Louisiana Public Service Commission v. Morgan Louisiana Co

• Decision Date: 07 April 1924
• Docket Number: No. 421,421
• Citation: 264 U.S. 393,44 S.Ct. 358,68 L.Ed. 756
• Parties: LOUISIANA PUBLIC SERVICE COMMISSION et al. v. MORGAN'S LOUISIANA & T. R. & S. S. CO
• Court: U.S. Supreme Court

264 U.S. 393

44 S.Ct. 358

68 L.Ed. 756

LOUISIANA PUBLIC SERVICE COMMISSION et al.

v MORGAN'S LOUISIANA & T. R. & S. S. CO.

No. 421.

Argued March 5, 6, 1924.

Decided April 7, 1924.

Mr. W. M. Barrow, of Baton Rouge, La., for appellants.

Mr. Henry H. Chaffe, of New Orleans, La., for appellee.

Mr. Justice McREYNOLDS delivered the opinion of the Court.

March 29, 1923, the appellant Commission issued an order which directed:

'That within 15 days from the date of this order the Morgan's Louisiana & Texas Railroad & Steamship Company shall commence to repair and put in a safe and suitable condition for vehicular and other traffic, such repairs to be completed within a reasonable time thereafter, the existing viaduct over, above, and across the properties of the said Morgan's Louisiana & Texas Railroad & Steamship Company in the Fifth municipal district of the city of New Orleans, known as Algiers, within the limits of the said property, which connects the two ends of Newton street, and thereafter to maintain the same in a safe and suitable condition. This order shall become effective at once.'

By an original bill filed in the court below appellee challenged the validity of the order because beyond the power of the commission, and, if within such power, enforcement would deprive the company of property without due process of law and impair the obligation of its contract with the city of New Orleans, contrary to the federal Constitution. The allegations are sufficient to bring the controversy within the court's jurisdiction and empowered it to determine questions of both state and federal law. Greene v. Louisville & Interurban Railroad Co., 244 U. S. 499, 508, 37 Sup. Ct. 673, 61 L. Ed. 1280, Ann. Cas. 1917E, 88. A special court of three judges (Judicial Code, § 266 [Comp. St. § 1243]) heard the issues, held the commission lacked power to make the order, and directed an interlocutory injunction. See 287 Fed. 390. The cause is here by direct appeal.

In 1878 the appellee railroad company acquired title to certain land now in New Orleans, fronting 375 feet on the Mississippi river and extending back 4,000 feet, and for 40 years has held it under fence. Twenty tracks laid thereon are in constant use. During 1904 the city offered to sell the right to operate a street railway over this property, subject to part payment of the cost of constructing and the entire cost of maintaining the essential viaduct, which the city agreed to provide. This franchise was duly adjudicated, and in 1905 appellee, by definite contract, granted to the city the right to construct the present viaduct over its property at Newton street, upon the express condition that the grantee should pay for both erection and subsequent maintenance. Under this contract, and not otherwise, without expropriation of the right of way by the public or compensation to the land owner the structure was erected. It is 2,000 feet long and extends several hundred feet on either side of appellee's land. For many years the street railway operated over its entire length. Finally, the portion over appellee's tracks fell into disrepair, and both city and street railway company failed to restore it. Finding this situation, appellant issued the order copied above.

Article 6, Louisiana Constitution of 1921, provides:

'Sec. 4. The commission shall have and exercise all necessary power and authority to supervise, govern, regulate and control all common carrier railroads, street railroads * * * and other public utilities in the state of Louisiana, and to fix reasonable and just single and joint line rates, fares, tolls or charges for the commodities furnished, or services rendered by such common carriers or public utilities, except as herein otherwise provided. The power, authority and duties of the commission shall affect and include all matters and things connected with, concerning, and growing out of the service to be given or rendered by the common carriers and public utilities hereby, or which may hereafter be made subject to supervision, regulation and control by the commission. * * *

'Sec. 9. Until otherwise provided by the Legislature, all laws enacted by the General Assembly of the state of Louisiana since the adoption of the Constitution of 1898, and in effect at the time of the adoption of this Constitution, affecting, concerning, or relating to the Railroad Commission of Louisiana, not inconsistent...