LOUISVILLE AND NASHVILLE RAILROAD COMPANY v. CENTRAL STOCK YARDS COMPANY.
No. 51
SUPREME COURT OF THE UNITED STATES
Argued December 10, 11, 1908. Decided January 25, 1909.
212 U.S. 132
сeivers in such cases and to take possession of the property of the corporation in the State.
This statute was admittedly in force before the permit of the Waters-Pierce Company to do business within the State of Texas was granted. Under this statute, no less than the special act of April 11, 1907, the courts of the State have held that the receivership can be maintained under the procedure had in this case, and that the appeal merely suspended the receivership. In that view there is no unlawful interference with the rights of the company to transact interstate commerce business.
Upon the whole case, we are of opinion that the courts of Texas had not lоst the jurisdiction which they had acquired by the appointment of the receiver, and that the Federal court ought not to have appointed a receiver to take possession of the property. We think the Circuit Court of Appeals was right in reversing the order of the Circuit Court appointing the receiver. In that court the costs of the receivership were assessed against Palmer, the original complainant. The receivership has gone on pending the proceedings upon appeal and we are of opinion that justice will be done if the costs of the receivership are paid out of the fund realized in the Federal court, and it is so ordered; otherwise the judgment оf the Circuit Court of Appeals is Affirmed.
ERROR TO THE COURT OF APPEALS OF THE STATE OF KENTUCKY.
A provision in the constitution of a State that a carrier must deliver its cars to connecting carriers without providing adequate protection for their return, or compensation for their use, amounts to a taking of property without due process of law within the meaning of the Four-
The law must save the rights of parties and not leave them to the discretion of the courts as such.
Where a general provision in the constitution of a State is void as taking property without due process or compensation, and compensation has not been provided by statute, the defect cannot be cured by the courts inserting provisions for compensation in judgments under suсh constitutional provision.
The duty of a carrier to accept goods tendered at its station does not require it to accept cars offered by competing roads at arbitrary points near its terminus for the purpose of using its terminal station. A law requiring the carrier so to do is unconstitutional as taking property without due process of law.
97 S. W. Rep. 778, reversed.
THE facts are stated in the opinion.
Mr. Helm Bruce, with whom Mr. Henry L. Stone, Mr. James P. Helm and Mr. Kennedy Helm were on the brief, for plaintiff in error:
So far as concerns interstate shipments of live stock, the whole matter is concluded by the judgment of the Federal court in the former litigation in Central Stock Yards Co. v. Louisville & Nashville R. R. Co., 192 U. S. 568, and that judgment is a bar to the relief sought in this case as to such interstate shipments. Dupasseur v. Rocherau, 21 Wall. 130; Embry v. Palmer, 107 U. S. 3; Crescent City Live Stock Co. v. Butchers’ Union Slaughtеr House Co., 120 U. S. 141; Deposit Bank v. Frankfort, 191 U. S. 499; Cromwell v. Sac County, 94 U. S. 353; Smith v. Auld, 31 Kansas, 262.
Mr. Joseph C. Dodd, with whom Mr. John L. Dodd was on the brief, for defendant in error:
The provisions of
There is also a contract between the city of Louisville, the Louisville Railway Transfer Co. and the plaintiff in error. Sherlock v. Alling, 93 U. S. 99; Nashville, C. & St. L. R. R. Co. v. Alabama, 128 U. S. 96; Hennington v. Georgia, 163 U. S. 299; N. Y., N. H. & H. Ry. Co. v. New York, 165 U. S. 628.
The police power of the State cannot be bargained away or contracted against and when, within such power, a duty of a common carrier is required by constitutional or statutory provision the question of inconvenience or expense is immaterial. 4 Debates of Kentucky Const. Convention, 5118-5162; Butchers’ & Drovers’ Stock Yards Co. v. L. & N. R. R. Co., 67 Fed. Rep. 35; Covington Stock Yards Co. v. Keith, 139 U. S. 128; L. & N. R. R. Co. v. Kentucky, 108 Kentucky, 628; S. C., 26 Ky. Law Rep. 597; L. & N. R. R. Co. v. Pittsburgh & Kanawha Coal Co., 111 Kentucky, 960; S. C., 23 Ky. Law Rep. 1318; L. & N. R. R. Co. v. Williams, 95 Kentucky, 199; S. C., 15 Ky. Law Rep. 548; Burlington, C. R. & N. R. R. Co. v. Dey, 82 Iowa, 336; Peoria & P. N. Ry. Co. v. Chicago, R. I. & P. Ry. Co., 109 Illinois, 139; Jacobson v. Wisconsin, Minn. & P. R. R. Co., 71 Minnesota, 532; Michigan C. R. R. Co. v. Smithson, 45 Michigan, 221; McCoy v. C., I., St. L. & C. R. R. Co., 13 Fed. Rep. 3; Coe v. L. & N. R. R. Co., 3 Fed. Rep. 778; Interstate Stock Yards Co. v. Railroad Companies, 99 Fed. Rep. 472; L., E. & St. L. Consolidated Ry. Co. v. Wilson, 18 L. R. A. 105; Railroad Company v. Goodridge, 149 U. S. 680; Inman v. St. L. S. W. Railway Co., 37 S. W. Rep. 37; T. & S. F. R. R. Co. v. Denver & N. O. R. R. Co., 110 U. S. 667; State v. Wabash, St. L. & P. R. Co., 83 Missouri, 144; Mo. Pac. Railway Co. v. Wichita Grocery Co., 40 Pac. Rep. 899; S. C., 2 Elliott on Railroads, §§ 1432, 1440; Penna. R. R. Co. v. Jones, 155 U. S. 333; Daner v. N. Y. &c. R. R. Co., 50 How. 428; Little Miami R. R. Co. v. Washburn, 22 Ohio, 330; Parker v. C. S. B. Q. R. R. Co., 56 Connecticut, 137; Bosworth v. Chicago Ry. Co., 37 Fed. Rep. 72; Railroad Co. v. Manufacturing Co., 16 Wall. 318; Vincent v. C. & A. R. R. Co., 49 Illinois, 41; Coe v. L. & N. R. R. Co., 3 Fed. Rep. 778; In re Patterson, 3 Fed. Rep. 89; North v. Transportation Co., 146 Massachusetts, 315; M. S. & I. R. R. Co. v. Day, 20 Illinois, 375; Beers v. Wabash, St. L. & P. R. Co., 34 Fed. Rep. 244; L. & N. R. R. Co. v. Odell, 33 S. W. Rep. 611; Seasongood &c. Co. v. Tenn. & Ohio Transp. Co., 21 Ky. Law Rep. 1144; McNeill v. Southern Ry. Co., 202 U. S. 445; Atlantic Coast Line R. R. Co. v. North Carolina Corp. Com., 206 U. S. 1.
Sec. 4 of the contrаct of plaintiff in error with the Bourbon Stock Yards to deliver to it all live stock brought over plaintiff in error‘s lines to Louisville, is in contravention of the laws of Kentucky, against public policy and void, and in no event relieves plaintiff in error of the duty imposed by law to receive, switch, and deliver such stock, destined to the Central Stock Yards, to connecting carriers for delivery at said Central Stock Yards. L. & N. R. R. Co. v. Central Stock Yards Co., 30 Ky. Law Rep. 18, 39; Bedford-Bowling Green Stone Co. &c. v. Oman &c., 115 Kentucky, 369; S. C., 24 Ky. Law Rep. 2274; L. & N. R. R. Co. v. Pittsburgh & Kanawha Coal Co., 111 Kentucky, 960; McCoy v. C. & I., St. L. C. R. R. Co., 13 Fed. Rep. 5; Munn v. Illinois, 94 U. S. 139; Commonwealth v. L. & N. R. R. Co., 27 Ky. Law Rep. 497; Anderson v. Jett, 89 Kentucky, 375; S. C., 11 Ky. Law Rep. 570; Peoria & R. I. R. R. Co. v. C. V. M. Co., 68 Illinois, 489; Inter Ocean Co. v. Associated Press, 184 Illinois, 448; Chicago & N. M. Ry. Co. v. People, 56 Illinois, 365; Sanford v. Railroad Co., 24 Pa. St. 382; State v. Hartford & N. H. Ry. Co., 29 Connecticut, 538; Coe v. L. & N. R. R. Co., 3 Fed. Rep. 778.
The shipper and owner of property, even after the delivery thereof to a common carrier, and after the bill of lading has been signed and delivered, or after the goods have passed from the possession of the initial carrier into that of a succeeding one, may either stop the sаme in transit or change the destination thereof. Hutchinson on Common Carriers (2d ed.),
The decisions in the cases of Central Stock Yards Co. v. Louisville and Nashville R. R. Co., 192 U. S. 568; S. C., 118 Fed. Rep. 113, are not conclusive of the rights of the parties hereto. Smith v. Auld, 31 Kansas, 262; Black on Judgments (2d ed.), § 733; Cromwell v. Sac County, 94 U. S. 351; Fairfield v. Gallatin County, 100 U. S. 47; Polk‘s Lessee v. Wendess, 9 Cranch, 87; Nesmith v. Sheldon, 7 How. 812; Walker v. State Harbor Commission, 17 Wall. 648; Elmendorf v. Taylor, 10 Wheat. 152; Green v. Neal‘s Lessee, 6 Pet. 291; Leffingwell v. Warren, 2 Black, 599; Sumner v. Hicks, 2 Black, 532; Olcott v. The Supervisors, 16 Wall. 678; State Railroad Tax Cases, 92 U. S. 575; Rowan &c. v. Runnels, 5 How. 134; Suydam v. Williamson, 24 How. 427; In re Duncan, 139 U. S. 499; Leeper v. Texas, 139 U. S. 462; Bucher v. Railroad Co., 125 U. S. 555; Louisville &c. Ry. Co. v. Mississippi, 133 U. S. 587; Beauregard v. New Orleans, 18 How. 499; Western Union Tel. Co. v. James, 162 U. S. 650; Wisconsin &c. Ry. Co. v. Jacobson, 179 U. S. 287; Lake Shore &c. Ry. Co. v. Ohio, 173 U. S. 285; Smith v. Alabama, 124 U. S. 465; Sherlock v. Alling, 93 U. S. 99; Minneapolis &c. Ry. Co. v. Minn. R. R. & W. Co., 186 U. S. 257; Chicago &c. R. R. Co. v. Solan, 169 U. S. 133.
MR. JUSTICE HOLMES delivered the opinion of the court.
This is a proceeding in equity prosecuted in the courts of Kentucky, similar in the main to one in the United States courts between the same parties, that was decided by the Circuit Court of Appeals in 118 Fed. Rep. 113, and by this court in 192 U. S. 568. The latter was brought by the Central Stock Yards Company, a Delaware corporation, against the Railroad Company, a Kentucky corporation, to compel it to receive live stock tendered to it outside the State of Kentucky for the Central Stock Yards station, and to deliver the same at a point of physicаl connection between its road and the Southern Railway, for ultimate delivery to or at the Central Stock Yards. The Central Stock Yards station is at the Central Stock Yards, just outside the boundary line of Louisville, Kentucky, on the Southern Railway Company‘s line, and by agreement between the two companies the Central Stock Yards were the live stock depot for the purpose of handling live stock to and from Louisville on the Southern Railway. The Louisville and Nashville Railroad, by a similar arrangement, had made the Bourbon Stock Yards its
The material sections of the constitution of Kentucky are as follows:
“SEC. 213. All railroad, transfer, belt lines and railwаy 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 despatch, and without any discrimination as to
“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, or for the conduct of any business as a common carrier.”
The present case was begun by the defendаnt in error earlier than the one just stated, and sought similar relief without regard to the place where the stock was received. A preliminary injunction was issued, and soon led to proceedings for contempt on the charge that it had been disobeyed. The court of first instance held that the injunction applied to an interstate shipment when the owner had sought to bill it to the Southern Railway at Louisville for delivery to the Central Stock Yards and had been refused, and thereafter, at the break-up yards, so called, of the Louisville and Nashville road, by giving notice to change the destination, had attempted to bring about the desired result. This decision was reversed by the Court of Appeals, Louisville & Nashville R. R. Co. v. Miller, 112 Kentucky, 464, and thereupon the beforementioned bill in the United States court was brought, to deal with interstate shipments, with a prayer, also, that the railroad be required to recognize changes of destination; while the present proceeding was kept on foot to cover all that it lawfully might. At a later date the petition, as it is called, in this case, was amended so as to pray that the plaintiff in error might be required, upon tender by the Southern Railway, to receive, at a point of physical connection
After the decision in the other case the Railroad Comрany asked leave to plead the decree as a bar to so much of the relief in the present action as relates to stock shipped or desired to be shipped from points outside of Kentucky to points within Kentucky. The trial court, being of opinion that the decree would not be a bar, refused leave, but ordered the proposed amendment to be made part of the record for the purpose of appeal. After final hearing a judgment was entered for the plaintiff, the defendant in error, granting all the prayers of the bill. The Railroad Company was ordered (1) to receive at its stations in Kentucky, and “to bill, transport, transfer, switch and deliver in the customary way,” at somе point of physical connection with the tracks of the Southern Railway, and particularly at one described, all live stock or other freight consigned to the Central Stock Yards or to persons doing business there. (2) It was ordered further, to