47 F. 771 | U.S. Circuit Court for the District of Western Tennessee | 1891
The Little Rock & Memphis Railroad extends from Memphis, Tenn., to Little Rock, Ark., where it has a physical connection with the St. Louis, Iron Mountain & Southern Railroad, extending from St. Louis, Mo., by way of Little Rock, to Texarkana, at the junction of the boundaries of the states of Texas, Arkansas, and Louisiana, where it connects with other railroads running into Texas and across the continent. The East Tennessee, Virginia & Georgia Railroad, with its leased line of the Memphis & Charleston Railroad, extends eastwardly from Memphis to the eastern boundary of the state of Tennessee, and with its connections runs into many states and to the sea-board. The Iron Mountain road has a branch of its road running from Bald Knob, Ark., to Memphis. At Memphis the eastern and western connections are made by rail through the streets of the city, and by railroad transfer ferries across the Mississippi river; but it is alleged in the bill that as to passengers the connection with the Iron Mountain road must be made by ordinary vehicles, through the streets, transferring them from one railway car to another from the stations of each road, while the connection with the Little Rock road may be made by rail through the city and across the river; wherefore the bill alleges the traveling public prefers the Little Rock & Memphis road, and would largely patronize it, but for the alleged discriminations against it, which it is the purpose of the bill to remove. These discriminations consist, as appears from the averments of the bill, of a traffic arrangement made between the Iron Mountain road and the East Tennessee, Virginia & Georgia system, whereby through ticketing of passengers is made to points beyond Little Rock over the Bald Knob branch of the Iron Mountain road, which is refused to the Little Rock road, and, coming this way, the Iron Mountain refuses
It may be observed here that the bill does not complain of any discrimination to Little Rock or points on the plaintiff road between Little Reck and Memphis, and it is stated in the argument that the East Tennessee Virginia & Georgia system still sells tickets over the plaintiff road to Little Rock, if desired, as well as over the Iron Mountain; but the trouble arises over points beyond Little Rock west, and beyond Memphis east. To this bill there has been a demurrer filed, because — First, there is no equity in it; second, there is no complaint cognizable under the interstate commerce act, and no conduct is averred violating it; third, the matter complained of is not subject to legislative or judicial control, and cai. be reached only by mutual agreement; and, fourth, not coming within the interstate commerce act, the court has no jurisdiction, a diversity of citizenship not being averred. The bill is based upon the plaintiff’s construction of the third section of the interstate commerce act, which reads as follows:
“Sec. 3. That it shall be unlawful for any common carrier subject to the provisions of this act to make or give any undue or unreasonable preference or advantage to any particular person, company, firm, corporation, or locality, or any particular description of traffic, in any respect whatsoever, or to subject any particular person, company, firm, corporation, or locality, or any particular description of traffic, to any undue or unreasonable prejudice ordisadvuntage in any respect whatsoever. Every common carrier subject to the provisions of this act shall, according to their respective powers, afford all reasonable, proper, and equal facilities for the interchange of traffic between their respective lines, and for the receiving, forwarding, and delivering of passengers and property to and from their several lines and those connecting therewith, and shall not discriminate in their rates and charges between such connecting lines; but this shall not be construed as requiring any such com mon carrier to give the use of its tracks or terminal facilities to another carrier engaged in like business.” 24 Kt. 380.
