Missouri Southern Railroad v. Public Service Commission

214 S.W. 379, 279 Mo. 484, 1919 Mo. LEXIS 163
CourtSupreme Court of Missouri
DecidedJuly 9, 1919
StatusPublished
Cited by7 cases

This text of 214 S.W. 379 (Missouri Southern Railroad v. Public Service Commission) is published on Counsel Stack Legal Research, covering Supreme Court of Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Missouri Southern Railroad v. Public Service Commission, 214 S.W. 379, 279 Mo. 484, 1919 Mo. LEXIS 163 (Mo. 1919).

Opinions

BLAIR, P. J.

This is an. appeal from a judgment of the Jefferson Circuit Court affirming an order of the Public Service Commission entered in the Matter of the Complaint of James M. Mooney v. Missouri Southern Railroad Company, 5 Mo. P. S. C. Rep. 250, which order, in so far as it is affirmed, required appellant to “refrain from charging or collecting for the transportation of carload shipments on the tram or spur tracks which connect with” appellant’s main line and points on appellant’s main line, “or between points on said trams, rates in excess of those in effect between other points on its main line, for the same distance.” The trial court also accepted a suspending bond and suspended the operation of the order until the final determination of the case in this court.

Appellant owns and operates a line of railroad fifty-four miles long, which runs from Bunker in Reynolds County to Deeper in Wayne County. Connected with this line, appellant also operated two industrial spur tracks. Industrial Spur No. 1 is four and one-half miles long and joins the main line -at Dairyville. Industrial Spur No. 2 is five miles in length and connects with the main line at Corridon. The evidence before the Commission and the Circuit Court showed appellant was imposing a switching charge of $7.50 for each loaded car switched between main line stations and points on either spur. This charge was in accord with tariffs filed by appellant, but never approved by the Commission, and seems to have originated out of an agreement between appellant on the one part and Complainant Mooney and other shippers on the other. The agreement was made at a conference between appellant and interested shippers, which conference resulted from a notice appellant gave in December, 1916, that it purposed to abandon Spur Track No. 1 and take up the'rails. By the agreement appellant contracted to repair Spur Track [488]*488No. 1 and operate it for two years, upon condition that the $7.50 switching charge be allowed appellant, provided the Public Service Commission would approve such charge. The shippers agreed not to oppose ábandonment' of the spur after two years, and that they would request the Commission to approve the switching charge. After this agreement was made, appellant expended about $5000 in repairing the spur tracks, and rendering serviceable a geared or “Shay” engine, which, because of heavy grades, it was necessary to use on the spurs. The evidence showed that the switching charge of $7.50 yielded $2910 per annum. Other facts appear in the opinion.

Appellant contends, in order, that (1) the spur tracks are not subject to regulation by the Commission; (2) the questions whether (a) appellant is charging more than a lawful rate, and (b) whether it can be compelled to operate the spurs, are purely judicial and the Commission has no jurisdiction to decide them; (3) the operation of the spurs was an ultra vires activity which the State might prevent, but which it could not compel, appellant to continue; (4) the Commission’s power to regulate is a power to regulate reasonably and not to destroy; and (5) complainant, by his agreement, was estopped to question the validity of the switching charge.

compelled Operation.

I. The question whether appellant could be compelled to continue the operation of the spur tracks is directly presented and decided in State ex rel. Public Service Commission v. Missouri South- .. ^ ern Railroad Company, a companion case. Whether that question is presented by this record need not, therefore, be decided.

Rates.S1Ve

II. It is contended the question whether the rate charged was excessive is a judicial question and one, therefore, which the Commission has no power to decide. The statute (Sec. 47, Laws 1913, p. 583) expressly gives the Commission authority to fix rates, and this court has held valid that dele[489]*489gation of administrative power. [State ex rel. v. Public Service Commission, 259 Mo. l. c. 728.] It is true the Public Service Commission is not a court (City of Macon v. Commission, 266 Mo. l. c. 490; Rhodes-Burford H. F. Co. v. Union Elec. L. & P. Co., 2 P. S. C. 656); nevertheless, though it cannot exercise judicial functions, it must take cognizance of existing facts and the law. The act establishing it expressly requires it to do so. [Section 47, supra.] It is an “administrative arm” of the Legislature. Neither it, nor the Legislature, can ignore the Constitution, nor can the Commission proceed otherwise than in accordance with valid statutory provisions. In determining whether a proposed rate or change of rate is reasonable, i.e., whether it is the lawfully applicable rate for the future, the Commission does so in view of existing facts and controlling law. To do this it is necessary for it to ascertain what that law is, nd in performing its legitimate function,-i. e., putting to effect in respect to a particular utility the previous-declared will of the Legislature (Michigan Central Railroad v. Michigan R. R. Com., 160 Mich. 355), it must Lscertain the existing facts, since these, under the law, d termine the applicable rate. Such inquiries by the Commission are not judicial. [Prentis v. Atlantic Coast Line, 211 U. S. 210; State ex rel. v. Harty, 278 Mo. 685.] The fixing of rates for future business is legislative in-character. The Commission’s inquiry resulted not in a judgment respecting existing or past rates or rights, but in an order respecting rates to be charged in the future. That final act was the test of the character of the inquiry before the Commission (Louisville & Nashville R. R. Co. v. Garrett, 231 U. S. 298) and was not judicial. The point is ruled against appellant.

[490]*490 Rates.elSht

[489]*489III. It is insisted the spur or trams are “not railroads within the meaning of the Public Service Commission Act” and not subject to regulation by the [490]*490Commission. The Commission found, on the evidenoe, that the spurs were parts of the appellant’s railroad. They were being operated by appellant. Appellant had. filed “tariffs, naming rates for the movement of all freight over the spur tracks in car loads, except live stock and perishable freight.” Appellant’s contentions are that (1) the spurs are not included in the charter; (2) only the track material'is owned by appellant; (3) appellant has never operated them as a part of its railroad.

That appellant was operating these spurs is proved beyond doubt. That it operated them by means of an engine different from those on the main line is of no consequence on this question. The fact that it operated them under rates filed with the Commission is sufficient to warrant' the finding that it was using them in the public service, and this subjects .them to regulation. [Laws 1913, p. 557, et seq.; Secs. 2, 26, 27, 28, 29, 31, 35, 43, 47, 48.] As long as a carrier operates a line or spur it must do so subject to the regulatory power of the Commission. The charter is not in the record. Waiving that, the question whether a carrier must submit to regulation is settled rather by “what it does, not what its charter says.” [Terminal Taxi Co. v. Dist. of Columbia, 241 U. S. 252.] The Commission’s supervision is not limited to lines constructed by a railroad company nor to those oioned

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Bluebook (online)
214 S.W. 379, 279 Mo. 484, 1919 Mo. LEXIS 163, Counsel Stack Legal Research, https://law.counselstack.com/opinion/missouri-southern-railroad-v-public-service-commission-mo-1919.