State v. Central Vermont Railway Co.

71 A. 194, 81 Vt. 463, 1908 Vt. LEXIS 164
Supreme Court of Vermont·Decided October 31, 1908·Published·Cited by 13 cases

Opinion

Tyler, J.

This is an action on the case brought by the State of Vermont to recover of the defendant the damage that the plaintiff claims to have sustained by reason of the defendant’s alleged violation of sections 3902 and 3904 of the Vermont Statutes. Section 3902 reads:

“A person or corporation operating a railroad shall give to all persons reasonable and equal terms, benefits, facilities and accommodations for the transportation of themselves, their agents and servants,' and of merchandise and other property upon such railroad; and for the use of the depots, buildings and grounds thereof; and, at any point where such railroad connects with another railroad, reasonable and equal facilities of interchange. ’ ’

Section 3904 provides that a person or corporation violating these provisions shall be liable to the party aggrieved [465]*465for all damages sustained' by reason of such violation, in an action on the case.

The amended declaration. alleges that ever since August 1, 1900, the defendant has owned and operated a railroad from Alburgh to Waterbury in this State; that the plaintiff has been obliged to buy and consume large quantities of coal for its Asylum for the Insane at Waterbury, which coal had to be shipped over said railroad from Alburgh, as that was a distributing point; that it was the defendant’s duty to grant to all persons, including the plaintiff, equal terms and rates of freight for the carrying and shipment of coal over its road between said points; that in violation of its duty, the defendant had granted to George Hall Coal Company, a corporation of Ogdensburg, New York, secret, lower and unequal terms for the carrying and shipment of coal over its road, between said points, than it had given to the plaintiff or to any other person or corporation, to wit, fifty cents per ton less, and that during all that time it had carried coal from Alburgh to Waterbury, for said company, .at said preferred rates; that the plaintiff’s only means of obtaining coal was by said railroad; that by means of said preference the George Hall Coal Company was able to, and did crush out and prevent competition in the business of selling and delivering coal at Waterbury, and the plaintiff has been compelled to and has bought all its coal of said Coal Company at fifty cents more per ton and has thus been aggrieved by the defendant’s violation of the law and by its failure.to grant to the plaintiff and others equal terms and rates of freight for carrying coal; and that an action has thereby accrued to the plaintiff under said statute.

The defendant having demurred to the amended declaration, the question is whether its allegations set out a cause of action under the statute.

At common law a common carrier of freight was not bound to treat all shippers alike. It was only bound to carry for every shipper at a reasonable rate. It might favor any particular shipper or class of shippers where the circumstances of the case warranted a distinction, as where the preferred shipper or class offered goods in larger quantities or under such conditions that they could be transported at less expense. But there is al[466]*466ways the limitation that the discrimination in preferences mnst be reasonable, and the terms must not be unreasonably unequal.

It is equally well settled that it is within the power of a state legislature, with reference to commerce within the state, and of Congress, with reference to interstate commerce, to prescribe the rates to be charged by public carriers for their services, so long as the charges fixed do not require that the services rendered shall be without reasonable compensation. Smyth v. Ames, 169 U. S. 466, 42 L. ed. 819.

But it is held that, though the power of the Legislature to prescribe the charges of a railroad company is beyond question, it is not an unlimited power. It is not a power to destroy or to compel the doing of a service without reward, or to take private property for public use without just compensation or without due process of law. Budd v. New York, 143 U. S. 517, 36 L. ed. 247. See numerous eases cited in the opinion in Smyth v. Ames, 169 U. S. 523-525, 42 L. ed. 841; Georgia R. & Bkg. Co. v. Smith, 128 U. S. 174, 32 L. ed. 377; Cleveland C. C. & St. L. R. Co. v. Closser, (Ind.) 9 L. R. A. 754; Louisville & N. R. Co. v. Com., 99 Ky. 132, 33 L. R. A. 209.

What was the legislative intent in this case Í

In arriving at the intent of the Legislature, not only must the statute in every part be considered, but when there are several statutes in pari materia, they must all be considered together. The Legislature at the session of 1882, passed an Act, No. 37, which provides that: “A railroad corporation may establish for their sole benefit a toll upon all passengers and property carried on their railroad at such rates as are determined by the directors of the corporation, and may regulate such conveyance and transportation, the weight of loads, and other things in relation to the use of the road as the directors determine.” This section provides, however, that the Supreme Court may, upon petition and hearing, alter or reduce the toll of any railroad operated in this State. This Act was approved November 28, 1882, took effect February 1, 1883, and gave the directors authority to fix the toll upon all property carried on their road. It now constitutes section 3896 Y. S. Act No. 36 of that year, which is embodied in sections 3902, 3903 and 3904, was approved on the following day and took effect upon its passage. These two statutes passed at the same session and so [467]*467nearly contemporaneous must be construed together, or rather the later one must be construed in the light of the earlier one which needs no construction.

No. 36 is entitled, An Act to prevent unjust discrimination by railroad corporations. By its express terms it relates to discrimination in the transportation of persons, merchandise and other property by railroads. The words, “facilities and accommodations,” obviously relate to the shipping, care and delivery of merchandise,' in short, to all the incidents of transportation. If, as the defendant claims, the word “terms” is inapt to signify rates or charges, in common parlance it may have the same meaning in the sense in which people speak of the terms of a contract, meaning the things to be done and the compensation for doing them. “On reasonable terms” is a common expression, meaning the charges for services rendered or the price of goods sold and delivered. From the position of the word in the section and the adequacy of the other words to provide for the incidents of transportation, it is difficult to understand what other purpose the Legislature could have had in using it than the regulation of freight charges. That this was the purpose is further indicated by the language of the second section: “Two or more corporations whose roads connect shall not charge or receive for the transportation of freight to any station on the road of either of them a greater sum,” etc. The second section further provides that: “In the construction of this section the sum charged or received for the transportation of freight shall include all terminal charges,” etc.

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State v. Central Vermont Railway Co., 71 A. 194, 81 Vt. 463, 1908 Vt. LEXIS 164 (Vt. 1908).

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