Source: https://supreme.justia.com/cases/federal/us/236/615/
Timestamp: 2019-04-22 06:21:36+00:00

Document:
A state, in virtue of its authority to regulate railroads as public highways, may, in a proper case, require two railroad companies to make a connection between their tracks so as to facilitate interchange of traffic, without violating rights of the company secured by the federal Constitution. Wisconsin R. Co. v. Jacobson, 179 U. S. 287.
A state, acting within its jurisdiction and not in hostility to any federal regulation of interstate commerce, may compel a carrier to accept loaded cars from another line and transport them over its own. Chi., Mil. & St.P. Ry. v. Iowa, 233 U. S. 344.
A state may, on reasonable conditions, require a carrier to permit its empty or loaded cars to be hauled from its line upon a connecting line for purposes of loading or delivery of intrastate freight and to permit cars of other carriers loaded with such freight consigned to points on the connecting line to be hauled from its line upon the connecting line for purposes of delivery.
The common law is subject to change by legislation, and so held that a state may require a carrier, within reasonable bounds of regulation in the public interest, to permit its equipment to be hauled off its line by other carriers, although it was not bound to permit the same at common law.
It is a matter of common knowledge that interchange of freight cars between carriers is the usual practice, and a state statute requiring such interchange as to intrastate commerce is not so unreasonable as to amount to a taking of property without due process of law.
An order of a state railroad commission requiring carriers to interchange freight cars for intrastate freight is to be read in the light of the opinion delivered by the Commission, and, as so read, the order involved in this case is not unreasonable, nor does it take the property of the carriers without due process of law.
this Court presumes, until the contrary appears, that the state court will not so construe or enforce the order as to interfere with or obstruct interstate commerce.
An order of the Michigan state Railroad Commission requiring two connecting railroads to make physical connection for transfer of intrastate business, including loaded freight car and empty cars being returned or forwarded for being loaded, held within the power of the state, and not to a taking of the property of the carriers without due process of law or an interference with and regulation of interstate commerce. Central Stock Yards v. Louis. & Nash. R. Co., 192 U. S. 568, and Louis. & Nash. R. Co. v. Stock Yards, 212 U. S. 132, distinguished.
The facts, which involve the validity of an order of the State Railway Commission of Michigan requiring a railway with respect to intrastate traffic to interchange cars, freight, and passengers with another railway, are stated in the opinion.
of the two companies in the Village of Oxford in that state.
upon an order made by the former Commission in the year 1908, which, it is admitted, was preserved by § 49 of the 1909 act.
the State of Michigan, this line being part of a railroad system extending through that state and into adjoining states and the Dominion of Canada, and over which the company transports passengers and property in interstate and foreign, as well as in intrastate commerce. The Detroit United Railway Company is a corporation organized and existing under the Street Railway Act (Comp.Laws 1897, c. 168, §§ 6434 et seq.), and operates an interurban electric railway extending from Detroit to the City of Flint, and likewise passing through the Village of Oxford. Between Oxford and Flint, which are 28 miles apart, the line passes through the Villages of Ortonville, Goodrich, and Atlas, distant respectively 10, 16, and 18 miles from Oxford.
upon its lines as was consistent with the other operations of the road. The result was an order, dated June 5, 1908, made under the provisions of § 7b of the 1907 act, requiring the Michigan Central and Detroit United Companies, on or before August 15 in the same year, to connect their tracks at such point in the Village of Oxford as they should between themselves agree upon as most desirable, and thereafter to interchange cars, carload shipments, less than carload shipments, and passenger traffic at that point, in accordance with the provisions of § 7, and declaring that, if they should be unable to agree as to the point of connection, the Commission would make a supplemental order determining its location. Such a supplemental order was afterwards made. These orders were duly served upon both companies, and neither instituted any proceeding to test their validity in the manner permitted by §§ 25 and 26 of the 1907 act. The physical connection between the tracks was installed and is still maintained by the companies, and no question is now made respecting this. But the Michigan Central complied, to the extent of installing the physical connection, under protest, particularly with respect to so much of the order as required the interchange of cars, carload and less than carload shipments, and passenger traffic at that point. The Detroit United is willing and able to accept cars and carloads of freight from the Michigan Central, to be delivered along the line of the Detroit United under a service similar to that offered by belt lines and terminal railroads in the same state, but the Michigan Central has hitherto refused and still refuses to deliver cars and carloads or less than carload shipments of freight in cars to the Detroit United for transportation to points upon its line. There is no controversy about the other parts of the order.
