216 F. 672 | M.D. Tenn. | 1914
The Louisville & Nashville Railroad Co. and the Nashville, Chattanooga & St. Louis Railway, hereinafter called the Louisville & Nashville Railroad and Nashville & Chattanooga Railway, respectively, having filed herein ■ a petition against the United States of America to set aside certain orders made by the Interstate Commerce Commission in reference to rates for the interstate transportation of coal to Nashville, Tennessee, and the switching of interstate shipments of coal at Nashville, moved for an interlocutory injunction restraining the enforcement of these orders pendente lite; which motion was heard by three judges, as provided by the Urgency Deficiency Act of October 22, 1913, c. 32, 38 Stat. 220. The hearing was had upon the petition, the answers of the United States, and of the Commission, the City of Nashville, Davidson County, Tennessee,, and the Traffic Bureau of Nashville, who intervened as defendants, under section 212 of the Judicial Code (Act March 3, 1911, c. 231, 36 Stat. 1150 [U. S. Comp. St. Supp. 1911, p. 219]), and affidavits filed by the petitioners.
The orders sought to be enjoined were made by the Commission in proceedings instituted on the complaint of the Traffic Bureau of Nashville against the petitioners and the Illinois Central Railroad Co. and the Tennessee Central Railroad Co., hereinafter called the Illinois Central Railroad and the Tennessee Central Railroad, respectively, alleging, among other things, that the rate of $1.00 per ton then charged by the petitioners for the interstate transportation of coal to Nashville from certain points in Kentucky, Tennessee and Alabama were unjust and unreasonable, and that certain switching practices of the petitioners at Nashville subjected the interstate traffic in coal to undue and unreasonable prejudice and disadvantage. Answers having been filed and evidence taken, the Commission made its written report, containing its findings of fact and conclusions thereon (Traffic Bureau of Nashville v. Louisville & Nashville Railroad, 28 Interst. Com. Com’n R. 533), and issued an order making such find
The petitioners did not file the transcript of the record before the Commission, and do not insist, for the purposes of the motion, that the facts found by the Commission were either without substantial evidence to support them or contrary to the indisputable character of the evidence. The sole grounds of the motion for the interlocutory injunction are: (1) That the facts found by the Commission do not as a matter of law support the orders made by it; (2) that the Commission was without jurisdiction to make the orders; and (3) that the enforcement of the orders made by the Commission will result in the taking of petitioners’ property without due process of law and in violation of the Fifth Amendment of the Constitution of the United States.
The petitioners furthermore state explicitly in their brief that in determining these issues the findings of fact made by the Commission in its report will be assumed to be “undisputed,” but that they “contend that these findings of fact do not as a matter of law support the conclusions (and) the orders of the Commission complained of, and that the Commission was without jurisdiction to make the orders.”
Order Fixing Rates. The report of the Commission set forth the geographical location of the various points involved under the rates in question, with the distances and routes of transportation between them, showing that the average distance to Nashville from Western Kentucky mines on the Louisville & Nashville Railroad was 108.5 miles, and from the Eastern Tennessee and Alabama mines on the Nashville & Chattanooga Railway, 140 miles (28 Interst. Com. Com’n R. at page 534). It then stated that the complainant had offered “innumerable exhibits” comparing the Nashville rate, on ton, car and train mile bases, with the rates on coal obtaining north of the Ohio river, the rates to East St. Louis, Louisville and other points on the Ohio and Mississippi river from mines in Kentucky, Tennessee and Virginia, the rates on coal prescribed by the Commission in a number
After setting forth the foregoing facts, the report then states the conclusion of the Commission, as follows:
“As to the Louisville & Nashville, we are of opinion and find that the existing rate on coal to Nashville for Western Kentucky mines on its Owens-boro and its Henderson divisions is unreasonable. We are of the same opinion and similarly find as to the Nashville, Chattanooga & St. Louis rate from its Tennessee and Alabama mines to Nashville. We further find that reasonable rates to Nashville from the Louisville & Nashville Western Kentucky mines on its Owensboro and its Henderson divisions should not exceed 80 cents per ton, and from the Nashville, Chattanooga & St. Louis mines in Alabama and in Tennessee, the movement from which is through Alabama, 90 cents per ton” (28 Interst. Com. Com’n R. at page 540).
It is earnestly contended by the petitioners that the various evidential facts set forth and found in the report of the Commission, which have been summarized hereinabove, do not, as a matter of law, support its ultimate finding or conclusion, above set forth, as to the unreasonableness of the old rates and the reasonableness of the new rates required; and that, hence, the order of the Commission, based on such erroneous conclusion, is invalid.
