Missouri Pacific Railroad v. Whelen Springs Gravel Co.

49 S.W.2d 374, 185 Ark. 669, 1932 Ark. LEXIS 178
CourtSupreme Court of Arkansas
DecidedApril 25, 1932
StatusPublished

This text of 49 S.W.2d 374 (Missouri Pacific Railroad v. Whelen Springs Gravel Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Missouri Pacific Railroad v. Whelen Springs Gravel Co., 49 S.W.2d 374, 185 Ark. 669, 1932 Ark. LEXIS 178 (Ark. 1932).

Opinion

Kirby, J.

The appellees filed petitions with the Railroad Commission to require the Missouri Pacific to allow ,them $3 per car for switching cars by the gravel company’s locomotives in and between the gravel plants and the carrier for the transportation.

The gravel plants are at various distances from, and are connected -with, appellee’s railroad, by private spur tracks. Each of the gravel companies owns switch tracks and locomotives which they use in their plant, and which are also used in switching cars onto the tracks of appellant.

The spur tracks were constructed by the gravel company, the rails being leased from the carrier.

The gravel companies alleged that in their switching they were doing part of the line haul, which the carrier was obligated to do, and claimed that they should either have an allowance for that service performed for the carrier or that the carrier should he required to perform the switching.

The carrier contended that the service done by the gravel companies was a special service, and denied that the Railroad Commission had any jurisdiction to compel the service, or compensation in lieu of it. It claimed that it extended the service in so far as it participated at all under special contract for a private industry spur agreement, and that no part of the service was transportation service which it could be compelled to perform.

The Railroad Commission on its own motion instituted investigation into the question of reasonableness of requiring all carriers by rail either to perform the switching service, or to compensate the gravel companies for performing the switching service, and also to investigate questions of discrimination, and ordered other carriers to be made parties.

The carriers all filed responses, claiming that the Railroad Commission had no .jurisdiction, and that, if the Commission had jurisdiction, the switching for which allowance is claimed was no part of the transportation service, but was interplant operation for which no allowance should be made. The carriers also alleged that the enforcement of the allowances would work an illegal discrimination, and they also contend that the Commission’s order is void because its findings defeat instead of support the allowance.

Evidence was introduced, both by the appellees and appellant, and the Commission, after hearing the evidence, ordered that appellant either perform the service of delivering empty ears to the gravel pits of petitioners, and haul the loaded cars from the pits, or pay to the petitioners $2.50 per car for each loaded car handled, the order to become effective February 10, 1931.

The Missouri Pacific Railroad Company appealed to the Pulaski Circuit Court, where the case was heard, and the circuit court entered the following order:

“The court, being well and sufficiently advised as to all matters of law and fact arising’ herein, is of the opinion that the order of the Arkansas Railroad Commission should be in all things approved and affirmed.

“It is therefore considered, ordered and adjudged by the court that the order of the Arkansas Railroad Commission in this cause be, and the same is, hereby in all things approved and affirmed, and the defendant, Missouri Pacific Railroad Company, be, and it is hereby directed and ordered by the court to comply with the same.”

From this judgment of the circuit court the railroad company has appealed to this court.

It is contended by the appellant that the Railroad Commission was without jurisdiction to order the allowances for two reasons: first, because such allowances are not within any subject-matter over which the statute gives the Commission jurisdiction; second, the service is a special one, pursuant to contract, which contract the Commission has no jurisdiction to compel.,

The first question for our determination is whether, under the evidence in this case, the Railroad Commission had jurisdiction to try the case and make the order.

• Counsel on both sides have filed exhaustive briefs, and cited numerous authorities, which we have carefully considered, but which we do not deem it necessary to review here.

Our statute provides that the Commission shall make rules and regulations in respect to receiving, hauling, transporting and delivering of freight and express. Section 1649 of Crawford & Moses’ Digest.

Section 1650 of Crawford & Moses’ Digest authorizes the Commission to make and establish all needful rules and regulations, general and special, and for furnishing cars.

Act No. 124 of the Acts of 1921 also gives the Railroad Commission authority to regulate carriers.

These statutes were construed and the authorities reviewed in the case of Kansas City Southern Ry. Co. v. Ark. Railroad Commission, 175 Ark. 425, 299 S. W. 761. In that case the court, among other things, said:

“The comprehensive jurisdiction vested in the Railroad Commission by act No. 124, supra, which, as above set forth, extends to and includes all matters pertaining to the regulation and operation of trains and all other jurisdictions possessed by the Arkansas Railroad Commission under the Constitution and the laws of Arkansas in force on March 31, 1919, unquestionably confers jurisdiction on the Railroad Commission to correct all abuses that then existed, or might in the future obtain, by virtue of any act of the Legislature covering the special matters designated by act No. 149, as amended by act 338 of the Acts of 1907, and all other matters pertaining to the regulation of all common carriers, railroads, etc., set forth in act 124 of the Acts of 1921.”

The Railroad Commission would have the power to require the carrier to construct and maintain such switches and spur tracks as are reasonably necessary to properly serve the public, and if a carrier uses the private tracks of shippers for its purpose, the Railroad Commission would have the same right to regulate the switching on these tracks that it would on tracks which belonged to the carrier. The carrier, of course, could not be required to use the tracks of the shipper, nor could the shipper be required to permit the use of its tracks. That, as stated by the appellant, is a matter of contract between the parties. They, however, could not lawfully contract in such a manner as to discriminate against others. They could not so contract as to make the freight rates of the shipper either greater or less than the regular rates.

“The Commerce Act prohibits the payment of rebates, and its command cannot be evaded by calling' them differentials or concessions, nor by taking' the money from the railroad itself or from a company that is proved to be the same as the railroad.. Otherwise nothing would be easier than for lumber companies to charter a railroad, collect freight as a railroad, but pay it out as a lumber company to shippers.” Fourche River Rd. Company v. Bryant Lumber Co., 230 U. S. 316, 33 S. Ct. 887.

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Related

Fourche River Lumber Co. v. Bryant Lumber Co.
230 U.S. 316 (Supreme Court, 1913)
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299 S.W. 761 (Supreme Court of Arkansas, 1927)
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Bluebook (online)
49 S.W.2d 374, 185 Ark. 669, 1932 Ark. LEXIS 178, Counsel Stack Legal Research, https://law.counselstack.com/opinion/missouri-pacific-railroad-v-whelen-springs-gravel-co-ark-1932.