the Fourteenth Amendment in that enforcement of the order would deprive the Michigan Central of its property without due process of law, and also upon the ground that the order amounted to an attempt to regulate and impose a burden upon interstate commerce, contrary to § 8 of Article I of the Constitution of the United States. The Supreme Court of Michigan held that the statute authorized the making of such an order by the Commission, and that, since plaintiff in error had failed to institute proceedings to review it under §§ 25 and 26 of the act, the questions of the practicability of the physical connection and of the interchange of traffic, as well as the reasonableness of the service required, were not open in the mandamus proceeding. It also held that the jurisdiction of the Commission was limited to intrastate traffic, and that its order in the present case must be deemed to be so limited.
rescind or modify the original order. The court passes upon either the original or the modified order, and may affirm or set it aside in whole or in part, and make such other order as may be in accordance with the facts and the law. From its judgment there is an appeal to the supreme court. The respective functions of the Commission and the courts under this legislation were considered, in a rate case, by the state supreme court in Detroit & Mackinac Ry. v. Michigan Railroad Comm'n, 171 Mich. 335, 346, and by this Court in a subsequent case between the same parties in 235 U. S. 235 U.S. 402, affirming 203 F. 864.
The argument submitted here in behalf of plaintiff in error has taken a wide range, many of the contentions being matters purely of local law, and these so interwoven with the discussion of federal questions that it is somewhat difficult to distinguish them. It ought to be unnecessary to say that whether distinctions have heretofore been recognized, under the laws of Michigan, between "railroads" and "street railways," whether the Acts of 1907 and 1909 preserve or disregard these distinctions, and whether § 7 was intended to apply to both kinds of roads or to "railroads" only are questions with which this Court has no proper concern, they being conclusively disposed of by the decision of the state court of last resort in the present case. So also it is, for all purposes of our jurisdiction, established not only that the Commission, in making the order, acted in the authorized exercise of the state's power of regulation, but that the two companies are legally competent to perform the duties thereby imposed upon them respectively.
states, is settled by the decisions of this Court in Wisconsin &c. R. Co. v. Jacobson, 179 U. S. 287, 179 U. S. 296, 179 U. S. 301, and Oregon R. & N. Co. v. Fairchild, 224 U. S. 510, 224 U. S. 528.
That a state, acting within its jurisdiction, and not in hostility to any federal regulation of interstate commerce, may compel the carrier to accept loaded cars from another line and transport them over its own, such requirement being reasonable in itself is settled by Chi., Mil. & St. P. Ry. v. Iowa, 233 U. S. 334, 233 U. S. 344. In that case, it was held there was no essential difference, so far as concerned the power of the state, between such an order and one requiring the carrier to make track connections and receive cars from connecting roads in order that reasonably adequate facilities for traffic might be provided.
It seems to us that the principle of these decisions sustains also the state's power to make a reasonable order requiring a carrier to permit empty or loaded cars owned by it to be hauled from its line upon the connecting line for purposes of loading or delivery of intrastate freight, and to permit the cars of other carriers loaded with such freight consigned to points on the connecting line to be hauled from its line upon the connecting line for purposes of delivery. This question was left undetermined in McNeill v. Southern Railway, 202 U. S. 543, 202 U. S. 563, which had to do with a state regulation operating directly upon interstate commerce.
The contentions of plaintiff in error to the contrary will be briefly considered.