The questions made about the jurisdiction may be easily disposed of so far as they relate to the authority of the court to adjudicate the issues tendered by the bill. The subject-matter of the suit is one arising under an act of congress, and the court has jurisdiction without regard to any diversity of citizenship of the parties. Kentucky & Indiana Bridge Co. v. Louisville N. R. Co., 37 Fed. Rep. 567, 615. The argument for
But when we come to consider that branch of the demurrer which denies the equity of this bill, as in all other demurrers of like kind, it presents for judgment the question whether the bill states an equitable right .and asks an equitable remedy, taking the facts averred to be true as stated. It is not so much a question of jurisdiction, often, as it is a question of the sufficiency or merits of the bill; and, that being the case here, we proceed to consider it in that view. If this bill averred that the East Tennessee, Virginia & Georgia Railroad refused to give passengers going over the plaintiff road the same rates and facilities, including through tickets and traffic transfers, that it affords to the Iron Mountain road for passengers going to Little Rock or any other point in the plaintiff road, the court w’ould not hesitate to say that it would be a violation of this section of the interstate commerce act. Whether such violation could be remedied by a court of equity, and by a bill like this, or in a court of law, or could only be readied, as probably many violations only can, by resort to the remedies afforded for criminal prosecution by the act, would be another matter. But it does not follow, because congress has not gone far enough to construct the machinery to compel such connections and facilities in the one case as are given by contract in the other case, that it is not a violation of the interstate commerce act; nor, because a court of equity or a court of law cannot redress the violation, as they are now authorized to proceed, that there has been no violation at all. Nor can this prohibition of undue or unreasonable discrimination be evaded by a contract any more than in any other way, if it be undue or unreasonable. It may be that whether the unlawful discrimination be made through the medium of a contract, whether of “through routing,” as it is called, or otherwise, or by a refusal of the same rates and same facilities which are given by contract or without a contract, there is at present no redress by resort either to the administrative board which we know as the “Interstate Commerce Com
Vow, reversing the proposition just considered, and coming this way from the west, the court could have just a little hesitation in holding that it cannot be a violation of tho interstate commerce act, and it may ho even doubtful if congress could make it so, since it might be taking property for the public use, so to speak, without compensation, or depriving one of property without due process of law, for the Iron Mountain road to prefer to travel passengers over its own road to Memphis to traveling them over tho plaintiff’s road, whether they come from Little Rock or beyond on the Iron Mountain road, or some other, and whether they be going only to .Memphis or beyond to the eastward or elsewhere; and it cannot ho either an undue or an unreasonable discrimination against the plaintiff to afford for passengers superior facilities, such as through tickets, shorter rates, or the like, over its own road, in preference to that of its rival, running a road part of the way in the same direction. For illustration, if a passenger wishing to go from Texarkana or further on from some point in Texas to Memphis or beyond desires to travel over the Iron Mountain road, why should it not take him all the way to Memphis, and deliver him to the East Tennessee & Georgia, or some other road wishing to take him on easy terms as to rates, through tickets, and the like, rather than shunt him, at Little Rock, upon the plaintiff’s road? Tt cannot be an unfair or an unreasonable discrimination against the plaintiff for tho Iron Mountain to keep him on its own road by offering him superior facilities in the respects mentioned, however unduo or unreasonable it might be in other roads to refuse the plaintiff' tho samo facilities in transporting him that it affords the Iron Mountain. In other words, the Iron Mountain would not bo violating the statutory prohibition in such a transaction, whatever may be said of other roads. It would be free of such imputation, because it has a line of its own, covering the same distance, and may prefer itself to others, as we all do in obedience to bunion nature. But even as to the East Tennessee, Virginia & Georgia road, why should it not take this passenger from the Iron Mountain at Memphis on through tickets, easy rates, and whatever terms may he agreed upon, without an imputation of discriminating against the plaintiff. It could only clo that by refusing to take the plaintiff’s passengers, brought to Memphis, on the same
Recurring to travel westward from points under the control of the East Tennessee, Virginia & Georgia Road, and we have precisely the same condition; in principle, however, it may seemingly be diverse, for, one desiring to travel from Knoxville, Tenn., let us say, to Texarkana, or beyond into Texas, reaches the Iron Mountain at Memphis, ail'd while he may have a choice of two roads there it is for onty a part of the way, and he must at last take the Iron Mountain at Little Rock, and go over that road beyond. It does not depend wholly upon equal or better facilities for transfer at Memphis, but also upon the capacity to transport the passenger to his destination beyond there. Is it not plain that the Iron Mountain may offer him the same facilities to take its road at Memphis that it offered in the other cáse, — may prefer its own road if it chooses? That it may force him to do that thing by refusing to enter into any arrangement with the plaintiff