McNeill v. Southern Railway Co.

202 U.S. 543, 26 S. Ct. 722, 50 L. Ed. 1142, 1906 U.S. LEXIS 1552
CourtSupreme Court of the United States
DecidedMay 28, 1906
Docket370, 594
StatusPublished
Cited by114 cases

This text of 202 U.S. 543 (McNeill v. Southern Railway Co.) is published on Counsel Stack Legal Research, covering Supreme Court of the United States primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McNeill v. Southern Railway Co., 202 U.S. 543, 26 S. Ct. 722, 50 L. Ed. 1142, 1906 U.S. LEXIS 1552 (1906).

Opinion

*558 Mr. Justice White,

after making the foregoing statement, delivered the opinion of the court.

The legal principle which controls the determination of this cause renders it unnecessary to state many of the facts contained in this voluminous record or to consider and pass upon a number of the legal propositions urged in the cause. But three questions are essential to be passed upon. They are, First. Whether the record discloses that the matter in dispute exceeds, exclusive of interest and costs, the sum or value of -two thousand dollars. Second. Whether, as to the individual defendants below, this cause in fact was a suit against the State of North Carolina. Third. Whether the order and decision of the corporation commission of North Carolina and the statutes of that State upon which the same was based were void because in conflict with the commerce clause of the Constitution and the act of Congress to regulate commerce.

1. It was urged in argument on behalf of the commission and the ice and coal company that the extra cost or expense, if any, of placing the four cars of. coal' on the siding was the •matter in controversy. In the court below it would seem to have been claimed that the one hundred and forty-six dollars demurrage was the question at issue. However this may be, as said by the trial court, although the demurrage dispute may have been the origin of the litigation, there is involved in the controversy presented by the bill not only the right to enforce against the railway company the payment of statutory penalties much in excess of two thousand dollars, but also the right of that company to carry on interstate commerce in North Carolina without becoming subject to such orders and directions of the corporation commission which so. directly burdened such commerce as to amount to a regulation thereof. This latter right is alleged in the bill to be of the necessary jurisdictional value, the averment was supported by testimony, and the master and the court below have found such to be the *559 fact. There is no merit in the contention that there is a want of jurisdiction .to entertain the writ of error.

2. We think the real object of the bill may properly be said to have been the restraining of illegál interferences with-the property and interstate business of the railway company, the asserted right to.interfere, which it wás the object of the bill to enjoin, being based upon the assumed authority of a state statute, which the bill alleged to be in violation of rights of. the railway company protected by the Constitution of the United States. In this aspect the suit was not in any proper sense one against the State. Scott v. Donald, 165 U. S. 107, 112; Fitts v. McGhee, 172 U. S. 516, 529, 530.

3. The cars of coal not having been delivered to the consignee, but remaining on the tracks of the railway company in the condition in which they had been originally brought into North Carolina from points outside of that State, it follows that the interstate transportation of the property had not been completed when the corporation commission made the order complained of. Rhodes v. Iowa, 170 U. S. 412.

By section 1066 of the revisal of 1905 the general powers of the North Carolina Corporation Commission were thus defined:

“1066. General powers. — The corporation commission shall have such general control and supervision of all railroad, street railway, steamboat, canal, express and sleeping car companies or corporations and of all other companies or corporations engaged in the carrying of freight or passengers, of all telegraph and telephone companies, of all public and private banks and all loan and trust companies or corporations, and of all building and loan associations or companies, necessary to carry into effect the provisions of tins chapter, and the laws regulating such companies. (1899, c. 164; 1901, c. 679.)”

By section 1100 it was provided as follows:

“1100. Demurrage; storage; placing and loading of cars.— The commission shall make rules, regulations and rates governing demurrage and storage charges by railroad companies and other transportation companies; and shall make rules gov *560 erning railroad companies in the placing of cars for loading and unloading and in fixing time limit for delivery of freights after the same have been received by the transportation companies for shipment. (1903, c. 342.)”

Under these circumstances it is undoubted that by a circular, numbered 36 and dated July 9, 1903, the corporation commission promulgated rules fully regulating the right of railway companies to exact and the amount of charges which might be made for storage, demurrage, etc. And the pleadings make it clear that the order of the corporation commission complained of was not made, upon the assumption of any supposed contract right which the corporation commission as a judicial tribunal was enforcing as between the ice and coal company and the railway company, but was exclusively rested upon the general administrative authority which the corporation commission deemed it had power to exercise in virtue of the rights delegated to it by the statutes of North Carolina as above stated. Thus, in paragraph 12 of the answer, the corporation commission averred as follows:

“These defendants are advised that the orders made by them, hereinbefore referred to, do not constitute an interference with interstate commerce as alleged in said paragraph 12 (referring to bill of complaint); nor with the right of the ..complainant to conduct its business according to its reasonable rules and regulations, except so far as the corporation commission has the right and power to control its rulés and regulations ' by virtue of said act creating the corporation commission, and the amendment thereto, contained in chapter 342, Public Laws, 1903, whereby the power is expressly conferred upon the North Carolina Corporation Commission, by subsection 26, 'to make rules governing railroad companies in the placing of cars for loading and unloading, and in fixing time limit for the delivery of freights after the same have been received by the transportation companies for shipment.’ And these defendants further say that, having full power to provide for placing cars for unloading, and in conformitv with the rules of the said North *561 Carolina Corporation Commission, the orders complained of in the bill were in strict conformity to the law, and finally adjudged and made after the complainant company had full opportunity to make defense as to its alleged rights in the premises.”

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Bluebook (online)
202 U.S. 543, 26 S. Ct. 722, 50 L. Ed. 1142, 1906 U.S. LEXIS 1552, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcneill-v-southern-railway-co-scotus-1906.