Hampton v. St. Louis Iron Mountain & Southern Railway Company

Argued and submitted October 29 and 30, 1912.

Decided February 24, 1913.

This bill was filed for the purpose of enjoining the bringing of actions in the state courts, in the name of the state, to recover penalties declared by the railroad commission of the state for the violation of a statute requiring railroads to furnish cars upon the application of shippers, and forbidding discrimination between shippers in furnishing such cars.

The facts necessary to be stated are these:

Upon a complaint duly filed, and after a full hearing, the railroad commission of the state found that the railroad company had, during every day between September 20th and September 30th, 1907, inclusive, refused to furnish cars upon statutory notice and request of the operators of several coal companies operating along the line of its railroad in the state of Arkansas, and had also, during the same period, discriminated in favor of a coal company which it controlled, by furnishing it with an adequate supply of cars, although part of the coal so carried was for sale upon the market. The requests for cars so refused were for shipments from the mines within the state to destinations in the same state, and were not for the purpose of interstate transportation.

The bill charged that the railroad commission was about to transmit a transcript of its proceedings to the several state prosecuting attorneys in counties where the railroad was situated, with an order that action should be brought in the name of the state for the enforcement of the penalties, as provided by §§ 11 and 18 of an act of the Arkansas legislature of March 11, 1899, being § 6804, Kirby's Digest.

The bill alleges that, although engaged in operating a railroad within the state of Arkansas, the company's lines extended into adjacent states, and that it is therefore an interstate carrier, subject to the act of Congress of February 4, 1887 [24 Stat. at L. 379, chap. 104, U.S.C.omp. Stat. Supp. 1911, p. 1284], and its amendments. It charges that by an act of the legislature of the state of Arkansas passed April 19, 1907, the railroad commission of the state is vested with authority to regulate railroads within the state, in respect to the duty of furnishing cars to shippers, and that it has, under that authority, promulgated order No. 346, which follows in phraseology the provisions of § 1 of the act referred to. It is then contended that this act of April 19, 1907, and the order of the commission in pursuance of said 1st section, constitute an exertion of the power of the state over interstate commerce, and as such are invalid. It was averred that if the bringing of the threatened suits was not enjoined, complainant would be subjected to a multitude of actions and to a liability for the excessive penalties imposed by the 18th section of the act of 1899, being a minimum of not less than $500 for each offense, and a maximum of as much as $3,000.

The bill denied any liability under the act, even if valid, and presented various reasons why it had not supplied the cars requested.

Answer was filed and issue taken upon every material defense set up upon the merits. The cause was heard upon bill and answer, there being no evidence upon the matters of defense touching the merits of the case.

The circuit court held the entire act of April 19, 1907 to be null and void as an invalid invasion of the field of interstate commerce, and accordingly enjoined its enforcement and the bringing of the actions which the commission had ordered.

Mr. Hal L. Norwood, Attorney General of Arkansas, and Mr. Morris M. Cohn for appellants.

[Argument of Counsel from pages 458-461 intentionally omitted]

Messrs. Lovick P. Miles and Martin L. Clardy for appellee.

[Argument of Counsel from page 461 intentionally omitted]

Mr. Justice Lurton, after making the above statement, delivered the opinion of the court: