133 Ky. 148 | Ky. Ct. App. | 1906
Lead Opinion
Opinion op the Court by
Affirming.
In this action the appellee, Central Stockyards Company, sought and was granted by the court below
It is charged in the petition that appellant has declined to receive, and announced its purpose to continue to reject, at any station on its line any live
The answer, as amended, interposes the following matters of defense: (1) That appellee cannot main
No reason is perceived for sustaining appellant’s contention that this action cannot be maintained by appellee. ' It will not do to say, as argued by counsel,
Appellee bases its right to the relief asked in this case upon Sections 213 and 214 of the State Constitution, which read as follows:
“Sec. 213. All railroad^, transfer, belt lines and railway bridge companies, organized under the laws of Kentucky, or operating, maintaining or controlling any railroad, transfer, belt lines or bridges, or doing a railway business in this State, shall receive, transfer, deliver and switch empty or loaded cars, and shall move, transport, receive, load or unload, all the freight in car loads or less quantities, coming to or going from any railroad, transfer, belt line, bridge or siding thereon, with equal promptness and dispatch, and without any discrimination as to charges, preference, drawback, or rebate in favor of any person, corporation, consignee or consignor, in any matter as to payment, handling or delivery; and shall so receive, deliver, transfer and transport all freight as above set forth, from and to any point where there is a physical connection between the tracks of said company;.but this section shall not be construed as requiring any such common carrier to allow the use of its tracks for the trains of another engaged in like business.
“Sec. 214. No railway, transfer, belt line, or railway bridge company, shall make any' exclusive or preferential contract or arrangement with any individual, association or corporation for the receipt, transfer, delivery, transportation, handling, care or custody of any freight, ór for the conduct of any business as a common carrier.”
We are now to determine whether these conclusions of the lower court are correct. What is the object of Sections 213 and 214 of the Constitution? Judging from what was said upon this question in the Debates of the Constitutional Convention (volume 4, pp, 5118-5162, inclusive), it is manifest that these sections were specifically designed to cover just such ,a state of case as is here presented. This, we think, apparent from the references made in debate by members of the convention to previous refusals of appellant railroad company to receive, bill, transfer, or to deliver live stock to the Kentucky & Indiana Stockyards Company, an industry similar to that of appellee, which was then located on the Kentucky & Indiana Company’s tracks in the city of Louisville. In the progress of the debate it seemed to be conceded thlat under common-law principles, or Section 3 of the interstate commerce act (Act Feb. 4, 1887, c. 104, 24 Stat. 380 [U. S. Comp. St. 1901, p. 3155]) some of the Federal courts had held that a railroad company had the right to make exclusive contracts for live stock deliveries, as claimed by appellant; but the fact that it had been so held was urged as a reason why the convention should adopt Sections 213 and 214, and thereby put into the Constitution in express terms 3uch a provision as would prevent common carriers from discriminating against iany consignee at a terminal point. The last clause of Section 213, though taken from the interstate commerce act, differs from
Appellant’s refusal to obey the mandatory provisions of the Constitution contained in Section 213 cannot be excused upon the ground that to observe them would subject it- to inconvenience or increased expense. In Commonwealth v. L. & N. R. R. Co., supra, the railroad commissioners were sustained by this court in a ruling requiring the railroad company to so operate its trains as to accommodate local travel between Shelbyville and Christiansburg. It was contended by the company that obedience to the order of the railroad commissioners would compel it to violate ,a mhtirtot it had madia with the Chesapeake & Ohio Eaáilroald Company, whereby it had leased to that company for a term of yelars the exclusive control and occupancy of its road between the points named for the use of its through passenger trains only, and,
It is, however, earnestly argued by counsel for appellant that the case of Central Stockyards Co. v. L. & N. R. R. Co., supra, is an adjudication directly in point, but this claim does not appear to be conclusive, as the following excerpts from the opinion of the Supreme Court in that case will show:- “We also lay on one, side the question whether the section of the Constitution of Kentucky is or is not invalid, as an attempt to regulate commerce among the States; for we are of opinion that the defendant’s conduct is not within the prohibition or requirement of either the act of Congress or the Constitution of Kentucky, as those provisions fairly should be construed. * * * We have discussed the case' as if the two stockyards were side by side. They were not, but they were both points of delivery for cattle, having Louisville for their general destination. They both were Louisville stations in effect. It may be that a case could be imagined in which a carriage to another station in the same city by another road fairly might be regarded as a bona fide further transportation over a connecting road, and within the requirements of the Kentucky Constitution. However that may be, we are of opinion that the court below was entirely right, so far as it appears, in treating this as an ordinary case
It is also contended for appellant that this court in L. & N. R. R. Co. v. Commonwealth, 108 Ky. 628, 57 S. W. 508, 22 R. 328, construed, tibie constiitutiomal provision involved in this case as in harmony with Butch
We think the further contention of appellant that the Bourbon Stockyards and those of appellee should be treated as if they were side by side untenable, because, as a matter of fact, they are not side by side. The proof shows by actual measurement that the distance from the Bourbon Stockyards to/ that of appellee by the route over which hA^e stock must pass is about eight miles, or, to be more specific, the distance from appellee’s yards to Seventh and Magnolia streets is 2 1-10 miles; from the latter point to South Louisville is 1 71-100 miles, from South LouisAdlle to the switch at East Louisville, from which point stock is carried to the Bourbon Stockyards, is 8 94-100 miles, and from the switch at South Louisville to the railroad pens at the Bourbon Stockyards the distance is from 800 to 900 feet. The addition of these distances will make the full distance between the two stockyards about eight miles. We think, therer fore, that it would not do violence to the rights of the parties litigant to assume that these yards 'are not side by side, and should not, in our opinion, be so regarded. Moreover, it would seem unreasonable to say that the moAdng of freight within the territory of a populous city like Louisville, proximately, if not actually, á distance of eight miles, is further trans
An examination of the following additional authorities will show that they are in accord with those from which we have so liberally quoted: Interstate Stockyards Co. v. R. R. Cos. (C. C.) 99 Fed. 472; L. E. & St. L. Consol. Ry. Co. v. Wilson (Ind.) 32 N. E. 311, 18 L. R. A. 105; Railroad Co. v. Goodridge, 149 U. S. 680, 13 Sup. Ct. 970, 37 L. Ed. 986; Inman v. St. L. S. W. Ry. Co. (Tex. Civ. App.) 37 S. W. 37; B., C. R. & N. R. Co. v. Dey, 82 Iowa, 312, 48 N. W. 98, 12 L. R. A. 436, 31 Am. St. Rep. 477; Atchison, T. & S. F. R. R. Co. v. Denver & N. O. R. Co., 110 U. S. 667, 4 Sup. Ct. 185, 28 L. Ed. 291; State v. Wabash, St L. & R. R. Co., 83 Mo. 144. In view of the foregoing authorities, we think it free from doubt that a common carrier may be required to make transfer of freight to the connecting carrier without breaking’ hulk, and that such is the customary way of transferring live stock from the initial carrier to the connecting carrier is abundantly shown by the evidence appearing in the record. This custom among common carriers is not only reasonable, and, as applied to the transportation of live stock, manifestly humane, but it is indispensably necessary to the demands of commerce. Live stock, and what is called “perishable”
In Elliott on Railroads the common-law duty of a common carrier is thus stated: “As a general rule no carrier is bound by law to accept and carry goods beyond the terminus of its own line. In the absence of any agreement, either express or clearly implied, for transporation beyond its own line, the common-law duty of an independent carrier is performed by safely transporting the goods over its own line and delivering them to the consignee or connecting carrier, as the case may be. In such a case the goods are to be delivered by the initial carrier to the connecting carrier for further transportation. The former is considered as a forwarding agent, rather than a carrier, as to such further transportation, and is not liable for the default of subsequent carriers. Its whole duty is not always performed, however, by merely tendering the goods to the connecting carrier. If the latter refuses to receive them, it is generally the duty of the initial carrier to notify the consignor or the consignee without unreasonable delay, and to store or otherwise take care of the goods for a rea
Appellant cannot justify the acts complained of upon the ground that they were required by its con
