Alabama Public Service Commission v. Louisville &. N. R.
Alabama Public Service Commission v. Louisville &. N. R.
Opinion of the Court
The bill in this cause was filed by appellee against appellant, and sought to enjoin the enforcement of an order made by appellant whereby appellee was required, among other things, to establish and maintain a public telegraphic service to some 20 towns and villages in this state situated on branch lines of railroad owned and operated by appellee. The trial court *327 overruled a demurrer to the bill of ccanplaint, and denied appellant's motion to dissolve a temporary injunction which had been granted upon the filing of the bill. These rulings are assigned for error.
Prior to April 30, 1920, the Western Union Telegraph Company had maintained a public telegraphic service, or commercial service, as it is commonly called, to the towns affected by appellant’s order over lines erected on appellee’s right of way. These lines had been erected, and for years maintained and operated, in pursuance of a contract between appellee and the telegraph company, the effect of which, stated in very general terms, was that, in consideration of the telegraph company’s use of appellee’s right of way for the transmission of the company’s commercial messages, it should transmit for appellee messages necessary and useful in the operation of its railroad. In 1912 the Western Union Company, in virtue of a provision to that end, had elected to terminate the contract, and had then set on foot proceedings to condemn to its use in situ the lines of poles and wires which it had previously operated on appellee’s right of way, but at the end of litigation long drawn out (L. & N. R. Co. v. Western Union Telegraph Co., 195 Ala. 124, 71 South. 118, Ann. Cas. 1917B, 696; Western Union Telegraph Co. v. L. & N. R. Co., 244 U. S. 649, 37 Sup. Ct. 743, 61 L. Ed. 1371; Western Union Telegraph Co. v. L. & N. R. Co. [D. C.] 201 Fed. 946; L. & N. R. R. Co. v. Western Union Telegraph Co., 207 Fed. 1, 124 C. C. A. 573; L. & N. R. Co. v. Western Union Telegraph Co., 252 Fed. 29, 164 C. C. A. 141), it was ordered, adjudged, and decreed, in effect, by courts of competent jurisdiction that the telegraph company should remove its telegraph lines in question from appellee’s right of way by midnight of April 30, 1920. Thereafter, viz. May 1, 1920, as the result of previous negotiations appellee purchased the lines in question from the Western Union and the same were immediately delivered to appellee, after which commercial service over said lines was discontinued. Previous to the execution of the contract of sale aforementioned, viz. about April 20, 1920, the Western Union notified the Alabama Public Service Commission that, on account of the decrees and judgments of the court in the premises, it would on April 30, 1920, vacate appellee’s right of way, and thereafter would discontinue its public telegraph service to the 20 towns and villages to which we have referred.
On May 1, 1920, the Public Service Commission cited appellee to show cause, in substance, (1) why appellee should not submit for approval the contract by which it had purchased from the Western Union the lines of poles and wires in question, and why (2) it should not be required to establish and continue over the lines sa purchased public telegraph service to the towns and villages aforementioned. Afterwards, and as the result of a hearing, the Public Service Commission entered an order approving appellee’s purchase of the lines in question, but upon condition that appellee continue to furnish through and over them the public telegraph service previously furnished by the Western Union, and ordering that, so long as appellee retained possession'of said lines, it should furnish public telegraph service to- said towns and villages, after which appellee filed its bill in this cause, and proceedings were had and decrees entered as noted in the beginning.
“The property of a public utility, together with its franchises, contracts, business, . good will, and other assets, may he lawfully sold and conveyed or leased to, and thereafter lawfully held, enjoyed and operated by, a purchaser then engaged or proposing to engage in the business conducted by such public utility * * * whenever such sale and conveyance or lease of the property * * * is consistent with the interests of the public. * * * The question whether the proposed sale and conveyance or lease is consistent with the interests of the public shall be determined by * * * the Railroad Commission of Alabama, and if * * * the Railroad Commission of Alabama * * * determines that the proposed sale and conveyance, or lease, is consistent with the interests of the public, their determination shall be shown by their approval of the proposed sale and conveyance or lease.”
The act further provided that nothing therein contained should be construed to limit or restrict the right to sqll, etc., where a sale would be legal without reference to its provisions. Section 2 of the act. Of a proceeding under this act this court said in Ex parte City of Birmingham, 199 Ala. 9, 74 South. 51; “It is, in substance, a proceeding for a statutory license to do that which the law otherwise does not permit” — meaning, as section 2 very clearly indicates, that the act contemplates and authorizes inroads, to a limited extent, upon the common law where the rule that a quasi public corporation may not, in the absence of statutory warrant, make any contract by which it.s power to perform its public functions will be impaired (14a C. J. 543, 544); but this rule of the common law did never prevent the alienation of such property of a corporation as was not essential to the exercise of its duties (Id).
*328
Presenting the question stated, above, though in somewhat different form and language, the Commission contends that the lines of the Western Union, constructed and used to render service to the public, are charged with a trust in favor of the public, and cannot be absolved from the burden of that trust unless by the consent of the state, expressed by competent authority, and that, in the event of an unauthorized alienation, the alienee may be compelled to the performance of the trust to which the property has been dedicated. There is no occasion to deny the effect of 'appellant’s proposition, thus stated; -but, as the exigency of the case demanded, appellant has gone further, and asserts in effect that the judicial decrees to which we have referred are of no consequence in the premises for the reason that no court of competent jurisdiction has determined that the sale in question was to the best interest of the public.
“charged with the duty of supervising, regulating, and controlling all transportation companies doing business in this state, in all matters relating to the performance of their public duties, and their charges therefor, and of correcting abuses therein * * * and shall require them to establish and maintain all such public service, facilities, and conveniences as may be reasonable and just,” etc. Code of 1907, § 5651.
The Commission has also the other powers over railroads conferred by chapter 130 of the Code, of which section 5651 is a part, by the act of August 6, 1915, considered above, and by an act of September 30, 1919 (Acts, p. 1038); but none of its enumerated powers can be construed as conferring the power attempted to be exercised in this case, either expressly or by implication. Conrad v. Western Union Telegraph Co., P. U. R. 1920E, 499; Atchison, T. & S. F. Ry. Co. v. *329 State, 23 Okl. 231, 100 Pac. 16, 18 Ann. Cas. 102.
Something is said in the briefs in reference to the duty of the Western Union Company to establish lines outside appellee’s right of way, in replacement of the lines it has been required to abandon, over which to maintain a telegraphic service for the transmission of commercial messages; but that company is not a party to this proceeding, and its duty in the premises cannot here be determined. Without regard to what duty may be imposed on the Western Union, we hold that the Public Service Commission was without authority to make the order of which the Louisville & Nashville Railroad Company complains. It follows that the decree of the trial court was correct.
Affirmed.
Addendum
On Application for Rehearing.
Application overruled.
Reference
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- ALABAMA PUBLIC SERVICE COMMISSION Et Al. v. LOUISVILLE &. N. R. CO.
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