Newport Electric Corp. v. Oakley

1 R.I. Dec. 56
CourtSuperior Court of Rhode Island
DecidedDecember 8, 1924
DocketEq. No.2041
StatusPublished

This text of 1 R.I. Dec. 56 (Newport Electric Corp. v. Oakley) is published on Counsel Stack Legal Research, covering Superior Court of Rhode Island primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Newport Electric Corp. v. Oakley, 1 R.I. Dec. 56 (R.I. Ct. App. 1924).

Opinion

BARROWS, J.

Heard on prayer for a preliminary injunction to restrain respondent from operating a motor bus for the transportation of passengers over Rhode Island public highways forming a portion of a route from Newport, Rhode Island, to Fall River, Massachusetts.

Complainant is the holder of a franchise to operate a street railway company. It has also received permission to operate public mlotor vehicles under General Laws of 1923, Chapter 254.

The jurisdiction of equity is not open to question.

[57]*576 Poi&eroy 583;

Memphis St. Ry. Co. vs. Rapid Transit Co., Tenn., 179 S. Wn. 635;

Puget Sound Traction, Light and and Power Co. vs J. H. Grassmeyer, Washington, 173 Pac. 504.

Complainant has complied with all rules and regulations of the Public Utilities Commission governing common carriers. Its approved routes include the one referred to in the first paragraph.

Respondent, a citizen and resident of Pall River, operates a motor bus as a common carrier of passengers between the Perry House at Newport and Kresge's corner, so called, at Fall River, on a continuous trip over the approved route for complainant. It neither receives nor discharges passengers at other than the terminal points. All parties agree that the transportation of passengers by respondent is interstate commerce.

Respondent’s buses are registered as mptor vehicles and his drivers licensed under General Laws 1923, Chap. 98, entitled “Of Motor Vehicles and the Operation Thereof.” Two stretches of road recently built and constituting a portion of the route travelled by respondent have received substantial monetary aid from the United States under the Federal High-Act. This act was one to provide United States aid to states in the construction of post roads. It specifies certain kinds of construction and method of state and federal co-operation but makes no provision as to the use of the road except that all roads constructed under the act shall be free from tolls of all kinds. The facts before us in the present case show no attempt by the State of Rhode Island to exact any toll for the use of its roads.

Respondent has done nothing to comply with Chapter 254 entitled: “Of Public Service Motor Vehicles Operating Over Fixed Routes.” This chapter places motor bus transportation under the rules and regulations of the Public Utilities Commission as to routes, fares, speed, schedules, continuity of service, convenience and safety of passengers and public. It provides that no owner shall operate a bus without a certificate from the Utilities Commission, that public convenience and necessity require its operation. The certificate fixes the route, the number of passengers to be carried at one time, and describes the service to be furnished. It provides that no such certificate shall be issued to a person not a citizen resident .of Rhode Island. After a certificate is granted, the lighting, safety and sanitary conditions, and the licensing of operators and registration of the vehicles, is under the jurisdiction of the state board of public roads. There is a further provision in the act that the holder of such a certificate shall file a bond with the general treasurer to pay after judgment fo,r any injury done to persons or property by operating busses.

Respondent’s defence is, first, that Chapter 254 has no application to motor vehicles operating in Rhode Island when engaged solely in interstate commerce. Second, that if Chapter 254 be construed to cover such vehicles then that portion of Section 3 of Chapter 254 wherein non-residents a.re forbidden the privilege of receiving a license to operate a motor bus service is contrary to the provisions of the United States statutes giving to Congress the exclusive power to regulate commerce among the several states (Art. 1, Sec. 8, Par. 3), and that as a consequence of such invalidity no attempt by respondent to comply with Chapter 254 or any part thereof is or can be required.

Complainant’s first position seems to us deducible only from the section of the statute forbidding the issuance of a certificate to a non-resident. We can not well conceive any valid reason for forbidding the granting of [58]*58such a certificate merely because o£ non-residence to one who is engaged in interstate commerce. Excluding from the state one engaged in interstate conymerce has been held invalid. See cases cited at page 401 of Minnesota Rate Cases, 230 U. S. 352. The law being settled that no state can exclude from its limits corporations or others engaged in interstate commerce except for valid reasons, such as will be mentioned later, respondent seeks to deduce the proposition that the legislature did not intend by Chapter 254 to in any way apply to persons engaged solely in interstate commerce. An examination of the entire chapter discloses no such limitation in its terms. It rather indicates to us the intention of the legislature that Chapter 254 should include all vehicles operating as common carriers on the public highways of Rhode Island. The reasons calling tor a certificate of public convenience and necessity, the giving of a bond, the fixing of routes to be travelled, the number of passengers to be carried at one lime, the service furnished and the subjecting of the bus owners to reasonable regulations as to speed, and so forth, as enunciated by the Public Utilities Commission, seemy just as great whether the jaerson subjected thereto be engaged in interstate or intrastate business. We are not called upon to so delimit Chap. 254 to make it constitutional. If the provision relative to non-residents is invalid yet some of the regulations are not undue restrictions on interstate commerce. Their basis is clearly public safety, welfare and necessity. Bush & Sons Co. vs. Malloy, 123 Atl. 61, Md. 1923, so construes a similar Maryland statute. The inclusion in the act of section 12 that any poition which might be invalid should not affect valid portions of the act rather confirms our view that the act is intended to cover all kinds of motor bus transportation. We conclude, therefore that Chapter 254 applies to motor bus transportation on Rhode Island highways whether the persons are engaged in interstate or intrastate comm|erce.

The second question then is whether Chapter 254, wholly or in part, is in conflict with the United States Constitution.

The constitutionality of a statute should be sustained unless it appears to be invalid beyond a reasonable doubt.

Fritz vs. Presbrey, 44 R. I. 212.

The commerce clause of the Federal Constitution has been the subject of much litigaiton and some fine distinctions have been drawn. There are certain principles, however, which seem clear. Interstate commerce is under the exclusive control of Congress and the control thereof is not a power that has been left to the state until there shall be further action on the part of Congress. “Freedom from interference on the part of the states is not confined to a simple prohibition of laws impairing it (interstate commerce) but extends to interference by any ultimate organ.

Kansas Southern Ry. vs. Kaw Valley District, 233 U. S. 78.

No state can levy a direct tax on interstate oommjerce nor subject it to unreasonable demands.

Barrett vs| N. Y. 232 U. S. 14.

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Bluebook (online)
1 R.I. Dec. 56, Counsel Stack Legal Research, https://law.counselstack.com/opinion/newport-electric-corp-v-oakley-risuperct-1924.