ANhile a railroad company must be. conceded the power to regulate transportation of passengers and freight on its own road, it cannot exercise it in such a manner as to unduly advantage certain individuals and exclude others, or to foster a particular industry by crippling another. It will not be allowed to so operate its road or conduct its business as to promote monopoly or stifle competition; for the one is necessarily hurtful to the public, and therefore against public policy, while the other is the best protection to the public. A railroad company is, therefore, without power to enter into a preferential or exclusive contract with any of its patrons. If possessed of such power, railroad companies might, as said by Judge Baxter in the Stockyards Case .of Coe v. L. & N. R. Co., supra, “destroy a refractory manufactory, exterminate, or very materially cripple competition, and in large measure monopolize and control the several branches of useful commerce, and dictate such terms as avarice may suggest. ANe think they possess no such power to kill and make alive. Impartiality in serving tlieir patrons is an imperative obligation of all railroad companies, equality of accommodation in the use of railroads is a legal right
We are unable to find any merit in the sixth and seventh contentions of appellant, that to require of it performance of switching would put it to increased cost and necessitate its parting with the possession and control of its cars into the possession of another and rival company, and -thereby deprive it of its property without due process of law, contrary to the four- . teenth amendment to the Constitution of the United
Appellant’s fourth contention, though laid aside until the others were disposed of, is not difficult of solution. Are the requirements that appellant slialj recognize the right of owners, consignors, and consignees to change destination in transitu a regulation cf interstate commerce and violative of the Federal Constitution, as claimed? On this subject Hutchinson on Common Carriers, Sec. 134, has this to say: “When there has been nó agreement to ship the goods which will make the -delivery of them to the
We are referred by the briefs of counsel to numerous authorities on this question, but we can take time to consider only such of them as we regard decisive thereof. One of the most pertinent of them is an excerpt from Mr. Justice Miller’s discussion of the difference between State, and interstate commerce: “It may be thus stated: That the power to regulate commerce is one which includes many subjects, various and quite unlike fin their nature; that
The following additional authorities bearing upon the same question are in harmonv with those, supra, viz.: N Y., N. H. & H. R. R. Co. v. New York, 165 U. S. 628, 17 Sup. Ct. 418, 41 L. Ed. 853; Hopkins v. U. S., 171 U. S. 578, 19 Sup. Ct. 40, 43 L. Ed. 290; L. S. & Mich. S. Ry. Co. v. Ohio, 173 U. S. 285, 19 Sup. Ct. 465, 43 L. Ed. 702; Chicago, M. & St. P. Ry. Co. v. Becker (C. C.) 32 Fed. 849; Iowa v. Chicago, M. & St. P. Ry. Co. (C. C.) 33 Fed. 391 — the two last being specific switching cases. The conclusion deducible from the foregoing authorities is that Section 213 of the Kentucky Constitution, requiring interchange and switching of cars, is a valid exercise of the police power of the State, that it is not intended to affect interstate commerce, and that such effect as it ipay have thereon is purely incidental and indirect; and, this being true, it is not to be regarded
In our opinion the power of the State, by appropriate change in its organic law or by legislative enactment, to provide for the public convenience, stands upon the same ground as its power by such legislation to protect the public morals or the public safety. We would not be understood as holding that if appellant were required to deliver to appellee at .a point of physical connection with the road of the Southern Railway Company, in Louisville, cars passing through Kentucky from one State into another, or cars received from a point in Kentucky for further transportation, by way of Louisville, into another State, it would not be an interference with interstate commerce or a regulation thereof. However, that question is not here presented for decision. It is only insisted that appellant be required to perform the duties of switching by a mere delivery, in the customary manner, of live stock to the consignee at the point of destination, in obedience to the instructions of the owner or shipper, and such service, we think, it should be required to perform whether the live stock is. shipped over its lines to Louisville from a point, within the State or brought there from another State. For the courts to compel the delivery by a common carrier of live stock to the consignee ai the point of destination, according to the custom obtaining among railroads and in obedience to the demand of the consignor, whether the freight come from a point within or without the State, is not a regulation of interstate commerce. And, if the delivery of freight can thus be compelled, the carrier may also be required to receive it for such delivery at all stations on its lines within this State.
