Chicago, M., St. P. & P.R. Co. v. Michigan Public Service Commission

• Decision Date: 08 January 1952
• Docket Number: No. 13,13
• Citation: 332 Mich. 291,50 N.W.2d 884
• Parties: CHICAGO, M., ST. P. & P. R. CO. v. MICHIGAN PUBLIC SERVICE COMMISSION.
• Court: Michigan Supreme Court

Page 884

50 N.W.2d 884

332 Mich. 291

CHICAGO, M., ST. P. & P. R. CO. v. MICHIGAN PUBLIC SERVICE COMMISSION.

No. 13.

Supreme Court of Michigan.

Jan. 8, 1952.

Frank G. Millard, Atty. Gen., Edmund E. Shepherd, Sol. Gen., Lansing Charles M. A. Martin, Albert J. Thorburn, Asst. Attys. Gen., for defendant-appellant.

Carson L. Taylor, Thos. H. Maguire, J. E. Goggin, Chicago, Ill., Ballard, Jennings, Bishop & Fraser, Lansing, for plaintiff-appellee.

Before the Entire Bench, except BUTZEL, J.

BUSHNELL, Justice.

Plaintiff Chicago, Milwaukee, St. Paul and Pacific Railroad Company, a Wisconsin corporation, referred to in this opinion as the Milwaukee road, operates two trains designated as 'The Copper Country Limited' and 'The Chippewa'.

The Copper Country Limited originates daily at Chicago, travels through Illinois, Wisconsin and Michigan, and terminates at Champion, Michigan, west of Negaunee and Marquette. The entire train, with the exception of its engine, is there delivered to the Duluth, South Shore & Atlantic Railway, hereinafter referred to as the South Shore, which then takes the train over its own tracks through various Michigan communities and terminates at Calumet. The procedure is reversed on the south bound trip which terminates at Chicago. The Chippewa is a streamlined passenger mail and express train which originates at Chicago and goes to Channing, Michigan, from which point a portion of the train continues to Ontonagon, Michigan, without leaving the Milwaukee tracks. This territory is also served by the Chicago & North Western, which operates between Chicago and Negaunee.

Upon complaints in 1947 by civic organizations of Marquette, Houghton, Escanaba and Calumet, and individual residents in the Upper Peninsula, defendant Michigan Public Service Commission, acting upon its own motion, ordered an investigation into the adequacy of transportation service then being furnished and rendered by these railroad companies. Public hearings were held at Marquette and Houghton and the testimony of interested persons was taken by one of the members of the commission. This testimony was principally directed to the inadequacy of transportation in interstate movements.

The South Shore, which operates from Marquette to Calumet, appeared at one of these hearings, and its superintendent suggested that if the Milwaukee would extend the run of the Chippewa from Channing to Champion, the South Shore would pick up cars at Champion for Marquette and then take them to Calumet, in order to make a return connection later at Champion with the Milwaukee. As a result of these hearings the commission entered an 'interim' order on September 16, 1947, directing the Milwaukee to provide such service.

The Milwaukee was granted an extension of the date of compliance, and thereafter filed a petition for reconsideration and vacation of the interim order. It was asserted that the commission lacked jurisdiction of the subject-matter and that obedience to its interim order would cause the Milwaukee to violate certain sections of the Interstate Commerce Act, 49 U.S.C.A. § 1 et seq.

Further hearings were conducted by the commission and testimony was produced which emphasized the difficulties in traveling to and from the Upper Peninsula and in traveling from one part of Michigan to another. On July 22, 1948, the commission vacated the interim order and issued another. It stated that: 'The jurisdiction of this Commission has been chalenged upon the ground that the train service to be ordered furnished by railroad carriers operating in the Upper Peninsula of Michigan, might carry or connect with interstate commerce, and therefore come under the jurisdiction of the Interstate Commerce Commission. We feel this objection to be without merit in the instant proceedings. We are primarily addressing ourselves to securing additional, necessary, intrastate rail service for the Upper Peninsula, and simply because such intrastate passenger service may carry or connect with interstate service, it does not deprive this Commission of jurisdiction to make such reasonable order or orders as will accomplish this purpose.'

In the new order the Milwaukee was required to run the Chippewa, or a portion of it, after its arrival from the south at Channing at 7:55 p. m. through to Champion, arriving there approximately at 9:15 p. m. or, in the alternative, to provide a passenger train to be operated between Channing and Champion on the same schedule. It was further ordered to schedule and operate a passenger train between Champion and Channing, leaving Champion at approximately 12:40 p. m., and connecting with the south-bound Chippewa leaving Channing at 2:00 p. m. The South Shore was ordered to adjust its schedule to make connection with the Milwaukee at Champion and to carry the Milwaukee passenger coach to Marquette, and from there to Calumet, and back to Champion.

The Milwaukee filed a bill of complaint in the Ingham county circuit court to set aside this order and restrain it from requiring any further operations thereunder. It contended that the commission was without jurisdiction and that the order was so unreasonable, arbitrary, prejudicial and confiscatory as to deprive it of property without due process of law.

The trial judge after hearing testimony, concluded that: '* * * the primary objective and real purpose of the defendant Commission was, and is by its order, to secure an additional interstate operation which is outside its authority to order, and that the intrastate operation was an afterthought, secondary, and belatedly shown, to accomplish its primary objective. Enen though inadequate intrastate train service may exist, nevertheless the Commission, in my opinion, can not order that inadequacy eliminated for the real...