for a joint transportation of the passenger is equally clear. It is again the right of one to prefer one’s self to another, and that cannot be an undue or unreasonable discrimination, however hardly it may bear upon that other, as long as the other is not molested in its business by a refusal to transport its passengers upon the same terms granted to the passengers of other roads. It would he unlawful if the Iron Mountain refused the same rates from Little Rock onward that it offered to other roads feeding it at that point, or to other passengers taking its track there; but it cannot be unlawful to prefer to feed itself from Memphis, rather than have the plaintiff feed it. So the East Tennessee, Virginia & Georgia road, like the passenger we have in hand, may be compelled to route over the Iron Mountain road, rather than over the Little Rock road, by this exercise of its lawful right of preference of its own road by the Iron Mountain. The East Tennessee might violate the statute, if the plaintiff’s road ran parallel with the Iron Mountain all the way our passenger is going, if it refused him a choice of routes on the same terms; but that is not this case, and the Iron Mountain has the advantage in reaching points not reached by the plaintiff, and which can only be reached over its own road. The sum of it is that the whole merit of this bill must be tested solely by the right of the Iron Mountain to prefer its own road to that of the plaintiff; and, that right being lawfully exercised, there can be no wrong in other roads yielding a compulsory adjustment to it; and the plaintiff is without remedy, unless congress adopts the suggestion of the interstate commerce commission, and interferes to make rates and routes through some agency appropriate to the process, if congress .has the power in a case like this, which may be doubtful. L. R. Co. v. East Tennessee, V. & G. R. Co., 3 Int. St. Com. R. 10. In that ease the interstate commerce commission clearly declares that that which was complained of by this bill is in violation
On the other hand, until an authoritative adjudication, we could not
It may be conceded to counsel for the plaintiff that neither the case of Atchison, T. & S. F. R. Co. v. Denver & N. O. R. Co., 110 U. S. 667, 4 Sup. Ct. Rep. 185, nor that of Kentucky & Indiana Bridge Co. v. Louisville & N. R. Co., supra, controls this. In each of those cases there was a want of physical connection at suitable and properly equipped stations or depots to invoke the requirement of an equal facility for exchange of traffic, which distinguishes it from this case. Moreover, in the Colorado case the supreme court interpreted the constitution of the state as declaring only the common law against discriminations to make it irrepealable, but non constat that this third section of the interstate commerce act means no more thau the Colorado constitution is interpreted to mean. The language is different, and the historical surroundings of the act of congress demonstrate that congress was exercising its plenary power to regulate interstate commerce, and not declaring the common law to make it fundamental, for, doing only that, it had scarcely any reason to act at all, as the Colorado convention had. And in the Kentucky ease it was particularly decided that the plaintiff corporation was not a common carrier at all within the interstate commerce act; and this fact, and the want of reasonable transfer facilities, anqfiy distinguish it from this case. As was said in the Express Cases, 117 U. S. 29, 6 Sup. Ct. Rep. 542, 628, the regulation of matters of this kind is legislative, and not judicial, and the courts can go no further than to enforce what congress has in the exercise of its legislative power declared as a proper regulation
Neither does it seem to me that the case of Oregon Short Line & U. N. R. Co. v. Northern Pac. R. Co., 3 Int. St. Com. R. 205, cited by plaintiff’s counsel, controls this case. I find some difficulty in this report of the case (and I am unable to find it elsewhere reported) *in comprehending the facts, but I think the peculiarity of this case is not in that, —the ownership, namely, by the defendant road of a parallel track covering all the ground of the plaintiff, and extending beyond it to points about which the discrimination complained of has been made. It is true that District Judge Deady expresses very forcibly his opinion that the law is useless if through routing over an excluded road upon the same terms as the favored road cannot be compelled where the parties cannot agree about it, and if by an agreement for a continuous through freighting the discrimination against competitors thereby effected becomes reasonable simply because of a right so to contract at common law, which right congress possibly intended to modify or regulate by this act; and that which he says is reasonable and plausible indeed. Yet he does not hold this as applicable to roads situated towards each other as these are, if I understand the situation in that case.
Again, the case of New York & N. R. Co. v. New York & N. E. R. Co., 4 Int. St. Com. R. 1, seems very analogous to this case, and the judgment there seems somewhat inconsistent with that given by the interstate commerce commission in this case when it was before that tribunal, notwithstanding an apparent struggle to distinguish them. But it is distinguished in both the opinions written in that case, though upon somewhat different grounds. The interstate commerce commission in the former case dismissed a petition almost identical with the bill we have before us, because it had no power, and there was none elsewhere conferred by congress, to make through rates and through routings where they were denied, as may be done under the English legislation, although the very conduct complained of in this case was there held to be a violation of the act; but in the latter case, now under observation, in referring to the former it seems t.o conpede that there