Opinion · Indiana Court of Appeals
Chicago, Indianapolis & Louisville Railway Co. v. Railroad Commission
Chi., Indianapolis & Louisville Ry. Co. v. R.R. Comm’n, 38 Ind. App. 439 (Ind. Ct. App. 1906)
- Type
- Opinion
- Court
- Indiana Court of Appeals
- Jurisdiction
- Indiana
- Date
- 1906-06-27
- Topic
- general
Robinson, C. J. This is an appeal to review the action of the Eailroad Commission of Indiana in fixing a rate on coal, and also an order of the commission forbidding the way-billing of cars loaded with coal at their marked capacity when such cars would not hold the marked capacity when fully loaded. This case arose out of proceedings taken by the commission under the act of the legislature approved Eebruary 28, 1905 (Acts 1905, p. 83, §5405a et seq. Burns 1905), entitled: “An act providing for the creation of a railroad commission, the appointment and compensation of the members thereof, prescribing the powers and duties of such commission- and its members, prescribing certain duties and obligations of railroad companies, express companies and other common carriers, defining certain misdemeanors and prescribing penalties, providing for the collection of penalties by civil action from railroad companies and other common carriers by the State in cases therein provided for, appropriating money to carry out its provisions, providing for a review of the decisions of the commission and conferring jurisdiction on certain courts to hear and determine such proceedings, and repealing all laws and parts of laws in conflict therewith.” The first and second sections of the act create the commission, provide for the appointment of three commission*442ers, prescribe the qualifications, terms and salaries of the commissioners, the organization of the commission and where its sessions may be …
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This is an appeal to review the action of the Eailroad Commission of Indiana in fixing a rate on coal, and also an order of the commission forbidding the way-billing of cars loaded with coal at their marked capacity when such cars would not hold the marked capacity when fully loaded.
This case arose out of proceedings taken by the commission under the act of the legislature approved Eebruary 28, 1905 (Acts 1905, p. 83, §5405a et seq. Burns 1905), entitled: “An act providing for the creation of a railroad commission, the appointment and compensation of the members thereof, prescribing the powers and duties of such commission- and its members, prescribing certain duties and obligations of railroad companies, express companies and other common carriers, defining certain misdemeanors and prescribing penalties, providing for the collection of penalties by civil action from railroad companies and other common carriers by the State in cases therein provided for, appropriating money to carry out its provisions, providing for a review of the decisions of the commission and conferring jurisdiction on certain courts to hear and determine such proceedings, and repealing all laws and parts of laws in conflict therewith.”
The first and second sections of the act create the commission, provide for the appointment of three commission
The third section vests the commission with power and authority to supervise all railroad freight and passenger tariffs; to regulate car service -and the transfer of cars from one road to another, and to supervise charges therefor; to require and supervise the location and construction of sidings and connections between railroads, and the crossing of tracks and side-tracks of railroads by other railroads, vesting in the commission the authority now vested in the Auditor of State with reference to crossings and interlocking appliances; to supervise and regulate private car-line service and private tracks where the same are used in connection with any railroad in the State; to correct abuses and prevent unjust discrimination and extortion in freight and passenger tariffs on the different railroads, and to enforce the same by proceedings for the enforcement of penalties provided by law through courts of competent jurisdiction. The commission is also given power, upon failure of the railroads so to do, to fix and establish for all connecting lines reasonable joint rates of freight, transfer and switching charges; to fix the pro rata part of charges to be received by each of the two or more connecting roads, where such roads fail to agree; from time to time to alter, change, amend or abolish any classification or rate established by any company whenever found to be unjust or discriminative; to enforce reasonable and just rates for the use or transportation of loaded or empty cars and for storing and handling freight; to enforce reasonable rates for the transportation of passengers, and tolls or charges for all other service performed by any railroad company subject to the provisions of the act; to adopt and enforce such rules, regulations and modes of procedure as it may deem proper; to hear and determine complaints made against classifications or rates maintained by common carriers, or against
The fourth section provides for notice to the company, before rates or charges are revised or changed, for a hearing, that the commission may adopt rules to govern its proceedings, subpoena witnesses and order the production of books and papers, etc.
