74 F. 803 | 6th Cir. | 1896
(after stating the facts as above). Before the development of railroads, carriers overland gathered the goods from the premises of the consignor, and delivered them at the door of the consignee, charging a single rate for the whole service. Carriers by water, ex necessitate rei, received the goods at the ship’s side, or the wharfs adjacent thereto, and delivered them at like places; the consignors and consignees, respectively, bringing them to and taking
“When the railroad companies, under the authority of subsequent, legislation, assumed for themselves the functions of “carrier,” as contradistinguished from those of owner of the road and its appliances, they directly came into competition with those outside carriers who used their lines, and in the matter of collecting and delivering, almost necessarily, had themselves to do the accessorial work, including cartage, and must also, necessarily, either furnish the facilities for doing it, or farm it out to others, sometimes doing one and sometimes the other; and, in the process of farming out this collecting and delivery, they oftentimes, if not always, engaged some carrier who was already equipped for the service in his own business. and he did the carting and other accessorial service for the goods of which the railroad companies became the carriers, as well
“See. 3. Every railway company in tliis slate is authorized to make personal delivery of every parcel, package or quality of goods or property, if the consignee of such property shall reside within two miles of the terminus, or railway station, or other terminus of the carriage of such property by the main line of such carrier, and they are hereby authorized to employ or own all the means necessary to perform such duty, and to place the men and vehicles therefor under the government and sole regulation of the superintendent or other principal officers of such companies. Such delivery shall be at the house, shop, office or other place of business of the consignee according to the' nature of such property and where the owner or consignee desires to have the same.” Comp. Laws 1871, § 2375.
In our American legislation, authorizing the railroad companies, not only to own the railroads, but also to enjoy substantially a monopoly of the carriage of goods upon them, whether special sanction is needed to authorize them to engage in the accessorial business of collecting and distributing the goods to and from the trains, we need not decide; but the existence of such legislation here and in England is quite conclusive of the separable and independent character of that service, in its relation to transportation over the rails. More than this, notwithstanding the confusion in practice, which, as we have pointed out, obtains in England, it has been time and time again decided in the cases which we shall presently cite, and all of which, more or less, involve the question of cartage, and other like accessorial service, that it is a separate and distinct business from that of transportation over the rails. The English judges have been confused, as we have been, by the mere terminology or nomenclature which has prevailed in practice; and in one case it is said that the phrase "terminal facilities” seems to have been appropriated, in railroad parlance, to other faeilities than those which we have called “accessorial,” although they are very much alike in their legal and practical nature, if not identical in their signification, — one judge, for the avowed purpose of distinguishing them, calling the latter “initial and terminating services.” It seems to us quite immaterial whether you call that transfer- service which in some places is termed “lighterage” or “ferriage,” in other places “belt line service,” in still others “spurtrack service,” “terminal facilities,” or by some other name, if its purpose be to collect and distribute the goods carried, when they are taken on or off the rails. It is. in ihe sense in which we have used the term, accessorial; and having the same objective purpose as the cartage, such as we have in this case, the considerations which enter into the determina,lion of questions of unlawful discrimination should equally well apply to either. Mere physical connection — being more or less close — does not seem to us to make much difference, whore there is no real distinction and separation in the nature and character of the business itself. Whatever the appliances used in collection and delivery, it is at last merely an accessorial service. And. however it may be
“We think this argument rests upon two obvious fallacies: First, that of supposing that the whole charge in question is made by the company in reference to their character and interest with respect to the railway, whereas in reality the charge is made by them in a character and interest independent of the railway, namely, as carriers to and from the termini of the railway; second, that the company can convert that which is in reality a charge for collecting and delivering, as well as for carrying, into one for carrying only, by affixing to it the latter denomination, in their table of rates.”
Everywhere this practice is condemned, because the services are distinct, and should be separately scheduled, and so treated in the bookkeeping of the company. The commission and the court below ignored this separation, by treating the carriage on the rails and the cartage as a continuous carriage.
These English cases abundantly establish three propositions in relation to this subject: (1) That the collecting and delivery of goods is a separate and distinct business, notwithstanding the confusion to which we have adverted; (2) that the railroad companies, undertaking to do for themselves this separate business, cannot, by consolidating the compensation for each, avoid the restrictions that have been imposed upon them in respect of unlawful discrimina-tions, and it is amply within the power of the railway commissions and the courts, according to the facts of each particular case, to separate the two, in order to prevent such an unlawful combination; (3) that, notwithstanding the separable and independent character of the two services, both, whether in the hands of the same or separate carriers, are subject to the rules and regulations prescribed by law to prevent unlawful discriminations. Pickford v. Railway Co. (1842) 10 Mees. & W. 399; Parker v. Railway Co. (1844) 7 Man. & G. 253; Id. (1856) 6 El. & Bl. 77; Baxendale v. Railway Co. (1857) 3 C. B. (N. S.) 324; Id. (1858) 5 C. B. (N. S.) 309, 336; Garton v. Railway Co. (1859) Id. 669; Id. (1859) 6 C. B. (N. S.) 639; Id. (1861) 1 Best & S. 112; Pegler v. Canal Co. (1861) 6 Hurl. & N. 644; Baxendale v. Railway Co. (1862) 11 C. B. (N. S.) 787; Id. (1863) 14 C. B. (N. S.) 1; Id. (1864) 16 C. B. (N. S.) 137; Palmer v. Railway Co. (1866) L. R. 1 C. P. 588; West v. Railway Co. (1870) L. R. 5 C. P. 622; Palmer v. Railway Co. (1871) L. R. 6 C. P. 194; Parkinson v. Railway Co., Id. 554; Evershed v. Railway Co. (1877) 2 Q. B. Div. 254; Id., 3 Q. B. Div. 134; Id. (1878) 3 App. Cas. 1029; Manchester, S. & L. Ry. Co. v. Denaby Main Colliery Co. (1884) 13 Q. B. Div. 674, 14 Q. B. Div. 209; Id. (1885) 11 App. Cas. 97; Liverpool Corn-Trade Ass’n v. London & N. W. Ry. Co. [1891] 1 Q. B. Div. 120.
Some of these later cases do not, perhaps, relate so much to cart
Looking, then, at the framework of the interstate commerce act, we see that it is the first section, rather than the others, which more directly deals with this subject. We do not for one moment doubt but that what we have termed' “accessorial service” may be so manipulated as to violate any of the other sections, but what we suggest is that it is more specifically provided for by the first se‘c-iion. The separation of the attendant sendee from that of the main transportation on the rails appears in the proviso of the very first paragraph of the act, showing conclusively that congress was not inattentive to the disconnection between tiie two. There it is enacted “that the provisions of this act shall not apply to the trans-. portation of passengers or property, or to receiving, delivering, storage or handling of property wholly within one state and not shipped
The trouble in this case comes largely from the fact that the railroad company, ignoring the obvious and legal separation of the two services, has combined them into one; and neither in the findings of fact, as they appear in the record, either of the circuit court, or before the commission, nor in the proof, does that definitely appear which the cases we have cited show should always appear in determining a question like this, namely, what is (he cost to the1 company of the actual carriage from station to station? Bo that we are left without any knowledge of the important fact whether or not this cartage is a source of profit to the company, or whether it is compensative, in the sense that the cost of it is actually paid by the shipper, or free, in the sense that it is gratuitous. Until we know that fact, we cannot tell whether there has been any unlawful discrimination, or not, considering it solely as a matter of discrimina
By the fourth section of the interstate commerce act (Hupp. Rev. St. 529), it is prohibited to common carriers to charge or receive any greater compensation for a shorter than a longer haul, as therein defined, under substantially similar circumstances and conditions; but, in the administration of the act it has been declared to be not always a violation of this prohibition to group the stations of the shorter and the longer haul at an equal rate. Imperial Coal Co. v. Pittsburg, etc., R. Co., 2 Inter. St. Commerce Com. R. 618. Grand Rapids and Ionia have been thus grouped, and the decision in the court below and before the commission treated this grouping as a conclusive admission by the railroad company that the transportation from station to station is under substantially similar circumstances and conditions; and because of that admission it necessarily follows that if the rate at Grand Rapids includes a charge for cartage which is not furnished at Ionia as well, the cost: of that service being deducted, this section is violated. The grouping which is allowed does not, we conceive, result in such a formidable estoppel as that suggested. It is a question of fact- -always a question of fact — whether the circumstances and conditions are substantially similar or dissimilar, and in one of the cases cited it is even said that this is so much the controlling rule of judgment that argument from authority of precedents seems to be without conclusive force in the exercise of this jurisdiction. Palmer v. Railway Co.. 1 C. P. 588. And in another case it is said that:
“The conclusion is one of fact, to be arrived at looking at the matter broadly. and applying common sense to the facts that are proved, i quite agree with Wills, ,1., that it is impossible to exercise a jurisdiction such as is conferred by tills section by any process of mere mathematical or arithmetical calculation. When you have a variety of circumstances, differing- in the two cases, you cannot say that suc-h a difference of the circumstances is equivalent to such a fraction of a penny difference of the charge in the one case, as compared with the other. A much broader view must he taken, and it would lie hopeless to seek to decide a case by the attempted calculation. I should say that the decision must he arrived at broadly and fairly, looking at all the circumstances of the case, — that is, looking at ail the circumstances which are proper to he looked at, — because, of course, the very question in this case is whether particular circumstances ought or ought not to he considered; but, taking info view all the circumstances which may be legitimately taken into consideration, then it becomes a mere -question of fact.” Phipps v. Railway Co. [1892] 2 Q. B. 229, 238.
