# Appellees Brief — Nashville, C. & St. LR Co. v. Walters

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## Record

- **Collection:** Supreme Court brief
- **Document type:** Appellees Brief
- **Published:** January 1, 1935
- **Citation:** 294 U.S. 405

## Text

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INDEX.

PAGES
JURISDICTION OF THIS COURT ...« . cc cece cess |
Seavey OF THE CAGE . is. oie sees e ee ve ece veces 2. 9
PRON Fo role a oil aig ae tatel a iat aie ghorahe Mn ate ete rtats 10-53
1. An underpass should be constructed at the rail-
Set CINE ook cco hae ea ce eee keene eee 10
2. The cost of the underpass in question is not
ie og 6s 0k oe ae dd Oh Te 11

3. A state has the power to require the abolition of
grade crossings upon public highways, including

crossings upon newly laid out highways...... 12-25
4. The police power embraces regulations designed
to promote the public convenience .......... 25-28

5. The proportion of the expense which a railroad
will be required to bear in the elimination of a
grade crossing is a matter exclusively within the
control of the legislature .................... 28-29
6. Engagement in interstate commerce does not
destroy the right of a state to compel a railroad
to abolish a grade crossing ................. 29-30
. The public policy of Tennessee is not to minimize
restrictions and taxes on common carriers by
motor vehicle and to impose restrictions and
taxes on common carriers by railroad ..........50-34
8. Whether or not economic conditions have so
changed that statutes requiring railroads to bear
the cost, or part of the cost, of grade crossing
separations ought to be repealed or modiiied pre-
sents a question of public policy exclusively with-
in the control of the legislature ..............34-37
9. The statute in question affords an opportunity
to be heard and an opportunity for judicial

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OE aku sone dee deeceee es Cickereee eek cee
es Ge SI 5g Sk cc veadcceteeeenaxanen 40-42
ST ceclieeud sven Veeweretdeenteetececars 43-53

The elimination of grade crossings is an exercise
Oe ee ee Ip cuanvcvcccscacedcceusoess 43

The elimination of a grade crossing upon a state
highway need not result from a request of the
Se I ns Oh oc a dues oy aha daeeeeeee 44

aay RT Rs:

qpesenseses
ii
PAGES
The public officers ordering the elimination in ques-
tion were not ignorant of the facts ........... 45-46
Highways are constructed for local and interstate
traffic, and for social and commercial use...... 46
The highways of the state are public property... .46-47
Interstate traffic is in greater need of protection at
railroad crossings than local traffic ............ 47
The grade crossing elimination statute of Tennessee
has not been unreasonably used ............... 48-49
The police power of the State and not of the United
ee ae I I en er cake eee aweks 49-50
The validity of a police statute is not affected by the
validity of separately enacted taxing statutes al-
leged to contain unconstitutional discriminations .51-52
The effect of the so-called revolution in transporta-
tion upon the propriety of grade crossing
elimination statutes presents a question for the
legislature and not for the courts ............. 52-53
Table of Cases Cited.
ee 5 Tels Ge is te EE hee owen aeaeke see us 25, 27
Baltimore & O. R. Co. v. Public Util. Comm., 122 Ohio
Boe ae a ery ee ere reer eT ere 13, 21
Chattanooga v. Southern Ry. Co., 128 Tenn., 399.... 12
Chicago & A. R. Co. v. Tranbarger, 238 U. S., 67.. 25
Chicago B. & Q. R. Co. v. IIL, 200 U. S., 561 ... .25, 27, 28
Chicago, B. & Q. R. Co. v. McGuire. 219 U. S., 549. .34, 35
Chicago, etc., R. Co. v. Illinois Commerce Comm., 326
es ee ee ee es NE xs ov cae h be eere screens 13, 22
Chicago and N. W. R. Co. v. Railroad Commission
Perea Se Oe ead 6 oA Oa ehh’ ees 24
Chicago, etc., R. Co. v. Railroad Comm. (Wis., 204
Sea Wie C8 6:0 4a BOS CEK SV ERAT SORTA ACEC 13, 22
Chicago, St. P. M. & O. R. Co. v. Holmberg, 282 U. S.,
Es hac taa ss eeh cand tae tener bares se adeewanes 20
Chicago, Milwaukee & St. Paul R. Co. v. Minneapolis,
ah ie S- séuenseenkase sates eeees sas 12, 15, 28
Cincinnati, N. O. & T. P. Ry. Co. v. Chattanooga, 166
cau 0 ee be che d ieee hoes Neues enanacese 12, 21
City of Chattanooga v. Southern Ry. Co., 128 Tenn.,
PT VAS a RUh CCEA ECCOhERTECEORESS SESE OREN CET 12, 20

y 1 hE Os)