transfer, switch and deliver to the Southern Railway at the said point of connection, “any and all live stock or other freight coming over its lines in Kentucky consigned” to the Central Stock Yards or persons doing business there. (3) It was ordered further, to receive at the same point and to “transfer, switch, transport and deliver all live stock” consigned to any one at the Bourbon Stock Yards, “the shipment of which originates at the Central Stock Yards;” with proviso requiring pay or tender of proper charges for its services, whenever demanded, at the time such live stock or other freight is offered. (4) Finally the Railroad Company was required, whenever requested by the consignor, consignee, or owner of the stock, “at any of the stations, and particularly at its break-up yards in South Louisville, Kentucky,” to recognize their right to change the destination, and upon payment of the full Louisville freight rate and proper presentation of the bill of lading duly indorsed, the railroad was required to change the destination and deliver at a point of connection with the Southern Railway tracks for
The Court of Appeals found itself unable to pass over the bridge laid by this court in its construction of the state constitution,
We are surprised that the Court of Appeals should have decided that the judgment appealed from did not deal with commerce among the States. The portion that we have numbered (2) ordered a delivery to the Southern Railway of all live stock and freight coming over its lines consigned to the Central Stock
As we have indicated, the decree was pleaded as a bar only “to so much of the claim for relief as relates to stock shipped or transported, or desired to be shipped or transported from points outside of Kentucky to points within Kentucky.” It was not argued that a decision that certain words in a constitution have a certain meaning, in a suit founded upon them, is conclusive as between the same parties in another suit upon the same words, for the same purpose, except that one is to enforce them with regard to matters outside the control of the State, and the other to enforce them with regard to matters within its control. Therefore we express no opinion upon the point. It was argued, however, that the requirement that the plaintiff in error should deliver its own cars to another road was void under the Fourteenth Amendment as an unlawful taking of its property. In view of the well known and necessary practice of connecting roads, we are far from saying that a valid law could not be passed to prevent the cost and loss of time entailed by needless transshipment or breaking bulk, in case
There remains for consideration only the third division of the judgment, which requires the plaintiff in error to receive at the connecting point; and to switch, transport and deliver all live stock consigned from the Central Stock Yards to any one at the Bourbon Stock Yards. This also is based upon the sec-
Judgment reversed.
MR. JUSTICE MCKENNA, dissenting.
I am unable to concur in the opinion of the court so far as it applies to the transportation of cattle wholly within Kentucky. The difference between that and interstate transportation is important, for it was conceded at the argument that at least sixty per cent of the business was of domestic cattle.
This is a second review of the controversy between the parties. It was originally started in one of the courts of Kentucky, and there, meeting obstacles arising from the want of jurisdiction over interstate commerce, the latter was made the subject of a suit in a United States Circuit Court, where the Central Stock Yards Company suffered defeat, its bill being dismissed for want of equity. This judgment was affirmеd by the Circuit Court of Appeals (118 Fed. Rep. 113), and subsequently by this court. 192 U. S. 568. This is pointed out in the opinion, but it may be well to see what was decided. In the Circuit Court
I will assume, therefore, the power of the Stаte to require an exchange of cars between railroads, and consider only what are the limitations upon the exercise of the power, not broadly, for the case has been brought into the narrow requirements of provision for compensation and security. Must such provisions be explicit in the law? May not the principle or rule of regulation be prescribed by law, statutory or constitutional, and the conditions of its application be ascertained and enforced by the courts or an administrative body? To what extent a court may be made an instrumentality in the administration of the laws of a State I may refer to the Virginia Railroad Commission Cases, 211 U. S. 210. See also Kohl v. United States, 91 U. S. 367.
If the State may so distribute its power of regulation it is certainly not within the рrovince of this court to say that it has not done so against a contrary view, expressed or assumed, by the courts of the State. We can only deal with the result, that is, the ultimate action of the State, through any of its instrumentalities, as offending the Fourteenth Amendment of the Constitution of the United States. The procedure is for the determination of the State. This principle is conspicuously illustrated in Waters-Pierce Oil Co. v. State of Texas, ante, p. 86, and is also illustrated by the decisions under the Massachusetts and New Hampshire mill acts, infra. What, then, is the effect of the judgment under review?