This contention obviously involves, in the first place, as its underlying logical foundation, the assumption that the Commission has undertaken to set forth in its report all the evidential facts leading to its ultimate conclusion as to the unreasonableness and reasonableness of such rates, respectively. However, the report affirm-; atively shows, upon its face, that the Commission did not undertake to set forth the details of the “innumerable exhibits” introduced by the complainant, bearing on the question of the comparison of rates ; nor does it recite that the Commission had otherwise undertaken to set forth or find all the facts established by the evidence. It is to be noted in this connection that by section 14 of the Act to Regulate Commerce (Act Feb. 4, 1887, c. 104, 24 Stat. 384 [U. S. Comp. St. 1901, p. 3164]) the report is only required “to state the conclusions of the Commission, together with its decision, order or requirement in the premises,” the supplemental provision that the report shall include the findings of fact on which an award is made only applying in case damages are awarded. And in the present case the Commission, after setting forth certain evidential facts, but without purporting' to make a complete or detailed finding in regard thereto, stated, in substance, as above set forth, that it “found,” as its ultimate conclusion, that the old rates were unreasonable and that the new rates which it required were reasonable.
Obviously, however, this rule does not authorize the court to review, as involving an error of law, the conclusion of the Commission upon a question of fact as to the reasonableness or unreasonableness of a given rate, depending upon a consideration of the weight to be given the various evidential facts found by it. The court cannot review the conclusion of the Commission on questions of fact, or substitute its judgment for that of the Commission upon matters of fact within the Commission’s province. Interstate Commission v. Delaware Railroad, 220 U. S. 235, 251, 31 Sup. Ct. 392, 55 L. Ed. 448; Los Angeles Switching Case, 234 U. S. 314, 34 Sup. Ct. 814, 58 L. Ed. 1319. The question of the reasonableness of a rate is, however, one of fact. Illinois Railroad v. Interstate Commission, 206 U. S. 455, 27 Sup. Ct. 700, 51 L. Ed. 1128. And accordingly it is well settled that where all the evidence introduced before the Commission is exhibited to the court, its conclusion of fact that a given rate is reasonable or unreasonable, will be accepted by the court as final and not reviewed upon the weight of the evidence, unless either there is no substantial evidence supporting such conclusion or such conclusion is contrary to the indisputable character of the evidence; in which cases the conclusion involves an error of law and is therefore reviewable by the court. Interstate Commission v. Union Pacific Railroad, 222 U. S. 541, 547, 548, 32 Sup. Ct. 108, 56 L. Ed. 308; Interstate Commission v. Louisville Railroad, 227 U. S. 88, 91, 92, 100, 33 Sup. Ct. 185, 57 L. Ed. 431; Florida Line v. United States, 234 U. S. 167, 185, 34 Sup. Ct. 867, 58 L. Ed. 1267.
And the old rates having been determined to be unreasonable and the new rates required to be reasonable, it necessarily follows that the Commission had jurisdiction, under the express provision of section 15 of the Act to Regulate Commerce, to make the order as to rates complained of.
There is furthermore no substantial evidence that the new rates prescribed by the order of the Commission are so low as to be confiscatory and in violation of the constitutional provisions against taking property without due process of law. Interstate Commission v. Union Pacific Railroad, 222 U. S. 547, 32 Sup. Ct. 108, 56 L. Ed. 308; Louisville Railroad v. Siler (C. C.) 186 Fed. 176, 189. And this is, in effect, conceded in petitioners’ brief.
So much of the motion for an interlocutory injunction as relates to the order of the Commission in reference to the rates to be charged by the petitioners for the interstate transportation of coal to Nashville must hence be denied.
After setting forth the foregoing facts and the contentions of the respective parties, the report states the conclusion of the Commission as follows:
“Our conclusion is tliat the practice of defendants with respect to switching coal at Nashville is unreasonable and unjustly discriminatory; that the present tariff of the Louisville & Nashville and the Nashville, Chattanooga & St. Louis unjustly discriminate against shipments of coal from the Tennessee Central and unduly prefer shipments of coal from the lines each of the other, we find' that a just and reasonable practice with respect to switching at Nashville to be observed by all defendants will permit the switching of coal from the interchange of each carrier to industries on the rails of the other” (28 Interst. Com. Com’n R. at page 542).
