Reading Coach Co. v. Public Service Commission

190 A. 172, 125 Pa. Super. 493, 1937 Pa. Super. LEXIS 74
CourtSuperior Court of Pennsylvania
DecidedOctober 20, 1936
DocketAppeal, 350
StatusPublished
Cited by9 cases

This text of 190 A. 172 (Reading Coach Co. v. Public Service Commission) is published on Counsel Stack Legal Research, covering Superior Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Reading Coach Co. v. Public Service Commission, 190 A. 172, 125 Pa. Super. 493, 1937 Pa. Super. LEXIS 74 (Pa. Ct. App. 1936).

Opinion

Opinion by

Rhodes, J.,

The residents of Reiffton filed a complaint with the Public Service Commission averring that the Reading Coach Company charged a higher rate for bus transportation from Reading to Reiffton than it charged for similar transportation between Reading and other suburban communities at a greater distance, and requesting that the Reading-Reiffton fare be reduced. Respondent’s answer admitted that the situation was as set forth in the complaint, but alleged that its Reading-Reiffton fare was “in all respects just, reasonable, non-discriminatory, and otherwise in conformity with law.” After hearing, the commission filed its report wherein it found “that the bus fare of 10c between Reiffton and Reading is unreasonable and improperly discriminatory,” and made an order that the present 7-cent fare zone be extended to Thirty-sixth Street in Reiffton. Respondent has appealed, and contends that the order of the commission is unreasonable and not in conformity with law.

The order of the commission is prima facie evidence of the facts found, and the burden of proving the contrary rests upon the appellant; and we will not reverse unless the challenged order is clearly unreasonable and not in conformity with law, or shows an abuse of dis *496 cretion. This is not a rate case, and section 22 of article 6 of the Public Service Company Law, as amended by the Act of June 12, 1931, P. L. 530 (66 PS §836), has no application. The issue raised was that of discrimination, and that is what the commission decided. The testimony presented at the hearing was on this issue alone. Appellant’s argument that the word “unreasonable” in the commission’s order indicated that it had exceeded its powers in this case by determining that the rate was unreasonable per se is without merit. It is apparent to us that the commission meant, and from the testimony found, that the rate was unreasonably discriminatory; and we are of this opinion notwithstanding the phraseology of the order. This determination, if supported by the record, the commission had power to make, for it is unlawful for any public service company —“(a). To charge, demand, collect, or receive, directly or indirectly, by any special rate, rebate, drawback, abatement, or other device whatsoever, from any person or corporation, for any service rendered or to be rendered, a greater or less compensation or sum than it shall demand, charge, collect, or receive from any other person or corporation for a like and contemporaneous service under substantially similar circumstances and conditions.......

“(b). To make or give any undue or unreasonable preference or advantage in favor of or to any person or corporation or any locality, or any particular kind or description of traffic or service, in any respect whatsoever; or to subject any particular person or corporation or locality, or any particular kind or description of traffic or service, to any undue or unreasonable prejudice or disadvantage in any respect whatsoever”: Section 8, art. 3, Act of July 26, 1913, P. L. 1374 (66 PS §262).

Section 8, art. 3, of the Public Service Company Law, *497 supra (66 PS §262), “inhibits unreasonable discrimination in all forms of public service”: Alpha Portland Cement Co. et al. v. P. S. C., 84 Pa. Superior Ct. 255, at page 270. The only substantial question raised by this appeal is whether there is evidence in the record to support the finding of the commission.

Appellant is an affiliate of Reading Street Railway Company which operates a street railway in the same territory, and the trolley and bus service are operated in a coordinated general transportation system. “The charging of different rates for service rendered upon different conditions and under different circumstances is not unlawful: Alpha Portland Cement Co. v. P. S. C., 84. Pa. Superior Ct. 255”: American Lime & Stone Co. v. P. S. C., 100 Pa. Superior Ct. 158, at page 161. Are the conditions and circumstances on other routes of the appellant where a 7-cent fare is charged sufficiently similar to the Reiffton route where a 10-cent fare is charged to give an undue or unjust preference or advantage to those localities and to the residents thereof over Reiffton and the users of appellant’s transportation facilities who live therein? In Portland Railway, Light & Power Co. v. Railroad Commission of Oregon, 229 U. S. 397, at page 411, 57 L. Ed. 1248, at page 1258, the Supreme Court of the United States said: “ ‘The fact that a rate is per se reasonable does not disprove the charge that it is unlawful,’ say Messrs. Beale and Wyman in their work on Railroad Regulations, at §839. ‘If rates are relatively unjust, so that undue preference is afforded to one locality or undue prejudice results to another, the law is violated and its penalties incurred, although the higher rate is not in itself excessive.’ The question presented for consideration is not the reasonableness per se of the charge, but its reasonableness considered in relation to charges made by plaintiff at other localities on its system for like and contemporaneous service; for the statute, as *498 we have construed it, forbids undue preference or discrimination between localities. Circumstances, however, may so explain the difference between rates compared as to deprive the lower rate of any bearing on the higher, but the discrimination, without an excuse recognized by the law, would be in and of itself unjust and unreasonable. Beale & Wyman, §838.” In Nashville C. & St. L. Ry. et al. v. State of Tennessee et al., 262 U. S. 318, at page 322, 67 L. Ed. 999. at page 1002, it was held: “Every rate which gives preference or advantage to certain persons, commodities, localities, or traffic is discriminatory. Eor such preference prevents absolute equality of treatment among all shippers or all travelers. But discrimination is not necessarily unlawful. The Act to Regulate Commerce prohibits (by §§ 2 and 3) only that discrimination which is unreasonable, undue, or unjust [cases cited]. Whether a preference or discrimination is undue, unreasonable, or unjust is ordinarily left to the Commission for decision; and the determination is to be made, as a question of fact, on the matters proved in the particular case.”

The record in this case shows two routes of the appellant which have marked similarity; the one leading to Stoney Creek and the other to Reiffton. The central loading point for both routes is Fifth and Penn Streets, in the City of Reading, and both traverse the City of Reading in a generally east and west direction through what is known as the “city zone” where the population is of equal density on both lines, and then branch off to the respective suburban communities. Stoney Creek is 3.8 miles from Fifth and Penn Streets, and the fare is 7 cents on both trolley and bus. Reiffton is 3.3 miles from Fifth and Penn Streets, and the bus fare is 10 cents. The trolley service from Reading to Birdsboro, on which route is located the village of Reiffton, has been abandoned. Prior to the abandonment of trolley *499

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Bluebook (online)
190 A. 172, 125 Pa. Super. 493, 1937 Pa. Super. LEXIS 74, Counsel Stack Legal Research, https://law.counselstack.com/opinion/reading-coach-co-v-public-service-commission-pasuperct-1936.