184 Pa. Super. 380 | Pa. Super. Ct. | 1957
Opinion by
The basic issue in this appeal is whether the Pennsylvania Public Utility Commission may lawfully regulate rates charged by a common carrier on wholly intrastate shipments of property of the United States of America.
On November 16, 1953, the commission, on its own motion, instituted an inquiry and investigation for the purpose of determining whether The Pennsylvania Railroad Company was transporting property free or at reduced rates for federal agencies or at charges other than, as provided in its officially filed tariffs in violation of sections 303 and 304 of the Public Utility Law of May 28, 1937, P. L. 1053, 66 PS §§1143, 1144. The company filed an answer admitting that it offered to transport property for the United States at rates other than those published in its tariffs, but denying the violation of sections 303 and 304 of the Law. An initial hearing was held on March 22, 1954. The commission granted the petition of the United States to intervene. On June 15, 1954, the commission entered an order in which it found: “In the absence of express statutory authority to the contrary, transportation of property for State or Federal Government is within the scope of the [Public Utility] law.” Accordingly, the commission ordered: “That The Pennsylvania Railroad Company cease and desist transportation of property for the Federal Government, or its agencies, at rates other than provided in its tariffs filed with the Commission.” A petition of the United States for rehearing was refused. The United States appealed to this Court, and upon petition we remanded the record to the commission for further study and consideration, for supplementation of the record, to make specific findings of fact in detail, and to enter such an order as may be deemed just and proper in the premises. At
Appellant presents two questions for our consideration: “1. Does the Public Utility Law of Pennsylvania prohibit carriers from transporting property of the United States between points in the state at rates other than those contained in published tariffs? 2. Is a state statute which confers upon a state Commission the power to regulate the rates for the shipment of the property of the United States between points in the state unconstitutional?”
We observe that these questions are similar to those which were before us in Penn Dairies, Inc. v. Milk Control Commission of Pennsylvania, 148 Pa. Superior Ct. 261, 24 A. 2d 717, wherein we held that the sale of milk to the United States was subject to the minimum price fixed by the Milk Control Commission, and that such regulation was not unconstitutional. Our decision in the Penn Dairies case was affirmed on appeal to the Pennsylvania Supreme Court (344 Pa. 635, 28 A. 2d 431) and by the United States Supreme Court (318 U. S. 261, 63 S. Ct. 617, 87 L. Ed. 748).
The initial inquiry is whether our Public Utility Law prohibits a carrier from charging rates other than
*386 “(16) ‘Person’ means individuals, partnerships, or associations, other than corporations, and includes their lessees, assignees, trustees, receivers, executors, administrators, or other successors in interest.”
The United States also contends that the reference to the three categories of customers in section 303 limits its application under the doctrine of “ejusdem generis.” This rule is only an aid to construction; “ ‘. . . it is never applied to defeat the real purpose of the statute, as that purpose may be gathered from the whole instrument.’ ” United States v. Mescall, 215 U. S. 26, 31, 30 S. Ct. 19, 54 L. Ed. 77, 79. See, also, Com. v. Klueher, 326 Pa. 587, 590, 193 A. 28.
We may not be unmindful that the regulation under the Law is that of The Pennsylvania Kailroad Company, a common carrier. If it is permitted to use its equipment for intrastate carriage of property of the United States without being subject to regulation, it will be using equipment that otherwise would be used for carriage of property for ordinary patrons but charging rates other than those paid by such patrons.
The other matter for consideration is whether the Law is constitutional as applied to rates charged for intrastate shipments of the United States. In Penn Dairies, Inc. v. Milk Control Commission of Pennsylvania, supra, 318 U. S. 261, 270, 63 S. Ct. 617, 87 L. Ed. 748, 754, it is stated: “The trend of our decisions is not to extend governmental immunity from state taxation and regulation beyond the national government itself and governmental functions performed by its officers and agents. We have recognized that the Constitution presupposes the continued existence of the states functioning in co-ordination with the national government, with authority in the states to lay taxes and to regulate their internal affairs and policy, and that state regulation like state taxation inevitably imposes some burdens on the national government of the same kind as those imposed on citizens of the United States within the state’s borders, . . . And we have held that those burdens, save as Congress may act to remove them, are to be regarded as the normal incidents of the operation within the same territory of a dual system of government, and that no immunity of the national government from such burdens is to be implied from the Constitution which established the system, . . .” It is apparent that, whatever the immunity of the Federal Government may be, such immunity does not extend to those who render services to the Government such as The Pennsylvania Railroad Company. Penn Dairies, Inc. v. Milk Control Commission of Pennsylvania, supra, 318 U. S. 261, 269, 63 S. Ct. 617, 87 L. Ed. 748, 753. The mere fact that there may be an increased economic burden imposed by requiring The Pennsylvania Railroad Company to comply with
The United States contends, however, that the particular nature of this transportation indicates that state regulation of the rates imposes an unreasonable burden upon the Federal Government. It is argued that the lines of supply of the United States are highly integrated and synchronized to operate on a worldwide basis, and that any local interference Avith that system is improper. In the present case we are concerned only Avith shipments Avhich originate and terminate within the Commomvealth of Pennsylvania without crossing state lines. It is purely an intrastate transportation. When considered in the over-all governmental picture, it may have some relationship to the world-wide and national programs, but this fact alone does not make the obligation to pay established rates for transportation an unreasonable burden. Obviously, in the Penn Dairies case the supply of milk to the armed forces in training Avas part of the program of building and maintaining a healthy and effective fighting force during the Second World War. Nevertheless the requirement that the minimum price be paid for such milk when purchased in Pennsylvania did not impose an unconstitutional burden. We find no material difference between the Penn Dairies case and the present one in this respect.
