Western Union Tel. Co. v. Myatt

98 F. 335, 1899 U.S. App. LEXIS 2741
CourtU.S. Circuit Court for the District of Kansas
DecidedNovember 27, 1899
StatusPublished
Cited by28 cases

This text of 98 F. 335 (Western Union Tel. Co. v. Myatt) is published on Counsel Stack Legal Research, covering U.S. Circuit Court for the District of Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Western Union Tel. Co. v. Myatt, 98 F. 335, 1899 U.S. App. LEXIS 2741 (circtdks 1899).

Opinion

HOOK, District Judge

(after stating the facts). The act of the legislature creating the court of visitation and defining its jurisdiction and powers, and the act fixing the maximum rates for telegraphic service, and conferring jurisdiction respecting telegraph companies upon the court of visitation,'are parts of the same general body of legislation affecting public-service corporations that was enacted at the special session of the Kansas legislature of 1898. They are, therefore, to be construed together; and, even were this not the case, the latter enactment is, by its terms, dependent upon the act creating the court of visitation. There are certain principles involved in the consideration of the questions arising in this case which have been so clearly and definitely settled that it is unnecessary to review the various decisions of the courts supporting them. They relate to the nature and extent of public control over property affected with a pub-[341]*341lie interest, and the character and limitations oí the functions employed in and about the exercise of such control. Whenever special privileges, not generally possessed by private persons, are conferred by law upon corporations to enable them to carry out the objects of their organization, and their business and source of profit consists wholly or partly in the service and patronage of the public, their property dedicated to such employment becomes clothed with a public interest, and to the extent of such interest it is subject to public control. The doctrine of governmental control of property and employments devoted to public use is particularly applicable to what are commonly termed “public-service corporations,” — such as railway and telegraph companies,- — although it is also applied, though probably in a much more modified degree, to the property of private persons, which, by reason of its use, has ceased to be juris privati. So long as property is so employed, the power of control by the public t hrough their proper representatives exists; and such control may embrace not only provisions for the safety, security, and convenience of the public, but also restrictions against unreasonable or extortion-r,te charges and unjust discriminations. This power of control, however, is not absolute, but is subject to certain constitutional limitations, designed for the protection of the owner against oppressive action on the part of the state amounting to a deprivation of his property without compensation, or without due process of law, or amounting to a denial of the equal protection of the laws.

The exercise by the state of the power to regulate the conduct of a business affected with a public interest, and to fix and determine, as a rule for future observance, the rates and charges for services rendered, is wholly a legislative or administrative function. The legislature may, in the first instance, prescribe such regulations, and fix definitely the tariff of rates and charges; or it may lawfully delegate the exercise of such powers, and frequently does, in matters of detail, io some administrative board or body of its own creation. The es-iablishment of warehouse commissions, boards of railroad commissioners, and the powers usually committed to them, are familiar instances of the delegation of such powers. But by whatever name such boards or bodies may be called, or by what authority they may be established or created, or however they may proceed in the performance of their duties, they are, in respect of the exercise of the powers mentioned, engaged in the exercise of legislative or administrative functions as important in their character as any that are committed to the legislative branch of the government on the subject of property and property rights. In prescribing regulations or rules of action under the police power of the state for the safety and convenience of the public, or in determining a schedule of rates and charges for services to be rendered, they are in no sense performing judicial functions, nor are they in any respect judicial tribunals. The distinction between legislative and judicial functions is a vital one, and it is not subject to alteration or change, either by legislative act or by judicial decree, for such distinction inheres in the constitution itself, and is as much apart of it as though it were definitely defined therein. When the legislature has once acted, either by [342]*342itself or through some supplemental and subordinate board or body, and has prescribed a tariff of rates and charges, then whether its action is violative of some constitutional safeguard or limitation is a judicial question, the determination of which involves the exercise of judicial functions. The question is then beyond the province of legislative jurisdiction. As applied to this case, the power of the state to fix or limit the charges of telegraph companies for the transmission and delivery of telegraphic messages is a legislative one, but whether the rates so fixed or limited are unreasonable to the extent that the enforcement of their observance would amount to a deprivation of the complainant of its property without due process of law and a denial of the equal protection of the laws, and therefore vio-lative of the first section of the fourteenth amendment to the constitution, is a question for the courts. Whatever deprives an owner of the beneficial use of property lawfully acquired and held, or denies him a reasonable compensation for such use, in effect deprives him of the property itself, for, generally speaking, the chief value of property lies in the use and employment thereof; and to require of an owner or class of owners the use of their property for public benefit without reasonable compensation, while others are not subjected to such restriction, is a denial of that equal protection of the laws which is one of the safeguards of the constitution. Concisely stated, to prescribe a tariff of rates and charges is a legislative function; to determine whether existing or prescribed rates and charges are unreasonable is a judicial function. That this is the settled doctrine in this country is no longer open to question. It is firmly fixed in the body of our jurisprudence. Reagan v. Trust Co., 154 U. S. 362, 14 Sup. Ct. 1047, 38 L. Ed. 1014; Smyth v. Ames, 169 U. S. 466, 18 Sup. Ct. 418, 42 L. Ed. 819. It follows, therefore, as a corollary of this doctrine, that courts have no power to prescribe a schedule of rates and charges for persons engaged in a public or quasi public service, because that is a legislative prerogative, and that the legislature has no power to forestall the judgment of the courts by declaring that a tariff or schedule prescribed by it is a finality, and thus prevent an inquiry into the reasonableness thereof by the courts in a controversy properly challenging such reasonableness. The legislative prerogative is the power to make the law, to prescribe the regulation or rule of action. The jurisdiction of the courts is to construe and apply the law or regulation after it is made. The two functions are essentially and vitally different.

In Chicago, M. & St. P. Ry. Co. v. Minnesota, 134 U. S. 418, 10 Sup. Ct. 462, 702, 33 L. Ed.

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Bluebook (online)
98 F. 335, 1899 U.S. App. LEXIS 2741, Counsel Stack Legal Research, https://law.counselstack.com/opinion/western-union-tel-co-v-myatt-circtdks-1899.