“It may, however, be lawful, and be supported by just considerations, for carriers to give equal access to markets to localities of dissimilar distances, and it may involve no material difference -in the expense of the carrier. * * * In other cases it may be unreasonable, and therefore unlawful, to give equal rates to adversely situated localities, where the demand does not exist for a larger supply, and where conditions intervene that give an undue preference and advantage to the less favorably situated localities.”
This is sufficient to show that the grouping and consequential equality of rate, if it implies anything as to the circumstances and conditions, only admits that, however dissimilar these may be, the equal rate is not prejudicial, certainly not to the public, possibly not to the carrier itself; but this is altogether a different thing from saying that it is an admission that the circumstances and conditions affecting the transportation, and affecting the cost of it to the carrier and the benefit of it to the public, are substantially similar. And it is this inflexible assumption of that fact which has been, by the decision of the court below and of the commission, imposed upon the respondent company, solely by reason of the grouping, thereby precluding any inquiry, under the fourth section, into any conditions or circumstances that might justify an inequality of rate under that section; for be it remembered that, although this section authorizes the carrier to apply to the interstate commerce commission for leave
Having determined, therefore, that the mere act of grouping, and its equal rate, is neither, in law or fact, conclusive' against the carrier on the question of substantial similarity or dissimilarity of conditions and circumstances, it is open to the courts'to inqure at large into those conditions and circumstances, and say whether or not the company is justified in giving to its customers at Grand Rapids a service for the collection and delivery of their goods to and. from the rails which it does not give to its customers at Ionia, while charging both the same1 rate of compensation; and in making this inquiry it must: be conceded that it. proceeds upon precisely the same
And this brings us to the consideration of the circumstances and
Another condition or circumstance is that having so long ago adopted this plan of accessorial service, and adjusted its terminal facilities at Grand Rapids to that plan, to now abandon it, and, in lieu (hereof, project its lines of rails and new station appliances into the traffic centers of the city, would entail upon the carrier an enormous cost for rights of way and other necessaries of construction and reconstruction. The city having so largely increased in population since the station house was first located and the cartage plan was first established, and the cost of railroad building having so immensely advanced, especially in that which is imposed by the
Finally we have a circumstance not more important than those to which we have adverted, but more striking in its appearance of importance, and that is the competition of rival carriers at Grand Rapids for the same traffic. It needs nothing more than the mere suggestion of the facts themselves to display the disadvantage there would be to this company if it remained with its station houses in the suburbs of Grand Rapids, without the privilege of collecting and delivering by carts, while its rivals had station houses located immediately in the business center of the city. It does not, then, become a matter of competition and business rivalry, but substantially of the annihilation of the business of this company at that point, or, more intolerably, a denial to this company of the right to compete with its rivals as now it may. Its only possible remedy would be the building of its tracks into the city, at the cost we have suggested. There is no such condition or circumstance as this at Ionia. There is there no rival line of railway to compete with this carrier for the traffic that is to be carried, yet this is not the effective dissimilarity of these conditions and circumstances. That arises more directly out of the fact that the shippers at Ionia are as close to their station house on this carrier’s line as the shippers at Grand Rapids are to the lines of this carrier’s rivals there; and this carrier is so' much further away from the premises of the shippers at Grand Rapids that they cannot reach its station house as readily as the shippers at Ionia can, or as readily as its rivals can reach thé same shippers at Grand Rapids. It is the circumstance of greater distance, not measured by the cost of cartage as between the shorter and longer distance, but measured by the enormous cost there would be to this carrier to put its station house as close to its customers at Grand Rapids as its station house at Ionia is to its shippers there, and as close as those of its rivals. In other words, this carrier has so favorably located its station house at Ionia that it is as close to the shippers there as any station house of its rivals at
Slow, then, the only effect of the fact of competition, in such a slate of things as that we have at Grand Rapids, is that this carrier loses the traffic entirely, not because it cannot make, under the statute, a lesser rate to shippers on its lines than at Ionia, the shorter haul, but because it cannot afford them equal facilities of access. The statute cannot be violated merely to get traffic from a rival by giving lesser rates than to people more favorably situated; cannot bleed Ionia, to make up for the misfortune's of competition at Grand Rapids, for congress has prohibited such a practice, but it has not prohibited the carrier from resorting to a cheaper method of securing access at Grand Rapids than one more costly. It has not prohibited this company from entering into competition with its rivals by some mode of access to shippers at Grand Rapids, and why not this mode? It has not been prohibited from extending its lines and placing its station houses alongside of those of its rivals, and why should it be prohibited from sending its carts there? It has not, we think, and these prohibitions of the statute should not be allowed to so operate by mere construction of words. It is quite the same thing as if this carrier should stop many miles away from Grand Rapids, and be unable to enter there unless it could form a connection with some outside agency which would undertake to bring to its lines the traffic at Grand Rapids, and carry from its lines the traffic to the shippers at that place. Could it be said, in such a state of circumstances, that this carrier should not make a contract to pay for such service out of its revenue's without being amenable tio the restrictions and penalties of this act, if it should
