Smith v. Lake Shore & Michigan Southern Railway Co.

72 N.W. 328, 114 Mich. 460, 1897 Mich. LEXIS 1124
Michigan Supreme Court·Decided October 1, 1897·Published·Cited by 14 cases

Opinions

Montgomery, J.

The relator applied to the respondent company for a 1,000-mile mileage book, to be issued in the name of himself and wife, and was refused. He thereupon brought this proceeding in the circuit court, to compel the respondent to issue such a ticket. The circuit judge granted an order that a ticket good upon the lines of the respondent in this State be issued, and this order is the one now under review.

The action is based upon the amendment to section 9 of the railroad law, adopted and embodied in Act No. 90 of the Public Acts of 1891, which contains the following provision:

“One thousand mile tickets shall be kept for sale at the pi’incipal ticket offices of all railroad companies in this State, or carrying on business partly within and partly without the limits of this State, at a price not exceeding twenty dollars in the Lower Peninsula and twenty-five dollars in the Upper Peninsula. Such one thousand mile tickets may be made nontransferable, but, whenever required by the purchaser, they shall be issued in the names of the purchaser, his wife and children, designating the name of each on each ticket. * * * Each one thousand mile ticket shall be valid for two years only after date of purchase.”

In the same section of the statute it is provided that the rates of fare shall not exceed 2 cents a mile for carriage of [463] passengers by railroads whose gross earnings are more than $3,000 per mile, 2& for roads whose gross earnings are more than $2,000 and less than $3,000, and for com-, panies whose earnings are less than $2,000 per mile 3 cents per mile, except in the Upper Peninsula, where a higher rate is permitted.

It is contended that there was error in the ruling below, and various grounds are alleged, as follows •

(1) That the statute is an attempt on the part of the legislature to provide for the sale of mileage which shall be good outside of the State, and that, as this affects interstate commerce, it is unconstitutional.
(2) That the charter of the Michigan Southern Railroad Company, passed in 1846 (Act No. 113, Laws 1846), which provided that ‘ ‘ it shall and may be lawful for said company, from time to time, to fix, regulate, and receive the tolls and charges taken for the transportation of property and persons on said railroad as aforesaid: * * * Provided, said company shall charge no greater sum or tolls for the transportation of persons or property than were charged or authorized by the State of Michigan to be taken on the Southern Railroad on the first day of January last,” — is still in force, and, as it was granted prior to the adoption of the Constitution reserving the right to alter or amend charters of corporations organized under the laws of the State, that the legislation in question impairs the obligation of contracts, within the doctrine of the Dartmouth College Case, 4 Wheat. 518, and is, for this reason, invalid.
(3) That, independent of this provision, the act is unconstitutional, for the reason that it is an attempt to compel railroad companies to enter into contracts to be performed in the future, at any time within two years,- and is an invasion of the right to the use of property; and, in the same connection, that this is in violation of the fourteenth amendment of the Constitution of the United States, which provides that no person shall be deprived of property without due process of law.
(4) That the amendment to the Constitution (article ,19a, § 1) is a limitation upon the power of the legislature to legislate as to rates of charges for transportation, and limits the right in that regard to the fixing of maximum rates, and that the provision for the issuing of a mileage [464] book is not a fixing of maximum rates of charge, out is a further regulation.

1. The first contention cannot be allowed, for the reason that the statute, fairly construed, was intended to limit the use of the mileage ticket to the State of Michigan. It fixes the price of the ticket, — not exceeding $20 in the Lower Peninsula, and $25 in the Upper Peninsula. While the language is not very apt, we think it was the clear intention that a ticket, the price of which should be $20 for 1,000 miles of transportation, would be one entitling the purchaser to carriage in the Lower Peninsula of Michigan, and one at $25 to carriage in the Upper Peninsula, and that it was not the intention by this reference to locality to fix the place where the tickets should be placed on sale. Thus construed, the statute cannot be held to be a regulation of interstate commerce.

2. The answer of respondent sets out that in 1846 a special charter, containing the provisions above quoted, was granted to the Michigan Southern Railroad Company; that subsequently the Michigan Southern Railroad Company, under an act of the legislature of the State of Michigan, became consolidated with a corporation of the State of Indiana, known as the Northern Indiana Railroad Company, thereby forming the Michigan Southern & Northern Indiana Railroad Company, which company then, succeeded to all the rights, franchises, property, and powers of the Michigan Southern Railroad Company; and that the Michigan Southern & Northern Indiana Railroad Company afterwards, under due legislative authority in that behalf, entered into consolidation with certain other railroad companies, organized under the laws of Indiana, Ohio, Pennsylvania, and New York, respectively, and thereby formed the said respondent, the Lake Shore & Michigan Southern Railway Company; and that this respondent thereby acquired all the rights, franchises, powers, and property of the Michigan Southern Railroad Company and the Michigan Southern & Northern Indiana Railroad Company, and holdi and is entitled [465] to all the rights,.francmses, powers, and privileges granted in and by the charter aforesaid, and by the acts of the legislature of the said State.

The last consolidation set up was under Act No. 82 of the Laws of 1855, entitled “An act to provide for the incorporation of railroad companies.” Section 50 provides that—

“Any railroad company in this State, forming a continuous or connected line with any other railroad company, may consolidate with such other company, either in or out of this State, into a single corporation. * * * Such new corporation shall possess all the powers, rights, and franchises conferred upon such two or more corporations, and shall be subject to all the restrictions and perform all the duties imposed by the provisions of their respective charters or laws of organization, not inconsistent with the provisions of this act.”

By section 52 it is provided that—

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Smith v. Lake Shore & Michigan Southern Railway Co., 72 N.W. 328, 114 Mich. 460, 1897 Mich. LEXIS 1124 (Mich. 1897).

72 N.W. 328 (Smith v. Lake Shore & Michigan Southern Railway Co.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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