Savannah morning news. [volume] (Savannah) 1868-1887, 1881-02-11

TETICH TTETEUIS EUI
fares within certain limits subject to the re-
vlsory powers OF the Legislature. 1t has never
mad absolute right to establish its own schedule
q freights and fares. The right to fix its
20 legislative control. Bow, then, can an at.
tempt on the part of the legislature to regu-
ate the charges Of the defendant company be
privileges and immunities Of the COMPANY.
But this clause in the bill of rights must be
read In connection with paragraph one of
seclon Two, or article four, OF the constitution,
whicn confers upon the Legislature the power
and authority OF regulating railroad freights
and tariffs, and makes It the duty Of the
Legislature TO prohibit railroads from charging
other than just and reasonable rates.
Inc Legislature In the act OF October IA,
1913 tsupra), has merely forbidden the rail
road companies from exacting more than fair
and reasonable rates for the transportation of
freights and passengers, and has attempted,
tnrougn Commission, to prescribe what are
just ana reasonable rates. Upon its face there
can be no constitutional objection to this legis-
lation, excepting on the assumption that it is
one OF the special privileges and immunities of
the railroad companies TO charge unjust and
unreasonable rates of freight and fare.
But It is urged by complainant that the rates
prescribed by the Commissioners under au-
thorIty OF the Legislature are not just and rea-
sonaole, but are oppressive and destructive OF
the value or the property of the railroad COM
panies. Assuming for the present that the
Legislature had the constitutional right to de-
legate the power OF prescribing rates to 8
commission, and that the schedule established
by 1t is the schedule of the Legislature, the
question IS thus presented: Where does the
power reside to declare what are just and rea-
sonable rStesf Is it a judicial or legislative
question: IL seems to me that section or ar
tlcle OF the constitution by its very terms
confers that power on the Legislature. 1t de-
clares: First, "the power and authority of
regulating railroad freights and passenger
tariffs, preventing unjust determinations. and
and passenger tariffs are hereby con-
ferred on the General Assembly, whose
duty it shall be to pass laws to regulate
freight and passenger tariffs, to prohibit I'M
Just discrimination, and to prohibit said roads
from charging other than just and reasonable
rates. How delegation of power to declare
what is just and reasonable could be more
plaip and explicit, it is difficult to see. 1t is
not conferred on the courts. the railroad com
panies have no part or lot in the decision of
the question, but the cons tuition declares lit
is hereby conferred on the General Assembly. -
But even when there is no such constitutional
provision as exists in this State, it has been
held that where property has been clothed
with public interest the Legislature may fix
limit to that which shall in law be reasonable
for it's use. This limit binds the courts as well
as the people. If it has been improperly fixed,
the Legislature, not the courts, must be ap-
pealed to for the change. PEEK VS. Chicago,
etc, railway company, 81 U. s., 1854; Mum VS..
Illinois. "a U. s., 1l3.
LOOKING, therefore, the SoVofal clauses OF
the constitution which bear upon the subject,
it cannot be said by the railroad companies
that an attempt by the Legislature to prescribe
reasonable rates for the transportation of
freights and fares Is a revocation OF any of
their special privileges or immunities.
In my judgment the clause of the constitu-
ton now under consideration wss not meant
to limit the power Of the Legislature over the
subject of freights and fares, which is fully
treated in section eleven, article fourteen, but
1nfnndnd hn 80, 4
creditors of the corporation from the results
which at common law followed the revocation
of the charter of an Incorporated company.
which were, that its realty reverted to the
grantorS and is personally indicted to the State
The complainant alleges that when the bonds
and the mortgage to secure the same subject
to which the defendant company bought the
railroad and other property of the Atlantic
and Gulf Company were executed, the State
of Georgia was the owner of 10, 900 shares OF
the stock of the latter company, and this stock
voted in favor Of the issue of the bonds and
the execution OF the mortgage; that the bonds
were seven per cent. annually, and are to fall
due July !, 1877; that the property was con-
veyed by the mortgage or trust deed to a trus-
tee with the power upon default of the pay
ment or Interest to take possession and operate
the road and pay just expenses; second prior
liens; third, interest and principal of the
bonds, and fourth, the residue of the corpora
ton, but until deferred the company was to
manage the property instead of the trustees.
modification or repeal does not apply when
such modification will impair a contract like
this made by the State herself.