It is also clear that the Law does not impose any duty or burden upon government officers or agents with respect to compliance therewith. The duty and the regulation are imposed upon the carrier which pro
Counsel for the United States also argues that, because of the variety of commodities shipped by the military forces, there may not be an established tariff on file for certain items, and that this would result in a delay of the shipment while such tariffs are being filed and approved. We believe that the commission adequately answers this practical problem, if it is one, by referring to its regulations which would permit the railroad company to file a tariff covering such shipments and obtain concurrent commission approval. See, also, sections 302, 308 (a), 66 PS §§1142, 1148, which authorize the commission to expedite the filing and the approval of any new or changed rate. A witness for the United States in fact testified that there was no delay caused by such procedure. In this connection the United States also contends that, since certain shipments of military material may be of a secret nature, the requirement of filing rates for shipment thereof with the commission may require revealing the nature of the shipment or its secret destination. In such instances the Federal Government would not be obliged to reveal to the commission any more information than it would ordinarily reveal to the carrier which is to transport the property. The regulation of rates for carriage does not require any breach of security or the extended dissemination of information which might lead to a breach of security.
It is further contended that the state regulation of rates conflicts with a specific congressional policy that all government shipments be made by special arrangement free, from regulation. This purported congres-
The United States relies to some extent upon United States v. Public Utilities Commission of California, 141 F. Supp. 168, which held the Public Utility Code of California unconstitutional in so far as it “purports to authorize the Public Utilities Commission of California to impose ‘such conditions as it may consider
Admittedly tbe use of intrastate carriers and utilities by tbe Federal Government is substantial. It must be recognized, however, that tbe commission could not adequately regulate sucb carriers and utilities if tbe business of tbe Federal Government were exempt from commission regulation. Our Public Utility Law was intended to apply generally. In view of tbe lack of any substantial burden upon tbe United States or interference therewith, we conclude that the provisions of
The orders are affirmed.
The United States Supreme Court assumed the applicability of the Milk Control Act to sales to the United States and discussed only the constitutional issue.
Section 2 of the Law, 66 PS §1102, defines the three categories as follows:
“(9) ‘Corporation’ means all bodies corporate, joint-stock companies, or associations, domestic or foreign, their lessees, assignees, trustees, receivers, or other successors in interest, having any of the powers or xmivileges of corporations not possessed by individuals or partnerships, but shall not include municipal corporations, except as otherwise expressly provided in this act, nor bona fide cooperative associations which furnish service on a nonprofit basis only to their stockholders or members. . . .
“(15) ‘Municipal Corporation’ means all cities, boroughs, towns, townships, or counties of this Commonwealth, and also any public corporation, authority, or body whatsoever created or organized under any law of this Commonwealth for the purpose of rendering any service similar to thát of a public utility.
“Service” is used in the Law “in its broadest and most inclusive sense.” Section 2 (20), 66 PS §1102 (20).
See, also, section 2 (23), 66 PS §1102 (23), which defines “Transportation of Passengers or Property.”
The filing of rates is of compelling importance to effective regulation. United States v. Illinois Terminal Railroad Company, 168 F. 546, 549.
“The intention to interfere with the state function of regulating intrastate rates is not to be presumed.” Arkansas Railroad Commission v. Chicago, Rock Island, and Pacific Railroad Company, 274 U. S. 587, 603, 47 S. Ct. 724, 71 L. Ed. 1224, 1228.
See section 801, 66 PS §1301, which is a declaration of policy concerning common carriers by motor vehicle.
A public utility performs a function of tbe state (Smyth v. Ames, 169 U. S. 466, 544, 18 S. Ct. 418, 42 L. Ed. 819, 848) ; and it must use all its receipts as tbougb they were a public trust
See, also, Art. 17, § §1, 7, Const. PS.
There has been no disposition of the appeal pending in the United States Supreme Court, No. 447, October Term, 1956.