Michigan Central Railroad v. Michigan Railroad Commission

125 N.W. 549, 160 Mich. 355, 1910 Mich. LEXIS 773
CourtMichigan Supreme Court
DecidedMarch 19, 1910
DocketDocket No. 116
StatusPublished
Cited by24 cases

This text of 125 N.W. 549 (Michigan Central Railroad v. Michigan Railroad Commission) is published on Counsel Stack Legal Research, covering Michigan Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Michigan Central Railroad v. Michigan Railroad Commission, 125 N.W. 549, 160 Mich. 355, 1910 Mich. LEXIS 773 (Mich. 1910).

Opinion

Stone, J.

Many of the questions presented in this record were before this court in Michigan Cent. R. Co. v. Wayne Circuit Judge, 156 Mich. 459 (120 N. W. 1073). The complainants here were the relators there. Upon the filing of the bill in this cause they had asked for a preliminary injunction to restrain the defendant, the Michigan railroad commission, from making its order establishing rates, after a full hearing, effective pending the litigation. This was refused by the circuit judge, whereupon relators filed their petition in this court for the writ of mandamus to compel the circuit judge to grant a preliminary injunc[357]*357tion until the case could be heard upon its merits on pleadings and proofs. This court thereupon granted an order to show cause. The writ was denied by this court. The sworn answer of the defendant denying all the equities of the bill had been filed when that case was here. Since the matter was here before, a general replication has been filed, and the cause has been heard upon its merits. It is significant, however, that at the hearing the complainants offered no evidence other than that which had been taken by and before the commission. So the case is not substantially different in its facts from that presented to us on the former occasion. On that occasion, after quoting largely from Act No. 312, Pub. Acts 1907, Justice Grant, among other things, said:

“These rates, fixed by the commission and now attacked, are maximum rates. The carriers may within those rates fix lesser rates, provided there is no discrimination or rebating. The statute is aimed to prevent discrimination and rebating, and not to prevent carriers from charging rates less .than the maximum, provided they treat all their customers alike. It follows that between competing points, where the haul of one road is longer than that of the other, the one having the longer haul may charge the same rates as are charged by the one having the shorter haul.
“ We do not construe the provisions of this act to lodge in the courts the power to establish rates. The power conferred upon the courts is solely to determine whether the rates are confiscatory or unreasonable. If the courts should so find, they are not authorized to determine what are reasonable, but the matter must again be referred to the commission to establish other rates. If they are found to be reasonable, the courts will sustain the action of the commission. If, however, it should be determined that such power was conferred upon the courts, and is unconstitutional, the act would still be held valid, because it could stand with that clause eliminated from the statute. Courts declare legislative enactments invalid only when they are able to determine from the act itself that the legislature would not in all probability have enacted the law with the objectionable features eliminated. This act expressly declares that, so long as the main purpose and ob[358]*358ject of the act can be sustained, any provision held void shall not affect its validity. We are not now prepared to hold that, if all the provisions which counsel for relators now attack should be held void, it would invalidate the entire law. Similar acts have been sustained by the courts of many of the States, and we prefer to reserve this important question until the final hearing. * * *
“A petition by proper parties, in accordance with the law, was presented to the commission, setting forth the facts and reasons for claiming that the rates were exorbitant. Due notice was served and the parties appeared, the commission took testimony, and gave the relators ample opportunity to produce evidence and present their views. Various hearings were had, the commission deliberated six months, and no reason appears upon this record for believing that this important body did not exercise their best judgment in fixing the rates. Usually laws of this character are enforced by providing penalties, and those wishing to determine the validity of such a law violate its provisions, and test the question in a suit at law, as was done in People v. Railway Co., 116 Mich. 132 (74 N. W. 520). The act here in question provides for a speedy remedy for parties claiming to be aggrieved by the order of the commission, by a resort to a court of equity, and provides for an expeditious hearing. Such suit is given precedence both in the circuit and Supreme courts over all other cases.”

We have thus quoted, perhaps at unnecessary length, from the opinion of Justice Grant, because it appeared there, as it did upon this hearing, that the rates fixed by the commission are not confiscatory, but afford some remuneration over and above expenses, and because the law expressly makes the rates fixed by the commission prima facie lawful and reasonable, and casts the burden of showing the contrary upon the railroad companies contesting, who are the complainants here. While the holding of this court in the mandamus proceeding may not be res judicata, yet it shows clearly the view held at that time as to the law of the case. It appears by the settled case on appeal that at the hearing counsel for the complainants advised the court that they would submit the case upon the record made at the hearings before the Michigan rail[359]*359road commission, and would offer in support of the allegations of the bill of complaint no other evidence. The certified proceedings before the railroad commission were thereupon offered and received in evidence. This testimony was voluminous, and with the exhibits covers about 200 pages of this record. We have carefully read the testimony, as well as the arguments before the commission, and its opinion.

It is the claim of complainants:

‘ ‘ (1) That Act No. 312, Pub. Acts 1907, violates the provisions of section 2, art. 4, of the Constitution of Michigan (1909), because it confers upon the railroad commission both legislative and executive powers, {a) The power of prescribing rates to be applied in the future, and of establishing regulations for the future conduct of business, is legislative. (6) The duty of enforcing the law and making investigations to determine whether or not existing laws are being violated is beyond doubt an executive function.
“(2) The Michigan railroad commission’s order, dated January 15, 1909, is void, because it is not supported by any evidence that complainants’ rates are unreasonable.”

The learned circuit judge held that the question of the constitutionality of the act is not properly raised in this case, because the order complained of is purely legislative in character. He said in his opinion on the final hearing:

“ Concededly the rate-making power is a legislative prerogative. The only authority exercised by the defendant in any of its acts involved in this controversy is accordingly legislative in character, since the conduct questioned relates exclusively to the promulgation of a new schedule of rates. If, then, it be assumed, for the mere purpose of clarifying the situation, that other duties, executive in character, are sought to be conferred upon the commission by the statute, what effect, if any, has such an assumption upon the pending issue, since the performance of any such duties, or the exercise of any power incidental to them, are in no wise involved in the proceedings of the commission here in issue ?
“ In answering this question the legislative intent, evi[360]

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Cite This Page — Counsel Stack

Bluebook (online)
125 N.W. 549, 160 Mich. 355, 1910 Mich. LEXIS 773, Counsel Stack Legal Research, https://law.counselstack.com/opinion/michigan-central-railroad-v-michigan-railroad-commission-mich-1910.