Judgment affirmed.
Dissenting Opinion
The opinion of the majority of the court requires the Louisville & Nashville Railroad Company to turn over its ears, loaded with stock, to the Southern Railway Company, to be transported by it to the Central Stockyards Company, a depot on its line, there to be unloaded, without any requirement that the latter company shall pay for the use of the cars while it has them, and without any definite provision for their return to the owner after being unloaded. This, I hold, is taking private property in. violation of our State Constitution and the fourteenth amendment to the Constitution of the United States. The Kentucky Constitution provides in Section 13 of the Bill of Rights: “* * * Nor shall any man’s property be taken or applied to public use without the consent of his representatives, and without just compensation being previously made to him. ’ ’ And Section 2: “ Absolute and arbitrary power over the lives, liberty and property of freemen exists nowhere in a republic, not even in the largest majority.” The fourteenth amendment of the Constitution of the United States, in so far as it is applicable to the question in hand, provides: “* * * Nor shall any State deprive any person of life, liberty, or property, without due process of law. * * *” The conclusion of the majority of the court is rested upon Section 213 of the Constitution, which, it is said, justifies the judgment of the chancellor below. This is as follows: “Sec. 213. All railroad, transfer, belt lines and railway bridge companies, organized under the laws of Kentucky, or operating, maintaining or controlling any railroad, transfer, belt lines or bridges, or doing a railroad business in this State, shall receive, transfer, deliver and switch empty or loaded cars, and shah move, transport, receive, load or unload all the freight in car loads or less quantities, coming to or going from any railroad, transfer, belt line, bridge or siding thereon, with equal promptness and dispatch,' and
The fundamental error in the- opinion, as I see it, is in construing Section 213 to require appellants’to deliver its cars to a rival carrier. In reaching this construction, the court recites as an argument in its favor that the debates in the constitutional convention relative to Section 213 show, or tend to show, that that body desired to impose upon railroads the interchange of cars in the interest of public commerce, so that every such carrier would not only be obliged to receive and forward all car loads of freight brought to it by another, but to turn over its own ears to any connecting road for the purpose of transporting freight to points on the connecting road and beyond the line of the owner of the cars. I have carefully read the debates of the convention, and fail to find any trace of such an intention. Section 213 was prepared and introduced by the delegate from the Fourth district of the city of Louisville, who announced in the convention that he, alone, was the author, and responsible for its introduction. That there .may be no mistake upon this question, I quote his exact language: “I assume its entire responsibility. I wrote every line of it ;• not only that, but I submitted it to the ablest legal minds in the United States.” Debates Constitutional Convention, vol. 4, p. 5127. As. this assertion was unchallenged by any member, we may assume that there was no contrariety of opinion as to the authorship of the proposed section, which is-now 213; and, as the author was a learned lawyer
I' have selected the following excerpts from his explanation as to what the proposed section meant, in order that there may be no doubt as to what he said on this subject: “All this section (213) means is that it shall do exactly the same business for one road that it does for another, upon the -same terms, and 1 hope that amendment will not prevail. Sou cannot use anybody’s property without paying for it, and the object of this is not to take people’s property without paying for it, but simply to declare, where they render service to one corporation or individual, they shall render the same service to another corporation or individual at the same price. I do not believe anybody can deny the justice of that provision.”' Volume 4, pp. 5118, 5119. “We'do not want to take it. We do not want to run trains across anything. We simply want to say that, when you offer to carry for one person, you shall, carry for another person at the same price.” Volume 4, pp. 5132, 5133. “We say they shall receive. The gentleman says you must
At the common law there is no duty imposed upon railroads to carry freight beyond their own lines, or to furnish cars to any connecting road so to do. Central Stockyards Company v. Louisville & Nashville Railroad Company, 118 Fed. 113, 55 C. C. A.