The whole of these dissimilarities of condition and circumstance, as between Grand Rapids and Ionia, whether of competition, or what not, may, in our view, be summed up in the statement that this particular carrier cannot have access to the traffic at Grand Rapids without this cartage service that is complained of by Ionia, while at that station it can have access to the relatively insignificant traffic there given to the carrier without it. But for the rival lines at Grand Rapids, the carrier might force the expense of the inconvenience of the location of the station house on shippers there, just as, in thousands of localities, it is enforced on shippers who must cart their goods sometimes 10 or 20 miles, or even more, in some places, to reach the nearest railway station. But in this instance, because of these nearer tracks, the shippers cannot be forced to incur this expense, and this condition or circumstance compels the carrier to supply the access which it does supply as cheaply to itself as possible; and any interpretation which prohibits it from doing this in the cheapest way is an unjust discrimination in the “regulation of
In reply to the argument that there must be some limitation upon the distance from the shippers to the station house for which this accessorial service would be permissible, or else the same benefit could he claimed for any shorter distance than that which exists in this case, it would seem sufficient to say that if this carrier’s lines were projected into the city of Grand Rapids, and its station houses located adjacent to those of its rivals, so that there would he literally no difference of convenience to the shippers, the additional acces-sorial cartage would then be, on the face of it, an unjustifiable discriminating benefit, which would also be apparent if the new station house were located relatively with the same advantage that the other station houses are located, and, to put it more directly, if the station house at Grand Rapids should then be relatively as convenient to the defendant company’s customers as the station house at Ionia,, which is possibly the legal test. No matter what the distance, great or small, if the peculiar conditions be such that the carrier cannot, except at great cost, have access to the traffic without some sup]demental agency, the dissimilarity would exist. For example. suppose that, through some favoritism, a railway carrier should be denied access to the wharfs on a water way from and to which the traffic of that water way was delivered, and that, by the establishment of accessorial cartage to and from the wharf, the railway could share in the traffic with rivals who were favored with a more direct access; the condition would then be analogous to that we have here, although the cartage might be for only a few hundred feet. Or suppose even that there were no circumstance of rivalry in the condition, but that at one station, situated on a water way, this denial of access should exist, while at another station, remote from the water way, no such access were needed; now, if, to get the traffic conveniently from the water way,
No case has been cited on either side precisely like this, and it belongs particularly to that peculiar class of cases as to which it has been said by the English courts that the argument from authority seems to be without any conclusive force, because it is so distinctly a question of fact. In the case of Parker v. Railway Co., supra, Coleridge, J., in delivering judgment, treats a case quite analogous to this, if the marked distinction be noted that it was a controversy between the carrier and the complainant about alleged preferences against him and in favor of itself qua carrier and its carrier’s agents doing the carting for the railway qua carrier, while the complainant did his own carting, the charge being in that case for precisely similar services from and to the same place. It was not, as here, a controversy between widely-separated localities, but between persons doing business at the same place, and over the same route. In the eighth and last branch of the case which he considered, there was paid by the'company to contract carter’s or carrier’s agents one shilling and sixpence more to cover the cartage service than was collected from the shippers employing the railway company itself as their carrier, and whose goods were thus carted for them by the railway company. The plaintiff, an outside carrier over the line in competition with the railway company qua carrier, did his own carting, and sued to recover back this extra shilling and sixpence per ton, upon precisely the same theory of mathematical deduction from the station to station rate that was adopted in this case. It was held that because'the charter of the railway company authorized it to make separate arrangements for the accessorial facilities, very much as the Michigan statute does in this case, and protected the public against inequalities and discriminations in that accessorial service, by a special tribunal, performing, as to them, the same functions belonging to our interstate commerce commission, pro hac, the question of unlawful discrimination in the accessorial service was to be treated separately, and on its own facts or merits, so to speak, and should not be confused with the station to station charges, and with that other equality as to the latter which was protected by another section of the railway charter, and that the plaintiff could only complain if the company should refuse to carry his goods in its carts for the same fate of carriage that it carried his rivals’ goods in its carts. He was not to have it deducted from the station to station rate, in order to make him equal by that process. Of course, in the consideration of that equality between “localities”
*831 “That i)rinciple is tliat a railway company lias no right to impose a charge for The conveyance of goods to and from the station, where the customer does not require such service to he performed by the company.”