To this there are two answers In the first
place, the State made no contract when the
atlantic and Gulf hallway Company issued its
bonds and executed its mortgage to secure
this. The bonds and mortgage were the con-
tracts of the company and not of its stock
holders
Secondly the purchasers of the bonds took
them subject to the power of the State to
regulate the rates Of freight and fares The
State never, either by express or implied con-
tract, agreed that this power should not be
exercised. The purchasers of the bonds took
the risk of the validity of the company to do
business enough, under the provisions and
restrictions of its charter, and subject to the
right Of the legislative revision, to pay the
principal and interest on the bonds.
The complainant next insists that para
graph one, section two Of article four of the
constitution of Georgia requires the General
Assembly itself to regulate railroad freights
and passenger tariffs, and prohibit unjust dis
ordinations on the railroads of the State, and
prohibit them from charging other than Just
and reasonable rates. and that the delegation
OF this duty of these Railroad Commissioners
is not warranted by the constitution.
The argument is that the act of October a.
1879, delegates to the Railroad Commission leg
islative power which, by the constitution, Is
conferred exclusively upon the Legislature
The paragraph of the constitution which alI
thorizes and requires the action of the Gen
eral Assembly on this subject does not in
terms require that body to prescribe the
rates of freight and fares. 1t is re-
quired ito pass laws to regulate freight
and passenger tariffs =" 1t has in per.
Torrance of this duty declared that the
rates charged by the railroad companies
should be just and reasonable, and appointed
Commission to fix the maximum of lust and
reasonable rates, beyond which the railroad
companies shall not go. This action seems to
fall strictly within the terms of the authority
on which it is based.
If, however, the power conferred on the
Commissioners can only be exercised under
the constitution by the Legislature, the act
comforting such powers must be declared void
somewhat careful consideration of this
point satisfies me clearly that the duties i'm
posed by the act upon the Commissioners are
not legislative, and are not necessarily to be
performed by the Legislature.
If the act had declared that no railroad COM
pany Should charge other than Just and rea.
sonible rates and that the board of directors
of every railroad company in the State should
prescribe maximum charges which should he
posted at each station, and beyond which the
ticket and freight agents of the companies
should not go, it could not reasonably be
claimed that the directors were clothed with
legislative power. Is the case altered when the
General Assembly, instead of making the
Board of Directors the body to fix maximum
rates, appoints an independent and it is fair
to presume, a more impartial BODY for that
is not changed by change in the person on
whom the duty is imposed
1t is a familiar rule of constitutional con-
struction that grant of legislative power to
do certain thing carries with it the power to
use all proper and necessary means to accom-
plish the end.-McCullough VS.. Maryland, 4
Wheat, 316.
The General Assembly of Georgia is express
ly requested by paragraph one, section two,
article four, to pass laws from time to time to
regulate freight and passenger tariffs and to
prohibit unjust discrimination and the charp-
ing Of unjust and unreasonable rates by the
railroad companies of the State, The fixing
of just and reasonable maximum rates for all
the railroads in the State is clearly duty
which cannot be performed by the Legislature
unless it remain in perpetual session and de-
votes large portion of its time to its per
Torrance. The question, What are lust and
reasonable ratesY is one which presents dlffar-
ent phases from month to month, upon every
road in the State and in reference to all the
innumerable articles and products that are the
subjects or transportation. This question can
only be satisfactorily solved by a board which
is in perpetual session and whose time is ex-
clusively given to the consideration of the sub
ject.
1t is obvious that to require the duty of nre-
scribing rates for the railroads of the State. to
be- performed by the General Assembly. CON
sisting OF Senate with forty-four members
and House OF Representatives with one
hundred and seventY-five, and which meets in
regular session only once in two years, and
then only for a period of forty days. would
result in the most ill-advised and haphazard
schedules, and be productive of the greatest
Inconvenience and Injustice, in some cases to
the railroad companies and In others to the
people of the State. It is impracticable for
such a body to prescribe just and reasonable
rates. To insist that this duty must be per
formed by the General Assembly, itself is to
defeat the purpose of that clause of the CON
stitution under consideration.
The view taken by com plainant would pre-
clude the Legislature from the use of the
necessary means and agencies to accom-
plish what IL is required by the constitution to
do The Congress OF the United States gives to