PRP

ili

PAGES

City of Harriman v. Southern Ry. Co., 111 Tenn.,
re ne ca etn tah 12, 20
City of Memphis v. Southern Ry. Co., 167 Tenn., 181.12, 33
Clark v. BHaitlroad, 123 Temt., 262 . 0. ccc cccccccee 30
Collier v. Baker, 160 Tenn., 571 .........cccccccce 45
Denver & Rio Grande R. Co. v. Denver, 250 U. S., 241 30
Dyer County v. Railroad, 87 Tenn., 712............ 12

Erie Railroad v. Board of Public Utility Commrs., 254
ee i hae ee eee 12, 16, 28 29

Erie R. Co. v. Pub. Serv. Comm., 271 Pa., 409, 114
sk ERE eee eee eis ne 13

Erie R. Co. v. Public U. Comms., 89 N. J. L., 57, 98
a ee Skea e eae seer ola ea oan eek 13
German Alliance Ins. Co. v. Lewis, 233 U. S., 389.. 34
Green v. Frazier, 208 U. &., 238 2... ci ceccsec sc SB
Hall v. Geiger-Jones Co., 242 U. S., 539 ............ 29
Harriman v. Railroad, 111 Tenn., 538 ............. 12

Hartford Fire Ins. Co. v. Chicago, M. & St. R. Co.,
SU Oly Gis WE een RU abhor odes kunevovaksews 30

Hoover Motor Express Co., Inc. v. Fort, et al., 167
Wea I os ie co cw a date eee eune cue 32, 47

In Re Elimination of Grade Crossings, ete. (Ohio)
Se a tice ete eecwiee treet 24

Lake Shore & M. S. R. Co. v. Ohio, 173 U. S., 285. .25, 26
Lehigh Valley R, Co. v. Board of P. U. Comm’rs, 278

PME Sale ci ote be yee xi ote soo ck ia ta.
McLean v. Arkansas, 211 U.S., 539 ............... 34
Missouri Pac. R. Co. v. Humes, 115 U. S.. 512...... 8

Missouri Pacific R. Co. v. Omaha, 235 U. S., 121. 12, 15, 43
Missouri, etc., R. Co. v. Oklahoma, 271 U. S., 303. la 28
Morris v. Indianapolis, 177 Ind., 369, 94 N. E., 705.. 13

Motlow v. State, 125 Tenn., 547 ................ .34, 36
N. C. & St. L. Ry. v. Baker, Commr., 167 Tenn., 470,

WA Wi POS MOG WUE nba 0k 65 0a ie eo hcce oe kcas 2, 37, 38
N. C. & St. L. Ry. v. Drainage District, 149 Tenn.,

GUE A ae bye dun eer er acerca eee eee 12, 21
N. C. & St. L. Ry. v. Marshall Co., 161 Tenn., 236.... 34
N.C. & St. L. Ry. v. Wallace, 288 U. S., 249........ 2, 29

N. C. & St. L. Ry. v. White, 278 U. S., 456........ 12, 19

eres

ee

iv

PAGES
New York & N. E. R. Co. v. Bristol, 151 U. S.,
UE ec au eee cus rs eRRR Chee dee eeas eu teL 12, 14, 48
North Dakota Highway Comm. v. Great Northern
R. Co., 51 N. D., 680, 200 N. W., 796............. 13, 23
Northern Pacific Ry. Co. v. Minnesota, ex rel., Duluth,
eT ere ee are betes. 12, 21
Norwood v. New York & N. E. R. Co., 161 Mass., 259,
Be We a ee dose Sere cea ees eure bine vecuabel 13

Olear v. Penna. R. Co., 249 N. Y., 364, 164 N. E., 251. 13

Packard v. Banton, 264 U. S., 140 ................ 34
Quinn v. Hester, 1385 Tenn., 374 ................ 34, 37
Re Brookline, 236 Mass., 260, 128 N. E., 97........ 13
Re Staten Island Rapid Transit R. Co., 220 App. Div.,

Sey ae Se: We Wt UP gc bv oon coducecdunccehusss 13

Sidney v. Wabash R, Co., 333 IIl., 126, 164 N. E., 201. 13
Southern Railroad Co. v. Virginia, 290 U. S., 190,

er re rye er a ee 37, 38
State, ex rel., Wabash R. Co. v. Public Serv. Comm.,

Dw Bete WER, Bt By Wire BOD ov cccccccécvccesvess 13
Stephenson v. Binford, 287 U. S., 251 ............34, 47
Town of Sidney v. Wabash Railroad Co. (Ill.), 164

i eR aig See memo igre bei mycin Aas 25
Transit Comm. vy. Long Island R. Co., 239 N. Y. S.,

EEO EE re Pe PT FFI oe SR ee DF 13

Westmorland Chemical, etc., Co. v. Pub. Serv. Comm.,
ee cs is ee I ko ko eo re we hc On Se oe 13

Table of Statutes Cited.

