Louisville & N. R. v. Railroad Commission of Alabama

205 F. 800, 1913 U.S. Dist. LEXIS 1604
CourtDistrict Court, M.D. Alabama
DecidedMay 5, 1913
DocketNo. 264
StatusPublished
Cited by5 cases

This text of 205 F. 800 (Louisville & N. R. v. Railroad Commission of Alabama) is published on Counsel Stack Legal Research, covering District Court, M.D. Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Louisville & N. R. v. Railroad Commission of Alabama, 205 F. 800, 1913 U.S. Dist. LEXIS 1604 (M.D. Ala. 1913).

Opinion

GRUBB, District Judge.

This matter was submitted for decision upon a rule served upon respondents, who are the members of the Railroad Commission of Alabama, to show cause why they should not be punished for contempt in violating the terms of a permanent injunction that was heretofore issued in the cause, enjoining the respondents from taking any steps to enforce certain rate statutes enacted by the Legislature of Alabama, known as the “Maximum Freight Act,” the “Eight Group Acts” and the “Maximum Passenger Rate Act.” The alleged violation of the injunction consists in the making of an order by the Commission requiring the complainant to’put into effect a passenger rate of 2% cents a mile for adults and a rate of 1% cents for children, and the serving of the order on the complainant.

The facts and history of the case in which the injunction was made permanent are fully stated in the statement of facts and the opinion in the report of the original case. L. & N. R. Co. v. Railroad Commission (D. C.) 196 Fed. 800. The order of the Commission asserted to constitute the contempt was made on the 19th day of February, 1913, and its effect was to direct the complainant on and after March 6, 1913, to put in effect between all points on its railroad in Alabama a standard passenger rate of 2% cents per passenger mile for adults and a rate of 1% cents per passenger mile for children not over 12 nor under 5 years of age, and providing that complainant’s proportion of joint passenger rates between points in Alabama should not exceed the standard rates prescribed. The final decree by which the injunction was made permanent was rendered April 2, 1912, but postponed the restoration of the rates which were in effect before the statutory rates went into effect until April 15, 1912.

[802]*802The Commission, in answer to the rule, present three propositions, any one of which, if resolved in its favor, would result in a denial of the relief asked for by the complainant in the petition upon which the rule issued. They are (1) that the making of the order complained of was a legislative or quasi legislative act, and for that reason one that would have been beyond the jurisdiction of a court of equity to enjoin, and for that reason one the making of which could not sustain a contempt proceeding; (2) that the injunction was directed against the enforcement of all the rate statutes in their entirety, and that the Commission was not enjoined from putting in force any one of them separately; and (3) that the making of the order complained of was not an enforcement of the statutory passenger rate act, but an exercise of the ■ Commission’s independent power of establishing reasonable rates and fares.

[1] 1. It is contended by the Commission upon the threshold that the making of the order could not have been a contempt, since the court was without jurisdiction to enjoin the Railroad Commission from making such an order, it being the exercise of a legislative function, as much so as it would be without jurisdiction to enjoin the Legislature in advance from passing an act establishing a like rate. This may be conceded to be the law. However, the final decree awarding the permanent injunction did not attempt to enjoin the Commission from making such an order. Its effect was to enjoin the Commission from taking any steps against complainant or its agents to compel it to observe or to enforce any of the said several acts of the Legislature. While, therefore, the mere making of an order having the effect of establishing the statutory rate may not have been a violation of. the injunction, a step taken to enforce such an order would be a violation of it. The service of the order on complainant, the effect of which was to put the order into effect within 20 days thereafter, would constitute a step to enforce the order. Upon the order becoming effective by this means, the rate created by it was by force of the order and of the statute prima facie a valid one in any legal proceeding against complainant, and the nonobservance of the rate, so made effective by the order, by collecting a rate in excess of it, subjected the complainant to penalties at the instance of those compelled by it to pay the higher rates. The order was attended with these results without further action on the part of the Commission than the service of the order upon the complainant and the lapse of 20 days. It seems clear that the making of the order, if its purpose is held to be the enforcement of the maximum passenger rate act, combined with service of it on the complainant, was the taking of a step by the Commission to enforce the statute against complainant.

2. It is further contended by the Commission that the effect of the injunction was merely to restrain the Commission from enforcing the schedule of rates comprised in the group of statutes, consisting of the Maximum Freight Act, the Eight Group Acts, and the Maximum Passenger Rate Act in their entirety, and that it left the Commission at liberty to put in force singly any one of'the several acts com[803]*803prising the group; that the report of the special master and the opinion of the court upon the final decree, as well as the language of the final decree, show' that the combined schedule was denounced as confiscatory; and that there was no ruling by either the master or the court that the passenger rate act, apart from its association with the other acts assailed, would in its operation deprive the complainant of its property without due process of law.

An examination of the master’s report, of the opinion of the court, and of the language of the final decree is persuasive that there was no adjudication in the cause that the operation of the maximum passenger rate, independently of its associated rate acts, would be confiscatory. It may be true that the pleadings were broad enough to present this issue, and that there is evidence in the record from which the inference might arise that the passenger business of complainant when conducted under the statutory rate was unremunerative and confiscatory, even though considered apart from complainant’s freight business. The master’s report, the court’s opinion, and the final decree, in connection with the attitude of the parties during the cause, indicate that the court did not attempt to determine whether, the passenger rate act would he confiscatory in its operation, if it alone were enforced and the remaining rate statutes enjoined, and the complainant in that event at liberty to put in freight rates not limited by the statutory maxima. It is conceivable that the court might have reached a different conclusion as to the confiscatory effect of the statutory passenger rate, when put in force by itself or in connection with a group of statutory freight rates. In the former case the revenue from the freight business, when unregulated, might make the total revenue from freight and passenger traffic remunerative, though the passenger traffic unaided might not be so. In the latter case the freight: traffic conducted under statatory rates might not only lend aid to the passenger traffic under like regulation, but be a detriment to it, so that the entire business of the carrier would be conducted at a loss. The passenger traffic is conducted on the same rails and largely with the same plant as is the freight, and might be held remunerative in connection with a remunerative freight business, though, if it were conducted alone, the holding would be different.

The question as to whether the statutory passenger rate, if it alone was put in force, would prove confiscatory, seems not to. have been presented to or decided by the court.

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Bluebook (online)
205 F. 800, 1913 U.S. Dist. LEXIS 1604, Counsel Stack Legal Research, https://law.counselstack.com/opinion/louisville-n-r-v-railroad-commission-of-alabama-almd-1913.