Kanawha & Michigan Railway Co. v. Public Utilities Commission
Kanawha & Michigan Railway Co. v. Public Utilities Commission
Opinion of the Court
Plaintiff in error owns its right of way and tracks from Gauley Bridge, W. Va., to Kanauga, Ohio, and from Hobson, Ohio, to Corning, Ohio. Between Kanauga and Hobson, a distance of approximately 10 miles, it uses the tracks of The Hocking Valley Railway Company, under a trackage agreement entered into by and between the predecessors of these two companies. Under this agreement, it uses also the tracks of The Hocking Valley Railway Company from Hobson to Pomeroy, Ohio, and from Kanauga to °Gallipolis, Ohio, and from Armitage, Ohio, to Athens, Ohio. Mine No. 5 of The Hocking Domestic Coal Company is located on the line of The Hocking Valley Railway Company a short distance south from Hobson. The Coal Company owns mine tracks located on its own land and these tracks have a switch connection with the main track of The Hocking Valley Railway Company over the latter’s right of way. Plaintiff in error, The Kanawha & Michigan Railway Company, has a yard at Hobson and has a drill track, approximately 3000 feet in length, extending from this yard southerly, built on the right of way of The Hocking Valley Railway Company, with a crossover connection with the main track of The Hocking
Under the order made by the Public Utilities Commission plaintiff in error would be required to furnish cars to the Coal Company over the switch connecting the main track of The Hocking Valley Railway Company and the mine tracks, or by means of a switch connection which it would have to build between its drill track, on the right of way of The Hocking Valley Railway Company, and the mine tracks. It is the contention of plaintiff in error that it is precluded from rendering this service on account of the limitations and restrictions contained in the trackage agreement.
“It does not include or grant the use of private switches and sidings constructed before or after it was entered into, not for the convenience of the two roads, but for the convenience of shippers.”
In the decree of the court “private switch” was defined to be a switch built for the use of the individual industry carried on at that point and not to be used foy other or general railroad business.
The predecessor of plaintiff in error was perpetually enjoined from taking freight and passengers from the cities of Pomeroy and Gallipolis and from the stations and places intermediate between those two cities and from making use of any of the switches or extensions of the predecessor of The Hocking Valley Railway Company between the cities of Pomeroy and Gallipolis, except such switches and sidings as were in. existence on the 24th day of July, 1886, and were constructed and intended for joint railroad purposes, and switches and sidings of that class which might have been since constructed by the predecessor of The Hocking Valley Railway Company.
Immediately following this order of the court there is found in the decree this language: “This branch of the decree being intended to deprive defendant corporation [the predecessor of plaintiff in error] of any or all right to make use of the private switches or extensions constructed by the plaintiff corporation not for railroad purposes but for the use of shippers accommodated by such switches and sidings.” A petition in error was
We think the circuit court was correct in the construction placed by it upon the limitations and restrictions contained in the agreement. We adopt this construction as controlling in dealing with the question presented here.
Counsel for The Hocking Domestic Coal Company state that the switch connection between the mine tracks of the Coal Company and the main track of The Hocking Valley Railway Company is a “private switch” upon private property and privately owned in the fullest sense those words can have in the railroad business and as they are generally understood — as distinguished from a “private switch,” also so-called, constructed by a railroad company as a railroad-owned switch. Their contention is, then, that this being the character of the switch or sidetrack in question it might well be assumed that the two railroad companies, neither of them owning it, could not dispose of such track by any contract between them — could not sell it or lease it or license the use of it to anyone. In other words, they claim that the use of this switch between the main track of The Hocking Valley Railway Company and the mine track of the Coal Company is not and could not have been intended to be restricted by this agreement. It is unnecessary to consider this claim, as the statement of counsel as to the ownership, location and control of the switch connection is not supported by the record. This switch connection
It seems clear to us, then, that this connection between the main track of The Hocking Valley Railway Company and the mine track comes squarely within the class of “private switches” which was not included in the grant made to the predecessor of plaintiff in error.
The Public Utilities Commission took the position that under the provisions of a supplemental agreement entered into between the predecessor of The Hocking Valley Railway Company and plaintiff in error, the latter has now the right to accept freight and passengers to and from all points on said “leased line,” and inferentially held that this private switch was a part of the. leased line. The supplemental agreement is as follows:
“By the terms of a certain contract or lease entered into on the 24th day of July, 1886, between The Columbus, Hocking Valley & Toledo Railway Company, the predecessor of The Hocking Valley Railway Company, and The Kanawha & Ohio Railway Company, predecessor of The Kanawha & Michigan Railway Company, the parties of this supplemental agreement are using jointly the track of The Hocking Valley Company extending from
“By the terms of said lease, it is provided that the lessee company, now The Kanawha & Michigan Railway Company, shall have no right to take any business from or to any station upon the line of the leased road, except Athens, for any point reached by the railroad of the second party herein or its connections.