My construction of Section 213, that it is limited to receiving and transporting ears, is strengthened by the precaution of the framers of the Constitution to protect the receiving railroad by this language: “But this section shall not be construed as requiring any such common carrier to allow the use of its tracks for the trains of another engaged in like business.” This accentuates the view that the convention had in mind only the receiving of freight, and not the delivery of cars against the consent of the owner; and shows a disposition to guard against loss wherever there was danger of its being inflicted. It seems to me unbelievable that these wise and conservative men would have placed one carrier so completely in the power of another without any provision looking to the ultimate protection and remuneration of the corporation against the loss, and for the use, of its property. Section 216 of the Constitution is as follows: “All railway, transfer, belt lines and railway bridge companies shall allow the'tracks of each other to unite, intersect and cross at any point where such union, intersection and crossing is reasonable or feasible.” Here we have a provision which requires every railroad in the State to permit a physical connection with any other railroad at'any feasible point along its line; and, if the court’s construction of Section 213 is sound, it is very clear that any railroad in the State may become the prey of any other road which chooses to make a connection with it. To illustrate : A railroad is built between Bowling Green and Louisville. The company is organized for the purpose and with the view of serving the public along the line of its road between those points. In order to
It is no answer to all this to say that it is the custom of railroads to interchange cars, and that they have a fixed agreement for the remuneration of the owner when a connecting carrier uses its rolling stock. That is a matter of contract, and leaves every road free to protect itself in making its contract of interchange. The basic principle running through the custom, where it exists, is that the interchanging roads will receive from each other approximately the same number of cars, and with this in view the remunJeraltion is fixed more as a matter of bookkeeping than of rental, and it must not to be forgotten that this custom is based upon the right of each road to
The Supreme Court, after pointing out that the third section of the interstate commerce act did not authorize the granting of the prayer of the bill, said: “We also lay on one side the question whether the section of the Constitution of Kentucky (213) is or not invalid as an attempt to regulate commerce among the States; for we are of opinion that the defendant’s conduct is not within the prohibitions or requirements of either the act of Congress or the Constitution of Kentucky, as those provisions fairly should be' construed.” Again it is said: “In view of the course taken by the argument, we may add that we do not find a requirement that the railroad company shall deliver its own cars to another road. The earlier part of Section 213 provides that all railroads ‘shall receive, transfer, deliver and switch empty or loaded cars, and shall move, transport, receive, load or unload all the freight in car loads or less quantities, coming to or going from any railroad. * * * with equal promptness and dispatch, and without any discrimination. * * *” Promptness and the absence of discrimination are the point, and that shows that the words ‘coming to or going from any railroad,’ qualify the words ’empty or loaded cars’ as well as
To the same effect is State of Minnesota v. Chicago, Milwaukee & St. Paul Railway Co., 36 Minn. 402, 31 N. W. 365. In the case of Chicago, Burlington, etc., Railroad v. Chicago, 166 U. S. 226, 17 Sup. Ct. 581, 41 L. Ed. 979, it was said: “It is proper now to inquire whether the due process of law enjoined by the fourteenth amendment requires compensation to be made or adequately secured to the owner of private property taken for public use under the authority of a State.” Then, after reviewing a great number of authorities bearing upon the question, the court concluded: “In our opinion, a. judgment of a State court, even if it be authorized by,statute, whereby private property is taken for the State or under its direction for public use, without compensation made or secured to the owner, is upon principle and authority, wanting in the due process of law required by the fourteenth amendment of the Constitution of the United States, and the affirmance of such judgment by the highest court of the State is a denial by that State of a right secured to the owner by that instrument.” See, also, Davidson v. New Orleans, 96 U. S. 97, 24 L. Ed. 616; Fletcher v. Peck, 6 Cranch (U. S.) 135, 136; Loan Association v. Topeka, 20 Wall. (U. S.) 655, 22 L. Ed. 455; Gardner v. Newburgh, 2 Johns, Ch. (N. Y.) 162, 7 Am. Dec. 526; Searl v. School District, 133 U. S. 553, 10 Sup. Ct. 374, 33 L. Ed. 740; Scott v. Toledo, 36 Fed. 385-396, 1 L. R. A.