The fifth section reads: “In all actions between private parties and railroad companies or private car-line companies brought under this law, the rates, charges, orders, rules, regulations and classifications approved by or made by said commission before the institution of such action shall he held, deemed and accepted to be reasonable, fair and just, and in such respects shall not be controverted therein except as hereinafter provided until finally found otherwise in a direct action brought for that purpose in the manner prescribed by sections six, six and one-half and seven hereof.”
The sixth section provides that if any railroad company or party in interest be dissatisfied with any rate, classification, rule, charge or general regulation made, such company or party may procure a complete transcript of all the
The sixth section further provides that if the company or party in interest be dissatisfied with any order or regulation respecting the location or construction of sidings, switches or connections between railroads, or the crossing of one railroad by another, or the transfer or switching of cars at junction points, or the regulation of private tracks, such company or party may file a petition in the circuit or superior court of the particular county, setting forth the objections to the order, and after the requirements as to notice are complied with the case shall be set for hearing, “and shall be heard and determined as a suit in equity,
Section six and one-half provides: “All orders of the commission made and entered upon its records as herein provided respecting rates, charges, rules, regulations and classifications, or respecting the location or construction of sidings or connections between railroads, or to the crossing of one railroad by another, or the transfer and switching of cars at junction points, or the regulation of private tracks, shall be operative and in full force at and from the time fixed therefor by the commission as hereinafter provided, until any such order shall have been changed, modified or set aside by a circuit, superior or appellate court under the proceedings provided for in section six of this act: Provided, however, that if at the time of filing a transcript” in the Appellate Court, appealing from the fixing of any rate, the company filing such petition may, upon filing a bond specified, charge and collect the rate that existed before the making of the order by the commission, until such proceeding is finally determined; and if the company files the bond and continues to charge the old rate it shall give each person paying the old rate a certificate showing the amount received and the rate charged and containing a promise to refund the difference if the new rate is sustained by the Appellate Court. A penalty is provided for failure to comply, within a fixed time, with the promises contained in the certificate.
The seventh section provides that in all trials under section six “the burden of proof shall rest upon the plain-j tiff, who must show by clear and satisfactory evidence that; the rates, regulations, orders, classifications, acts or charges^ complained of are unreasonable and unjust to it or them.”
Section twenty-one: “The terms ‘road,’ ‘railroad,’ ‘railroad companies,’ ‘railroad corporations,’ ‘private car lines,’ ‘fast freight’ or ‘carrier,’ as used herein,- shall be taken to mean and embrace all corporations, companies, individuals and association of individuals, their lessees or receivers appointed by any court whatsoever, that may now or hereafter own, operate, manage or control any railroad or part of railroad in this State or any fast freight line or private car lines and express companies, and all such corporations, companies, and associations of individuals, their lessees or receivers that shall do the business of common carriers on any railroad in this State, (a) The provisions of this act shall be construed to apply to, and affect only the transportation of passengers, freight, express matter and cars between points within this State; and this act shall also apply to express companies: Provided, that this act shall not apply to street or interurban railroads, except as section three substitutes the railroad commission, created hereby for the Auditor of State, in respect to duties pertaining to the construction and maintenance of interlocking works at crossings of railroads and railroads operated by electricity.”
Section twenty-two provides that the act “shall not have the effect to release or waive any right of action by the State or any person for the right, penalty or failure which may have arisen, or may hereafter arise under any law of this State; and all penalties accruing under this act shall be cumulative of each other, and a suit for or recovery of one shall not be a bar to the recovery of any other penalty.”
The railroad commission moves to dismiss the appeal, on the ground, among others, that this court has no jurisdiction to hear such pretended appeal; that the appeal is not taken from the final judgment or decree of any court or body exercising judicial authority; that sections six and six and one-half of the act of 1905, supra, are in conflict with article three of the Constitution of Indiana. Appellant answers this motion by admitting the claim of appellee, that this court has no jurisdiction, and that the two sections named are invalid, but insists that the act is wholly void because, among other reasons, by section twenty-one, the act deprives certain railways of equal protection of the law. Appellant suggests that as there is a constitutional question involved the jurisdiction is in the Supreme Court.
