R. R. Connection Case
- Reporters:
- ,
- Before:
- Clark
It appears from the record that for some ten years prior to 11 October, 1903, the passenger traffic from a large portion of Eastern North Carolina to Raleigh and the adjacent central part of the State was made by the defendant Atlantic Coast Line Railroad Company connecting with the Southern Railway at Selma at 2:50 p. m. daily. For a year or two prior to that day the connection became very irregular, to the great
Whereas, the convenience of the traveling public requires that close connection be made between the passenger trains on the Atlantic Coast Line Railroad and the Southern Railway at Selma daily in the afternoon of each day; and whereas it appears that such close connection is practicable, it is ordered that the Atlantic Coast Line Railroad arrange its schedule so that the train will arrive at Selma at 2:25 p. m. each day, instead of 2:50 p. m., as the schedule now stands. It is further ordered that if the Atlantic Coast Line trains have passengers en route for the Southern Railway and are delayed, notice shall be given to the Southern Railway, and that the Southern Railway shall wait fifteen (3) minutes for such delayed trains upon receipt of such notice. This order shall take effect 20 December, 1903.
By order of the Commission: FRANKLIN McNEILL, Chairman.
H. C. BROWN, Clerk.
This order quickened the arrival time of the Atlantic Coast Line train at Selma twenty-five minutes, but as it required the Southern to wait at that point fifteen minutes for delayed trains, it more than divided the time between the roads, exacting only ten minutes advance of time on the part of the defendant to procure this convenience to the traveling public. On 18 December, 1903, on the application of counsel for the defendant, the order was suspended and both companies were notified to appear before the Corporation Commission at Raleigh, on 12 January, 1904, that “the matter of the connection at Selma of the Atlantic Coast Line going south with that of the Southern Railway going west in the afternoon” might be heard, and asking both companies to have representatives present. The defendant appeared by its superintendent and its general counsel, and the other company was also represented. After hearing both sides, “the situation being thoroughly discussed,” the Commission took the matter under advisement. On 1 January, 1904, the Commission rendered a full finding of the facts, concluding with this judgment:
The Commission found, giving its reasons, that passengers ought neither to be required to go a much longer distance around by Weldon nor to make connection at unreasonable hours at Goldsboro (6:50 a. m.) nor make a night train (11 p. m.) connection at Selma, when a few minutes quickened time would maintain the connection which had been made at Selma in the early afternoon for more than ten years. The Commission also found that the defendant could make the connection, if it chose, by extending the run of its Springhope train which coming down nineteen miles from that place reached Rocky Mount at 12:10, where it lay over until 4 p. m. before returning to Springhope, during which four hours it could easily be run 41 miles and back, making this connection. It thus concludes its judgment:
There is within the territory served by these branch lines approximately 400,000 inhabitants. The report of the Atlantic Coast Line to this Commission for the fiscal year ending 30 June, 1903, shows net earnings from operation in North Carolina amounting to $1,943,116.63, and that there was a surplus of $1,293,983.54, after paying interest on its debts and 5 per cent dividends on its stock, both common and (6) preferred, from the net earnings of the company‘s entire line. On a mileage basis, this will show that there was a surplus of net earnings in North Carolina for that year of approximately $324,493. The Commission is of the opinion that the facilities given heretofore by the Atlantic Coast Line to the traveling public should not be lessened; that the connection furnished passengers from the Washington branch, the Norfolk and Carolina branch, the Plymouth branch and the Nashville branch with No. 135 Southern Railway passenger train at Selma, and also for all points between Rocky Mount and Selma, for nearly ten years should be restored; that if this cannot be done by the Atlantic Coast Line train No. 39 as formerly, on account of this train being heavier, containing usually one or more express cars, and in all usually ten or more cars, and on account of increase in business between Richmond and Selma, which necessitates longer stops, then other facilities should be furnished by the Atlantic Coast Line Company; that this connection, which was the principal outlet for passengers from Eastern Carolina to Selma and other Southern Railway points for the last ten years, instead of being abandoned, should be made permanent and certain,
FRANKLIN McNEILL, Chairman.
From this order, thus repeated the third time, and after the fullest investigation, occupying several months, the defendant appealed to the Superior Court. In that court the following issues were submitted, the Corporation Commission excepting:
1. Is it practicable for train No. 39 of the Atlantic Coast Line, due to arrive at Selma at 2:50 p. m., to make connection at Selma with train No. 135, westbound, of the Southern Railway, due to leave Selma at 2:25 p. m.? (7)
2. Is it practicable to make said connection by extending the run of the Plymouth train daily from Plymouth to Selma and return; and if so, what would be the additional expense?
3. Is it practicable to make said connection by the use of the Springhope train; and if so, what would be the additional expense?
