State v. Western & Atlantic Railroad

76 S.E. 577, 138 Ga. 835, 1912 Ga. LEXIS 734
CourtSupreme Court of Georgia
DecidedNovember 15, 1912
StatusPublished
Cited by2 cases

This text of 76 S.E. 577 (State v. Western & Atlantic Railroad) is published on Counsel Stack Legal Research, covering Supreme Court of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State v. Western & Atlantic Railroad, 76 S.E. 577, 138 Ga. 835, 1912 Ga. LEXIS 734 (Ga. 1912).

Opinion

Lumpkin, J.

The State sought to obtain an injunction and a decree for specific performance against the Western & Atlantic Eailroad Company, the lessee of the railroad belonging to the State. The petition was dismissed on demurrer. There was no controversy as to intrastate shipments. The whole difference arose in regard to interstate shipments. As to such freights the defendant company is alleged to be employing the Southern Classification, the rates of which are higher than the rates fixed by the State railroad commission in the Georgia Classification. The demurrer contains numerous grounds, but they may be grouped about three leading questions: (1) Under the proper construction of the lease act and contract, do the provisions in regard to the tariffs and classifications of the State railroad commission apply to interstate freight as well as- to intrastate freight? (2) If so, are such provisions, so far as they affect interstate freight, valid, or are they in conflict with the acts of Congress enacted under authority of the interstate-commerce clause of the constitution of the United States? (3) Under the facts of the case, and in view of the lease act and contract, and of the Federal law, can a decree be framed and entered for injunction and specific performance as prayed in the petition?

1. The lease of the Western & Atlantic Eailroad, which belongs to the State, was authorized by the act of November 12, 1889 (Acts 1889, p. 362). By its terms the lessee became a body politic and corporate under the laws of this State, under the name of the Western & Atlantic Eailroad Company. By the ninth section of the act it was declared that the lease company “shall be subject to, and required to observe and obey all just and reasonable rules, orders, schedules of freight and passenger tariffs as may be prescribed by the laws of this State and the Eailroad Commission of this State; and said lease company shall charge no greater rate per ton per mile on through freight on said railroad than the local rate allowed and fixed on similar freights by the Eailroad Commission for said railroad.” It was contended on behalf of the defendant that this provision in the act of the' legislature, which was also incorporated by reference in the lease, applied only to intrastate freight rates. Possibly there might be ground for contending [839]*839that as laws do not generally apply' to the State unless so exr pressed or evidently intended, and as the State was the owner of the railroad, the declaration that the lease company should be subject to the rules and regulations of the State railroad commission was inserted to avoid any possible claim that the lessee was clothed with the exemption of the State. But the act did not stop there. It further declared that the leasing company should charge no greater rate per ton per mile on “through freight” on said railroad than the local rate allowed and fixed on similar freights by the railroad commission for such railroad. In connection with the discussion of joint rates, “through freight,” as that expression is ordinarily employed, has been said to be that which comes to a railroad from some other railroad, or which starts at some point on one line, but in order to reach its destination is delivered to a connecting carrier. Hill v. Wadley Southern Ry. Co., 128 Ga. 705 (57 S. E. 795); 38 Cyc. 302. It was argued by counsel for the State that this definition was not exhaustive, and that “through freight” might include freight carried from one terminus to another terminus of a railroad. Without dealing with the meaning of “through freight” generally, as intrastate freight rates are entirely within the jurisdiction of the State rail-, road commission, whether the freight passes over one railroad or two, the act and agreement as to charging no greater rate per ton per mile on through freight than the local rate allowed by. the. commission would have been entirely useless and mere surplusage if applied to intrastate shipments alone. Apparently, from the terms of the act, it was intended to cover something beyond what was already the law as to the fixing of intrastate rates by the commission. The expression “through freight on said railroad” was broad enough to cover at least through freight passing over the entire railroad. We think it is manifest that, in addition to the regulation of intrastate freight rates, the terms of this act and lease contract also extended to interstate rates on that railroad. The State so contends, and the relief sought is on that basis.

2. Is that part of the lease act and contract relative to the reg-' ulation of schedules and tariffs for interstate' shipments by the State railroad commission, and the charging of no more per ton per mile for such freights than should be allowed by the railroad commission as to local freights on that railroad, valid gnd. enforce[840]*840able, in view of the interstate-commerce clause of the constitution of the United States and the acts of Congress passed in pursuance thereof? If the rates declared by the railroad commission of the State are binding upon the defendant company as to interstate freights, it must be for one of two reasons: either that such regulations are binding as being valid governmental acts, exercised through the railroad commission; or because, not being binding as such, they became binding by being incorporated by reference in the lease contract, and remain of force as a provision of such contract.

Neither the legislature of this State nor the railroad commission created by it can make laws or rules fixing freight rates in Tennessee, any more than the legislature of Tennessee can fix freight rates in Georgia. Nor have they the power to fix freight rates for interstate shipments; certainly not where the subject has been specifically dealt with by Congress, under its constitutional powers. As to the subject of commerce, the decisions of the Supreme Court of the United States are divisible into three classes: (1) Those in which certain powers of the States were held to be exclusive; (2) those in which it was held that the States might act in certain matters in the absence of legislation by Congress; and (3) those in which it was held that in certain respects the power of Congress was exclusive and the States could not interfere at all. Covington etc. Bridge Co. v. Kentucky, 154 U. S. 204, 209 (14 Sup. Ct. 1087, 38 L. ed. 962).

In 1876 the Supreme Court of the United States decided a series of cases touching the power of regulation by a State. In one of them it was held that a statute of "Wisconsin enacted in 1874, to provide for a maximum charge to be made by railroad companies in that State, was confined to state commerce or such interstate commerce as directly 'affected the people of the State; and that, until Congress acted in relation to the matter, the law was valid, though it indirectly affected those beyond the State. Peik v. Chicago etc. Ry. Co., 94 U. S. 164, 178 (24 L. ed. 97); Munn v. Illinois, 94 U. S. 113 (24 L. ed. 77); Chicago etc. R. Co. v. Iowa, 94 U. S. 155 (24 L. ed. 94). At that" time Congress had not established the interstate railroad commission or enacted laws for the regulation of rates for the transportation of interstate freights.

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Bluebook (online)
76 S.E. 577, 138 Ga. 835, 1912 Ga. LEXIS 734, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-v-western-atlantic-railroad-ga-1912.