1. The motions to dismiss are for want of jurisdiction in this court to determine the appeal. It is quite true that this court has no jurisdiction of this appeal if the provision of the statute giving the right of appeal is invalid. And it is equally true that, although the provision giving the right to appeal be valid, this court has no jurisdiction of the merits of the appeal if the body making the order from which the appeal is taken had no jurisdiction to make the order. It is elementary that if the subordinate body is without jurisdiction the appellate body cannot gain it by an appeal. The appeal has been brought to this court as the statute directs. Its decision is made final. And while this court has not, in general appeals, any authority to pass on the constitutionality of a statute, yet under this statute it has been given exclusive appellate jurisdiction, and must necessarily pass upon such questions as go to the powers of the court to determine the appeal.
Section six authorizes the appeal if the party is dissatisfied with any rate, classification, rule, charge or general regulation made, approved, adopted or ordered by the commission. Complaint is made in this appeal of a rate made by the commission, and also of what should perhaps be called a rule made as to way-billing cars. But the argument is directed to the making of the rate.
In the able briefs filed by a member of the commission on behalf of the commission, and by counsel for appellant company, and by the Attorney-General, a thorough discussion is had of the nature of the duty performed by the commission in the proceedings prescribed for fixing a rate.
4. The legislature might exercise this right by itself fixing the rates; or it might delegate this duty to a commission acting upon its own initiative; or it might leave with the railroads themselves the right to fix rates under the original grant of authority, subject to regulations and restrictions imposed,by a commission, and subject always to the requirement that the rate fixed must be reasonable. In enacting the statute under consideration the legislature followed the last-named method. The carrier had the right before the passage of the act to fix rates, and it has that right under the act.
5. It was required before the act to make rates reasonable; it is required to do the same thing novr. If, before the act, the carrier attempted to charge an unreasonable rate, the shipper could have redress through the courts. If the carrier attempts now to charge an unreasonable rate, a more prompt means of relief for such rate is given through a commission.
6. In determining whether a court may review the action of the commission in fixing a rate, the fact must be kept in view that the act gives the commission no power whatever to correct, alter, change or establish rates, except upon the filing of a written verified complaint setting forth the unreasonable character of the rate complained of; a hearing is given upon the complaint, after notice, and after such hearing the commission shall make such corrections, alterations, changes or new regulations as may be necessary to prevent injustice and discrimination
In the above particulars the act differs materially from railroad commission acts in some other states, where the commission is given summary supervision of rates. See Chicago, etc., R. Co. v. Minnesota (1890), 134 U. S. 418, 33 L. Ed. 970, 10 Sup. Ct. 462.
So that, before the commission can grant any relief from the rate fixed by the railroad, it must first find that the rate of which complaint is made, and which was fixed by the railroad, is unjust or unreasonable. And in doing this in the manner prescribed by section three of the act, the
7. Under points and authorities it is stated, in the original brief of appellee commission, that the most convincing reason that the commission is not a court is the fact that it is given authority to fix rates, which is purely a legislative duty. In the brief in reply to the State’s brief, the position taken by the commission is, that the power exercised by it in making rates is an administrative or executive power, and the argument in the same brief opens with the statement that “the Railroad Commission of Indiana, for whose members the writer speaks, is one of the coordinate branches of the State government.” The manner in which the statute requires the commission to proceed in disapproving a rate complained of, and fixing another to take its place, sufficiently shows that the power exercised is neither altogether legislative nor executive, and we know of no authority in the legislature to create a department of the state government in addition to those named in the Constitution. While the statute does not make the commission a court, and it is not a court, yet the act of setting aside the rate complained of — and this must be done before another rate can be fixed to take its place— and fixing another, upon evidence introduced, upon a complaint filed — in fact, a trial had with the aid of judicial process — may properly be said to be the exercise of a quasi-judicial duty. In any event, the power exerci'sed in ^this
