Atl. Coast Line Ry. Co v. Commonwealth

• Citation: 46 S.E. 911,102 Va. 599
• Court: Virginia Supreme Court
• Decision Date: 24 March 1904
• Parties: ATLANTIC COAST LINE RY. CO. et al. v. COMMONWEALTH.

46 S.E. 911

102 Va. 599

ATLANTIC COAST LINE RY. CO. et al.

v.COMMONWEALTH.

Supreme Court of Appeals of Virginia.

March 24, 1904.

CORPORATION COMMISSION—VALIDITY OF REGULATIONS — WHEN DETERMINED — POLICE POWER—REGULATION OF INTERSTATE AND FOREIGN COMMERCE.

1. A state may make valid enactments, in the exercise of its police power, to promote the welfare and convenience of its citizens, though such laws, in their operation, incidentally interfere with interstate and foreign commerce.

¶ 1. See Commerce, vol. 10, Cent. Dig. § 7.

2. The rules prescribed by the corporation commission pursuant to the authority of Const 1902, § 155, and Act May 16, 1903 (Acts 1902-04, p. 392), with reference to storage, demurrage, car service, and car detention charges, are not void because in their operation they affect incidentally interstate and foreign commerce.

3. Const. 1902, § 156, subsec. "h, " providing that the right of any person to institute in the courts any action against any transportation company shall not be impaired by reason of any fine or penalty which the corporation commission may impose on such company for its failure to comply with any order of the commission, but in no proceeding against such corporation shall the reasonableness or validity of any rate, charge, rule, etc., prescribed by the commission within the scope of its authority be questioned, does not prevent the question of the validity of any regulations of the commission under the federal or state Constitutions from being inquired into in an action based on such regulations.

4. The validity of the rules prescribed by the corporation commission pursuant to the authority of Const. 1902, § 155, and Act May 16, 1903 (Acts 1902-04, p. 392), with reference to storage, demurrage, car service, and car detention charges, so far as they in their operation unlawfully interfere with interstate and foreign commerce, or deprive transportation companies of their property without due process of law, may be raised and determined in any particular case in which the question can be raised and determined.

Appeal from the State Corporation Commission.

Proceedings to test the validity of regulations prescribed by the corporation commission. From the action of the commission the Atlantic Coast Line Railway Company and others appeal. Affirmed.

By section 155 of the Constitution, which went into effect July 10, 1902, a permanent commission is created, to be known as the "State Corporation Commission." By subsection "a" of section 156 it is declared that, "subject to the provisions of this Constitution and to such requirements, rules and regulations as may be prescribed by law, the State Corporation Commission shall be the department of government * * * through which shall be carried out all the provisions of this Constitution, and of the laws made in pursuance thereof, for the creation, visitation, supervision, regulation and control of corporations chartered by, or doing business in, this state." Subsection "b" of that section provides that: "The commission shall have the power, and be charged with the duty, of supervising, regulating and controlling all transportation and transmission companies doing business in this state, in all matters relating to the performance of their public duties and their charges therefor, and of correcting abuses therein by such companies; and to that end the commission shall, from time to time, prescribe, and enforce against such companies, in the manner hereinafter authorized, such rates, charges, classifications of traffic, and rules and regulations, and shall require them to establish and maintain all such public service, facilities and conveniences, as may be reasonable and just, which said rates, charges, classifications, rules, regulations and requirements, the commission may, from time to time, alter or amend. * * * Before the commission shall make or prescribe any general order, rule, regulation or requirement not directed against any specific company or companies by name, the contemplated general order, rule, regulation or requirement shall first be published in substance, not less than once a week for four consecutive weeks in one or more of the newspapers of general circulation published in the city of Richmond, Virginia, together with notice of the time and place, when and where the commission will hear any objections which may be urged by any person interested, against the proposed order, rule, regulation or requirement; and every such general order, rule, regulation or requirement, made by the commission, shall be published at length, for the time and in the manner above specified before it shall go into effect, and shall also, as long as it remains in force, be published in each subsequent annual report of the com-mission. The authority of the commission (subject to review on appeal as hereinafter provided) to prescribe rates, charges and classifications of traffic, for transportation and transmission companies, shall be paramount; but its authority to prescribe any other rules, regulations or requirements for corporations or other persons shall be subject to the superior authority of the General Assembly to legislate thereon by general laws. * * *"

By subsection "d" of that section it is provided that: "From any action of the commission prescribing rates, charges or classifications of traffic, or affecting the train schedule of any transportation company, or requiring additional facilities, conveniences or public service of any transportation or transmission company, or refusing to approve a suspending bond, or requiring additional security thereon or an increase thereof, as provided for in subsection 'e' of this section, an appeal (subject to such reasonable limitations as to time, regulations as to procedure and provisions as to costs, as may be prescribed by law) may be taken by the corporation whose rates, charges or classifications of traffic, schedule, facilities, conveniences or service, are affected, or by any person deeming himself aggrieved by such action, or (if allowed by law) by the commonwealth." That subsection further provides that such appeal shall be as of right, and to the Supreme Court of Appeals only.

Subsection "f" of that section, after providing how the record for an appeal shall be made up. and that the commission shall file with it, and as a part thereof, a written statement of the reasons upon which the action appealed from was based, which statement shall be read and considered by this court upon disposing of the appeal, provides that this court "shall have jurisdiction, on such appeal, to consider and determine the reasonableness and justness of the action of the commission appealed from, as well as any other matter arising under such appeal: provided, however, that the action of the commission appealed from shall be regarded as prima facie just, reasonable and correct. * * *"

By an act approved May 16, 1903 (Acts 1902-03-04, p. 392), the corporation commission was required to fix and prescribe storage, demurrage, and car-service charges which may be collected by railroad and other transportation companies on freight transported or to be transported by them, and to be paid by them on freight delayed and cars not promptly furnished or placed by them, with rules and regulations governing the same.

By virtue of the authority conferred by the Constitution and the Act of Assembly, the corporation commission, after notice and hearing as provided by the Constitution, prescribed and fixed certain rules and regulations for the government of transportation companies and shippers doing business in this state, and which are as follows:

"All storage, demurrage and car service charges, and all car detention charges, shall be as prescribed in these rules. Nothing in these rules shall apply to shipments of live stock and perishable freight which shipments shall be governed by the statutes now in force, with such additional requirements as may be ordered by the commission from time to time. In all computation of time under these rules, Sundays and legal holidays are to be excluded.

"Rule I. When a shipper makes a verbal or written application to a railroad company for a car or cars, to be loaded with any kind of freight embraced in the tariff of said company, stating in said application the character of the freight, and its final destination, the railroad company shall furnish same within four days from seven o'clock a. m. the day following such application.

"Or, when the shipper making such application specifies a future day on which he desires to make a shipment, giving not less than four days' notice thereof, computing from seven o'clock a. m. the day following such application, the railroad company shall furnish such car or cars on the day specified in the application.

"For failure to comply with this rule, the company so offending shall forfeit and pay to the shipper applying the sum of $1.00 per car per day, or fraction of a day's delay after expiration of free time, upon demand in writing, made within thirty days thereafter by the shipper:

"Provided, however, that this rule shall not apply to shipments of coal and coke from mines and ovens.

"Rule II. When freight in carloads or less is tendered to a railroad company, and correct shipping instructions given, the railroad agent must immediately receive the same for shipment, and issue bills of lading therefor, and whenever such shipments have been so received by any railroad company, they must be carried forward at the rate of not less than fifty (50) miles per day of twenty-four hours, computing from seven o'clock a. m. the day following receipt of shipment, and for failure to receive and transport such shipments, within the time prescribed, the railroad company so offending shall forfeit and pay to the shipper the sum of $10.00 per car per day, or fraction thereof, on all carload freight and one cent per hundred pounds per day, or fraction thereof, on...