Railroad Commission of Alabama v. Central of Georgia Ry. Co.

• Decision Date: 06 April 1909
• Docket Number: 1857-1862.
• Parties: RAILROAD COMMISSION OF ALABAMA et al. v. CENTRAL OF GEORGIA RY. CO.
• Court: U.S. Court of Appeals — Fifth Circuit

170 F. 225

RAILROAD COMMISSION OF ALABAMA et al. v. CENTRAL OF GEORGIA RY. CO.

Nos. 1857-1862.

United States Court of Appeals, Fifth Circuit.

April 6, 1909

Rehearing Denied April 19, 1909.

Pardee Circuit Judge, dissenting.

The bills in these cases were filed to enjoin the enforcement of certain passenger and freight rates statutes of the state of Alabama, upon the claim that they were confiscatory in their effect upon the property of the complainant railroad companies.

In all the cases, except that of the Central Trust Company of New York, original bills were filed in the United States Circuit Court at Montgomery, in the latter part of March, 1907 against the three members of the Railroad Commission of Alabama, and also against A. M. Garber, Attorney General of the state of Alabama. The bill of the Central Trust Company was filed on December 3, 1907, at or about the same time that the other complainant railroad companies filed their supplemental bills. In the original bills of the railroad companies, they assailed certain legislation enacted at the regular session of the Legislature of Alabama in 1907, and the supplemental bills and the original bill of the Central Trust Company also assailed certain legislation of the special session of the Legislature of Alabama held in November, 1907. The Central Trust Company assailed also the passenger rate acts of the regular session of 1907.

The legislation enacted at the regular session, and assailed by the original bill, is as follows:

(1) An act approved February 14, 1907, establishing for steam railroads in the state engaged in carrying passengers a charge not exceeding 2 1/2 cents per mile per passenger for carrying any passenger from one point to another in Alabama. Gen. Acts Ala. 1907, p. 104.

(2) An act approved March 2, 1907, which classified certain articles, and also classified the railroads, and which fixed the maximum rate to be charged by railroads in the state of Alabama for the transportation, originating and terminating in the state, of said articles, 110 in number, and which is known as the '110 Commodity Act.' Gen. Acts Ala. 1907, p. 209. This act was repealed at the special session of November, 1907.

(3) An act, approved February 9, 1907, known as the 'Maximum Rate Bill,' which made the railroad freight rates in force January 1, 1907, for transportation originating and terminating within the state, the maximum rates. Gen. Acts Ala. 1907, p. 80.

On August 9, 1907, the Legislature, by statute then approved, authorized the Railroad Commission to change any classification of railroad, or of any articles of freight, or any maximum rates or charges, for the transportation of passengers or freight over any railroad in this state which have been or may hereafter be prescribed by statute, or any prevailing rates or charges for such transportation which have been or may hereafter be by statute made the maximum rates or charges, and to change such rates and classifications, or any of them, from time to time, as conditions may, in its judgment, render it expedient or proper to do so, whether the effect of such change be to increase or reduce any of such rates or charges, and to establish and order to be put in force in lieu thereof any new classification or rate or charge which it may deem reasonable or proper; and the classifications, rates, or charges so established by it shall be the legal classifications, rates, or charges until further changed by said Railroad Commission. Section 2 of the act provides that the changes may be made by the Railroad Commission upon its own motion, or upon complaint or petition of any railroad company affected by such classification or rates, or of any person, firm, corporation, or association, or of any mercantile, agricultural, or manufacturing society, or of any body politic or municipal corporation or organization; but no such change shall be made which shall have the effect of reducing any such rates or charges, except upon an investigation or hearing had after at least 10 days' notice to the railroad company or companies to be affected by such change. Gen. Acts Ala. 1907, p. 711.

(4) The original bills also complained of certain provisions of the acts of the Legislature of Alabama, set forth therein, which made the charging of a higher fare than that prescribed by the acts a misdemeanor, and which also imposed upon the officer, agent, or employe of any railroad company who violated the provisions of the act a penalty, upon conviction, of a fine and imprisonment. The penal provisions complained of by the original bills were repealed at the special session of the Legislature, and different provisions made, to be hereafter referred to.