And, where it is a dispute about substantially the same service for each shipper, there can be no doubt oí the application of that principle, but it requires different treatment, upon broader grounds, when it is brought in to determine a dispute between two localities qua localities, and not as classes of shippers having substantially the same service performed under the same circumstances and conditions; and, as we have endeavored to show, the bearing of the same or equivalent conditions and circumstances is not always the same1 sis to each of these categories. Thai, pertaining to different stations usually turns not so much upon rates of freight charges as upon a difference in uses of the facilities furnished or withheld at the several stations, of which Ayres v. Railway Co., 71 Wis. 372, 37 if. W. 432, where a discrimination as to the use of live-stock cars was complained of, is a convenient illustration. Hutch. Carr. § 291 et seq. And this case, in our judgment, belongs rather to that category, and must be so examined, as to the bearing of the circumstances and conditions, in their similarity or dissimilarity under the interstate commerce act, than to the other category of a differential freight rate, to which it has been confined by the interstate commerce commission — the complainant in the case — and the court below. Take the condition or circumstance of competition for example. That circumstance might be more effective to justify a discrimination as between two disputing localities, like Grand Rapids and Ionia, as they present themselves in this record, than as between rwo shippers, or classes of shippers, themselves engaged in the rivalry of competition in their lines of business, either at the same place, and where the general service 'for each was the same, as in Evershed’s Case, supra, which has been relied on in favor of Ionia, or as shippers at different places, but competing with each other in the same markets, as appears in other cases. That case went through all the courts, including the house of lords, and is a leading case on the subject, belonging, we repeat, to the class of adjudications about discrimination in rates, and not facilities, wherein the injury to the shipper in the particular case, who was paying more money than bis rival for the same service, was the cause of complaint; and, if he directly pays it, he may recover it back, on the common counts in assumpsit. Hutch. Carr. § 301 et seq. The traffic acts in England and here have enlarged the remedy, and afford additional redress, or where the action of assumpsit to recover back unlawful charges would not apply; but still the tests, in the absence of specific statutory vests, like the longer and shorter haul, are yet quite the same, at least in their judicatory value. Apparently there may be a discrimination in rates, when truly there is only a fairly-justified difference1 in “facilities,” which produces this appearance of a difference in rates; but this is only another mode; of saying that the conditions and circumstances are dissimilar, which being recognized by (he statute as a necessary discrimination, it cannot, therefore, be unlawful. Let us imagine a narrow-gauge road competing at Grand
We again say that a doubt may be suggested whether congress has the power, in “regulating interstate commerce,” to do a thing like that which was done by the commission in this case, whatever benefits to the public may be desired from equality of treatment, of service and facilities. We must take the railroad properties as they are, with all the limitations that smallness of means may impose: and whenever the proposed “regulation” departs from the business of “regulating” the facilities and operations of carriers as they actually exist, ánd enters into the domain of deprivation, construction, and reconstruction of properties, to carry out the proposed “regulation,” it is time to pause, and at least consider the effect of
“By tlio act of parliament In question, very extensive powers are conferred on this court, — powers which may be exercised for the benefit of the public, but which may also be exercised to the great detriment of those who are engaged in carrying' on railway concerns; and therefore the courts should be very cautious before they set on foot an inquiry to ascertain that there is reasonable ground for believing that the provisions of the act have been infringed.”
And, if we find that the order of the commission to discontinuo the cartage at Grand Rapids operates to deprive the carrier of its business at that place, it cannot, in the language of the act, be a “lawful order” or “requirement,” which the power of the courts can be invoked to enforce, under the sixteenth, section. ¡Separated and distinct as it is, this accessorial service at Grand Rapids, and the use of it, is a right of property of this carrier; and an order of the commission depriving the company of it, and forbidding its use, is not authorized by the act, whatever power the commission may have over it, to prevent inequality of rates as between Grand Rapids and Ionia,, where that inequality arises out of the improper use of this bit of its property by the carrier, if a case should present itself where shippers at Ionia and Grand Rapids would be in competition with each other in the markets reached by them jointly, in such a sense that the rates of freight, so discriminated, would give the one the advantage over the other in their rivalries in trade, which is not the case here, as shown by the special findings of that fact. In the Evershed Case, in order to justify the discrimination in rates, there was a struggle to establish the same inexorable necessity arising out of the physioial condition that wo have intimated here, but it did not avail, for the reason that it did not exist. Here every shipper who lives at Grand Rapids, with the possible exception of any who live adjacent to the ill-located station house, is affected by that distance, in its relation to the distance from the station house of the rival earners. There it was only two or three shippers who were favorably situated, in having spur trade connections with a rival line. The loss here is of the entire traffic of a city. There the defendant company would only lose that of two or three favorably located brewers, which is almost de minimis, in comparison with tiíis. But the great difference is that there it was a discrimination between rival shippers in the same trade, at the same place, sending to the same market, and for whom the same service was done, while here the complainant is a locality — for that is the real nature of it-— widely separated from that at which the alleged discriminating out
“It is also urged that the three firms had something in the nature of a natural advantage, to the benefit of which they were entitled in their dealings with the defendant. I am of opinion that is not so. They have, indeed, an advantage which enables them to put a pressure on the defendants; but, if the defendants yield to it, they must give an equal advantage to the plaintiff. If the three firms were a mile nearer than the plaintiff to the defendant’s station, doubtless the defendants might charge the plaintiff a larger sum for carriage. But the one advantage here that the three firms have is that they have easy access to another railway. So they might have to a canal or an ordinary highway. But these considerations, though a reason for the diminished charge, do not justify the extra charge to the. plaintiff.”