The order issued by the Commission in accordance with these findings, which is hereinabove set out, provided, in effect, that the petitioners should for not less than two years abstain from their then practice with respect to interswitching car load shipments of coal at Nashville and should establish and maintain the same practice in respect to switching such shipments to and from the tracks of the Tennessee Central Railroad as they might cotemporaneously maintain with respect to similar shipments to and from their own respective tracks.
The determination whether in particular instances there has been an
After careful consideration of the evidential facts set forth in the report of the Commission in reference to the switching practice of the petitioners at Nashville, without determining the weight given to such facts, when separately considered, we are of opinion that such facts, when considered as a whole, afford substantial evidence supporting the conclusion of the Commission that such switching practice, which in effect prohibited the interswitchiug of coal to and from the tracks of the Tennessee Central Railroad, was unreasonably and unjustly discriminatory, that it unjustly discriminated against shipments of coal from the Tennessee Central Railroad and unjustly preferred such shipments from the lines of each other, and that a just and reasonable practice would permit the interswitching of coal from the lines of each of these carriers to industries on the rails of the others; and that such conclusion is not contrary to the indisputable character of the evidential facts set forth, and does not involve, in the determination of their weight, any dominating error of law. And in this connection we are of opinion that the case of United States v. St. Louis Terminal, 224 U. S. 383, 32 Sup. Ct. 507, 56 L. Ed. 810, to which the Commission refers in its report, although arising under the Anti-Trust Act, throws, by analogy, a persuasive light upon the discriminatory and preferential character of the practices in question.
It results that the conclusion of the Commission in the matter of the switching practice must now be accepted by the court as final, without substituting its own judgment therefor on the weight of the evidence, and hence that the order in question cannot be properly enjoined on the ground that, as a matter of law, it is not supported by the facts found by the Commission.
And the practice of the petitioners having been determined to be unreasonable and unjustly discriminatory, and the new practice required, to be just and reasonable, it follows, in our opinion, that the Commission had jurisdiction under the express provisions of the Act to Regulate Commerce to make the order as to switching practices complained1 of. By section 3 of the Act it is made unlawful for any common carrier to give any undue or unreasonable preference or advantage to any particular person, locality or particular description of traffic, in any respect whatsoever, or to subject the same to any undue or unreasonable prejudice or disadvantage in any respect whatsoever; and it is provided that all common carriers “shall afford all reasonable, proper and
It is not contended that the order in question requires the petitioners to allow the Tennessee Central Railroad the physical occupancy or use of their tracks or terminal facilities by running its trains or locomotives thereon for the delivery of coal destined to industries along their lines; and obviously its only effect is to require the petitioners to receive cars of coal from the Tennessee Central Railroad at junction points and to switch and deliver the same to industries along their respective lines, in like manner as they receive such cars from one another and switch and deliver the same, upon a just, reasonable and non-prohibitive switching charge, which they may themselves establish, but which shall be the same as they shall respectively make to one another.
We think it clear that this order does not require the petitioners to give the use of their tracks and terminal facilities to the Tennessee Central Railroad, within the meaning of the proviso contained in section 3 of the Act to Regulate Commerce, or constitute an appropriation of such tracks and terminals for the use of the 'Tennessee Central Railroad, but that it is merely a regulation of the business of the petitioners in the interchange of traffic, within the express authority conferred by the Act. Pennsylvania Company v. United States (D. C.) 214 Fed. 445. This question is in our opinion ruled by the opinion in Grand Trunk Railway v. Michigan Commission, 231 U. S. 457, 468, 34 Sup. Ct. 152, 58 L. Ed. 310, involving the construction of a Michigan Statute similar in its essential respects to the provisions of the Act to Regulate Commerce. Nor is this conclusion at variance with the' case of Louisville Railroad v. Stock Yards, 212 U. S. 132, 145, 29 Sup. Ct. 246, 53 L. Ed. 441, which involved the entirely, different question of the right to compel a carrier to accept cars “offered to.it at arbitrary points near its terminus for the purpose of reaching and using its terminal station.” Neither do we find .any irreconcilable conflict between the opinion of the Commission in the instant case and that in Waverly Works v. Pennsylvania Railroad, 28 Interst. Com. Com’n R. 621.
There is furthermore no evidence that the switching practices prescribed will violate the constitutional provision against taking property without due process of law. See Grand Trunk Railway v. Michigan Commission, 231 U. S. 468, 34 Sup. Ct. 152, 58 L. Ed. 310. And it
It results that so much of the order of the Commission as relates to switching practices cannot be now enjoined.
An order will accordingly be entered denying the petitioners' motion for an interlocutory injunction.