State ex rel. Public Utilities Commission v. Atchison, Topeka & Santa Fe Railway Co.

221 P. 259, 115 Kan. 3, 1924 Kan. LEXIS 175
CourtSupreme Court of Kansas
DecidedDecember 21, 1923
DocketNo. 25,396
StatusPublished
Cited by4 cases

This text of 221 P. 259 (State ex rel. Public Utilities Commission v. Atchison, Topeka & Santa Fe Railway Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State ex rel. Public Utilities Commission v. Atchison, Topeka & Santa Fe Railway Co., 221 P. 259, 115 Kan. 3, 1924 Kan. LEXIS 175 (kan 1923).

Opinion

The opinion of the court was delivered by

MaRshall, J.:

In this action, the plaintiff seeks to compel the defendant to permit the public utilities commission and its agents, accountants, and examiners to inspect and examine the books, accounts, papers, records, property and memoranda concerning repairing, rebuilding, and making additions and betterments to locomotives, passenger and freight cars used by the defendant as a public utility and common carrier. The inspection and examination desired is of the books, accounts, etc., commencing in January, 1916, and running to November 7, 1923. The petition alleges that the defendant refused to allow such inspection and examination. An alternative writ of mandamus has been issued, and the defendant has filed a motion to quash that writ.

1. It is urged that the plaintiff has not complied with rule No. 3 of this court. That rule, in part, reads:

“In all original actions or proceedings instituted in this court the plaintiff or applicant for the writ shall show fulU, by affidavit, the reasons why the action or proceeding is brought in this court instead of one of the inferior courts having concurrent jurisdiction.”

There is nothing to show why this action is commenced in this court instead of in a district court except what is contained in the petition itself. The petition is verified and alleges facts which show that the question in controversy is a matter of public concern and that an early disposition of the case is necessary. The petition alleges facts which show that the action is one that is properly commenced in this court.

2. The petition does not allege that there is any complaint or any proceeding pending before the public utilities commission making it necessary for the commission to examine the books, accounts, etc., of the defendant. It argues that, because there is nothing pending before the commission requiring an inspection or examination of the books of the defendant, it is not compelled to submit its books, accounts, etc., for examination or inspection. Is it necessary that some matter be pending before the commission before it can properly [5]*5make an inspection or examination of the accounts, books, records, etc., of the defendant?

Section 8357 of the General Statutes of 1915, section 29 of the public utilities act, reads:

“The commission shall have authority to examine and audit all accounts, and all items shall be allocated to the accounts prescribed by the commission. The agents, accountants or examiners employed by the commission shall have authority under the direction of the commission to inspect and examine any and all books, accounts, papers, records, property, and memoranda kept by such public utilities and common carriers. The accounts shall be closed annually on the 30th day of June, and a balance sheet of that date promptly taken therefrom.”

This statute does not require that anything be pending with the commission before it shall have power to examine the accounts of a- public utility. The authority given appears to be coordinate with the other powers given to the commission and does not appear to be subordinate to any of them nor dependent on any other-provision of the public utilities law. That authority is given for the purpose of aiding the commission in the performance of the duties imposed on it by law. The statute, on its face, standing alone, gives to the. commission power to make the desired inspection and examination.

3. The defendant argues that—

“The unwarranted invasion of the defendant’s offices by the examiners and accountants of the Public Utilities Commission, interfering with the daily business of the carrier, its clerks and employees, in compiling its records and keeping its books, would amount to an unreasonable search, in violation of section 15 of the Bill of Rights of the Constitution of this state.”

Section 15 of the bill of rights of this state reads:

“The right of the people to be secure in their persons and property against unreasonable searches and seizures, shall be inviolate; and no warrant shall issue but on probable cause, supported by oath or affirmation, particularly describing the place to be searched and the person or persons or property to be seized.”

We quote from 3 Bouvier’s Law Dictionary, 3404, as follows:

“Visitation. The act of examining into the affairs of a corporation.
“The power of visitation is applicable only to ecclesiastical and eleemosynary corporations. 1 Bla. Com. 480. The visitation of civil corporations is by the government itself, through the medium of the courts of justice. See 2 Kent 240. In the United States, the legislature is the visitor of all corporations founded by it for public purposes. Dartmouth College v. Woodward, 4 Wheat. (U. S.) 518, 4 L. Ed. 629.
[6]*6“All of the above was quoted in Guthrie v. Harkness, 199 U. S. 148, 157, 26 Sup. Ct. 4, 50 L. Ed. 130, 4 Ann. Cas. 433. . . .
“Under the visitatorial powers of a state over corporations doing business within its borders, it is competent for it to compel such corporations to produce their books and papers for investigation and to require the testimony of their officers and employees to ascertain whether its laws have been complied with, and this power extends to the production of books and papers kept outside of the state, and a statute requiring such production does not amount to an unreasonable search or seizure or a denial of due process of law. Consolidated R. Co. v. Vermont, 207 U. S. 541, 28 Sup. Ct. 178, 52 L. Ed. 327, 12 Ann. Cas. 658; Hammond P. Co. v. Arkansas, 212 U. S. 322, 29 Sup. Ct. 370, 53 L. Ed. 530, 15 Ann. Cas. 645. A corporation, being the creature of the state, has not the constitutional right to refuse to submit its books and papers for an examination at the suit of the state, and an officer of a corporation charged with criminal violation of a statute cannot plead the criminality of the corporation as a refusal to produce its books. Hale v. Henkel, 201 U. S. 43, 26 Sup. Ct. 370, 50 L. Ed. 652. A corporation is bound to furnish information when called for by the state, so far as reasonably possible, and state the facts which excuse them from answering more fully; State v. Express Co., 81 Minn. 87, 83 N. W. 465, 50 L. R. A. 667, 83 Am. St. Rep. 366; by statute the right exists in Kansas; see Western U. Tel. Co. v. Austin, 67 Kan. 208, 72 Pac. 850.
“It may be considered that, to a certain extent, railroad commissions are the machinery created by law for the exercise of visitatorial power.”

We quote from Guthrie v. Harkness, 199 U. S. 148, as follows:

“ ‘Visitation, in law, is the act of a superior or superintending officer, who visits a corporation to examine into its manner of conducting business, and enforce an observance of its laws and regulations.

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Cite This Page — Counsel Stack

Bluebook (online)
221 P. 259, 115 Kan. 3, 1924 Kan. LEXIS 175, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-public-utilities-commission-v-atchison-topeka-santa-fe-kan-1923.