And Britt, J., adverting to the sidings connecting with the rival line, says this:
“Now, it seems to me that the plaintiff and the three firms of brewers, in their relations with the defendants, were under the same circumstances in every material respect. The defendants did the same thing for both the plaintiff and the three firms of brewers. In each case they collected and carted the beer through the town; they took it to their station; they then put the beer into similar trains, and conveyed it over the same lines of rails; and as may be assumed for the purpose of this discussion, the quantity carried for the plaintiff and the three firms was the same, and between what the defendants did for the plaintiff, and what they did for the three firms, no difference exists, but the charges which they made to the three firms in respect of the same services were different.”
In the house of lords it was said by Lord Blackburn that:
“It may be well that peculiar circumstances, as in some of the cases which have been referred to, make some difference. There may be the difference between wholesale and retail. A large quantity of goods may be carried cheaper than a small quantity. That would be a difference of circumstance. And many other eases may be pointed out in which the circumstances would not be the same.”
. He then rules that what is necessarily done merely to “coax” traffic from a rival carrier is not a differential circumstance, under the English act.
How, mutatis mutandis, Ionia, as a station, has its station house as near its traffic by rail as any railway station house at Grand Rapids to which the shippers do their own carting, but, unfortunately, the defendant company has its station house, relatively to all the rest, — that at Ionia as well as others, — more than four times the distance; and it offers the carting to overcome this physical disadvantage, not to one shipper only, but to all, coming precisely within the general rule stated by Bramwell, J.:
“It is open to a railway company to make a bargain witli a person, provided they are willing to make the same bargain with any other, though*835 that other may not ho in a situation to make it. An obvious illustration may be found in season tickets. A man is taken a daily journey for Is., for which his neighbor, who takes it once a month, pays 5s. Ho is entitled to the same benefit, but it is one he cannot avail himself of. So as to goods. If a million tons are carried for A. at a certain price, B. may demand the same rate for the same quantity, though he never will or can, because his dealings are too small.”
Here, if tliis rule applies as to a claim by one station for equal accessorial facilities, the most favorable application of' it in behalf of Ionia would be that if the railroad station of the defendant company at that: place were a mile and one-quarter distant from the business center or sections of the town, as at Grand Rapids, it. should have cartage service at the same price, although it might he that there was no pressure on defendant to furnish it, through rival lines bidding for its traffic; the more unfavorable application of it being that, to entitle it to cartage, it must also have as large a quantity of goods. We have given so much attention to this Ever-shod Case because it has been misapplied, as we think, in support of the contention of Ionia here; the conditions and circumstances being too wide apart in their application, even as analogies, to the two cases, respectively. But the subsequent eases above cited show that ¡he Evershed Case has been very much restricted, as we restrict it' here, if not overruled. Bo far as it is any authority for the notion that the competition of rival lines is not a circumstance to be considered in determining the question of undue preference, we have the court of appeals, in the Phipps Case, supra, saying that, “its authority upon this point is gone”; it having been otherwise ruled,in the house of lords, in the Denaby Main Colliery Case, supra. And there is not any doubt that, whatever may have been thought heretofore on the point in England, now the competition of rival lines is one of the circumstances that must be considered, not as controlling, but as an element, along with others, to justify the discrimination of which complaint is made. In the case of Railroad Co. v. Greenwood (1888) 21 Q. B. Div. 215, while stating what should influence the action of the railway commission in its inquiry, — just such an inquiry as we are making here, in determining whether that which our interstate commerce commission did shall receive the approval of the courts as a proper order to be made,— Cave, J., says:
“Obviously, the considerations would be of a somewhat intricate nature. It. would be necessary to inquire what were the reasons why more was charged for one distance than was charged for another distance, or why proportionately more was charged for one distance than another; and that would depend upon a groat many considerations, arising- out of the nature of the traffic, the peculiar facilities, the competition which might be developed, and a great many other matters which, quite obviously, were unfit to be tried before a jury,” etc.