Tennessee Code of 1932, sections 8835-8847........ 1
Tennessee Code of 1932, sec. 1126, et seq........... 31
Tennessee Code of 1932, sec. 1149, et seq........... 31
Tennessee Code of 1932, sec. 2638, et seq........... 33, 37
Tennessee Code of 1932, sections 9008-9018........ 37, 38

Tennessee Public Acts, 1931, 2nd Extra Session, ch.11 31

Tennessee Public Acts, 1931, 2nd Extra Session, ch.
ee Sc debweccekswedadedueuutiebouducsd 32

= . a o ‘ he — oe - v~ Vue emai ot) are
Fs ee ae ie aoe er —

Vv
PAGES
Tennessee Public Acts, 1931, chapter 82.......... 31
Tennessee Public Acts, 1933, chapter 35.......... 31
Tennessee Public Acts, 1933, chapter 114......... 32
Tennessee Public Acts, 1933, chapter 119......... 32
Tennessee Public Acts, 1921, chapter 132......... 33
United States Code, Title 28, section 344.......___ 2 |
Constitution of Tennessee, Art. 2, sec. 28.......... 30 oa
Sumas GWG, OR. FID hc ov ne we wevccvncsncecces. 2
Text Authorities Cited. é
:
ee SnD I iva os 6:6-6 ooh Ob fo etcceel:. 14 7
SO Corpus Surie, GOB, GOD 5... ccc icccccccucecs, 30
oe ee Se le TE wo ev cee auscadesedasuni 14 {
Se ME TA I OF ov oo Sune kok be dS Cave woen 34 §
Ss Ge iis Be Mts I 0 0c 66 oa 'o Paw enckkens 14
ee See Se eo oake dks ao euR TR ee wed dchen, cL. 14
Honnold’s Supreme Court Law, 361 .............. 30

In the

Supreme Court of the United States

October Term, 1934.
No. 183.

THE NASHVILLE, CHATTANOOGA &
ST. LOUIS RAILWAY,
Appellant,

versus

FRANK W. WEBSTER (Substituted for R. H. Baker)
ET AL.,
Appellees.

BRIEF ON BEHALF OF FRANK W. WEBSTER,
ET AL., APPELLEES.

May It Please the Court:

JURISDICTION.

The Nashville, Chattanooga & St. Louis Railway,
appellant, filed a brief in this Court on June 28,
1934, in support of its contention that this Court has
jurisdiction to review the present case. This suit was
filed under the Declaratory Judgments Act of Ten-
nessee {Sections 8835-8847 of the Code of Tennessee)
to have determined the liability of the complainant
Railway to contribute to the cost of constructing a
railroad underpass. The theory of the bill was that
the statute upon which the order was based and the
order itself were unconstitutional and void, as viola-
tive of the Constitution of the United States.

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RANA CALS ARTE ARUN AEA ile A ARE i DWN elle ORY ss DBD inn tit ’ ; . —

2

The decision of the highest court of Tennessee sus-
tained the constitutionality of the statute and of the
order made pursuant thereto, thereby adjudicating
the liability of the Railway to contribute one-half of
the cost of constructing the underpass.

N., C. & St. L. Ry. v. Baker, Commissioner,
167 Tenn., 470, 71 S. W. (2d), 687.

An appeal to this Court was perfected under Title
28, U. S. Code, Section 344 (Judicial Code, Section
237 amended).

While the present suit is in form a declaratory pro-
ceeding, it is in substance an actual controversy
which finally determines, under State law, the rights
of the parties.

Counsel for appellees do not resist the jurisdiction
of this Court but are of the opinion that the jurisdic-
tion of the Supreme Court of the United States is
sustained by Federal statutes and by the decision in
the case of N., C. & St. L. Ry. v. Wallace, 288 U. S.,
249, 77 L. ed., 730.

STATEMENT OF THE CASE.

