power on the commission to deal with intrastate rates. What is done under that section is to be done by the commission ‘in the exercise of its powers to prescribe just and reasonable rates,’ i. e., powers derived from previous amendments to the Interstate Commerce Act, which have never been construed or used to embrace the prescribing of intrastate rates.” And, finally, “It is said that our conclusion gives the commission unified control of interstate and intrastate commerce. It is only unified to the extent of maintaining efficient regulation of interstate commerce under the paramount power of Congress. It does not involve general regulation of intrastate commerce. Action of the Interstate Commerce Commission in this regard should be directed to substantial disparity which operates as a Teal discrimination against, and obstruction to, interstate commerce, and must leave appropriate discretion to the state authorities to deal with intrastate rates as between themselves on the general level which the Interstate Commerce Commission has found to be fair to interstate commerce.” See State of New York et al. v. United States and Interstate Commerce Commission, 42 Sup. Ct. Rep. 239.

These two cases hold that the State cannot regulate downward rates issued under section 15 (a), etc. That the levels for the rate structure applicable throughout the State or given part thereof cannot be lowered, nor can rates be so dealt with as to affect adversely the integrity of the entire structure or such part of it as to materially injure or have a tendency to affect the whole. This holding is in keeping with the purpose of the act. It was to provide sustaining revenue to carriers for a given period [501]*501immediately following the war and federal control, with any deficiency to be paid by, the nation. Bnt future investigation of any particular rate schedule as it affected particular localities or persons, was left open,— inter-state to that commission, and intra- to the state.

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Bluebook (online)
121 A. 205, 277 Pa. 493, 1923 Pa. LEXIS 444, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lehigh-new-england-r-r-v-public-service-commission-pa-1923.