And in one of the very latest cast's, that of the Liverpool Corn Trade Association, supra, before the English commission itself, in treating of the most recent English act, now extending, in terms, the jurisdiction to controversies between "localities’- about unjust dis-criminations, as our act does, and lamenting that the legislature had not undertaken to prescribe the regulations it has left to the commission and the courts to decide, it is pointed out that not only
“What are the circumstances under which it would be natural, after taking other legitimate considerations into account, to ask oneself — First, does the public interest require the maintenance of the lower charge; and, secondly, can the higher charges be reduced without an unfair interference with the interest of the company? Obviously, if, upon other grounds, the court sees there is no undue preference, these questions become immaterial. But if, upon general grounds, and without regard to these considerations, a case of undue preference has been established, the natural consequence would be to order the company to desist from the preference. No order, could be made as to how the inequality should be redressed, and the choice between the different ways must always be left to the company. They would be obliged, however, either to level up or level down, or to do both. But suppose they can satisfy the court that to level up would destroy a traffic which, in the public interest, ought to be secured, and that to level down would be to affect an undue reduction (whatever that may mean); it follows that, for different reasons, neither the one method of redressing the inequality, nor the other, nor a combination of the two, ought to be adopted, and that, therefore, the order ought not to be made. In other words, the state of things which creates the preference 'is justified, and the preference ceases to be undue, within the meaning of the legislation.”
He was dealing with an English act, which, unlike ours, was prescribing a vague statutory rule, — ours leaving the question open, but it is worthy of remark that he was combating the argument of the attorney general that the English act had prescribed the public interest as the sole or only rule of decision. Parliament, in its omnipotence, might do that, possibly, or within any degree, but we suggest that our congress might find constitutional obstructions to the enactment of any rule which destroyed the carrier’s interest, as one of the considerations to be used in judgment. It cannot sacrifice the company’s property or rights to the public interest, but can only regulate the business in the interest of both. We are not unmindful of the danger to which the commission calls attention in one of its cases (the Clyde Steamship Case, supra), of overlooking dissimilarities of legislation, methods of trade and transportation, and the like, in dealing with English precedents, and we have tried to avoid it here; but, after all, our act is founded on an experience in the mother country commencing this kind of legislation contemporaneously with the birth of railroad transportation, and extending, in its common and statute law, to all classes of carriers. The general purpose of both is the same, and the rules of administration there and here should be divorced, as they clearly have been by the courts, from any rigid adherence to mere technical precedents and authority, of which the subject is, in its nature, quite incapable, and proceed upon the broader fields of commercial and trade regulation, elastic enough-to adapt itself to every recurring difference of condition and circumstance. Our act requires this. That is why the commission
The question has never been decided in our own courts, so far as we are advised. In the case of Hezel Milling Co. v. St. Louis, A. & T. H. R. Co., 5 Inter. St. Commerce Com. R. 57, the commission follows its judgment in the case we have in hand, under circumstances, as to.one of the carriers, more like Evershed’s Case, in the condition that the disputing shippers were using the same service, and cartage was allowed to one, and not to the other, on the theory that the case was decided, namely, that the two cities of St. Louis and East St. Louis were one shipping community, in the practice of the companies. But it was said that if that theory be discarded, and they were treated as separate communities, then it would not be a violation of the long and short haul statutory rule, because the rates on both sides of the river would be the same, and then the only consideration open would be die “subordinate; matters above mentioned,” — that is, equality of accessorial service. The edmmisdon pertinently remarks that it is easy to see that questions of practice raider partial or absolute “free cartage” must depend largely, for solution, on the particular circumstances of each case. In their order in the ease now under consideration, we think they did not give.due weight to the circumstance so peculiar here, of the remotely located station house relatively to the nearer station houses of its rivals, and the cost to the company of overcoming that condition by locating as favorably as its rivals, nor to the circumstance that this is a controversy, not between shippers of the same shipping community, in rivalry with each other, but of remotely separated stations on the same road, having no competition with each other in trade, and not similarly disadvantageous^ situated as to railway station houses. In the Case of Clyde Steamship Company, supra, and the subsequent case of Gerke Brewing Co. v. Louisville & N. R. Co., 5 Inter. St. Commerce Com. R. 596, the commission reached the conclusion, as we understand it, that the competition of rival lines is to have its influence, if it be outside the control of the commission itself, but if inside that control, it can have no influence, except: when the commission shall, upon preliminary inquiry, permit it to operate, and direct the regulations. We do not know that the; courts have approved this rule of distinction, nor that we are called upon to decide the question, since we may place our judgment upon this point upon the ground that long before the interstate commerce act, and long before the existence of the commission, — almost a quarter of a century before, — this defendant company was using this accessorial cartage service, and-it was not bound, on the passage of the law and of the creation of the commission, to suspend or abandon that service, and await an application for its sanction. It might go on, we think, and justify, if it could do so, when its practice should be called into question. So this ease does not fall within the commission’s rule, perhaps. It is not impossible that where competition is free and open
