Milwaukee Electric Railway & Light Co. v. Railroad Commission

172 N.W. 746, 169 Wis. 421, 1919 Wisc. LEXIS 172
CourtWisconsin Supreme Court
DecidedMay 27, 1919
StatusPublished
Cited by4 cases

This text of 172 N.W. 746 (Milwaukee Electric Railway & Light Co. v. Railroad Commission) is published on Counsel Stack Legal Research, covering Wisconsin Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Milwaukee Electric Railway & Light Co. v. Railroad Commission, 172 N.W. 746, 169 Wis. 421, 1919 Wisc. LEXIS 172 (Wis. 1919).

Opinion

Winslow, C. J.

It is very vigorously claimed by both of the appellants that the single finding of fact made by the court to the effect that the order of August 23, 1912, “is unreasonable” is not a- response to sec. 2863, Stats., which requires that upon trial of an issue of fact by the court, the judge shall state in his decision “the facts found by him.” It is argued that the court should under this provision make findings of the fundamental facts upon which the ultimate conclusion of unreasonableness is based, such as (1) the fair value of the property used by the plaintiff in its business, (2) the reasonable rate of return thereon, and perhaps other facts, such as the amount of the original investment, the cost of reproduction, the going value, the rate of depreciation, etc.

The argument is not without considerable weight, and it is beyond question that it would simplify the question arising on the appeal and make the work of-this court easier if the fundamental facts, upon which the ultimate conclusion of unreasonableness is based, were stated. However we are unable to convince ourselves that such was the intention of the lawmaking power. This action is a purely statutory action, created by the railroad commission law for the sole purpose of providing a court review of an order of the Commission regulating railroad rates or service to determine whether the order is unlawful or unreasonable.

Sub. (e), sec. 1797 — 16, Stats., provides for the bringing of the action, and declares that “in all trials under this section” the burden of proof shall be upon the plaintiff “to show by clear and satisfactory evidence that the order of the,commission complained of is unlawful, or unreasonable, as the case may be.” The court is nowhere directed or empowered to find the lawful or reasonable rate; indeed the power to fix future rates is not a judicial power, though the power to determine whether existing rates are reasonable is judicial in its nature. Madison v. Madison G. & E. Co. 129 Wis. 249, 108 N. W. 65.

[426]*426The court must be convinced that the rate fixed in the order is unlawful or unreasonable, but it is neither required nor expected to find what rate would be reasonable. The fact to be found is a single negative fact, not a number' of affirmative facts. We think, therefore, that the single finding of unreasonableness in the present case satisfies the calls of the statute.

The next claim made by the appellants is that the trial judge based his decision, not upon the evidence before him, but upon the supposed fact that the order in the Woehsner Case rescinded the order of August 23, 1912, ab initio, and thus deprived the last-named order of the statutory presumption of reasonableness.

That the trial judge did this very thing cannot be doubted. In a written opinion filed he said:

“The order directing the sale of thirteen tickets for fifty cents was based upon the Commission’s forecast of the future. The order in the Woehsner Case was based upon the actual results of operation under the order. The finding of the Commission that the order directing the sale of thirteen tickets for fifty cents was unreasonable and that it “would not have been made” if the Commission had understood the nature of the changes then in progress in connection with plaintiff’s businesses ‘prima facie lawful and... reasonable.’ Sec. 1797 — 15, Stats. That finding must stand until it is shown ‘by clear and satisfactory evidence’ that it is ‘unreasonable or unlawful.’ Sub. (e), sec. 1797 — 16, Stats. If upon the record the order in the Woehsner Case is such that ‘reasonable men might well differ with respect to its correctness, (it) cannot be said to be unreasonable.’ Minneapolis, St. P. & S. S. M. R. Co. v. Railroad Comm. 136 Wis. 146, 165, 116 N. W. 905.
“If the court cannot say that the order in the Woehsner Case is unreasonable, then the finding of the Commission in that case takes from the order here in question the statutory presumption of reasonableness. That presumption is based on the sanction which a finding of the Commission gives to it. When that sanction is taken away by the action of the Commission in vacating its former order and determining that such order is unreasonable, the former order is no longer [427]*427supported by such statutory presumption. It is manifest that the court cannot sustain both orders of the Commission. If the statutory presumption in favor of the order in the Woehsner Case is not overcome by clear and satisfactory evidence, the order in the Fare Case must be held to be unreasonable, as the Commission has found it to be.”

The judge then takes up the question whether the evidence shows that the findings in the Woehsner Case are unreasonable and concludes that it does not. On this line of reasoning the conclusion necessarily followed that the order in the Woehsner Case wiped out the order of August 23, 1912 (called the order in the Fare Case), and left the court nothing to do but to declare it unreasonable and set it aside.

To our minds this is an erroneous interpretation of the statute. Both orders may be upheld and both undoubtedly have the statutory presumption of reasonableness. The scheme of the statute is that when the Commission in a proper proceeding makes an order regulating fares, that order conclusively determines the lawful and reasonable rate at the time the order is made, except that it may be reviewed by action brought within ninety days, as the present action was brought.

It is not provided or contemplated that the order may be reviewed in another and different proceeding before the Commission, that is, reviewed as to its reasonableness at the time it was made. Of course upon complaint made at any time to the Commission the subject of the present reasonableness of the rates may be examined and new rates fixed, but this does not mean that the previous order is to be declared void ab initio. Up to the time the new order is made the rates fixed (by the original order are lawful and the making of the new order simply substitutes another rate as the lawful one from that time onward. This seems to us so clear from a study of the statute (secs. 1797 — 14 to 1797 — 16, inclusive) that we shall spend no further time upon the proposition.

The provision that the Commission may “rescind” an or[428]*428der fixing rates previously made by it is manifestly not to be construed as retroactive, that is, that the previous order is to be made void from the beginning. The word “rescind” may have such a meaning, but its more frequent meaning is, to presently nullify, repeal, or vacate. To give it the retroactive meaning contended for would mean that neither carrier nor patron would ever know whether rates were legal or not. A rate supposed by both parties to be legal one year might be discovered to be illegal the next year, with the resulting consequences of liabilities for amounts overpaid or deficiencies in payment, which again would be liable to be upset in the following year.

The question befdre the circuit court was whether the evidence before it clearly and satisfactorily showed that the order of August 23, 1912, was unlawful because unreasonable when made.

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

Related

State v. Hanson
2001 WI 70 (Wisconsin Supreme Court, 2001)
City of Milwaukee v. Railroad Commission
240 N.W. 165 (Wisconsin Supreme Court, 1932)
In Re Northwestern Bell Telephone Co.
204 N.W. 873 (Supreme Court of Minnesota, 1925)

Cite This Page — Counsel Stack

Bluebook (online)
172 N.W. 746, 169 Wis. 421, 1919 Wisc. LEXIS 172, Counsel Stack Legal Research, https://law.counselstack.com/opinion/milwaukee-electric-railway-light-co-v-railroad-commission-wis-1919.