Pennsylvania Railroad v. Pennsylvania Public Utility Commission

187 Pa. Super. 590
Superior Court of Pennsylvania·Decided November 14, 1958·No. Appeal, No. 313·Published·Cited by 5 cases

Opinions

Opinion by

Wright, J.,

By order nisi dated September 9, 1957, the Public Utility Commission proposed a new regulation applicable to passenger train service. This new regulation was a supplement to the Commission’s Railroad Regulations and was designated Rule 10. Railroads furnishing passenger train service in the Commonwealth filed exceptions, whereupon the Commission conducted a hearing at which the railroads offered evidence in opposition to the proposed rule. By final order dated March 24, 1958, Commissioner Houck dissenting, the Commission adopted its new Rule 10 in a form differing from that proposed in the order nisi. A petition of the railroads for rehearing, reconsideration, and modification was denied by the Commission, without opinion, on May 7, 1958. Under the heading “Curtailment of Service” Rule 10 in its final form provides that, with certain exceptions, “An application shall be filed with and approved by the Commission prior to the removal, elimination, or substantial change in the schedule of any passenger train . . .” Prom that requirement this appeal was taken at No. 313 October Term 1958. The Cities of Philadelphia and Pittsburgh were granted leave to intervene as appellees. Petitions [594]*594of The Baltimore and Ohio Railroad Company, The Delaware, Lackawanna and Western Railroad Company, The New York Central Railroad Company, The Pittsburgh and Lake Erie Railroad Company, and The Reading Company for leave to intervene as appellants were refused, but permission was granted to file a brief under our Rule 46 and to be heard at oral argument. The Erie Railroad Company and The Lehigh Valley Railroad Company also joined in the brief.

While the instant proceeding was pending before it, the Commission undertook to suspend the operation of certain revised passenger schedules by virtue of an order appealed from at No. 178, October Term, 1958. That appeal has been disposed of this day in Pennsylvania Railroad Co. v. Pa. P. U. C., 187 Pa. Superior Ct. 587, 145 A. 2d 360.

We wish to emphasize at the outset of our discussion that the interests of the public will always receive full protection from this court. It is important to point out the narrow issue involved in this appeal. At the risk of over-simplification, it may be described as a question merely of timing. Appellant does not seek to impose any restraint upon the regulatory powers of the Commission as they have been understood and exercised since the enactment of the Public Utility Law,1 and prior thereto under the Public Service. Company Law of 1913. No objection is advanced regarding the requirement that notice be given to the Commission of proposed revisions in the schedules of its passenger train service. In fact, as shown not only by the record in the instant appeal, No. 313 October Term 1958, but also by the record in the companion appeal No. 178 October Term 1958, appellant and the other railroads concerned have for a number of years [595]*595voluntarily followed the informal practice of giving such notice in advance. No question is raised as to the right of the Commission to regulate passenger train service or to require adequate service, even to the extent of the restoration of trains eliminated or the operation of new trains if evidence developed in a proper hearing establishes justification therefor. Cf. Erie Railroad Co. v. P. S. C., 99 Pa. Superior Ct. 443. The crux of the controversy is appellant’s position that, in the absence of express authority to that effect from the legislature, the Commission may not interfere with the discretion of management in making proposed schedule changes, and here we advert to the question of timing, in advance of hearing. In short, appellant contends that its obligation is to provide such degree of passenger train service which the interests of the public require, but that management may initially exercise its own judgment in this respect. Appellant concedes the authority of the Commission, either upon complaint or upon its own motion, to correct any such exercise of judgment which is shown, after hearing, to adversely affect the interests of the public.

The Commission asserts in its brief that “The primary issue in this appeal at No. 313 October Term 1958 is whether the Pennsylvania Public Utility Commission has statutory warrant to suspend proposed passenger train schedules changes, prior to having a hearing respecting each such proposed change”. It is argued that, under the present Public Utility Law, the Commission already possesses the power invoked by the adoption of new Rule 10. We here point out that this power, if it does exist, has never been previously exercised. This is clearly apparent from the Commission’s official News Release No. 107 describing the effect of the new regulations (italics supplied) : “The Public Utility Commission today ordered railroads in [596]*596Pennsylvania for the first time to file formal applications for approval to make passenger train service curtailments. The PUC revised its Railroad Regulations in an unprecedented move that requires rail carriers to get approval prior to ‘removal, elimination or substantial change’ in passenger train schedules”.

The area of administrative activity is not boundless; the Commission’s power is statutory, and the legislative grant of power to act in any particular case must be clear: Felix v. Pa. P. U. C., 187 Pa. Superior Ct. 578, 146 A. 2d 347. See also Day v. P. S. C., 312 Pa. 381, 167 A. 565; West Penn Railways Co. v. Pa. P. U. C., 135 Pa. Superior Ct. 89, 4 A. 2d 545. The Commission derives its authority from legislative action, and its powers are confined to those specifically declared: Pittsburgh v. Pa. P. U. C., 157 Pa. Superior Ct. 595, 43 A. 2d 348. The Public Utility Law covers only such matters as are expressly or by necessary implication included within its terms. See Citizens Passenger Railway Co. v. P. S. C., 271 Pa. 39, 114 A. 642. The requirement of due process applies to proceedings before administrative tribunals as well as before judicial bodies: Armour Transportation Co. v. Pa. P. U. C., 138 Pa. Superior Ct. 243, 10 A. 2d 86. Among the restraints affecting the performance of administrative and quasi-judicial functions is the requirement that the agency so acting shall afford the interested parties a fair and open hearing, that it make findings of fact so that its action may be reviewed by the courts, and that it assign a reason for its action: Erie Lighting Co. v. Pa. P. U. C., 131 Pa. Superior Ct. 190, 198 A. 901.

As a public utility, appellant is required by Section 401 of the Public Utility Law (66 P.S. 1171) to furnish adequate service and facilities in conformity with the regulations and orders of the Commission. [597]*597To a similar effect is Section 403 (66 P.S. 1173) dealing with the operation and distribution of appellant’s facilities as a common carrier. However, it is well established that a public utility has the right to manage its own affairs to the fullest extent consistent with the public interest: Hostetter v. P. S. C., 110 Pa. Superior Ct. 212, 168 A. 493; Abington Electric Co. v. Pa. P. U. C., 131 Pa. Superior Ct. 200, 198 A. 906; Northern Pennsylvania Power Co. v. Pa. P. U. C., 333 Pa. 265, 5 A. 2d 133. It is not within the province of the Commission to interfere with the management of a utility unless an abuse of discretion or arbitrary action is established: Lower Chichester Township v. Pa. P. U. C., 180 Pa. Superior Ct. 503, 119 A. 2d 674. And see

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Pennsylvania Railroad v. Pennsylvania Public Utility Commission, 187 Pa. Super. 590 (Pa. Ct. App. 1958).

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