The Railway Library, 1909: A Collection of Noteworthy Chapters, Addresses, and Papers Relating to Railways, Mostly Published During the Year
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The Railway Library, 1909: A Collection of Noteworthy Chapters, Addresses, and Papers Relating to Railways, Mostly Published During the Year
Railroads -- United States -- Periodicals
Existing law, providing for a review of a decision of the commission,
does not by its terms enlarge the subject of equitable jurisdiction.
The provision of the statute confers upon the court the right to
take jurisdiction of a case against the commission and to review its
decision when based upon an existing rate. There is no provision of
the statute that contemplates the exercise of a jurisdiction by the
courts in a case arising under a provision of law similar to the
amendment sought to the sixth section of the act of June 29, 1906. In
the decision rendered by the commission denying the right to advance
the rate, the question of the reasonableness of the former rate or
of any existing rate is not involved in the order to be entered by
the commission. Under this proposed amendment the carrier submits a
proposition to advance the rate, which has never become effective.
The order of the commission would simply approve the proposition or
deny the advance of the rate. This, under the proposed amendment,
would be the extent of the authority and act of the commission.
In the case of McChord _v._ L. & N. R. R. Co. (183 U. S., 483),
followed by the case of L. & N. R. R. Co. _v._ Ky. (183 U. S., 503),
the court sustains the doctrine announced, and held that before
a court of equity can intervene, the administrative body must do
some act that advances beyond the legislative function. (Reagan
_v._ Farmers' Loan & Trust Co., 154 U. S., 362; Interstate Commerce
Commission _v._ Railway Co., 167 U. S., 479.)
It is contended that the decision of the commission prohibiting the
advance is a legislative act, and that under the decisions of the
courts the order simply prohibiting the taking effect of a proposed
advance could not be the subject of equitable cognizance. If this
view is not correct, it is contended that the courts by overruling
the order of the commission would in effect be putting in force
a future rate. Under existing law, however, if the rate has taken
effect its reasonableness is a matter of judicial review, and
should the commission after protest and hearing declare it to be an
unreasonable rate and set the same aside in its order, that decision
is reviewable by the courts, as it presents a judicial question. The
statute conferring upon the commission the power to determine whether
an existing rate is reasonable or unreasonable has fixed the standard
which must determine the jurisdiction of the administrative tribunal,
and the courts have a right to review the act of the commission, with
a view of ascertaining whether it has acted within the limitations of
the power conferred upon it.
In the case of the State Corporation Commission of Virginia against
Railways, decided by Mr. Justice Holmes November 30, 1908, speaking
of the power of the commission to fix a rate and the appeal from its
decision to the court of appeals of Virginia, the court said:
Public-domain text, read in full here on John Shaqi.
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