Baltimore & Ohio Southwestern Railroad Company v. Hagan

• Decision Date: 15 June 1915
• Docket Number: 22,648
• Citation: 109 N.E. 194,183 Ind. 522
• Parties: The Baltimore and Ohio Southwestern Railroad Company v. Hagan
• Court: Indiana Supreme Court

109 N.E. 194

183 Ind. 522

The Baltimore and Ohio Southwestern Railroad Company v. Hagan

No. 22,648

Supreme Court of Indiana

June 15, 1915

Rehearing Denied October 8, 1915.

From Lawrence Circuit Court; Thomas Brooks, Special Judge.

Action by Charles B. Hagan against The Baltimore and Ohio Southwestern Railroad Company. From a judgment for plaintiff the defendant appeals.

Affirmed.

McMullen & McMullens, Edward Barton and Robert N. Palmer, for appellant.

Montgomery & Montgomery, for appellee.

OPINION

Morris, J.

Suit by appellee, railway employe, against appellant, to recover alleged balance due for wages. The complaint avers that appellant is a railroad corporation, organized under Indiana laws, and has been operating a railroad in this State; that in August, 1909, in connection with the operation of its road, appellant organized and established a relief association called its relief department, and induced appellee to become a member thereof; that appellant required all its employes to become members of this department; that by force of one of the rules thereof, which is set out, each member of the department was required to execute a contract agreeing to surrender and waive his right of damage against appellant for death or personal injury, or waive his right to participate in the benefits of the relief department; that the establishment and maintenance of said relief association violates the act of 1907 (Acts 1907 p. 46, § 5308 Burns 1914), reading as follows: "That no railroad company now existing, or hereafter created, under and by virtue of the laws of this state or any other state or country, and having and operating a line of railway in this state, may establish or maintain, or assist in establishing or maintaining any relief association or society, the rules or by-laws of which shall require of any person or employe becoming a member thereof to enter into a contract, agreement or stipulation, directly or indirectly, whereby such person or employe shall stipulate, or agree to surrender or waive any right of damage against any railroad company for personal injuries or death, or whereby such person or employe agrees to surrender or waive, in case he asserts such claim for damages, any right whatever, and any such agreement or contract, so signed by such person shall be null and void." It is further averred that appellee was in appellant's employ from August, 1909, to July, 1911, at an agreed rate of wages; that at the later date he became disabled for service because of defective hearing; that during the term of employment he was a member of the relief department; that the department was, under its rules, supported in the main, by deductions from employes' wages; that from appellee's wages, as earned each month, appellant deducted $ 4, and retains the same under the claim that it properly belongs to the funds of the relief department; that appellee has demanded of appellant the payment of the deducted wages, and the demand was refused. Appellant's demurrer to the complaint was overruled.

Appellant answered in two paragraphs, the first of which was a general denial. The second avers that appellant is an interstate carrier operating a railroad extending through various named states, including Indiana; that the Baltimore and Ohio Railway Company is an interstate carrier organized under the laws of Maryland; and, in the operation of its lines employs many thousands of men; that long prior to 1907 said company had maintained what was called its relief department which provided for benefits to its employes suffering disability whether from negligent accident, sickness, or other cause, and also provided for pensions of employes in certain cases; that one of its rules contains the following provisions:

"Other corporations associated in interest with this company, or having harmonious relations therewith, may secure to themselves and their employees the advantages offered by this department by agreement between the respective companies, but only so as to always protect the employees of this company from any additional burdens by reason of the admission of the employees of such other company."

It is further averred that appellant and said Baltimore and Ohio company were associated in interest with each other and had and have harmonious business relations, and the lines of both companies were and are operated conjointly and extend from New York City, New York, to St. Louis, Missouri; that in July, 1909, appellant and said Baltimore and Ohio company executed an agreement providing for the admission of appellant to participation in the benefits of its relief department, and obligated appellant to contribute to the department annually a stipulated sum. A copy of the rules and regulations of the relief department is set out at length. It is then averred that appellee joined the relief department of the Baltimore and Ohio company, to which appellant and its employes were admitted pursuant to said contract; that appellee executed a contract...