From the foregoing authority the rule is deduced that in order for a State to take'private property for public use consistently with the due-process clause of the Federal Constitution, it must establish a .mode of ascertaining the damage and providing for payment to the owner. If this is not done, the statute is void. It is also clear that while State governments may regulate corporations under the police power, yet, as said in Lake Shore, etc., Railway Company v. Smith, 173 U. S. 689, 19 Sup. Ct. 565, 43 L. Ed. 858: “This power must, however, be exercised in subordination to the provisions of the Federal Constitution. If, in the assumed exercise of its police power, the Legislature of the State directly and plainly violates a provision of the Constitution of the United States, such legislation would be void.” Again: “A railroad company; although a quasi public corporation, and although it operates a public highway (Cherokee Nation v. Southern Kansas Railway, 135 U. S. 641, 10 Sup. Ct. 965, 34 L. Ed. 295; Lake Shore, etc., Railway v. Ohio, 173 U. S. 285, 301, 19 Sup. Ct. 465, 43 L. Ed. 702), it has nevertheless rights which the Legislature cannot take away without a violation of the Federal Constitution, as stated in Smyth v. Ames, 169 U. S. 466, 544, 18 Sup. Ct. 418, 42 L. Ed. 819. A corporation is a person within the protection of the fourteenth amendment. Minneapolis & St. Louis Railway v. Beckwith, 129 U. S. 26, 9 Sup. Ct. 207, 32 L. Ed. 585; Smyth v. Ames, 169 U. S. 466, 522, 526, 18 Sup. Ct. 418, 42 L. Ed. 819. Although it is under governmental control, that control must be exercised with due regard to constitutional gaurantees for the protection of its property. ’ ’ In the case of Central Stockyards Company v. Louisville Railroad Company, supra, on the question we have in hand the Supreme Court said: “On the other hand, if the cattle are to remain in the defend
On the subject of the interstate commerce feature of this case, I have only this to say: This litigation was begun by bringing the present suit in the State court. After the granting of the preliminary' injunction, a question - arose in the circuit court as to
I do not propose to question the right of the owner of property to stop it in transit where this imposes no additional expense or trouble on the carrier ; but I do question his right to change the contract between him and the carrier while .the goods are in transit so as to evade the Constitution and laws of the United States. The particular contract before us is that the .Louisville & Nashville Railroad would haul stock loaded on its cars in Tennessee and deliver it at its depot, the Bourbon Stockyards, in Louisville, Ky. This was interstate commerce, expressly so decided by the Federal Courts with this very record before them. After the cars cross the imaginary line between Tennessee and Kentucky, the shipper proposes to have the carrier deliver his stock at a place and in a manner which it is conceded he had no right to require when the stock was loaded in Tennessee. And we are gravely informed that after the cars containing the stock cross the imaginary line between Tennessee and Kentucky the shipment ceases to be interstate and becomes intrastate commerce. • In
In conclusion, no court of last resort has enunciated often er, or more forcibly, or adhered more consistently to, the doctrine of res adjudicata than our own. Beginning with the leading case of Davis v. McCorkle, 14 Bush, 746, this court has consistently held that, when a matter is once put in issue and is passed upon b;> a court of competent jurisdiction, it cannot be again litigated between the same parties as long as the former decision continues in force. Por the first time in its history, so far as I am advised, this court has departed from that rule.
Por these reasons I dissent from the opinion of the majority of the court.