"in the same manner and under the same general conditions, except as to motive power, as belt line railroads and terminal railroads are now or may hereafter be used for like purposes."
"That belt line and terminal railroads within this state vary in length from a fraction of a mile to fifteen miles or more; that cars and carloads of freight are transported to and from industries located along the line of such belt or terminal railroads to the tracks of railroad companies with which said belt lines and terminal railroads are connected, under a local switching charge or tariff, and that through billing of freight as between other railroads and belt and terminal railroads is not customary or usual."
"that said Detroit United Railway Company is not in fact or in law a belt line or terminal railroad corporation, nor authorized by law to act as such, nor are the line or lines of railway operated by it, extending from the Village of Oxford to the City of Flint, and within the boundaries of said municipalities, belt or terminal railroads, nor can they in fact or in law be used as belt or terminal railroads may be or are now used, nor has said relator any power or authority to require this respondent to give the use of its tracks or terminal facilities for the purposes mentioned in said orders or otherwise."
There is no question, therefore, as to the mode in which belt line and terminal railroads are in fact used, and so the statute and order are relieved from the charge of indefiniteness in this respect. As already shown, the decision of the state court of last resort is a conclusive response to the legal objections taken in the clause quoted from the answer.
by the Michigan Central at points off its own lines. By its terms, however, the order does not require the Michigan Central to haul the cars to points on the Detroit United, but only to permit them to be hauled by the latter company. At common law, a carrier was not bound to carry except on its own line, and probably not required to permit its equipment to be hauled off the line by other carriers. A., T. & S.F. R. Co. v. D. & N.O. R. Co., 110 U. S. 667, 110 U. S. 680; Kentucky &c. Bridge Co. v. Louis. & Nash. R. Co., 37 F. 567, 620; Oregon Short Line v. Northern Pacific Ry., 51 F. 465, 472, 475, aff'd, 61 F. 158. But in this as in other respects, the common law is subject to change by legislation, and so long as the reasonable bounds of regulation in the public interest are not thereby transcended, the carrier's property cannot be deemed to be "taken" in the constitutional sense. Minn. & St.L. R. Co. v. Minnesota, 193 U. S. 53, 193 U. S. 63; Atlantic Coast Line v. N. Car. Corp. Comm'n, 206 U. S. 1, 206 U. S. 19; Grand Trunk Ry. v. Michigan Ry. Comm'n, 231 U. S. 457, 231 U. S. 470; Wisconsin &c. R. Co. v. Jacobson, supra; Chi., Mil. & St.P. R. Co. v. Iowa, supra.
of the cars of a single railroad is, in these days, a rarity. In Michigan, car interchange has long been a statutory duty. Mich.Gen. Acts 1873, No. 79, § 15, p. 99; No.198, § 28, p. 521; Michigan Central R. Co. v. Smithson, 45 Mich. 212, 221. And see Peoria & P. U. Ry. v. Chicago, R.I. & P. Ry., 109, Ill. 135, 139; Burlington &c Ry. v. Dey, 82 Ia. 312, 335; State v. Chicago &c. Ry., 152 Ia. 317, 322, aff'd, 233 U. S. 334; Pittsburgh &c. Ry. v. R. Commission, 171 Ind. 189, 201; Jacobson v. Wisconsin &c. R. Co., 71 Minn. 519, 531, aff'd, 179 U. S. 179 U.S. 287.
