Chicago & E.I. Ry. Co. v. Commerce Comm'n ex rel. Cairo Ass'n of Commerce

• Decision Date: 18 February 1931
• Docket Number: No. 19991.,19991.
• Parties: CHICAGO & E. I. RY. CO. et al. v. COMMERCE COMMISSION ex rel. CAIRO ASS'N OF COMMERCE et al.
• Court: Illinois Supreme Court

343 Ill. 117

175 N.E. 8

CHICAGO & E. I. RY. CO. et al.

v.COMMERCE COMMISSION ex rel. CAIRO ASS'N OF COMMERCE et al.

No. 19991.

Supreme Court of Illinois.

Feb. 18, 1931.

Commissioner's Opinion.

Proceeding before the Illinois Commerce Commission, by the Cairo Chamber of Commerce and others, against the Chicago & Eastern Illinois Railway Company and others, wherein the Illinois Coal Traffic Bureau, a voluntary organization of coal companies, and others, intervened. From a judgment of the circuit court affirming an order of the Illinois Commerce Commission, the railroads appeal.

Reversed and remanded, with directions.

Appeal from Circuit Court, Williamson County; D. T. Hartwell, judge.

Kenneth L. Richmond and Elmer A. Smith, both of Chicago, J. R. Connell, of Mt. Carroll, Josiah Whitnel, of East St. Louis, and Leo P. Day, of Chicago (D. P. Connell, of Chicago, and E. M. Spiller, of Marion, of counsel), for appellants.

Ralph Merriam, of Chicago, and R. W. Ropiequet, of East St. Louis, for appellees.

PARTLOW, C.

The Cairo Chamber of Commerce and certain coal dealers in Cairo filed a complaint with the Illinois Commerce Commission against the Chicago & Eastern Illinois, the Missouri Pacific, the Mobile & Ohio, the Illinois Central, and the Cleveland, Cincinnati, Chicago & St. Louis Railway Companies, in which they alleged that the rate of $1.13 per ton on coal from certain mines in Southern Illinois to Cairo, Ill., and to certain intermediate points, is unjust, unreasonable, in violation of sections 32 and 38 of the Commerce Act (Smith-Hurd Rev. St. 1929, c. 111 2/3, §§ 32, 38), and that the rate should be reduced to 70 cents per ton. Intervening petitions were filed by the Illinois Coal Traffic Bureau, a voluntary organization of coal companies, and the Fifth and Ninth District Coal Traffic Bureau, a voluntary organization in the Belleville group, but the commission held that these intervenors failed to introduce evidence of such a character as to establish their claim. The answers of the defendants were general denials that the rate was unjust, unlawful, or discriminatory and a denial that complainants were entitled to relief. Evidence was heard and the commission entered an order finding that Cairo should be grouped with all destinations here under consideration in which the average distance from the shipping points involved is in excess of 50 miles, which group is referred to as the Inner Cairo group and embraces points on the Missouri Pacific south of Wolf Lake, points on the Mobile & Ohio south of Weaver Hill, points on the Illinois Central south of Dangola and Wolf Lake, points on the Chicago & Eastern Illinois south of Perks and Boaz, and points on the Cleveland, Cincinnati. Chicago & St. Louis south of Grand Chain. From the origin points involved to the destinations within this group the commission found that the average distance was 66 miles, the average short-line distance was 63 miles, and a rate of $1 per ton was fixed in lieu of the present rate of $1.13. The commission also found that in what is termed the Outer Cairo group, embracing all points of destination involved in the complaint north of the Inner Cairo group, the rate should be 90 cents in lieu of the $1.13 rate, and that appellees were entitled to reparation. A petition for a rehearing was overruled, an appeal was prosecuted to the circuit court of Williamson county, where the order was affirmed, and the case comes to this court upon appeal.

As grounds for reversal appellants insist that the order is based for the most part on a mere showing of the percentage increases in rates from Southern Illinois to Cairo and is predicated upon erroneous distances between the points involved; that the commission adopted as the sole standard for appraising the reasonableness of the assailed rates certain abnormally low rates offered in evidence by appellees; that the commission erred in basing its order on rate comparisons which were not based on evidence showing similarity of conditions; that the order is without substantial foundation in the evidence, is contrary to the weight of the evidence, shows on its face that the commission failed to give due weight to the testimony offered by appellants, and failed to receive testimony properly offered by appellants in their petition for rehearing.

The complaint alleged that the appellants' rates from Southern Illinois mines to Cairo and other intermediate stations are grouped and each destination point is accorded the same rate. Appendix A attached to the complaint shows the mines, shipping and billing stations in the group, appendix B shows the destination points, and appendix C shows the distances between points on each of the five railroads. It is alleged that possibilities for the future development of the city of Cairo and points taking the same rate depend partially upon a just and reasonable coal rate; that the present rate from shipping points shown in Exhibits A and C to destinations shown in Exhibits B and C are unjust and unreasonable; that undue preference is given to East St. Louis, Ill., in violation of section 38 of the act; that the average haul from points of origin to destinations is 56.7 miles; that for two years prior to filing the petition appellees received numerous carloads of coal with assessed freight charges in accordance with the present rates, which were paid. The prayer is for a reduction of rates, for reparation and restitution, together with legal interest for excessive and unjust rates charged within two years prior to the filing of the complaint.

The commission in its order found that the complaint assailed the reasonableness of rates from certain coal mines in Southern Illinois to Cairo and intermediate points, which mines are included in the rate group known as the Southern Illinois and Du Quoin districts; that appellees suggest a different basis of rates from mines within 90 miles of Cairo than from mines over 90 miles, and undue prejudice is alleged in favor of East St. Louis, which has a rate of 99 cents per ton, which, it is alleged, hinders the industrial growth of Cairo and other destinations involved; that the history of the $1.13 rate from all mines under consideration to all destinations involved is as follows: On July 9, 1909, the rate was 60 cents. This rate was first advanced to 63 cents by the Illinois Public Utilities Commission in 1917 and then to 78 cents during the same year. It was advanced in 1918 by order of the Director General of Railroads to 98 cents. In 1919 the Illinois Public Utilities Commission advanced it to $1.37. A 10 per cent. reduction was applied to freight rates generally on July 1, 1922, and this rate was reduced to $1.23. On November 20, 1923, it was voluntarily reduced to the present rate of $1.13. The order found that the percentage of increase in the $1.13 rate over that of July 9, 1909, is 88.3 per cent., and the percentage increase over the rate of April 14, 1917, is approximately 80 per cent., while freight rates generally in Illinois have been increased approximately 65 1/2 per cent. since April 14, 1917. It found that the principal competition of the mines in this group is western Kentucky, which has a rate of $1.46 to Cairo and a rate of $1.48 1/2 to East St. Louis; that the rates from Kentucky from May 22, 1911, to January 20, 1923, varied from $1.25 to $1.62, and the present rate of $1.46 from Western Kentucky to Cairo shows a percentage increase of 33 per cent. over the rate in effect April 14, 1917; that prior to September 1, 1919, there were no fixed rates from western...