The appellant Railway has been ordered by the
Commissioner of Highways and Public Works of
Tennessee to contribute one-half the cost of separat-
ing a grade crossing upon State Highway No. 20.
(R., pp. 9,419.) The estimated cost of this project
is $17,400.00, the contribution demanded of the
Railway being $8,700.00. (R.,p.11.) The expense
sought to be placed upon the Railway is not unrea-
sonable or excessive. (R., p. 2.) The expenditure
of this sum of money by the railroad for a grade

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3

separation will be a capital charge under the rules
of the Interstate Commerce Commission to be in-
cluded in the valuation of the railroad property upon
which the railroad will be entitled to earn a fair re-
turn. (R., pp. 4, 278.)

The Department of Highways of Tennessee has
undertaken the construction of a modern, expensive
highway, designated as No. 20, which, when com-
pleted, will be a part of the shortest and best route
between Nashville and Memphis, the two largest
cities in Tennessee. (R., p. 13.) The new State
Highway No. 20 is a part of the technical State High-
way System proper and is also a Federal Aid Route.
(R., p. 184.) Federal aid funds were allocated by
the Federal Department of Agriculture, Bureau of
Public Roads, toward the construction of State High-
way No. 20. (R.,p. 202.) This allotment was made
under a contract which required that the grade cross-
ing at Lexington be eliminated. (R., p. 202.) How-
ever, no federal aid funds were sought or obtained
for the construction of the underpass involved in this
suit. (R., pp. 187-188.)

That portion of State Highway No. 20 which lay
between Lexington and Perryville (adjacent county
seats) was an old gravel road, crooked, with steep
grades, short curves and many hills. (R., pp. 189,
199, 205, 253.) At times this road was under water.
(R., p. 252.) It was a road aptly described by one
of the witnesses for the Railway as “no crookeder
road in the United States.” (R., p. 253.) On ae-
count of the unsatisfactory condition of the road,
travel was held to a minimum of local traffic. (R.,
pp. 189, 248.)

sat ae a ee ae wD tenn e

4

As a result of terrific local demand and of a de-
termination to construct another adequate route be-
tween Nashville and Memphis, Highway No. 20 was
realigned, relocated and reconstructed. (R., pp. 189,
199, 204.) The new road is a modern paved high-
way with sufficient width, straight, and built with
the elimination of grade crossings, of sharp curves
and of steep hills in view. (R., pp. 161, 202, 346.)
This new route shortens the distance from the Ten-
nessee River to Lexington by about 314 miles, cutting
such distance to about 21 miles. (R., pp. 199-200.)

In the natural course of events the construction of
the new road will greatly stimulate and increase
traffic, both as to density and as to speed. (R., pp.
192, 203, 219.) This increase in traffic will affect
both local travel and through travel. (R., pp. 203,
220.)

Upon the old State Highway No. 20 there were
eight railroad grade crossings between Perryville
and Lexington. (R., p. 199.) By a relocation of
the road seven of these grade crossings have been
eliminated from the State Highway System without
cost to the Railway. (R., p. 199.) It was neces-
sary in the construction of the new Highway No. 20
that the road cross the main line of the Nashville,
Chattanooga and St. Louis Railway at one point.
(R., p. 199.) It is at this crossing that an under-
pass has been built, toward the construction of which
the State of Tennessee seeks to compel the Railway
to contribute. (R., p. 199.) The crossing in ques-
tion is located within the limits of the city of Lexing-
ton, but it is the crossing of a State Highway. This
highway was built and located by the State Depart-
ment of Highways and not by the county authorities

of Henderson County or the city authorities of Lex-
ington. (R., p. 11.)

The request for the elimination of this crossing
has been made by the State Department of Highways
pursuant to statute and not by the county or munici-
pal authorities. (R., p. 186.) The old State High-
way No. 20 crossed the main line of the appellant
Railway in Lexington, Tennessee, at what is known
as the Clifton Street crossing. (R., p. 342.) By the
relocation of State Highway No. 20 the Clifton Street
crossing is no longer a part of this State Highway.
(R., p. 199.)

Over the location of the proposed underpass the
Railway operates fourteen trains daily, including
passenger and freight trains. (R., pp. 14, 311, 342.)
Five of the fourteen daily train movements occur
between the hours of 10:00 P.M. and 5:00 A.M. (R.,
p. 316.)

The traffic count taken by the Railway at the
underpass on May 2 to May 3, 1933, (24-hour pe-
riod) revealed a movement of 300 motor units, 19

wagons and 18 horses over new Highway No. 20.