To speak of the order as requiring the cars of plaintiff in error to be delivered to the Detroit United "for the use of that company" involves a fallacy. The order is designed for the benefit of the public having occasion to employ the connecting lines in through transportation. The Detroit United, like the Michigan Central, acts in the matter as a public agency.
carrier whose cars are used in the interchange. The finding of the Commission, approved by the court, was that the Michigan Central would merely have to expend its proportion of the amount necessary to install the connection between the two roads, and would be called upon for no further expenditure in the premises, and that the business to be derived by it from Ortonville, Goodrich, and the surrounding country via the Detroit United Railway, promised to be considerable in amount, and thereby the Michigan Central would be a beneficiary from the proposed connection and interchange. It was, we think, permissible for the court to find, as in effect it did find, that the benefits thus derived would include compensation for the use of the cars of the Michigan Central for purposes of loading and delivery along the line of the Detroit United. We are unable to see that any question as to the adequacy of the compensation was raised in the state court.
unreasonable refusal by a carrier to interchange cars with another for through traffic. We do not pass upon the question. It is enough to observe that such a law perhaps ought to be so limited as to respect the paramount needs of the carrier concerned, and at least could be sustained only with full and adequate regulations for his protection from the loss or undue detention of cars, and for securing due compensation for their use. The Constitution of Kentucky is simply a universal, undiscriminating requirement, with no adequate provisions such as we have described. . . . We do not mean, however, that the silence of the constitution might not be remedied by an act of legislature or a regulation by a duly authorized subordinate body if such legislation should be held consistent with the state constitution by the state court."
The case now before us is plainly distinguishable, as appears from what we have said. And, upon the whole, we see no sufficient ground for denouncing the regulation in question as either arbitrary or unreasonable.
"in the same manner and under the same general conditions except as to motive power as belt line railroads and terminal railroads are not or may be used for like purposes."
Manifestly, this involves no disregard of the needs of interstate commerce, and we must indulge the presumption, until the contrary is made to appear, that the state will not so construe or enforce the order as to interfere with or obstruct such commerce. Ohio Tax Cases, 232 U. S. 576, 232 U. S. 591; St. Louis S.W. Ry. v. Arkansas, 235 U. S. 350, 235 U. S. 369. The recent decisions of this Court, cited in support of the contention that the order interferes with interstate commerce (Houston & Tex. Cent. R. Co. v. Mayes, 201 U. S. 321, 201 U. S. 329; McNeill v. Southern Railway, 202 U. S. 543, 202 U. S. 561; St. Louis S.W. Ry. v. Arkansas, 217 U. S. 136, 217 U. S. 149; Chi., R.I. &c. Ry. v. Hardwick Elevator Co., 226 U. S. 426, 226 U. S. 433), are so plainly distinguishable that no time need be spent in discussing them.
* Michigan Public Acts 1907, No. 312.
"(b) Where it is practicable and the same may be accomplished without endangering the equipment, tracks or appliances of either party, the Commission may, upon application, require steam railroads and interurban and suburban railroads to interchange cars, carload shipments, less than carload shipments, and passenger traffic, and for that purpose may require the construction of physical connections upon such terms as it may determine: Provided, that nothing in this act shall be construed to require through billing of freight as between steam and electric, suburban or interurban railroads, but such suburban and interurban railroads may be used for the handling of freight in carload lots in steam railroad freight cars between shippers or consignees and the steam railroads, in the same manner and under the same general conditions, except as to motive power, as belt line railroads and terminal railroads are now or may hereafter be used for like purposes."
"(c) Every corporation owning a railroad in use shall at reasonable times and for a reasonable compensation, draw over the same the merchandise and cars of any other corporation or individual having connecting tracks: Provided, such cars are of the proper gauge, are in good running order and equipped as required by law and otherwise safe for transportation and properly loaded: Provided further, if the corporations cannot agree upon the times at which the cars shall be drawn, or the compensation to be paid, the said Commission shall, upon petition of either party and notice to the other, after hearing the parties interested, determine the rate of compensation and fix such other periods, having reference to the convenience and interests of the corporation or corporations, and the public to be accommodated thereby, and the award of the Commission shall be binding upon the respective corporations interested therein until the same shall have been revised. . . ."
"SEC. 24. . . ."
"(b) The Commission may at any time, upon application of any person or any railroad, and upon notice to the parties interested, including the railroad, and after opportunity to be heard as provided in section twenty-two, rescind, alter, or amend any order fixing any rate or rates, fares, charges or classifications or any other order made by the Commission, and certified copies shall be served and take effect as herein provided for original orders."
