Northern Pac Ry Co v. Department of Public Works of Washington, No. 371
| Court | United States Supreme Court |
| Writing for the Court | BRANDEIS |
| Citation | 268 U.S. 39,69 L.Ed. 836,45 S.Ct. 412 |
| Parties | NORTHERN PAC. RY. CO. et al. v. DEPARTMENT OF PUBLIC WORKS OF WASHINGTON et al |
| Docket Number | No. 371 |
| Decision Date | 13 April 1925 |
v.
DEPARTMENT OF PUBLIC WORKS OF WASHINGTON et al.
Page 40
Messrs. C. W. Bunn, of St. Paul, Minn., F. M. Dudley, of Seattle, Wash., and John H. Carroll, of Washington, D. C., for plaintiffs in error.
Messrs. Raymond W. Clifford, of Olympia, Wash., Scott Z. Henderson, of Tacoma, Wash., and John H. Dunbar, of Olympia, Wash., for defendants in error.
Mr. Justice BRANDEIS delivered the opinion of the Court.
The intrastate transportation of sawlogs in carload lots constitutes a large part of all of the intrastate freight traffic in Washington on each of the four transcontinental railroad systems by which much of that service is performed.1 Prior to federal control the rates had, with
Page 41
few exceptions, been initiated from time to time by individual tariffs of the several carriers. In 1918 the Director General of Railroads made a horizontal increase of 25 per cent. In 1920, after the decision in Ex parte 74, Increased Rates, 1920, 58 I. C. C. 220, a further increase of 25 per cent. was authorized by the Public Service Commission of the state. Complaint was made that some of the rates as so raised were excessive and discriminatory, and that the rate structure lacked uniformity.
On December 28, 1920, the Public Service Commission instituted a proceeding before itself for the purpose of investigating the log rates and making such order thereon as the facts found should warrant. Hearings were duly had in which shippers and the four transcontinental carriers participated. Much evidence was introduced. The carriers insisted that the existing rates were unremunerative. They also filed, during the hearings, a joint tariff embodying the higher rates which they deemed reasonable. A suspension order issued, and the two proceedings were consolidated. On February 1, 1922, the Department of Public Works (by which the functions of the commission had come to be exercised) made a report in which it found that the existing rates were highly remunerative. Thereupon it entered an order which, among other things, abrogated all the intrastate log tariffs then in force, canceled the suspended joint tariff filed by the carriers, and established a uniform distance tariff applicable to these railroads, to remain in effect during an experimental period of 12 months, or until further order of the department. The tariff so prescribed reduced greatly the rates theretofore prevailing. It was estimated that the revenues of the several carriers from this traffic would be lessened from 15 to 37 per cent. and that additional losses in revenue would result from changes prescribed concerning minimum loadings.
This suit was brought by the carriers against the department, in the superior court of Thurston county, to
Page 42
set aside the order on the ground, among others, that it deprived them of property in violation of the due process clause of the Fourteenth Amendment. The findings of fact upon which the order proceeded were attacked as arbitrary and unsupported by the evidence. The prescribed rates were assailed as confiscatory. Northern Pacific Ry. Co. v. North Dakota, 236 U. S. 585, 30 S. Ct. 423, 54 L. Ed. 624. Upon the giving of bonds the court superseded and suspended the order, except in so far as it canceled the joint tariff of higher rates filed by the carriers.2 After full hearing the court entered a final decree denying the relief sought. This was affirmed by the Supreme Court of the state, three judges dissenting. 125 Wash. 584, 217 P. 507. The case is here under section 237 of the Judicial Code, as amended (Comp. St. § 1214). A motion to dismiss on the ground that the judgment is not reviewable on writ of error was postponed to the hearing on merits. The motion is denied. Bluefield Water Works & Improvement Co. v. Public Service Commission, 262 U. S. 679, 683, 43 S. Ct. 675, 67 L. Ed. 1176. As to the merits, many errors are assigned. It will be sufficient to consider one.3
The log traffic is limited substantially to the section of the state lying west of the Cascade Mountains. The average length of its haul on each of these roads is not more than 32 miles. The three principal carriers presented
Page 43
evidence tending to show that their existing rates were so low as not to yield any return upon the property employed in the business, and that the rates did not defray fully...
To continue reading
Request your trial
-
Fireman's Fund Ins. Co. v. Garamendi, No. C-91-2854-CAL
...fact that the regulations may expire before they are applied to plaintiffs. In Northern Pacific Railway Co. v. Department of Public Works, 268 U.S. 39, 45 S.Ct. 412, 69 L.Ed. 836 (1925), the United States Supreme Court held that an order using weighted average operating costs to set rates f......
-
Baldwin v. Scott County Milling Co., No. 35278.
...The true rule is stated in Northern Pacific Railway Company et al. v. The Department of Public Works of the State of Washington et al., 268 U.S. 39, 44, as follows: "But where rates found by a regulatory body to be compensatory are attacked as being confiscatory, courts may inquire into the......
-
Lehigh Valley R. Co. of New Jersey v. Martin, No. 4537
...Co. v. Public Service Commission, 262 U.S. 679, 683, 43 S. Ct. 675, 67 L.Ed. 1176; Northern Pacific Ry. Co. v. Department of Public Works, 268 U.S. 39, 42, 45 S.Ct. 412, 69 L.Ed. 836; Live Oak Water Users' Association v. Railroad Commission, 269 U.S. 354, 356, 46 S.Ct. 149, 70 L.Ed. 305; Su......
-
U.S. v. RCA Alaska Communications, Inc., No. 3772
...Comm'n, 324 U.S. 581, 593-94, 65 S.Ct. 829, 835, 89 L.Ed. 1206, 1218 (1945); See also Northern Pac. R. Co. v. Department of Pub. Works, 268 U.S. 39, 45 S.Ct. 412, 69 L.Ed. 836 (1925); Mississippi River Fuel Corp. v. Federal Power Comm'n, 82 U.S.App.D.C. 208, 226, 163 F.2d 433, 451 (1947); S......
-
Okla. Cotton Ginners' Ass'n v. State, Case Number: 26638
...Commission may not use composite figures as a base for computing the rate. The case of Northern Pac. R. Co. v. Department of Public Works, 268 U.S. 39, 45 S. Ct. 412 69 L. Ed. 836, was a case where the Supreme Court of the United States held that to determine the cost of hauling logs throug......
-
Mississippi Railroad Commission v. Mobile & O. R. Co., 27479
...and without due process of law. Interstate Commerce Commission v. L. & N. Railroad Co., 227 U.S. 88; Northern Pacific Co. v. Washington, 268 U.S. 39, l. c. 45; Chicago Junction Case, 264 U.S. 258, 263; Interstate Commerce Commission v. Union Pacific R. R., 222 U.S. 541, 547; New York & Quee......
-
Alabama Public Service Commission v. Southern Bell Tel. & Tel. Co., 3 Div. 533.
...without supporting evidence is arbitrary action.' In the case of Northern Pacific R. Co. v. Department of Public Works of Washington, 268 U.S. 39, 45 S.Ct. 412, 414, 69 L.Ed. 836, the United States Supreme Court said: 'An order based upon a finding made without evidence, * * * or upon a fin......
-
St Joseph Stock Yards Co v. United States, 497
...v. Northern Pacific Ry., 216 U.S. 538, 544, 545, 30 S.Ct. 417, 54 L.Ed. 608; Northern Pacific Ry. v. Department of Public Works, 268 U.S. 39, 44, 45 S.Ct. 412, 69 L.Ed. 836; or because facts and circumstances were considered which could not legally influence the conclusion, Interstate Comme......