237 F. 460 | E.D. Tenn. | 1916
The McLean Lumber Company and three other corporations engaged in business in Chattanooga, Tenn., having filed a petition against the United States to set aside certain orders made by the Interstate Commerce Commission in the matter of the rates on logs in carload shipments from stations in Alabama and Mississippi on the line of the Alabama Great Southern Railroad Company to Chattanooga, Tenn., subsequently entered a motion for an interlocutory injunction restraining the enforcement of these orders pendente lite. This motion has been heard by three judges, as provided by Act Oct. 22, 1913, c. 32, 38 Stat. 220 (Comp. St. 1913, § 998), upon the petition and a transcript of the proceedings before the Commission exhibited therewith. There were also heard at the same time motions to dismiss the petition entered by the United States and by the Commission, which had, of its own motion, appeared as a defendant.
In 1900 the railroad company voluntarily published a schedule of rates on the interstate shipment of logs from stations on its lines into Chattanooga, varying.according to distances, which remained in effect, with practically no change, until 1913, when it filed a new schedule for the purpose of canceling the former rates and putting higher ones into effect. The petitioners filed with the Commission a petition protesting against the proposed rates as unreasonably high, and the proposed schedule was thereupon suspended pending a hearing by the Commission as to the reasonableness of the rates. At the hearing the railroad company offered in lieu to establish another schedule, lower than the new rates at first proposed, but higher than those which had been in effect since 1900. After due hearing the Commission filed its report, finding the rates last offered to be reasonable (Chattanooga Log Rates, 30 I. C. C. 36, 39), and entered an order requiring the railroad company to cancel its former rates, and to establish these new rates by due publication, by .June 1, 1914, and to maintain them for two years-thereafter. In compliance with this order, the railroad company established and put these new rates into effect May 22, 1914.
Subsequently, the petitioners having petitioned for a rehearing and for a restoration of the former rates, the Commission granted a rehearing and reopened the case, but continued the new rates into effect pending a decision upon the rehearing. On July 23, 1915, the Commission filed its report on the rehearing, finding the new rates theretofore established to be unreasonably high as to certain distances, and making certain modifications therein (Chattanooga Log Rates, 35 I. C. C. 163, 171), and entered an order requiring the railroad company to cease, on or before September 15, 1915, from charging the new rates.
Our conclusions as to the several motions are:
*464 “The venue of any suit hereafter brought to enforce, suspend, or set aside * * * any order of the * * * Commission shall be in the juridical district wherein is the residence of the party or any of the parties upon whose petition the order was made, except that where the order does not relate to transportation or is not made upon the petition of any party the venue shall be in the district where the matter complained of in the petition, before the Commission arises, and except that where the order does nottrelate either to transportation or to a matter so complained of before the Commission the matter covered by the order shall be deemed to arise in the district where one of the petitioners in court has either its principal office or its principal operating office.”
Three of the petitioners, upon whose complaint the hearing was had before the Commission resulting in the orders in question, are residents of this district, and the fourth has its principal office herein. Obviously, therefore, whether the orders in question be regarded as made upon their petition, or'as not relating to transportation, or as not made on the petition of any party, there is, in either alternative, venue in this district, under the express terms of the act.
We cannot sustain the contention made by the Commission, in which the United .States does not join, that merely because the orders made by the Commission do not directly affect the petitioners’ own property or its use, and because they have no vested interest in any rates filed by a carrier with the Commission, they have no such pecuniary interest
In Merchants’ Association v. United States (D. C.) 231 Fed. 292, 294 (three judges), it was held, in an opinion by Morrow, Circuit Judge, that traffic associations, formed for the purpose of representing merchants in traffic matters, were entitled to bring a petition in equity to enjoin the enforcement of orders of the Commission, made upon its own initiative, suspending the long and short haul clause of the Interstate Commerce Act in reference to certain rates. A fortiori, shippers themselves, having been parties to the proceedings before the Commission in which such orders were made, would have been entitled to maintain such suit in equity. And it is to be noted that in this Merchants’ Association Case the motion made by the United States to dismiss the petition was based upon the specific ground that the traffic association did not bring the suit either “as a common carrier or as shippers,” and had no such interest in the orders made by the Commission as to enable them to maintain the suit; the government itself thus inferentially recognizing that the shippers themselves would have had such interest, just as in the instant case the right of, the petitioners to bring this proceeding is not denied by the government. So in Galveston Chamber of Commerce v. Railroad Co. (Tex. Civ. App.) 137 S. W. 737, the right of a Chamber of Commerce and of individual.shippers to bring a bill in equity to restrain the state Railroad Commission from enforcing a rate-making order on the ground of discrimination was not questioned either by the Commission, counsel, or the court.
While recognizing fully the general doctrine of Railroad Co. v. Ellerman, 105 U. S. 166, 26 Sup. Ct. 1015, In re Debs, 158 U. S. 564, 15 Sup. Ct. 900, 39 L. Ed. 1092, and other cases upon which the Commission relies in argument, that a plaintiff in equity having no pecuniary or property interest in the subject-matter of the litigation is not entitled to injunctive relief, we find nothing in these decisions constraining us to conclude that the interest of a shipper in the rate whiph he is required to pay for the transportation of his’.property in the necessary conduct of his business is not such a direct pecuniary interest and property right as to give him the necessary standing in a court of equity for its protection. In United States v. Mich. Cent. Railroad (C. C.) 122 Fed. 544, 545, in which it was held that a suit in equity could be maintained at the instance of the government to' restrain interstate carriers from discrimination in rates, after a preliminary investigation and finding by the Commission on the question of the unlawful discrimination, the court said:
“The Interstate Commerce Act confers/upon each citizen engaged in productive industry * * * the substantive right of having his product transported, by the common carriers of the country at rates equal to the rates obtained by his competitor. This right of equal treatment at the hands of the common carriers is as much a right of property, and affects as directly his interest in property, as any other right of property that he may have under the law, statutory or common. To enforce such right, there must be, somewhere in our system of jurisprudence, the remedy found essential. If an' action at law for damages is inadequate, a remedy in equity must exist. The jurisprudeneeof the country does not leave him remediless.”
The common-law right of a shipper to have his goods carried at a reasonable rate of compensation is recognized in the provision of section 1 of the Interstate Commerce Act,' as amended by section 1 of the Hepburn Act (34 Stat. 584), that all charges made by common carriers for services rendered in interstate transportation “shall be just and reasonable.” A shipper, unless inhibited by statute, may “always invoke the aid of the courts” to protect himself against an unreasonable exaction of charges. Chicago Railway v. Osborne (8th Cir.) 52 Fed. 912, 914, 3 C. C. A. 347 (Brewer, Cir. Justice). Thus he is entitled at common law to his action in damages for the exaction of an unreasonable rate. Texas Railway v. Abilene Oil Co., 204 U. S. 426, 436, 27 Sup. Ct. 350, 51 L. Ed. 553, 9 Ann. Cas. 1075. This common-law remedy is, however, so abrogated by the Interstate Commerce Act that a shipper cannot now, consistently with its provisions, maintain his common-law action for excessive rates exacted on interstate shipments, where such rates have been duly published by the carrier and not found by the company to be unreasonable; and in such case a shipper must “primarily invoke redress' through the * * * Commission, which body alone is vested with power originally to entertain proceedings for the alteration of an established schedule, because the rates fixed therein are unreasonable.” Texas Ry. v. Abilene Oil Co., 204 U. S. at page 448, 27 Sup. Ct. 358, 51 L. Ed. 553, 9 Ann. Cas. 1075 (1907).
It results that where an interstate rate published by a carrier has been determined by order of the. Commission, in the exercise of its original jurisdiction, to be reasonable, the shipper who is compelled to pay these rates in carrying on his business is utterly’remediless, whatever error may have been committed, unless he may in such case seek in the courts injunctive relief against the order of the Commission. Admittedly, however, an interstate carrier, aggrieved by an order of the Commission requiring the establishment of rates that are unreasonably low, may seek injunctive relief in the courts; and a careful consideration of the statutes in reference to interstate commerce convinces us that Congress not only did not intend to deny a corresponding remedy to shippers when the rates fixed by an order of the Commission are unreasonably high, but, on the contrary, affirmatively intended to extend such remedy to them.
By section 13 of the Interstate Commerce Act, 24 Stat. supra, at page 383, it was originally provided, in general terms:
“That any person * * * complaining of anything done or omitted to be done by a common carrier subject, to the provisions of this Act, in contravention of the provisions thereof, may apply to said Commission by petition.”
And that:
“No complaint shall be at any time dismissed because of the absence of direct damage to the complainant."
By section 1 of the Commerce Court Act (36 Stat. p. 539) there-was vested in the Commerce Court the former jurisdiction of the Circuit Courts of the United States in cases brought to enjoin or annul any order of the Commission (Jud. Code [Act March 3, 1911, c. 231] § 207, 36 Stat. 1148 [Comp. St. 1913, § 993]). By section 4 it was provided that in all cases in the Commerce Court the Corhmission “and any party or parties in interest to the proceeding before-the Commission, in which an order or requirement is made, may appear as parties thereto of their own motion' and as of right, * * * in any suit wherein is involved the validity of such order or requirement * * * and the interest of such party”; that “committees,, associations, corporations, firms, and individuals who are interested in the controversy or question before the * * * Commission, or in any suit which may be, brought by any one” under the terms of the Interstate Commerce Act or its amendments, relating to action, of the Commission, may “intervene in said suit or proceedings at any time after the institution thereof” (Jud. Code, § 212
Construing the foregoing provisions of the Commerce Court Act in their entirety, we are of opinion that it was intended that any person who had acquired a standing as a party in interest in proceedings before the Commission should have the right to appear as a party in any suit brought in the court involving the validity of an order therein, made by the Commission, as distinguished from the mere right of intervention given to other persons who were not parties in interest.
The Commission, however, had before it a large amount of evidence, both oral and documentary, including exhibits showing the rates charged by other carriers for hauling logs to Chattanooga and for similar distances into Nashville and Memphis, Tenn., and Ohio river points, from which the Commission found that the new rates compared “far vorably with the rates of other roads into Chattanooga and to the other points taken for comparisons where the traffic conditions appear to be similar”; evidence as to the due ratio between the rates on logs and those on lumber; evidence as to the comparatively slight participation o'f the railroad company in the outbound haul of lumber frqm Chattanooga, and the large proportion of the equipment used in hauling logs into Chattanooga which has to be returned empty; a comparison of the new rates on logs with those on other low-rated commodities; evidence as to certain inconsistencies in former rates as between different stations; and other evidence which at least tended to show that the earlier log rates had been originally established in order to encour
We find no error of law in the action of the Commission in this regard. And we may add, in this connection, that there was substantial evidence supporting the statement made in the supplemental report of the Commission that, while it was shown that shipments of logs to Chattanooga had materially decreased since the new rates became effective, and that certain mills had closed and others were not running on full time, it also appeared that throughout the south the lumber industry had suffered severely as a result of the European War and from other causes, and that the depression at Chattanooga was perhaps no greater than at Memphis and other lumber manufacturing centers. 35 I. C. C. at page 168.
7. Since, therefore, for the reasons above stated, the conclusion of the Commission as to the reasonableness of the new rate must now be held conclusive, it results that the motion of the petitioners for an interlocutory injunction, restraining the enforcement of the orders based thereon, must now be denied. And as there is exhibited as a part of the petition all of the evidence taken before the Commission, we are, for like reasons, constrained to conclude that the petition shows on its face no equity or ground for permanently annulling and enjoining the enforcement of the orders of the Commission, which is the ultimate relief sought, and are hence of the opinion that the motions of the United States and of the Commission to dismiss the petition should, in so far as based upon the want of equity on the face of the petition, be granted. Louisville Railroad v. United States (D. C.) 227 Fed. at page 272.
A decree will accordingly be entered, denying the motion of the petitioners for an interlocutory injunction, sustaining the motions of the United States and of the Commission, and dismissing the petition for want of equity on its face, with costs.
Comp. St. 1913, § 1005.
Comp. St. 1913, § 1006.