4. In order to make such connection, would the defendant company have to run an additional train on its main line from Rocky Mount to Selma?
The court directed the jury to answer the first three issues “No,” and the fourth issue “Yes,” and the Corporation Commission excepted. The following issues the jury were permitted to answer, to which they responded as follows:
5. Is it practicable for said train to run the schedule prescribed in the plaintiff‘s order, having due regard to the number of trains and number of stops on the defendant‘s main line from Rocky Mount to Selma? “Yes.”
6. What would be the daily cost of operating such train from Rocky Mount to Selma and return? “$40.”
7. What would be the probable daily receipts from such train? “$25.”
8. Is it reasonable and proper that for the convenience of the traveling public the defendant company should be required to make such connection? “Yes.”
Upon the verdict the Corporation Commission moved for judgment, but the court rendered judgment for the defendant, giving as a reason that The Code of 1883, sec. 1957 (9), gave to railroad companies the right to regulate “the time and manner in which property and passengers shall be transported,” and that it had been unable to find where this had been repealed; that he was of opinion that the statute had not conferred any power upon the Corporation Commission to order any connection to be made between the trains on connecting railroads, (8)
Section 1 of the Corporation Commission Act (Laws 1899, ch. 164) in enumerating the qualifications, the duties and powers of the Commission, provides that “they shall have such general control and supervision of all railroad . . . companies or corporations and of all other companies or corporations engaged in the carrying of freight or passengers . . . necessary to carry into effect the provisions of this act.” Section 21 of the act provides that “All common carriers subject to the provisions of this act shall, according to their powers, afford all reasonable, proper and equal facilities for the interchange of traffic between their respective lines and for the forwarding and delivering of passengers and freight to and from their several lines and those connecting therewith . . . and connecting lines shall be required to make asclose connection as practicable for the convenience of the travelingpublic.” This provision is positive, clear, and mandatory. Common carriers are (1) to afford all reasonable, proper, and equal facilities for the interchange of traffic and forwarding freight and passengers. This would include both the place and time of delivery and forwarding of passengers and freight. The terms of the law are general and cannot be interpreted to mean alone the place at which passengers and freight are to be delivered; it does not mean simply facility for delivery, which might be confined to the place, but also requires facility for forwarding, which includes time as well, and prohibits such management as would produce delay in forwarding passengers. This requires close connection in point of time with connecting lines. (2) In the second place, common carriers are “to make as close connection as practicable for the convenience of the traveling public.” The defendant insists that this last requirement means simply a physical connection, that is, a track connection. It is contended that the demands of the law would be (12) met by a simple joining of the railroad iron of one railroad to that of another, regardless of the time of the delivery of passengers at the junction, and of their finding the means of “traveling” on or continuing their journey, and of the delays and inconveniences resulting from a failure to make connection of trains. The statement of this proposition, even if the acts were ambiguous, contains its own refutation. But the language is plain and unequivocal, and, as Mr. Argo, of counsel for the Commission, well says, “The requirement is that `connecting lines shall make as close connection as practicable for the convenience of the traveling public.’ This means that those railroads that have or pretend to have a physical connection, a connection of tracks, shall also have as close a connection of trains as practicable, in order
It is true that section 1957 (9) of The Code of 1883, originally enacted in 1871-‘72, gave to railroad companies themselves the right to “regulate the time and manner in which passengers and property shall be transported,” but by Laws 1891, ch. 320, creating a Railroad Commission, the State made a radical change in its attitude towards railroads. It asserted its power to supervise and regulate their con- (13) duct, forbade discrimination and issuance of free passes, conferred upon the Railroad Commission the power to regulate and to fix their charges for freight and passengers, to prohibit rebates, to make joint through rates, to make personal visitation of all railroad offices and places of business, to examine their officers, agents, and employees under oath, to require all contracts and agreements between railroads, as to their business in this State, to be submitted for approval, to require annual reports from the railroads, to require the railroads to make repairs to their tracks and additions to or changes of their stations, forbade the abandonment of any station without the permission of the Commission, to require (if the Commission saw fit) separate accommodations for the races at the stations and in the cars, and “that connecting lines shall be required to make as close connection as practicable for the convenience of the traveling public,” and many other matters which before that had been left to the railroads themselves. This act was passed after the fullest discussion for years before the people of the State. It expressed their deliberate conviction that the time had arrived when the State, in the public interest, should supervise and control the charges and the conduct of common carriers, including express companies, telegraphs, telephones, and steamboats. Similar legislation had preceded our act in England, in the Federal Congress, and in many of our sister states. Similar legislation has now been adopted in most of the states. Laws 1891, ch. 320, modified The Code, sec. 1957 (9), certainly to the extent that the right formerly conferred on railroad companies of fixing the time of running their trains was made subject to the power of the Commission to require connections to be made, wherever
In this case the excuse of the defendant for its often missing connection at Selma since 1900 is that train No. 39 was a through train and that its increase in business made it more difficult to get to Selma in time. It may be natural that the officers of the company, looking to profits, should prefer the through business to the neglect of the convenience of the people of North Carolina, and should be reluctant to avoid the delay caused by heavy through business by putting $15 per day of its profits into affording the required convenience by an additional train if necessary. But it is precisely because just and proper regard for public convenience did not always coincide with the largest profit to the corporation that the State had to enact a statute giving to the Corporation Commission the power to regulate their rates, require suitable connections to be made, and a general supervision of their conduct. An act of the Legislature or order of the Commission reducing the defendant‘s charges for freight and passengers many hundreds of thousands of dollars would be valid if it left enough profit, over running expenses, “with economical salaries and management (of which the court will judge) to pay interest on its bonafide debt and some profit to stockholders.” Wellman v. R. R., 143 U.S. 339. It follows that this order, even if it cost the defendant $15 per day, is in the power of the Commission, if it serves public convenience.