These cases, and others to which they will lead, leave the question of the influence of competition, as a circumstance or condition to justify discriminating rates, undecided. In the case of Interstate Commerce Commission v. Texas & P. Ry. Co., 52 Fed. 187, strong views were expressed against its influence, based largely on some of the English cases to which we have called attention, and some of which, upon the authority of later cases, may be of doubtful force, as we have shown; but on appeal the question was reserved, and the court said of foreign competition, held by the commission not to be of itself a circumstance or condition of dissimilarity, — what applies quite as well to that which arises at home, — that “its ultimate decision may have a wider influence upon the interstate commerce of this country than we can foresee.” Interstate Commerce Commission v. Texas & P. Ry. Co., 6 C. C. A. 653, 57 Fed. 948. We do not feel called on to decide the broad question in this case, and, as was done in that case, limit what we do decide to the narrower field presented by these facts. The bare, naked fact of competition in an open field may not be available to justify discriminating rates on the ground of dissimilar conditions; hut it is not to he excluded as a forceful element of consideration, when it results, as here, in the annihilation of the business of a carrier at a particular station on its line, because of a physical or mechanical disadvantage which it may overcome by the use of an appliance which it has long used for that purpose, and the use of which is complained of, and called in question, as an unlawful discrimination under the act. The peculiar condition here is the physical disadvantage existing, whether there be competition or not, but which becomes destructive and fatal when competitors do appear to take advantage of it. The competition is not, then, a bare and naked struggle for traffic on equal terms,
From what has been already ruled, it is apparent that even if the commission had established, by its inquiry, an abuse to be remedied, the order it gave was not a proper one, and should not be enforced. Large as its powers may be, and plenary as may be the authority of the court to enforce, by mandatory injunctions or otherwise, obedience to its orders, its powers are those of regulation, and not construction or reconstruction. Interstate Commerce Commission v. Baltimore & O. R. Co., 43 Fed. 37, 50, and 145 U. S. 263, 12 Sup. Ct. 844. And now see Cincinnati, N. O. & T. P. Ry. Co. v. Interstate Commerce Commission (Oct., 1895) 16 Sup. Ct. 700. This is, as the commission has made it, a dispute about discriminating rates, and the easy remedy, on such a complaint, is a readjustment of the rates to cover the discrepancy. As was said in one of the cases we have cited, the method of redress by readjusting the rates must always be left to the choice of the company, at least in the first instance ; and in the subsequent St. Louis case, supra, the commission adopted that course, and made the. proper order. Here was an arbitrary and peremptory order to abandon the accessorial cartage at Grand Rapids, without regard to any rates, or without option’as to
Nor was there any power m the circuit court to modify or change the order of the commission. Whatever may be the plenary power of a court of equity to command, at the suit of those who are injured, Pie performance of any duty arising out of a contract or statutory obligation, the jurisdiction it was exercising here is strictly special and statutory, and is limited, as all special jurisdiction is, to the precise power conferred by the interstate commerce act, which is only to compel obedience to the '‘lawful order’’ of the commission. It lias not been granted any broader power to exercise the authority of the commission, itself by substituting a new regulation or order of its own, or modifying tbat which the commission has given. It is purely an auxiliary jurisdiction. Interstate Commerce Commission v. Delaware, L. & W. R. Co., 64 Fed. 723. The ordinary jurisdiction of the courts is open to any one injured to invoke their more plenary powers, except, so far as that of an action at law for damages has been made optional with the cumulative statutory remedy by section 9 of the act. The remedy by bill in equity has not been so-restricted, and is yet available; but here, the powers of the commission being administrative, and not judicial, the ancillary and sup plemental judicial jurisdiction is necessarily limited to the purpose of its creation, and can go no further than to grant'or refuse com pulsery obedience to the lawful orders of the commission, and as it makes them. Interstate Commerce Commission v. Delaware, L. & W. R. Co., supra; Kentucky & I. Bridge Co. v. Louisville & N. R. Co., 37 Fed. 567; Interstate Commerce Commission v. Lehigh Val. R. Co., 49 Fed. 177; Shinkle, Wilson & Kreis Co. v. Louisville & N. R. Co., 62 Fed. 690; Little Rock & M. R. Co. v. East Tennessee, V. & G. R. Co., 47 Fed. 772. It confirms our confidence in the rulings we have made that since this opinion was prepared the supreme court has announced its decision in one of the cases herein cited, appealed to that court, in an opinion by Mr. Justice Shiras, which, although presenting differing facts, is in entire harmony with the views we have here expressed. Texas & P. R. Co. v. Interstate Commerce Commission, 16 Sup. Ct. 666. In any view, therefore, either because this order was not according to the right of thp case, as we understand it, or because it directed an improper mode of redressing the abuse, if any existed, the decree must be reversed, and the cause remanded to the circuit court, with directions to dismiss the petition, with costs.