Mathieson Alkali Works, Inc. v. Norfolk & Western Railway Co.

137 S.E. 608, 147 Va. 426, 1927 Va. LEXIS 314
CourtSupreme Court of Virginia
DecidedMarch 17, 1927
StatusPublished
Cited by12 cases

This text of 137 S.E. 608 (Mathieson Alkali Works, Inc. v. Norfolk & Western Railway Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mathieson Alkali Works, Inc. v. Norfolk & Western Railway Co., 137 S.E. 608, 147 Va. 426, 1927 Va. LEXIS 314 (Va. 1927).

Opinion

Chichester, J.,

delivered the opinion of the court.

These two actions of trespass on the case in assumpsit were instituted by the Mathieson Alkali Works, Incorporated (hereafter designated as plaintiff), in the Law and Equity Court of the city of Richmond, one of the nisi prius courts of this Commonwealth, one against the Norfolk and Western Railway Company, Southern Railway Company and Carolina, Clinehfield and Ohio Railway Company, the other against the Norfolk and Western Railway Company and Southern Railway Company, common carriers of freight, all doing interstate and intrastate business in the State of Virginia.

The cases are being heard here under the stipulation that the second ease is to be heard along with the first upon the record in the first mentioned case, identically the same questions being involved in each [430]*430case. Hereafter the discussion will be confined and references made to the record in the first case in which the amount sued for is $40,238.35.

The ground of liability upon which „ the plaintiff seeks to recover the amount claimed is that it represents the aggregate of amounts paid by the plaintiff to the defendants for transportation of coal which plaintiff alleges were overcharges in freight rates on intrastate shipments of coal moving over the lines of the defendant carriers from certain designated points to the plant of the plaintiff at Saltville, Virginia.

The defendants appeared specially and filed pleas denying the jurisdiction of the trial court. Briefly the pleas averred:

1. That the defendants were transportation companies, common carriers by rail, doing business in the State of Virginia in interstate and intrastate commerce.

2. That the full authority of the Commonwealth of Virginia over intrastate rates for the transportation of coal by them — the subject matter of this action — is vested, by the Constitution and laws, in the State Corporation Commission; that the authority of said Commission to approve and prescribe such rates is, under the said Constitution and laws, paramount and exclusive.

3. That in August, 1920, the existing rates of transportation between the points referred to in these actions for coal was $1.70 per net ton, and by an order duly entered by the State Corporation Commission of Virginia, that rate was advanced to $2,263^ per net ton between certain of these points and to $2.38 per net ton between certain other of- said points, said rate becoming effective August 31, 1920, and continuing in effect, as to. the first, until September 21, [431]*4311920, and as to the second from September 21, 1920, to July 1, 1922; that said rates were duly promulgated and published as required by law, and were the only rates that could lawfully have been charged by the defendants herein and were the only rates that could lawfully have been paid by the said plaintiff.

4. That during the periods when said rates became and were effective as aforesaid, the plaintiff shipped a large number of cars of coal in intrastate commerce between the points in Virginia above indicated, paying on said shipments the carload rates effective during said periods.

6. That in the action aforesaid the plaintiff therein claims that said rates of $2,263^ and $2.38 respectively, effective as aforesaid, were unreasonable, and this action is brought and is being prosecuted by the said plaintiff to recover the difference between the said carload rate of $2,263^ per ton paid upon said shipments made during the period from August 31,1920, to September 21, 1920, and the difference between the said carload rate of $2.38 per ton paid upon said shipments made during the period from September 21, 1920, to July 1, 1922, and another rate claimed by the said plaintiff to be a reasonable carload rate per ton, to wit: a carload rate of $2.12% per ton, for both periods.

6. That under and by virtue of the Constitution and laws of the State of Virginia, said carload rates of $2.26% and $2.38 per net ton during their respective effective dates were and are conclusively presumed to be reasonable, just and valid; that the reasonableness, justness and validity thereof cannot be questioned in any suit brought by said plaintiff in any ordinary court of justice of the Commonwealth of Virginia against the said defendants, and that the Law and [432]*432Equity Court of the city of Richmond is without jurisdiction to inquire into, or to render a decision respecting the reasonableness, or unreasonableness of said rates, or to enter any order or judgment with respect thereto.

The plaintiff moved to strike out the pleas and joined issue thereon. The .trial court sustained the pleas and entered judgment for the defendants, upon the ground as expressed in the order “that this court has no jurisdiction of the subject matter arising upon the plaintiff’s declaration and therefore the plaintiff’s actions cannot be sustained.”

This ruling of the trial court forms the basis of the sole assignment of error.

The evidence in the ease presents no conflicts. It consists entirely of certain orders of the State Corporation Commission and facts agreed by the parties.

A fair summary of the evidence is that in July, 1920, the Interstate Commerce Commission, in a proceeding known as Ex Parte 74, permitted all of the interstate carriers of the country to make horizontal percentage increases in their existing freight tariffs. While this proceeding was pending before the Interstate Commerce Commission, the various carriers filed with the several State Commissions their petitions for corresponding increases with the purpose of making uniform the percentage increases in interstate and intrastate rates.

On August 16, 1920, the State- Corporation Commission of this State entered the following order in response to this petition: “It now appearing to the Commission that notice of this hearing on the original, amended and supplemental petitions has been duly published in certain newspapers as required In the order of this Commission entered on the 9th day of [433]*433August, 1920, and these two cases having been heretofore consolidated and directed to be heard together, came on this day to be heard in pursuance of said notice and order, and were heard upon the original, amended and supplemental petitions, the exhibits therewith filed, including the report and order of the Interstate Commerce Commission in the proceedings entitled Ex Parte 74, and upon the record, testimony and exhibits introduced before the Interstate Commerce Commission in said proceedings entitled Ex Parte 74, which record and proceedings have heretofore been filed with this Commission and made a part of the record in these cases.

“And it appearing to this Commission that the Interstate Commerce Commission, after full investigation and exhaustive hearings, by its report dated the 29th day of July, 1920, in Ex Parte 74, authorized and permitted the carriers operating in the eastern and southern group to increase all rates, fares and charges for both passenger and freight service to the extent and in the manner set forth in said report, and further authorized carriers by special permission subsequently issued to file and publish blanket supplements establishing the increased rates, fares and charges authorized in said report on not less than five days’ notice to the Commission and the public.

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Bluebook (online)
137 S.E. 608, 147 Va. 426, 1927 Va. LEXIS 314, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mathieson-alkali-works-inc-v-norfolk-western-railway-co-va-1927.