The other point, as to the constitutional powers of the Legislature to so enact, is also well settled. The general power of the Legislature to provide reasonable rules and regulations, directly or through a commission, has been held by us in Express Co. v. R. R., 111 N.C. 472, (15) 32 Am. St., 805; in Corporation Commission v. R. R., 127 N.C. 288, and cases there cited. Among the Federal decisions, this was asserted in Munn v. Illinois, 94 U.S. 113, and has been reiterated in numerous cases since, collected 9 Rose‘s Notes, pp. 21-55. The doctrine is thus stated in People v. Budd, 117 N.Y. 5 L.R.A., 566, 15 Am. St., 460: “Common carriers exercise a sort of public office and have duties to perform in which the public is interested. Navigation Co. v.Bank, 6 How., 382. Their business is therefore affected with a public interest within the meaning of the doctrine which Lord Hale has so forcibly
This has been repeated over and over again in all the courts. Citation of authorities would be a work of supererogation. If the public can regulate the charges of a common carrier, so that only it is not deprived of all profits, as is held in Wellman v. R. R., 143 U.S. 339, and Dow v.Beidelman, 125 U. C., 680, it can certainly require a connection for the accommodation of thousands of our people, even if, at the utmost, it requires a loss of $15 a day out of a railroad company making $2,000,000 net earnings annually out of its operation in this State.
It is not necessary that the particular service required shall be profitable if the total earnings in this State show a profit. It is precisely because some particular service, which the public comfort or convenience may require, is not profitable that the company declines to render it. It prefers to work the soft spots, the best paying ore only, and it is precisely for that reason that the Commission is vested with the power to require those things to be done, if reasonable and just (not necessarily profitable), as to which there is the protection of an (16) appeal to the Superior Court and a further review here.
In R. R. v. Gill, 156 U.S. 664, the Court affirming the Supreme Court of Arkansas in same case (54 Ark. 112) says that the common carrier cannot “attack as unjust a regulation which fixes a rate at which some part would be unremunerative . . . To the extent that the question of injustice is to be determined by the effects of the act upon the earnings of the company, the earnings of the entire line must be estimated.” In R. R. v. Minnesota, 186 U.S. 261, the Court says that if upon the whole operations in hauling coal the road makes a profit, the requirement as to a fair profit upon investment is satisfied, notwithstanding under the order of the Commission there would be a loss in hauling at the rate fixed in carload lots. In R.R. v. Minn., supra, the Court say: “We do not think it beyond the power of the State Commission to reduce the freight upon a particular article, provided the companies are able to earn a fair profit upon their entire business, and the burden is upon them to impeach the action of the Commission in this particular.” In Cantwell v. R. R., 176 Ill. 512, the Supreme Court of Illinois laid down the same doctrine thus: “The sufficiency of the earnings of a railroad to justify the expense of running a separate passenger train over a certain branch line constituting part of the entire system is not to be determined by considering the profits of that branch alone, but of the whole business of the various parts of the roads operated with the branch as one continuous line.” In R. R. v. R. R.Commission, 109 La. 247, the Supreme Court of that State, through Nichols,C. J., in defining the
In U.S. v. Freight Assn., 166 U.S. 322, the Court says: “It must also be remembered that railways are corporations organized for public purposes, have been granted valuable franchises and privileges (and among such the right to take private property of citizens is not the least), and that they all primarily owe duties to the public of a higher nature even than that of earning large dividends for their shareholders.” In Gladsonv. Minn., 166 U.S. 430, the Court says: “The State which created the corporation may make all needful regulations of a police character for the government of the company while operating its road within the jurisdiction; it may prescribe the location and the plan of construction of the road and the rate of speed at which the trains shall run and the places at which they shall stop, and may make any other reasonable regulations for their management in order to secure the object of its (18) incorporation and the safety, good order, convenience, and comfort of its passengers and of the public.” In Wisconsin v. Jacobson, 179 U.S. 296, the Court says: “That railroads from the very outset have been regarded as public highways, and the right and duty of the Government to regulate, in a reasonable and proper manner, the conduct and business of a railroad corporation have been founded upon that fact. Constituting public highways of a most important character, the functions of proper regulation by the Government spring from the fact that in relation to all highways the duty of regulation is governmental in its nature. At the present day there is no denial of these propositions.