"SEC. 25. All rates, fares, charges, classifications and joint rates fixed by the Commission and all regulations, practices and services prescribed by the Commission shall be in force and shall be prima facie, lawful and reasonable until finally found otherwise in an action brought for the purpose pursuant to the provisions of section twenty-six of this act, or until changed or modified by the Commission as provided for in paragraph (b), section twenty-four of this act."
"SEC. 26. (a) Any railroad or other party in interest, being dissatisfied with any order of the Commission fixing any rate or rates, fares, charges, classifications, joint rate or rates, or any order fixing any regulations, practices or services, may within sixty days commence an action in the circuit court in chancery against the Commission as defendant to vacate and set aside any such order on the ground that the rate or rates, fares, charges, classifications, joint rate or rates fixed is unlawful or unreasonable, or that any such regulation, practice or service fixed in such order is unreasonable, in which suit the Commission shall be served with a subpoena. The Commission shall file its answer, and, on leave of court, any interested party may file an answer to said complaint, whereupon said action shall be at issue and stand ready for hearing upon ten days' notice by either party. All suits brought under this section shall have precedence over any civil cause of a different nature pending in such court, and the circuit court shall always be deemed open for the hearing thereof, and the same shall proceed, be tried and determined as other chancery suits. Any party to such suit may introduce original evidence in addition to the transcript of evidence offered to said Commission, and the circuit courts in chancery are hereby given jurisdiction of such suits and empowered to affirm, vacate, or set aside the order of the Commission in whole or in part, and to make such other order or decree as the courts shall decide to be in accordance with the facts and the law."
"(c) If, upon the trial of said action, evidence shall be introduced by the complainant which is found by the court to be different from that offered upon the hearing before the Commission, or additional thereto, the court, before proceeding to render judgment, unless the parties in such action stipulate in writing to the contrary, shall transmit a copy of such evidence to the Commission, and shall stay further proceedings in said action for fifteen days from the date of such transmission. Upon receipt of such evidence, the Commission shall consider the same, and may alter, modify, amend and rescind its order relating to such rate or rates, fares, charges, classifications, joint rate or rates, regulations, practice or service complained of in said action, and shall report its action thereon to said court within ten days from the receipt of such evidence."
"(d) If the Commission shall rescind its order complained of, the action shall be dismissed; if it shall alter, modify or amend the same, such altered, modified or amended order shall take the place of the original order complained of, and judgment shall be rendered thereon as though made by the Commission in the first instance. If the original order shall not be rescinded or changed by the Commission, judgment shall be rendered upon such original order."
"(e) Either party to said action, within sixty days after service of a copy of the order or judgment of the court, may appeal to the supreme court, which appeal shall be governed by the statutes governing chancery appeals. When the appeal is taken, the case shall, on the return of the papers to the supreme court, be immediately placed on the calendar of the then pending term, and shall be brought to a hearing in the same manner as other cases on the calendar, or, if no term is then pending, shall take precedence of a different nature (sic), except criminal cases at the next term of the supreme court."
"(f) In all actions under this section, the burden of proof shall be upon the complainant to show by clear and satisfactory evidence that the order of the Commission complained of is unlawful or unreasonable, as the case may be."
The foregoing provisions were substantially reenacted in Public Acts 1909, No. 300, as §§ 7b and c, 24, 25, 26a, c, d, and e, respectively.

References: v. 
 v. 
 v. 
 v. 
 § 49
 § 7
 § 7
 § 8
 v. 
 § 7
 v. 
 v. 
 v. 
 v. 
 v. 
 v. 
 v. 
 v. 
 v. 
 v. 
 v. 
 v. 
 § 15
 § 28
 v. 
 v. 
 v. 
 v. 
 v. 
 v. 
 v. 
 v. 
 v. 
 v. 
 v.