Louisville & Nashville Railroad v. Commonwealth

51 S.W. 164, 106 Ky. 633, 1899 Ky. LEXIS 85
CourtCourt of Appeals of Kentucky
DecidedMay 20, 1899
StatusPublished
Cited by4 cases

This text of 51 S.W. 164 (Louisville & Nashville Railroad v. Commonwealth) is published on Counsel Stack Legal Research, covering Court of Appeals of Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Louisville & Nashville Railroad v. Commonwealth, 51 S.W. 164, 106 Ky. 633, 1899 Ky. LEXIS 85 (Ky. Ct. App. 1899).

Opinions

JUDGE HOBSON

delivered the opinion of the court.

Section 218 of the Constitution is as follows: “It shall be unlawful for any person or corporation owning or operating a railroad in this State, or any common carrier, to charge or receive any greater compensation in the aggregate for the transportation of passengers or of property of like kind, .under substantially similar circumstances and conditions, for a shorter than for a longer distance over the same line, in- the same direction, the shorter being included within the longer distance; but this shall not be construed as authorizing any common carrier, or person, or corporation owning or operating a railroad in this State to receive as great compensation for a shorter as for a longer distance: Provided, that upon application to the railroad commission such common carrier, or person or corporation owning or operating a railroad in this State, may, in special cases, after investigation by the commission, be authorized to charge 1-ess for longer than for shorter distances, for the transportation of passengers or property; and the commission may, from time to time, prescribe the extent to which such common carrier, or person, or corporation, owning or operating a railroad in this State may be relieved from the operation of this section.”

To carry the above into effect, the General Assembly enacted the following statute:

“If any person owning or operating a railroad in this State, or any common carrier, shall charge of receive any [636]*636greater compensation in the aggregate for the transportation of passengers or property of like kind, under substantially similar circumstances and conditions, for a shorter than for a longer distance over the same line in the same direction, the shorter being included within the longer distance, such person shall, for each offense, be guilty of a misdemeanor, and fined not less than one hundred nor more than five hundred dollars, to be recovered by indictment in the Franklin Circuit Court, or the circuit court of any county into or through which the railroad or common carrier, so violating, runs or carries on its business. Upon complaint made to the Kailroad Commission that any railroad or common carrier has violated the provisions of this section, it shall fye the duty of the Commission to investigate the grounds of complaint, and if, after such investigation, the Commission deems it proper to exonerate the railroad or common carrier from the operation of the provisions of this section, an order to that effect shall be made by the Commission, and a copy thereof delivered to the complainant and the railroad or common carrier, and the same shall be published as a part of the report of the Commission; and after such order, the railroad or common carrier shall not be prosecuted of fined on account of the complaint made. If the Commission, after investigation, fails to exonerate the railroad or common carrier from the operation of the provisions of this section, an order in writing to that effect shall be made by the Commission, and a copy thereof delivered to the complainant and the railroad or common carrier, and the same shall be published as a part of the report of the Commission; and after such order it shall be the duty of the Commission to furnish a statement of the facts, together with a copy of its order, to the grand jury of any county, the [637]*637circuit court of which has jurisdiction, in order that the railroad or common carrier may be indicted for the offense; and the Commission shall use proper efforts to see that such company or common carrier is indicted and prosecuted.” (Kentucky Statutes, section 820.)

Appellant transported coal from Altamont to Louisville at $1 per ton, and to Elizabethtown at $1.30 per ton, while it charged $1.55 per ton from Altamont to Lebanon, an intermediate station on its line of road. Complaint being made to the Railroad Commission, it investigated the matter, and made an order in writing, declining to exonerate appellant from the operation of the provisions of the section above quoted; and thereafter, at the suggestion of the Commission, appellant was indicted in the Marion Circuit Court, as provided in the statute. The case was tried, and, appellant having-been adjudged guilty, it prosecutes this appeal to reverse the judgment imposing a fine upon it of $300.

Appellant justified the difference of the rate on the ground that at Louisville the coal hauled from Altamont came in competition with the coal brought down the Ohio river on boats, and that at Elizabethtown it came in competition with the Western Kentucky coal brought there by the Illinois Central Railroad. It insists that these rates could be made no higher on ' account of this competition, and that the rates to non-competitive points like Lebanon were reasonable, and were unaffected by the reductions referred to which were necessary for the coal to be handled in those markets at all. The evidence offered by it to sustain this contention was excluded by the court below on the trial on the ground that competition is not one of the circumstances or conditions exempting the railroad from the operation of the section of the Constitution above [638]*638quoted. It is earnestly argued for appellant that the transportation is not under substantially similar circumstances and conditions when competition exists at one point and not at another and we are referred to numerous decisions of the Federal courts so holding.

On the other hand, it is contended for the State that to adopt this construction is to emasculate' the section, and deprive it of all practical operation and effect.

The precise question thus presented was determined by this court in the case of L. & N. R. R. Co. v. Com., 104 Ky., 226 [46 S. W., 707; 47 S. W., 210, 598], where the construction of the section adopted by appellee was sustained. We are urged to overrule that case; but it was fully considered, and then reconsidered by the whole court, and we are disinclined, with substantially no new light upon the question, to set aside the conclusion of the court reached then after so mature deliberation.

It is insisted for appellant that this construction of the section makes it an arbitrary interference with the right of appellant to engage in competitive traffic, depriving it of its property without due process of law, denying it the equal protection of the law, impairing the obligation of its charter contract, and unlawfully interfering with interstate commerce. All of these objections may be considered together.

A railroad is only an improved modern highway. It must, of necessity, be subject to public control, like its predecessor, the turnpike; for the industry and commerce of the country are dependent upon it. To hold that only railroad men understand rates, or that they shall be allowed alone to fix the rates, and that no tribunal can review their decision as to what rates are reasonable, is to put Jin their hands a power dangerous to the welfare of the [639]*639community, and utterly out of keeping with the doctrine that they are public agencies, and so hare the right to appropriate to their use the property of the citizen against his consent upon making him just compensation. It has been notorious that railroad managers have, by discrimination in favor of certain shippers or a given locality, brought ruin to others.

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

Related

Louisville & N. R. v. Siler
186 F. 176 (U.S. Circuit Court for the District of Kentucky, 1911)
Louisville & N. R. R. v. Commonwealth
71 S.W. 910 (Court of Appeals of Kentucky, 1903)
Hutchison v. L. & N. R. R. Co.
57 S.W. 251 (Court of Appeals of Kentucky, 1900)

Cite This Page — Counsel Stack

Bluebook (online)
51 S.W. 164, 106 Ky. 633, 1899 Ky. LEXIS 85, Counsel Stack Legal Research, https://law.counselstack.com/opinion/louisville-nashville-railroad-v-commonwealth-kyctapp-1899.