(R., p. 321.) The new Highway No. 20, including
the underpass, was opened to traffic on February 16,
1933, but the series of highways of which this is a
link connecting Nashville and Memphis (231 miles
apart), is not yet complete and is therefore not yet
attractive to through and interstate traffic. (R., pp.
219, 315.)

In its original bill the Railway made many aver-
ments of fact designed to establish the revolution
in transportation which has taken place within re-
cent years. These averments of fact are established

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by the evidence and are admitted by the stipulation
on pages 1 to 7 of the record. At this point it should
be pointed out that the facts admitted and stipulated
are with reference to the so-called revolution in
transportation methods. No allegations of fact con-
tained in the bill or in the proof with reference to
the lack of need for an underpass are admitted. On
the contrary, the appellees insist that the evidence
amply and unquestionably furnishes justification for
the construction of an underpass at the railroad
crossing in question.

The appellees in their answer deny that the fact
of the revolution in transportation methods is mate-
rial to the determination of the constitutionality of
the statute and the order promulgated pursuant
thereto requiring the railroad to contribute one-half
of the cost to a grade crossing elimination. When
the evidence introduced by the Railway with regard
to the existence and effect of a revolution in trans-
portation methods is given full credit, the most that
can be said is that this evidence sustains the follow-
ing statement in the amended bill:

“Until recent years roads and streets were
built and financed by the local authorities out
_ of funds raised locally for local travel, and such
local roads were feeders to the railroads and not
their competitors. Today such roads are financed
almost exclusively by the state and federal gov-
errnent as a part of a nation-wide system of
through highways for commerce in direct com-
petition with railroads.” (R., p. 10.)

This mass of evidence is-admitted to justify and
to require the following conclusions of fact:

7

1. Vehicular traffic is now actively and success-
fully competing with railroads by using public high-
ways.

2. The effect of constructing modern, improved,
paved highways through any particular region ‘is
to impair the economic condition of the railroad or
railroads serving such area.

3. Modern highways are designed and constructed
not merely to meet the local traffic conditions and
needs but also to furnish a state-wide and even a
nation-wide system of trunk highways.

The evidence introduced by the Railway is in-
tended to show that the stimulation of through traffic
and of interstate traffic is the primary aim in the
construction of modern highways. Appellees deny
this. On the contrary, appellees insist that local
traffic is greatly stimulated by the modern highway
and that it is inaccurate to say that modern highway
construction is designed primarily for through or
interstate traffic. Such highways serve two purposes,
neither of which can be called secondary. These pur-
poses are (a) the encouragement and stimulation
of local traffic and travel made in response to an in-
sistent and overwhelming demand; (b) the fostering
of state-wide and nation-wide long distance travel.

The theory of appellant’s case, as revealed on page
25 of adversary counsel’s excellent brief, is that the
revolution in transportation requires a modification
of principles of constitutional law heretofore an-
nounced which sustain the validity of the statute in
question.

OO ing teen YRS

pr tae: wpeenmcerecen

8

No abstract of the pleadings will be given, such a
synopsis being contained in appellant’s brief. How-
ever, we do wish to comment upon the opinion of the
Supreme Court of Tennessee which, we think, has
been misinterpreted by adversary counsel.

On page 4 of appellant’s brief it is asserted that
the Supreme Court of Tennessee held that a statute
valid when enacted continues to be valid regardless
of changed conditions. We find nothing in the opin-
ion of the Court which justifies this conclusion. The
Supreme Court of Tennessee held that although a
municipal ordinance may become void upon a show-
ing of its unreasonableness, the same rule is not ap-
plicable to state statutes but that the courts cannot
inquire into “the expediency, propriety or even the
justice of the statute which violates no provision of
the Constitution.” (R., p. 421.) This principle of
law is identical with that expressed by Mr. Justice
Field in Missouri Pac. R. Co. v. Humes, 115 U.S.,
512-520, 29 L. ed., 463-465, when it was said:

“Tt is hardly necessary to say that the hard-
ship, impolicy, or injustice of state laws is not
necessarily an objection to their constitutional
validity; and that the remedy for evils of that
character is to be sought from state legisla-
tures.”

Furthermore, the Supreme Court of Tennessee did
not hold that the police power of the State is subject
to no-limitation as appellant’s brief, pages 4, 31, 45
and 46, indicates. On the contrary, the Tennessee
Court held that:

“The State, in the exercise of the police power,
may directly or through its municipalities com-

9

pel railroads to share the cost of eliminating
grade crossings at railroad tracks, .. . and also
that the State may relocate a highway or build
a new highway, and, when necessary for the
public safety, may, by the exercise of the police
power, require a railroad whose track is encoun-
tered by the new location to share the reasonable
cost of eliminating a dangerous grade cross-
ing... (H., p 41.)

