Pennsylvania Railroad v. Public Utilities Commission

298 U.S. 170, 56 S. Ct. 687, 80 L. Ed. 1130, 1936 U.S. LEXIS 985
CourtSupreme Court of the United States
DecidedApril 27, 1936
DocketNo. 746
StatusPublished
Cited by13 cases

This text of 298 U.S. 170 (Pennsylvania Railroad v. Public Utilities Commission) is published on Counsel Stack Legal Research, covering Supreme Court of the United States primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pennsylvania Railroad v. Public Utilities Commission, 298 U.S. 170, 56 S. Ct. 687, 80 L. Ed. 1130, 1936 U.S. LEXIS 985 (1936).

Opinion

Mr. Justice Cardozo

delivered the opinion of the Court.

An order of the Public Utilities Commission of Ohio, directs the Pennsylvania Railroad Company and the Erie Railroad Company, appellants in this court, to adhere to local or intrastate rates in switching and delivering four carloads of bituminous coal to consignees in Youngstown, Ohio, and in switching and delivering any other carloads that may be tendered hereafter .in similar conditions. The question is whether the effect of such an order as applied to the transactions exhibited in the record is to regulate common carriers by rail in the business of interstate transportation, and thus to trench upon the jurisdiction of the Interstate Commerce Commission.

Pittsburgh Coal Company, an appellee in this court, is the owner of coal mines in Pennsylvania, so situated that the product of the mines can readily be conveyed by use of the owner’s cars and tipple to barges waiting to receive it on the Monongahela River. Much of the coal is sold to consumers' in Ohio. The company has its own barges in which the coal is towed by its own tug boats, first over the Monongahela River and then over the Ohio, to Smith’s. Ferry, Pennsylvania. There it has its own right of way, with tracks and cars and engine. The coal, when transferred from the barges to the cars, is taken over this right of way, a distance of about eleven miles, to Negley, Ohio. At Negley,. or near by, is the [172]*172Brush River Plant, owned by the coal company, where the coal is dumped from the cars, washed, freed from foreign matter and impurities, and broken up or assorted into the sizes desired by the customers. Then for the first time it is ready for shipment to fill specific orders, which often are not received until after it has left the mines. Up to that point the carriage has been solely by a private carrier, making use of its own facilities, its trains and tugs and barges.

At Negley the coal after being put in shape for sale is loaded upon the cars of the Pittsburgh, Lisbon and Western Railroad Company, referred to in the record as Lisbon, for transportation to consignees at Youngstown' or elsewhere. Lisbon is a common carrier by rail, which connects at Signal, Ohio, with the tracks of the Youngstown and Suburban Railroad Company, referred to in the record as the Y. & S. The route of that line, about 22.2 •miles, is between Signal and Youngstown, where there are interchange facilities with the Pennsylvania and the Erie.

On September 17,1934, Lisbon received from the Pittsburgh Coal Company at Negley four carloads of bituminous coal to be transported via the Y. & S. to Youngstown, the cars to be there transferred, first to the Pennsylvania and then to the - Erie, for delivery to consignees in Youngstown identified in the shipping orders. Lisbon and Y. & S. followed these instructions. Upon ténder of the cars at the proper interchange track, Pennsylvania refused to accept or-switch them except upon payment of the road haul charges on file with the Interstate Com-' merce Commission. The switching rates prescribed by the State Commission were $7.65 per car, a charge which covered the intermediate service of the Pennsylvania and the delivery service of the Erie. No switching rates for such traffic had been filed with the federal Commission by any of the trunk lines, but the haul charges, calcu[173]*173lated to the next destination beyond, were $94.50 per car. Upon the rejection of the four carloads the Pennsylvania gave written notice to the Y. & S. that thereafter carloads of bituminous coal from mines outside Ohio would not be accepted for delivery within the Youngstown switching limits until all charges were prepaid at rates published in the tariffs on file with the federal Commission.

Following the receipt of this notice, the Y. & S. filed with the Ohio Commission its complaint against the Pennsylvania and the Erie, the two companies having acted in concert in demanding the higher rates. Other lines, including the Baltimore & Ohio Railroad Company, and the Pittsburgh and Lake Erie Railroad Company, intervened in the proceedings, as did also the Pittsburgh Coal Company. After a full hearing the Commission held in a careful opinion that in thé circumstances stated the State of Ohio had jurisdiction by its Commission to regulate the charges for switching services at Youngstown, and that the rates thereby prescribed were binding on the carriers. Ah order was made accordingly. This order was sustained by a District Court of three judges, application having been made for relief by injunction both interlocutory and final. Judicial Code § 266; 28 U. S. C. § 380. The case is here upon appeal. Ibid.

First: The transportation of the coal fromNegley, Ohio, to Youngstown in the same state, was an intrastate service, not subject to the provisions of the Interstate Commerce Act, and its character in that regard was not changed because of preliminary carriage from the Pennsylvania mines in barges and cars belonging to the shipper.

Appellants say that from the moment the coal left the mines in Pennsylvania there was a continuing intention to deliver it to consumers in another state, whether their identity at the beginning was known or unknown, and [174]*174that a movement impelled by that intention is interstate commerce which Congress has the power to regulate at any stage of the ensuing transit. Baltimore & Ohio S. W. R. Co. v. Settle, 260 U. S. 166, 173; Ohio Railroad Comm’n v. Worthington, 225 U. S. 101, 108; Federal Trade Comm’n v. Pacific States Paper Assn., 273 U. S. 52, 64. But there is confusion of thought in such a statement of the problem. Not. all commerce is transportation, and not all transportation is by common carriers by rail. The question for us here is not whether the movement of the coal is to be classified as commerce or even as commerce between states. The question is whether it is that particular form of interstate commerce which Congress has subjected to regulation in respect of rates by a federal commission. The Interstate Commerce Act (49 U. S. C. § 1 et seq.) is aimed at common carriers exclusively, § 1 (1), (3), and not even at all these. With exceptions plainly unrelated to this case, § 1 (1) (b), (c), carriers, even though common, are unaffected by the act unless they are carriers wholly by railroad, or if partly by railroad and partly by water, are operating under “a common control, management, or arrangement for a continuous carriage or shipment.” § 1 (1) (a). Cf. Cincinnati, N. O. & T. P. Ry. Co. v. Interstate Commerce Comm’n, 162 U. S. 184; Louisville & N. R. Co. v. Behlmer, 175 U. S. 648; Standard Oil Co. v. United States, 179 Fed. 614; Mutual Transit Co. v. United States, 178 Fed. 664.

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298 U.S. 170, 56 S. Ct. 687, 80 L. Ed. 1130, 1936 U.S. LEXIS 985, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pennsylvania-railroad-v-public-utilities-commission-scotus-1936.