Texas & New Orleans Railroad v. Louisiana Public Service Commission

136 So. 2d 382, 242 La. 349, 1962 La. LEXIS 474
Supreme Court of Louisiana·Decided January 15, 1962·No. No. 45794·Published·Cited by 2 cases

Opinion

HAMITER, Justice.

The Louisiana Public Service Commission, after a hearing, refused the application of the Texas and New Orleans Railroad Company (plaintiff herein) to close its spur track agency station at Arnaudville, a municipality situated in an agricultural area of St. Martin Parish that produces principally cotton, sugar cane and perishable vegetables. The district court of East Baton Rouge Parish approved and affirmed the ruling. The instant appeal followed.

Applicable here is this observation contained in Texas and Pacific Railroad Company v. Louisiana Public Service Commission, 240 La. 669, 124 So.2d 902: “Under the settled jurisprudence of this court the decisions of the Louisiana Public Service Commission are accorded great weight and are not disturbed unless they are found to be clearly erroneous and unsupported by the evidence and according to the rule generally prevailing the test employed in determining whether or not a railroad may properly be entitled to discontinue an agency station, where an absolutely necessary service is not involved, is whether the public good derived from maintenance of the agency station outweighs the expense to the railroad in continuing such agency. In determining such matters consideration should be given to the volume of business done at the station, its proximity to other stations, the accessibility thereof, the cost of maintaining such agency station, the financial loss, if any, to the railroad, giving due regard to the welfare of the public and the probabilities of future development.”

Recognizing these principles, and conceding that it bears the burden of proof, plaintiff insists that several facts (listed in the brief of its counsel and hereinafter discussed) are established by the record in this matter which warrant our annulling the Commission’s order under the authority of numerous cases decided by this court involving almost identical factual situations, particularly Texas and New Orleans Railroad Company v. Louisiana Public Serv[383] ice Commission et al., 235 La. 973, 106 So. 2d 438; Louisiana and Arkansas Railway Company v. Louisiana Public Service Commission, 240 La. 658, 124 So.2d 899; Texas and Pacific Railway Company v. Louisiana Public Service Commission, supra, and Illinois Central Railway Company v. Louisiana Public Service Commission et al., 240 La. 769, 125 So.2d 159.

We disagree with plaintiff’s appreciation of the evidence adduced and with its conclusion that the circumstances shown by the record are the same as in the cited cases wherein a discontinuance of other stations was held to be justified.

Quoting from the brief of plaintiff’s counsel, it is said: “The volume of business is slight, as indicated by the light carloading and by the low total revenue figure. The financial loss suffered by plaintiff for a 12 month period, was $2605.48, and $1688-10 for the following seven month period, or a total loss of $4293.58 for a 19 month period.” However, it is noticed that the mentioned “light carloading” is based on figures shown on certain exhibits which reflect only carloads (eight in number) as defined by the Interstate Commerce Commission, not actual ones. Under I. C. C. rules a shipment of cotton is classified as a carload only when at least 50 bales are consigned by one shipper; a car fully loaded with 90 bales furnished by two consignors in the proportion of one-half by each would not fall in that category. In this connection an opponent of plaintiff’s application testified that at least 40 fully loaded cars of baled cotton had been shipped during each ginning season of the 19 months’ test period used (it is hereafter described).

Noticed also is an even more important factor affecting both the number of car-loadings and the asserted “low total revenue figure” (and consequently the matter of financial loss, conceding that there was a slight one) to-wit: the test period of 19 months selected by plaintiff on which to base its application commenced in June, 1958 and followed shortly the occurrence of Hurricane Audrey in 1957 which had a devastating effect on the entire farming area in question. According to the record the agricultural situation there during that time was the worst in history, and for the wholly overcoming of the damage occasioned several seasons would be required. In view of such catastrophe the opponents of the application successfully and properly urged before the commission, as well as in the district court, that the test period selected did not reflect a true and fair picture of their farming activities.

Incidentally, when opponents sought to elicit from plaintiff’s two witnesses the profit and loss figures relating to the Arnaudville station immediately prior to the hurricane occurrence neither of them then had the information available or offered to furnish it. One merely expressed the conclusion that freight volume in the area had declined in the past several years. Undoubtedly, plaintiff could and should have provided this information; and, in view of such failure, we may assume that such would have been detrimental to its cause had it done so.

Again, counsel state: “Arnaudville is only 10.3 miles distant from Breaux Bridge, plaintiff’s adjacent agency station. Breaux Bridge is easily accessible from Arnaud-ville by hard surface road and by telephone.” These facts do not tell the whole story. True, by rail Breaux Bridge is some 10.3 miles south of Arnaudville. However, by highway the distance is approximately 15 miles. And there was no showing as to distances of nearest stations in other directions. In most of the cases cited by plaintiff the stations discontinued were only from four to six miles distant from others situated on two sides.

Next, the brief of plaintiff recites: “The cost of maintaining the station annually is $5693.42.” Conceding this figure to be the correct cost of operating the station it is without any real significance, particularly since no comparison with maintenance costs of similar stations was offered.

[384] Next, counsel assert: “The welfare of the public is completely provided for in the usual fashion, by plaintiff’s accepting collect telephone calls at Breaux Bridge, where all carload movements shipped or received would be easily handled, by handling less-than-carload shipments in the same fashion they are now being handled, and having bills of lading signed by the conductor when the freight 'cars were picked up by the train.” These factual assertions and conclusions are not, in our opinion, justified by the evidence in the record.

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Texas & New Orleans Railroad v. Louisiana Public Service Commission, 136 So. 2d 382, 242 La. 349, 1962 La. LEXIS 474 (La. 1962).

136 So. 2d 382 (Texas & New Orleans Railroad v. Louisiana Public Service Commission) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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