“It is now mutually agreed between the parties hereto, that that part of said original contract or lease hereinabove referred to, and the prohibition therein contained, are hereby waived by the party of the second part and the effect of said provision is suspended as hereinafter provided, and the party of the first part is, during the time of such suspension, to have the right to take freight and passengers to and from all points on said leased line without any restrictions whatever, and such acts on the part of the party of the first part shall not be deemed or taken in any manner as a violation of the injunction heretofore granted by the Circuit Court of Meigs County in an-action therein pending wherein The Columbus, Hocking Valley & Toledo Railway Company was plaintiff, and The Kanawha & Michigan Railway Company was defendant.
“It is expressly understood and agreed, however, that the party of the second part reserves
Plaintiff in error, as we have seen, had been enjoined from taking freight and passengers from the cities of Pomeroy and Gallipolis and from stations and places intermediate between those two cities. As we read this supplemental agreement, it simply removes the traffic restriction as to business on the line of the leased road. It does not grant to plaintiff in error additional facilities for operating its road. The facilities which it had the right to use were defined by the circuit court. It was specifically pointed out in the decree of that court that the agreement did not include or grant the use of private switches and sidings constructed before or after it was entered into, not for the convenience of the two roads, but for the convenience of shippers.
Our holding is that plaintiff in error under the limitations and restrictions contained in the track-age agreement has no right to the use of the switch connection with the mine tracks of The Hocking Domestic Coal Company, nor has it any authority to use the right of way of The Hocking Valley Railway Company in making a connection between
But it is urged by counsel that even though plaintiff in error is prevented by the restrictions and limitations in the trackage agreement from rendering the service which the Coal Company is seeking, yet such an agreement is against public policy and void.
It is not claimed that the service rendered by The Hocking Valley Railway Company to The Hocking Domestic Coal Company, or any of the shippers on the portion of its line which it has leased, is rendered less prompt or less efficient on account of any provision contained in the track-age agreement. No complaint is made that a less number of trains is operated or that a less number or cars is being furnished by The Hocking Valley Railway Company on account of the use of its facilities by plaintiff in error, or that The Hocking Valley Railway Company is attempting to narrow its obligations, or relieve itself of any of the duties imposed upon it as a common carrier. The object of the agreement was to connect the disconnected portions of the railroad of plaintiff in error and to make a continuous line between that portion in Ohio and that portion in West Virginia. We know of no statute which would require The Hocking Valley Railway Company to grant the use of its facilities for that purpose. When it granted the use of its tracks and sidings between Gallipolis and Pomeroy, it did so voluntarily, subject, however, to certain limitations and restrictions. It is not likely that a trackage arrangement would have
We see no valid legal objection to this agreement. Similar agreements have met the approval of the supreme court of the United States in a number of cases, among which are Union Pacific Ry. Co. v. C., R. I. & P. Ry. Co., 163 U. S., 564, and Chicago, R. I. & P. Ry. Co. v. Denver & R. G. Ry. Co., 143 U. S., 596.
In that proceeding, as in this case, the contention was made that the reservation of The Hocking Valley ■ Railway Company to itself of the exclusive use of the private switch tracks was void as against public policy. The Interstate Commerce Commission in disposing of that contention used this language: “It is, of course, the well-settled law that a railroad may not render itself incapable of performing its duties to the public or absolve itself from those obligations without the consent of the state. It will serve no useful purpose, however, to enter upon any discussion of the cases. It will suffice to say that the authorities clearly establish the doctrine that an owning and operating railroad may give trackage rights to another carrier over a part of its line, where such a.
But it is urged, finally, and it was so held by the Public Utilities Commission, that there is a statute in Ohio which controls the situation before us, Section 8983, General Code, reading as follows: "A company whose road forms part of a line of railway between points common to another line, shall not contract or agree with any person, or other railroad company or companies, having a road or line of roads, or forming a part of a line of roads, between the same points, not to carry freight or passengers to or from such common points, nor shall it refuse to receive or
The Public Utilities Commission says that the duty of a,common carrier operating a line of railroad in common with another is defined in this section and that the agreement upon which, plaintiff in error relies is thereby rendered void. We do not think that this statute has any application to the situation presented here. As we view it, it contemplates the existence of two actual lines of railroad between points common to each other — parallel lines, so-called. The owners of such lines are prohibited from contracting or agreeing not to carry freight or passengers to or from such common points. Plaintiff in error owns no right of way or tracks between Hobson and Kanauga. It has no line, in the sense that term is used in the statute. It is only by reason of the trackage agreement that it operates at all between those points. We do not think that such an agreement was intended to be disturbed by the statute we have quoted.
For the reasons we have given, The Hocking Domestic Coal Company is not entitled to the relief it sought. The order of the Commission is therefore reversed and the complaint dismissed.
Order reversed and complaint dismissed.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.