Nebraska Telephone Co. v. Cornell

82 N.W. 1, 59 Neb. 737, 1900 Neb. LEXIS 43
CourtNebraska Supreme Court
DecidedMarch 7, 1900
DocketNo. 10,417
StatusPublished
Cited by5 cases

This text of 82 N.W. 1 (Nebraska Telephone Co. v. Cornell) is published on Counsel Stack Legal Research, covering Nebraska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Nebraska Telephone Co. v. Cornell, 82 N.W. 1, 59 Neb. 737, 1900 Neb. LEXIS 43 (Neb. 1900).

Opinion

Sullivan, J,

This action was commenced by the Nebraska Telephone Company in the district court of Lancaster county to enjoin the members of the board of transportation and their secretaries from taking cognizance of a complaint presented to them by John O. Yeiser, and from assuming to exercise jurisdiction under the provisions of chapter 56 of the Session Laws of 1897. A more extended statement of the facts out of which the controversy has arisen will be found in the former opinion affirming the judgment of the trial court. See Nebraska Telephone Co. v. Cornell, 58 Nebr., 823, 80 N. W. Rep., 43. On motion of appellant a rehearing was allowed, and the cause having been reargued is again submitted. LWe have read with great interest the very able and im[746]*746pressive arguments presented by counsel, for both parties, and have endeavored to give the casé the careful and thorough consideration which the importance of the questions involved entitles it to receive. After much reflection the conclusion reached ■ is that, while the reasons given for the former decision require revision, the judgment of affirmance is right and should be adhered to.

On the first submission it was held (the writer dissenting) that the plaintiff’s petition did not disclose a right to equitable relief, assuming the legislation relative to the board of transportation to be valid. This holding was wrong, and we afterwards so decided in Pacific Express Co. v. Cornell, 59 Nebr., 364, 81 N. W. Rep., 377.

This question being out of the way, we will give attention to the arguments touching the authority of the defendants to inquire into the business of the plaintiff; and to reduce its charges in case the same are found to be excessive or unjust.

On behalf of the company it is contended that the act of 1887 (Session Laws, ch. 60), creating the board of transportation and defining its powers, is in conflict with section 26 of article 5 of the constitution, which in terms forbids the creation by the legislature of any executive state office. It is also claimed that the act clashes with section 2 of article 5 of the constitution, which declares that none of the state officers of the executive department shall be eligible to any other state office. These questions are not now presented to this court for the first time. As early as 1883 they were considered by the learned judges who at that time constituted the court. In an advisory opinion then given, at the request of the house of representatives, it was declared by those judges that legislation of the character now under consideration would not trench upon the supreme law. See In re Railroad Commissioners, 15 Nebr., 679. We are aware that this case is not a decision in the technical sense of [747]*747the term. But it represents, nevertheless, the best judgment of the members of the court upon a matter likely to come before them at some time for adjudication. It has been acquiesced in and accepted by every department of the government, and by the people, as a guide of conduct and a rule of action. To discredit it now would be to open Pandora’s box, and turn loose a brood of evils, without the means at hand to cope successfully with them. This court on several occasions has taken jurisdiction of causes and decided controversies involving large interests on the assumption that the act of 1887 was a valid and enforceable law. See State v. Fremont, E. & M. V. R. Co., 22 Nebr., 313, 23 Nebr., 117; State v. Missouri P. R. Co., 29 Nebr., 550; Chicago, B. & Q. R. Co. v. State, 50 Nebr., 399.

In the recent case of Pacific Express Co. v. Cornell, supra, the question was directly presented for decision, and it was there held, in an opinion by Harrison, C. J., that the board of transportation was a lawfully constituted body invested Avith poAver to inquire into the business of express, telegraph and telephone companies, and to regulate their rates. That' decision avus made in the light of the arguments hoav before us, and, upon the point Avhich Ave have been considering, must be accepted as final.

Another contention of the appellant is that the powers conferred on the ‘board of transportation by the act of 1887 were entirely wiped out by the act of 1893 (Session LaAvs, ch. 24), knoAvn as the “Maximum Rate Luav”; and that, therefore, the act of 1897, giving the board jurisdiction over express, telegraph and telephone companies, is incapable of enforcement. The act of 1887, as construed by this court, invested the board of transportation Avith authority to establish rates for the carriage of freight by railroad companies from one point to another within the state.

By the act of 1893 the legislature fixed maximum rates for the transportation by rail of commodities within the [748]*748state. The effect of this act was to permit the railroads to charge the prescribed maximum rates, unless the board of transportation should exercise the power conferred upon it by section 6, which, so far as material to the present inquiry, is as follows: “That the board of transportation is hereby empowered and directed to reduce the rates on any class or commodity in the schedule of rates fixed in this act, whenever it shall seem just and reasonable to a majority of said board so to reduce any rate; and said board of transportation is hereby empowered and directed to revise said classification of freight as hereinbefore in this act established, whenever it shall appear to a majority of said board just and reasonable to revise said classification.”

The power of the board to regulate freight charges was not, we think, materially changed by the act of 1893. That act authorized a reduction of rates whenever it should seem to the board reasonable and just. In other words, it conferred upon the board authority, Avithin the limits of the law, to fix reasonable rates. The carriers may, of course, reduce their rates below the statutory schedule; and the board of transportation may undoubtedly order a further reduction, if, upon investigation, such rates are found to be excessive. The power granted to the board by each of the acts Avas power to fix reasonable rates. The act of 1893 condemned all rates in excess of the maximum limit therein prescribed, as extortionate and unjust; and thus narrowed the field of inquiry open to the board. But the power given by the act of 1887 to reduce excessive rates and make them reasonable remained as before. If, therefore, there is an irreconcilable conflict between the two statutes so far as they relate to the regulation of freight rates, the repeal effected by the later act would still leave the board with undiminished power.

In this connection we have occasion to refer again to the case of Pacific Express Co. v. Cornell, supra. It was there in effect held that the act of 1893, the “Maximum [749]*749Eate Law,” never became operative and is not now in force. The act was adopted in accordance with established procedure, and, presumably, was from the beginning a constitutional and valid law. This court has never decided that it was invalid or unenforceable; and there is certainly nothing in the record now before us upon which to ground such inference. We know as a matter of history that the circuit court of the United States decided in the case of Smyth v. Ames that the enforcement of the law of 1893 would have been, under circumstances then existing, a confiscation of property of the companies which were parties to that action.

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Bluebook (online)
82 N.W. 1, 59 Neb. 737, 1900 Neb. LEXIS 43, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nebraska-telephone-co-v-cornell-neb-1900.