It will be observed that the constitution puts an obligation upon railroad companies to “receive, transfer, deliver and switch empty or loaded cars,” and to “move, transport, receive, load or unload all the freight in carloads or less quantities
It does not adjudge that the service required of the Louisville and Nashville Railroad should not be compensated. The right of the railroad company to charge for the use of its cars is declared. The court said that the transfer of the cars was a use of them in the interest of the public. “If this,” the court further observed, “is in a sense the taking of its property for private purposes, appellant [defendant in error], as a common carrier, must submit to it, for it is only a temporary and necessary use of its property. Appellant cannot suffer loss by such use of its cars. If it delivers its cars to the Southern Railway Company to be taken to appellee [Central Stock Yards] for the loading and unloading of stock, that company has no right to detain them longer than a reasonable time for that purpose, and must return them. Appellant may charge a reasonable amount for the use of its cars, and if they are not returned, or if detained more than a reasonable time, it may sue the delinquent road for damages, or apply to a court of equity for a mandatory injunction to compel the return of cars. Indeed, it can suffer no loss which the law may not remedy.” And the court pointed out that by regulations between railroads cars were inter-
Plaintiff in error makes no question of precedent or ultimate payment for the use of its cars, or the absence of provisions for their return. It is contended that in some way (in what way is not pointed out) the State must exercise its right of eminent domain, and unless the right be exercised through an impartial tribunal there is nоt due process of law. It is also contended that there is an attempted transfer of terminals, and the duty of a local transfer company imposed on plaintiff in error, which in some way takes its property without due process of law. The question made then is of an inviolable right, impregnable in constitutional protection, against a legislative regulation such as in the case at bar, and to what contemplation does this bring us? If the right is impregnable in constitutional protection against regulation in the interest of intrastate commerce it is also impregnable in such constitutional protection against regulation in the interest of interstate commerce. Are we prepared to announce that conclusion? The consequences of it are certainly quite serious.
The
The act also provides that such carriers, upon the application of any lateral branch line of railroad or of any shipper, shall construct and operate switch connections and shall furnish cars for the traffic therеover. And the commission is given power to enforce such duty.
The commission is also given the power to divide a joint rate and establish joint rates and through routes. The commission further has the power to fix the compensation to be paid to the owner of property transported for any instrumentality furnished by him.
These are some of the regulations of interstate commerce, regulations of great reach and consequence, and they are not more specific as to compensation or security for the use or loss of cars than the constitution of Kentucky. And I submit that the power of a State over its domestic commerce is as great as the power of the Nation over interstate commerce.
The exigencies of this case do not require me to distinguish between those sovereign powers of the State denominated the power of eminent domain and the police power. Both may be exercised over private property. By the exercise of the first power property is taken and compensation for it is a necessary condition; by the exercise of the second power property is subjected to regulation and a provision for compensation is not necessary. When regulation is transcended and becomes a taking of property may, at times, be a close question, but the power of regulation must not be overlоoked or underestimated. It is, as I have said, an exercise of the police power, and that is the most absolute of the sovereign powers of the State. We said in Bacon v. Walker, 204 U. S. 311; that it “extends to dealing with the conditions which exist in a State as to bring out of them the greatest welfare of its people.” In Otis Co. v. Ludlow Co., 201 U. S. 140, this court sustained the Massachusetts Mill Act, which gave the right of one owner of land on a stream to flow the land of another, against the charge that it was contrary to the Fourteenth Amendment of the Constitution of the United States as taking property without due process of law, in that it made no adequate provision for the payment of damages caused by an exercise of the rights conferred by the act. Thе provision for payment was an action for damages. The use of property in that case was as complete and more enduring than in this, and we said of it: “The right of the lower owner only becomes complete when the land is flowed, and as, even then, it is not a right to maintain the water upon the plaintiff‘s land, but merely a right to maintain the dam subject to paying for the harm actually done, we see nothing to complain of in that regard.” See Head v. Amoskeag Mfg. Co., 113 U. S. 9. This court, therefore, has decided that a simple action of damages is sufficient security for compensation for that use of property, which this court, and almost every court in the Union, has held to be a taking. Pumpelly v. Green Bay Co., 13 Wall. 166.
It is true it is held by the Supreme Judicial Court of Massaсhusetts that the principle upon which the Mill Act is founded is not the right of eminent domain, but the resulting general good of all or the public welfare. Murdock v. Stickney, 8 Cush. 113. And this court, yielding also to that purpose, has quite recently declared that a State might, in order to meet new conditions, elevate into a public use of property that which under other conditions had universally been held to be a private use. Clark v. Nash, 198 U. S. 361; Strickley v. Highland Boy Mining Co., 200 U. S. 527. See also Offield v. New York & N. H. R. R. Co., 203 U. S. 372.
Other cases may be adduced for illustration. I think, therefore, that it might easily be contended that the service required of plaintiff in error cannot be considered in any legal or practical sense a taking of property. Let us keep steadily in mind what it is that is required and what the requirement involves of the use of plaintiff in error‘s cars. It is a use not different from that
But I do not have to take this position, strongly supported as it may be. It is enough for my purpose that the constitution of the State provides for compensation for the duty it imposes on the railroads.
I am authorized to say that MR. JUSTICE HARLAN and MR. JUSTICE MOODY concur in this dissent.