8. But whether the power exercised by the commission in ■fixing a rate is in its nature legislative, administrative or judicial is not decisive of the question presented./ It is conceded by counsel for appellee, in answer to appellant’s argument, that without section six the rate fixed by. the commission is conclusive and that, aside from any provision in this act, the courts are open to the carrier to prevent the enforcement of the order of the commission, if the rate established is unlawful. As the statute requires the rate to be just, reasonable and undiscriminative, if the commission fixes a rate that is not reasonable, its act is unlawful. A decision declaring the rate fixed to be unlawful, and whether unlawful because un-' reasonable, or unlawful because the statute was not followed in fixing it, is a judicial act, and is a question for the courts. It is not material by what delegated authority the rate is fixed, nor by what name the duty of fixing the rate is characterized, if the rate is unreasonable or unlawful the court will give protection against it. Reagan v. Farmers Loan, etc., Co. (1893), 154 U. S. 362, 367, 14 Sup. Ct. 1047, 38 L. Ed. 1014, 4 Interst. Com. Rep. 560; Chicago, etc., R. Co. v. Minnesota, supra; St. Louis, etc., R. Co. v. Gill (1895), 156 U. S. 649, 15 Sup. Ct. 484, 39 L. Ed. 567; Smyth v. Ames (1898), 169 U. S. 466, 42 L. Ed. 819, 18 Sup. Ct. 418; Burlington, etc., R. Co. v. Dey (1891), 82 Iowa 312, 48 N. W. 98, 31 Am. St. 477, 12 L. R. A. 436; Chicago, etc., R. Co. v. Jones (1894), 149 Ill. 361, 37 N. E. 247, 24 L. R. A. 141, 41 Am. St. 278; Atlantic Express Co. v. Wilmington, etc., R. Co. (1892), 111 N. C. 463, 16 S. E. 393, 32 Am. St. 805, 18 L. R. A. 393.
In Reagan v. Farmers Loan, etc., Co., supra, the court said: “It has always been recognized that, if a carrier attempted to charge y a shipper an unreasonable sum, the
10. It is well settled that, under a «general statutory provision providing for an appeal from all decisions of the board of county commissioners, an appeal may be taken from any order of the board, if the duty of the board involves judicial action, unless the right of appeal is expressly or impliedly denied by the statute creating the duty. And it is also settled that an appeal will not lie under this general provision if the duty of the board does not involve judicial action, but consists in the performance of administrative, ministerial or discretionary powers. However, an appeal will lie from the action of the board where the only power exercised by the board is administrative, ministerial - or discretionary, if an appeal is expressly authorized by statute. See Bosley v. Ackelmire (1872), 39 Ind. 536; Moffitt v. State, ex rel. (1872), 40 Ind. 217; Baltimore, etc., R. Co. v. Board, etc. (1880), 73 Ind. 213; Grusenmeyer v. City of Logansport (1881), 76 Ind. 549; Padgett v. State (1884), 93 Ind. 396; City of Terre Haute v. Mack (1894), 139 Ind. 99; Board, etc., v. Davis (1894), 136 Ind. 503, 22 L. R. A. 515; Mode v. Beasley (1896), 143 Ind. 306.
11. The legislature established the Appellate Court under the authority given by §1, article 7, of the Constitution, which provides that “the judicial power of the State shall be vested in a Supreme Court, in circuit courts, and in such other courts as the General Assembly may. establish.” It is manifest that the act in force February 28, 1891 (Acts 1891, p. 89), establishing the Appellate Court, invested the court with appellate jurisdiction only. By the first section of that act it was given jurisdiction of appeals from the circuit, superior and criminal courts in certain designated classes of eases. The clerk and sheriff of the Supreme Court are made the clerk and sheriff of the Appellate Court, and the judges of the Appellate Court were required to adopt the same uniform rules of practice as govern the Supreme Court. Appeals were required to be taken to the Appellate Court in the same manner as to the Supreme Court, and pleadings, practice and proceedings in the two courts were to be the same. The act did not create any new appellate jurisdiction, but simply took a part of the general appellate jurisdiction then existing and transferred it to the Appellate Court which the act created. The act did not undertake to confer upon the court any original jurisdiction and conferred none; and under that act the court had no original
12. However, as this court is established by the legislature, the legislature has, within the constitutional limitations as to the judiciary, full power to define its procedure and jurisdiction. “It is true,” said the court in Hovey v. State, ex rel. (1891), 127 Ind. 588, 11 L. R. A. 763, 22 Am. St. 663, “that the legislative department may increase, or diminish, the jurisdiction of the [Supreme] Court, ánd may, within the terms of the Constitution, prescribe rules of practice.” It is equally true that the legislature may confer upon a court of its own creation either appellate or original jurisdiction, or both. Brown, Jurisdiction (2d ed.), §13. There is nothing in the Constitution that restricts its jurisdiction. The fact that it is called an “appellate court” and was created as a court of appeals, and that, strictly speaking, an appellate court can review a decision of a court only, does not preclude the legislature from' conferring upon it jurisdiction other than strictly appellate jurisdiction. The question is whether the particular duty placed upon the court is a judicial duty.
13. The sixth section of the act in question expressly provides that the secretary of the commission shall, upon request, furnish a complete transcript of all the proceedings of the commission relative to the action appealed from, also a copy of all the evidence which
It is true that section three says that this court upon the appeal may “affirm, change, modify or set aside” the action of the commission. Whether the court would, upon final judgment, have power to change or modify a rate fixed hy the commission is not now presented. But it is manifest that the court might, as a court, determine whether the rate was legally established or whether it was established under a law authorizing it, and affirm or set aside the action of the commission in fixing the rate; and neither more nor less than this is done when the qu'estion of the unreasonableness of the rate is heard by a trial court. If the action of the commission should be affirmed, the rate is fixed, not by the court, but by the commission. The power to change or modify a rate is not at all essential to the power to affirm or set aside the order of the commission. It is quite true that it is an elementary principle that “upon judges as such no functions can be imposed except those of a judicial nature.” Cooley, Prin. of Const. Law, 53. And see Ex parte Griffiths (1888), 118 Ind. 83, 3 L. R. A. 398, 10 Am. St. 107; City of Terre Haute v. Evansville, etc., R. Co. (1897), 149 Ind. 174, 37 L. R. A. 189. But determining whether a rate has been legally established or whether the same is or is not reasonable, is a judicial function.
15. It is also argued that this provision in this act delegates to the commission — a non judicial body — the duty of hearing the evidence upon which a court is to render a decision. Even if it could be said that the only question that would necessarily be presented by the transcript would be on the weight of the evidence, and as stated, this would not necessarily be the only question, this objection to the manner of hearing the evidence would not be tenable. A case may be tried in the circuit court upon evidence consisting wholly of depositions taken by a notary public. A circuit court may refer a case to a master commissioner, to whom judicial power cannot be given (Shoultz v. McPheeters [1881], 79 Ind. 373), and make a finding from the evidence so taken, or pronounce a judgment upon a finding of facts made by the master from the evidence heard by him.
Our conclusion upon this branch of the case is that the legislature, in providing for an appeal to this court, has required of this court the performance of a judicial duty that may rightfully be imposed; that the legislature may
16. Counsel, in support of appellant’s motion, have discussed at length the constitutionality of the act, claiming that it is unconstitutional, among other reasons, on the ground that it empowers the commission to fix a rate before the reasonableness of such rate has. been judicially determined, and on the ground that interurban roads are exempt from the provisions of the act. Appellant’s motion is not to dismiss the appeal, but to dismiss the petition. The petition or complaint is not filed in this court, but-comes to this court in the transcript of the proceedings of the commission. It is a part of the transcript filed in this court. If the act is invalid, as appellant insists, it is true that the commission has no authority to act, and from that it would necessarily follow that this court could have no jurisdiction of the appeal. Whether any motion in this court to dismiss a petition filed with the commission would be a proper motion to be considered by this court at any time we need not now determine. But, as to the motion now presented by appellant, the effect of a ruling in its favor upon the questions argued in support of its motion would be a determination of the appeal upon its merits. It is true, if the act is invalid, any act of the commission
The motion to dismiss the appeal is overruled.
Comstock, P. J., Eoby, Wiley and Myers, JJ., concur.