Oklahoma City-Ada-Atoka Ry. Co. v. State

1952 OK 18, 248 P.2d 1005, 207 Okla. 50, 1952 Okla. LEXIS 737
CourtSupreme Court of Oklahoma
DecidedJanuary 15, 1952
DocketNo. 34724
StatusPublished
Cited by2 cases

This text of 1952 OK 18 (Oklahoma City-Ada-Atoka Ry. Co. v. State) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Oklahoma City-Ada-Atoka Ry. Co. v. State, 1952 OK 18, 248 P.2d 1005, 207 Okla. 50, 1952 Okla. LEXIS 737 (Okla. 1952).

Opinions

BINGAMAN, J.

The defendant in error, Oklahoma Portland Cement Company, as complainant, recovered a judgment before the Oklahoma Corporation Commission against the plaintiffs in error, Oklahoma City-Ada-Atoka Railway Company and St. Louis-San Francisco Railway Company (J. M. Kurn and Frank A. Thompson, trustees), for the refund of freight collected on cement shipments in excess of the rate such Corporation Commission held was the lawful rate in force at the time such charge was made. The railroads appeal.

The amount of cement shipped by the cement company over the roads in question, during the period of time involved, is not disputed. The freight charged at the time of shipment was at the rate the railroads involved claim was the lawful rate in force at that time. Judgment was rendered on the basis of the rate contended for by the cement company. There is no dispute as to the amount of the recovery in the event judgment is for the cement company.

The rate involved is on cement between Ada and Marion, Oklahoma. Marion is a station on the Oklahoma City-Ada-Atoka Railway main line, slightly south and a few miles east of Oklahoma City, Oklahoma. Although established as a station for many years it had fallen into disuse and was not reactivated until the Air Force Base, now known as Tinker Field, was established in the same vicinity.

Prior to July 11, 1922, the trackage now comprising the Oklahoma City-Ada-Atoka Railway was owned or controlled by the Missouri-Kansas-Texas Railway Company. On January 5, 1924, such trackage was purchased by one H. R. Hudson, and finally the property was transferred to Oklahoma City-Ada-Atoka Railway Company, on September 8, 1930.

On July 11, 1922, the Oklahoma Portland Cement Company filed with the Corporation Commission a complaint against the Receiver of the Missouri-Kansas-Texas Railway Company, involving the reasonableness of rail rates on cement moving in carloads. Similar complaints were filed, either by this cement company or by other interested persons, against all the principal railroads in Oklahoma. These various matters were consolidated for hearing by the Corporation Commission, and on February 23, 1924, the Commission issued its order No. 2361, prescribing a [52]*52mileage scale of rates for cement moving in carload lots, to all points in Oklahoma, other than Dewey. This mileage scale of rates established a rate of 12 cents per 100 pounds from Ada to Marion, Oklahoma. After the adoption of this rate, and on May 6, 1924, the Oklahoma City-Ada-Atoka Railway Company began operating the trackage in question. On May 26, 1924, such railway company duly adopted the tariffs and rates theretofore filed with the Corporation Commission covering this line. The O.C.A.A. carried Marion as a station at this tariff rate in its traffic publication until April 28, 1937, at which time it abandoned such station in its tariff publication.

Thereafter, on February 24, 1941, the O.C.A.A. wrote the U. S. Air Corps a proposal agreeing to construct additional trackage at the site and “further agreed that rates and ratings applicable to this activity will not in any case exceed the net cash rates applicable to Oklahoma City, Oklahoma (where land grant deductions apply) except on low grade commodities, such as sand and gravel, crushed stone, slag, or brick and tile, used for construction purposes, moving on commercial or Government bills of lading which may be handled on distance or commodity tariff.” This proposal became an agreement between the Government the O.C.A.A. All the Oklahoma railroads, then acting through their legal representative, filed a petition with the Oklahoma Corporation Commission asking for approval of this rate agreement. Acting on this request, and on April 28, 1941, the Corporation Commission addressed a letter to the representative of the Oklahoma railroads acknowledging that it was advised of the proposed establishment of the army bomber repair plant at the Marion station, and of the agreement between the railroads and the United States Government. The letter further acknowledged the railroads’ request for authority to amend their tariffs to comply with this agreement and then provided:

“There is no railroad station now located between Oklahoma City and the new station, Marion, and the practical effect of those tariff amendments is to put Marion within the railroad limits of Oklahoma City, Oklahoma, except on shipments to and from Marion, on one hand, and to and from Oklahoma City, on the other hand. As above stated, this is a United States Government activity and the general public will have little interest directly, in the rates applicable to and from such activity, and the arrangements having been made by the Government, on the one hand, and the railroads, on the other, this Commission is of the opinion, under the provisions of the Constitution of this State, that such arrangements should be approved. Oklahoma railroads be and they are hereby authorized to issue, file, and make effective, on one days notice to the public and this Commission, necessary tariffs or supplements to tariffs which shall provide for the application at Marion, Oklahoma, a point on the Oklahoma City-Ada-Atoka Railroad, of the rates and ratings, whether commodity or mileage, that apply to or from Oklahoma City, Oklahoma, except that such arrangements may be restricted as to shipments of low grade commodities, such as sand, gravel, crushed stone, slag, brick and tile and on all shipments moving locally between Marion and Oklahoma City.
“All 'tariffs issued hereunder shall bear reference to this Commission’s authority B-001737-4 of April 28, 1941. This authority shall be^ in full force and effect on or after this date.”

Following this the O.C.A.A. published its tariff announcing that:

“Rates from or to Oklahoma City, Okla., will be protected from or to Marion, Okla., on the O.C.A.A., except that this rule does not apply to or from Oklahoma City, Okla. Note— Will not apply on sand, gravel, crushed stone, slag, brick tile or chatt.”'

Based on this tariff the O.C.A.A. and Frisco charged the Oklahoma City rate of 13 cents per hundred on cement from Ada to Marion, instead of the former mileage rate of 12 cents.

[53]*53The Corporation Commission found its Authority No. B-001737-4, issued on April 28, 1941, was an approval of the arrangement between the railroads and the United States Government, and was for the purpose of putting the Oklahoma City rates in force at Marion, with the exception of certain items of low grade commodities, to be used in the construction of buildings and in grading and paving the site. Among those enumerated were sand, gravel, crushed stone, slag, brick and tile, and the Commission found that the use of the term “paving” in connection with these other terms in the government-railroad negotiations, included cement, as a necessary ingredient to be used with the sand, gravel and crushed stone. The Corporation Commission therefore found that such authority did not authorize the carriers to charge and collect the Oklahoma City rate on cement shipped from Ada to Marion, Oklahoma.

The plaintiffs in error complain this is a suit for damages or reparation. The authority of the Commission is determined by 17 O. S. 1941 §121, which provides:

“The Corporation Commission is hereby vested with the power of a court of record to determine: First, the amount of refund due in all cases where any public service corporation . . . charges an amount for any service . .

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

Related

Continental Telephone Co. of Oklahoma v. Hunter
1979 OK 14 (Supreme Court of Oklahoma, 1979)

Cite This Page — Counsel Stack

Bluebook (online)
1952 OK 18, 248 P.2d 1005, 207 Okla. 50, 1952 Okla. LEXIS 737, Counsel Stack Legal Research, https://law.counselstack.com/opinion/oklahoma-city-ada-atoka-ry-co-v-state-okla-1952.