(5) The original bills also referred to and set up certain provisions of the statutes of Alabama, enacted at the regular session of 1907, whereby provision was made for proceedings to contest the validity, fairness, or reasonableness of freight and passenger rates established by the Railroad Commission, or by statute, or made by statute the maximum rates. These provisions were repealed at the special session of the Legislature, and hence are not given in detail, another proceeding for contest of rates before the Railroad Commission, with right of appeal, being then prescribed, as will hereafter be stated.

(6) The original bills also referred to certain statutes making it the duty of the Railroad Commission and of the Attorney General to enforce the passenger and freight rates, by suit or otherwise; but at the special session of the Legislature, as will hereafter appear, the power and duty upon the part of said officials to enforce the rates were withdrawn, and said officials were forbidden to enforce them.

Shortly after the filing of the original bills in March, 1907, injunctions were granted against the members of the Railroad Commission and the Attorney General, as prayed for in the original bills, and enforcement of the passenger rate act and of the commodity rate act was restrained pending the suit.

On November 23, 1907, at a special session, eight separate statutes were enacted by the Legislature, fixing the maximum rates to be charged by railroads for intrastate transportation of certain articles or commodities, to be known as group 1, 2, 3, 4, 5, 6, 7, and 8 respectively, and for this purpose to classify the railroads. Gen. Acts Ala. Sp. Sess. 1907, pp. 91, 101, 109, 117, 125, 133, 143, 152. These acts are exhibited with the supplemental bills, and they provide, in section 3, p. 93, that, 'until otherwise provided by an order of the Railroad Commission, the maximum rates to be charged for the transportation' of the articles named in the schedule of maximum rates for freight, known as a certain group, numbered in the bill, should not exceed the rates named and specified therein.

The Legislature, at the special session, did not alter or amend the passenger rate bill enacted at the regular session, but it repealed the '110 Commodity Bill,' as heretofore stated.

At the special session, the Legislature enacted a statute, approved November 23, 1907, entitled, 'An act to provide for and authorize appeals from any action or order of the Railroad Commission of Alabama affecting or relating to, or reducing or increasing or refusing to increase, any rates, fares or charges by common carriers for the transportation of property, freight or passengers, specifically prescribed by statute, or made the maximum rates by statute, or established by said Railroad Commission. ' Gen. Acts Ala. Sp. Sess. 1907, p. 49.

The Legislature also enacted at its special session a statute, approved November 23, 1907, excluding from the Railroad Commission, and the members thereof, and the Attorney General, all power, authority, or duty to enforce any rates, fares, or charges for the transportation of property or passengers which have been or which may hereafter be prescribed by statute or made the maximum rates by statute, or any law now existing, or which may hereafter be enacted, prescribing such rates, charges, or fares, or any rates, fares, or charges which have been or which may hereafter be established by the Railroad Commission's orders fixing the same, and all power and authority to instruct, direct, or request the Attorney General to institute any legal proceedings or to enforce such rates, fares, charges, statutes, or orders. Gen. Acts Ala. Sp. Sess. 1907, p. 28.

Other acts referred to in the supplemental bills, were passed at the special session of the Legislature, prescribing penalties and forfeitures designed to secure compliance with the rate laws.

The Railroad Commission of Alabama was created by an act, entitled 'An act to create a Railroad Commission, to be known as the 'Railroad Commission of Alabama,' define its duties and powers and provide for its mode of procedure and prescribe penalties for violation of its orders,' approved February 23, 1907. Gen. Acts Ala. 1907, p. 135.

The act is too long to be set out in full, but it confers power upon the Railroad Commission to supervise, regulate, and control transportation companies doing business in the state in all matters relating to the performance of their public duties and their charges therefor, and the commissioners were thereby authorized, from time to time, to prescribe rates as may seem reasonable and just, which rates the commission may from time to time, alter or amend; but it did not authorize the commission to increase rates or charges that had been fixed by statute. However, a later statute conferred this power upon the commission, as above stated. Section 14 of the act creating the commission conferred upon it the power and authority, subject at all times to the control of the Legislature, of regulating railroad freight...