State ex rel. Missouri Southern Railroad v. Public Service Commission

168 S.W. 1156, 259 Mo. 704, 1914 Mo. LEXIS 107
CourtSupreme Court of Missouri
DecidedJuly 2, 1914
StatusPublished
Cited by20 cases

This text of 168 S.W. 1156 (State ex rel. Missouri Southern Railroad v. Public Service Commission) is published on Counsel Stack Legal Research, covering Supreme Court of Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State ex rel. Missouri Southern Railroad v. Public Service Commission, 168 S.W. 1156, 259 Mo. 704, 1914 Mo. LEXIS 107 (Mo. 1914).

Opinion

LAMM, C. J.

Mandamus. Original proceeding. Relator is a domestic corporation owning and operating, as a common carrier of freight and passen[709]*709gers, a railroad of fifty-four miles in this-State, beginning at the town of Leeper in Wayne county and running thence northwestwardly through parts of Wayne and Reynolds, ending at the town of Bunker in the latter.

In July, 1913, relator as petitioner made to, and filed a complaint with, the Public Service Commission. That complaint was under the Public Utilities Act. [Laws 1913, pp. 557-651.] In substance it set forth relator’s domestic incorporation as a railroad company, its ownership and operation of a railroad wholly within the State and more than forty-five miles in length; that it was engaged in the business of transporting freight and passengers as a common carrier for hire; that under authorized rates prior to 1905 its earnings for such service produced a sum barely sufficient to meet the cost and expenses of the service, thereby resulting in an inability to create any reserve therefrom for surplus or contingencies, and an impossibility of making a reasonable return on the value of the property actually used in the service; that the rates designated by the Act of 1907 for freight and the maximum of two cents per mile for passengers would be insufficient to yield any compensation therefor and would be unreasonable, unjust and confiscatory; that it was entitled by law to a reasonable average return on the value of the property actually used in its public service, and further entitled to a reservation from its income of a sum sufficient to keep its property in a fair state of repair, and also sufficient for surplus and contingencies; that its road lies in a rough country, has sharp curves and heavy grades, and that the population served by it is limited and scattered; that the rates prescribed by statute are insufficient to meet the actual cost of operation; and that the complaint is under section 47 of the Public Utilities Act of 1913.

It then went on to ask the commission to increáse relator’s service rates above those prescribed by stat[710]*710ute and to determine the just and reasonable compensation which petitioner thereafter would be entitled to receive for that service, and, to that end, that a hearing be granted, etc.

The complaint filed before the commission was verified by affidavit and no question was made on its form or sufficiency in allegation of fact.

It seems, under protest and after filing that complaint, relator put into effect (under the orders of the commission) rates not in excess of the maximum ones prescribed by the Laws of 1907; that under protest it has continued such rates, although alleged to be unreasonable, unjust and confiscatory of relator’s property. It appears (the commission doubting its own authority) that although relator pressed its complaint, it could get no hearing on the merits and that finally in April, 1914, the commission, having taken time to consider, reached a conclusion and entered its order refusing to heár evidence. Accordingly it dismissed the complaint, giving as reason (whereby weighty matter hangs, to-wit) that it had no power to allow or order an increase in rates in excess of the maximum rates prescribed by statute. The order recites, inter alia, that in its (the commission’s) judgment it is without authority to .grant the relief prayed, and this (quoting) “regardless of any evidence that may be submitted and” (regardless of) “the fact'that complainant may show such rates, fares and charges to be unjust, unreasonable and confiscatory of its property.”

Making averments and narrations to the effect above, relator made due application here for a writ of mandamus compelling the commission to proceed as speedily as practicable with the hearing of proofs to be offered in support of relator’s said complaint and to make such findings as the proofs warrant without respect to the rates fixed by statute.

"Waiving in writing notice or the service of a copy of the application for mandamus (vide rule thirty-[711]*711four) the commission entered its volutary appearance, Avaived issuance and service of an alternative -writ, agreeing that the petition be treated for all purposes of the case as and for such alternative writ.

Presently respondent filed its demurrer based on four grounds (the three last of which may be taken as specifications of the first), to-wit, the first being that the petition does not state facts sufficient to constitute a cause of action. The question hinges on lack of authority and this, in turn, invoUes questions of interpretation, construction and repeal.

The statute most immediately held in judgment is the first part of section 47 of said Public Utilities Act, reading:

“Whenever the commission shall be of opinion, after a hearing had upon its own motion or upon complaint, that the rates, fares or charges demanded, exacted, charged or collected by any common carrier, railroad corporation or street railroad corporation for the transportation of persons or property within the State, or that the regulations or practices of such common carrier, railroad corporation or street railroad corporation affecting such rates are unjust, unreasonable, unjustly discriminatory or unduly preferential, or in anywise in violation of any provisions of law, or that the maximum rates, fares or charges, chargeable by any such common carrier, railroad corporation or street railroad corporation are insufficient to yield reasonable compensation for .the service rendered, and are unjust and unreasonable, the commission shall Avith due regard'among other things to a reasonable average return upon the value of the property actually used in the public service and to the necessity of making reservation out of income for surplus and contingencies, determine the just and reasonable rates, fares and charges to be thereafter observed and in force as the maximum to be charged for the service to be performed, notwithstanding that a higher rate, fare or [712]*712charge has been heretofore authorized by statute, and shall fix the same by order to be served upon all common carriers, railroad corporations or street railroad corporations by whom such rates, fares and charges are thereafter to be observed.”

Other sections of that act and other statutes are somewhat drawn within the lines of the discussion and will be noticed so far as necessary in the course of the opinion.

The cause was submitted on arguments and briefs on the demurrer, hence the record presents a single and clean-cut issue of law, to-wit: Does the Public Utilities Act of 1913 give the commission power (if the facts ascertained on due hearing justify the exercise of it) to allow relator- a freight and passenger rate in excess of that prescribed by elder statutes'? If so, the absolute writ should issue. If not so, it should be denied.

I. ' Some pertinent generalisations as a foreword.

(a) The statute involved is new. Referable to' the police'power, it evidences a departure (or at least an advanced thought) in public policy in dealing with common carriers and public utilities in Missouri.

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Bluebook (online)
168 S.W. 1156, 259 Mo. 704, 1914 Mo. LEXIS 107, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-missouri-southern-railroad-v-public-service-commission-mo-1914.