It is needless to multiply authorities. As the United States Supreme Court says in the last-cited case, the defendant was granted incorporation by the State “to subserve primarily the public good and convenience.” If all those things required for the public convenience or comfort were profitable per se to the company, a Corporation Commission would not be necessary to compel the adoption and operation of such betterments. In Waterworks v. Schottler, 110 U.S. 347, it was held that the Legislature may regulate gas and water and other like companies, and require them to furnish their customers at prices to be fixed by the municipal authorities of the locality, and in R. R. v. Bristol, 151 U.S. 556, that the Legislature could require, even as to railroads already built, the removal of grade crossings at railroad expense. Certainly, then, the police power extends to authorizing the State Corporation Commission to require two railroad companies to make connection. The Corporation Commission, after three several investigations, has found that this connection would subserve that end. The jury, after an overwhelming array of evidence which we have not deemed it (19) necessary to recapitulate or cite, has so found. The statute clearly gives the power, and the authorities are beyond question that the Legislature could confer it. Requiring two railroads to make connection is the exercise of a far less power than making rates or compelling the erection of union depots at such junctions.
While we must reverse the decision below and affirm the judgment of the Corporation Commission, in view of the novelty and importance of this class of litigation, it is well to take notice of some of the exceptions taken by the Commission.
It was error to direct a verdict upon the first four issues. Upon the first issue, whether it was practicable to make connection by train No. 39, and the second issue, whether it was practicable to make connection by extending the run of the Plymouth train to Selma, there was a conflict of evidence, and the issues were of fact, and (if material) should have been submitted to the jury. More especially was this true since the order of the Commission was presumed to be valid and the burden was on the defendant to show otherwise. R. R. v. Minn., 186 U.S. 264. On the third issue, as to the practicability of running (20) the Springhope train to Selma in the four hours that it lies over at Rocky Mount, the evidence was uncontradicted that this could be done, and there was even evidence from two reputable witnesses which proved (if believed by the jury) that the costs of the extra run would be
[EDITORS’ NOTE: THE MAP IS ELECTRONICALLY NON-TRANSFERRABLE.], SEE 137 N.C. 44.]
The first seven issues were irrelevant and immaterial. The motion of the plaintiff for judgment upon the verdict should have been granted. The eighth issue, “Is it reasonable and proper that for the convenience of the traveling public the defendant company should be required to make such connection?” was answered “Yes.” This was the only material issue, and upon that finding alone the judgment should be entered here. This view is strengthened by the “inspection of the whole record,” which shows that the findings upon the sixth and seventh issues are that if the connection were made by the most expensive of the four methods named, the loss was only $15 per day, and the report of the defendant to the Corporation Commission, which is in the record, that its annual net earnings in this State were nearly two millions of dollars. This shows the correctness of the finding upon the eighth issue as to the reasonableness of the order, even in the most adverse view.
The court has the power to enter final judgment here, and on proper occasions has done so. The Code, sec. 957; Alspaugh v. Winstead, (21) 79 N.C. 526; Griffin v. Light Co., 111 N.C. 438; Cook v.
In this matter there has already been a year‘s delay. The inconvenience to the public continues each day. The act of the Legislature for that reason expedites the hearing of these causes by giving them precedence of all other civil cases. Judgment will therefore be entered here reversing the judgment of the Superior Court, and affirming (22) in all respects and declaring valid the order of the Corporation Commission made in this case, 13 February, 1904. That order simply directed the defendant to make the connection daily at Selma at the time mentioned therein, without specifying whether this should be done by quickening the speed of train No. 39 or by extending the run of the Springhope or the Plymouth train, or by putting on an extra train from Rocky Mount to Selma, and our judgment leaves to the defendant the same liberty of choice as to the mode in which it shall put into effect the order of the Commission. Owing to the possible necessity of making preparations to comply with this judgment, there will be a cessatexecutio till 10 February, 1905, entered on the judgment docket of this Court, and until that date no mandate shall issue to the defendant upon this judgment. The judgment of the Superior Court is
Reversed.