The Supreme Court of Tennessee further held that
the constitutional power of the State to compel rail-
roads to share the cost of eliminating grade cross-
ings was properly exercised under the evidence in
this case. (R., p. 429.)

Adversary counsel say that the trial court, with
one immaterial exception, found every averment of
fact in the bill to be supported by the evidence. The
“one immaterial exception” was the finding of the
chancellor that the underpass at Lexington was nec-
essary, was properly located, and constructed at a
reasonable cost of $17,400.00. (R., pp. 415, 420.)
We emphasize this fact in order that it may be clear
to this Court that while the fact of a revolution in
transportation methods is admitted and the aver-
ments of fact in the original bill with regard to such
revolution in transportation are stipulated to be true,
the necessity and the propriety of the construction
of the underpass in question are not challenged.

WE. DOBIBER BEL RA Od ile wee +

10

ARGUMENT

PROPOSITIONS OF FACT.

I.

An underpass should be constructed at the rail-
road crossing involved because a grade crossing
would be dangerous and inconvenient.

(a) It is stipulated that:

“To consummate the purposes intended by
the constituted authorities, state and federal, in
the construction of this new highway and inci-
dental underpass, it is agreed that the location
of the underpass, its plans and the cost of con-
struction were proper and that it should have
been constructed as it was from the standpoint
of proper engineering, motor traffic considera-
tions, motor speed, convenience and safety. This
agreement is not intended to relate to the di-

vision of the cost of construction.” (R., pp. 2,
3.)

(b) It is stipulated that:

“In the light of modern motor vehicular
traffic anything which slows up that traffic is an
inconvenience. In other words, eliminating a
grade crossing, as in the case at bar, facilitates
the speed of motor vehicular traffic, in accord-
ance with public demands. This is not intended
to agree as to how the cost of such an improve-
ment should be borne.” (R., p. 3.)

(c) The highway upon which the railroad cross-
ing in question exists is a modern, expensive high-

11

way which will be part of the shortest and best route
between Nashville and Memphis. (R., p. 13.)

The railroad crossing involved is located upon the
main line of the Nashville, Chattanooga & St. Louis
Railway. By the construction of the new road, eight
grade crossings have been eliminated from the State
Highway System. (R., p. 199.) The construction
of the new road will greatly increase traffic of all
kinds, both as to density and as to speed. (R., pp.
192, 203, 219.)

(d) R. H. Baker, Commissioner of Highways,
O. F. Goetz, Highway Engineer (now acting Com-
missioner), T. C. McEwen, Chief Highway Engineer,
and J. E. Moreland, Highway Engineer, testified
that the construction of this underpass was neces-
sary for the safety of the traveling public. (R., pp.
199, 219, 232, 237.)

II.

The cost of the underpass in question is not un-
reasonable or excessive.

(a) It is stipulated that the cost of the construc-
tion was proper and that the underpass should have
been constructed as it was from the standpoint of
proper engineering, motor traffic considerations,
motor speed, convenience and safety. (R., pp. 2, 3.)

PROPOSITIONS OF LAW.

} 8

A state has the constitutional power to require
the abolition of grade crossings upon public high-
ways for the reasonable safety of the public. This
police power includes the abolition of grade cross-
ings upon newly laid out public highways.

New York N. E. R. Co. Vv. Bristol, 151 U.S.,
556, 38 L. ed., 269;

Northern Pacific Railway Co. v. Minnesota,
ex rel., Duluth, 208 U. S., 583, 597, 52 L.
ed., 630, 636;

Chicago, Milwaukee & St. Paul R. Co. v. City
of Minneapolis, 232 U.S., 430, 438, 58 L.
ed., 671, 674;

Missouri Pacific R. Co. v. Omaha, 235 U.S.,
121, 127, 59 L. ed., 157, 160;

Erie R. Co. v. Board of Commissioners, 254
U. S., 394, 65 L. ed., 322;

* Missouri, etc. R. Co. v. Oklahoma, 271 U.S.,
303, 70 L. ed., 957;

Lehigh Valley R. Co. v. Board of P. U. Com-
missioners, 278 U.S.,24, 73 L. ed., 161;
N., C. & St. L. Ry. Co. v. White, 278 U.S.,

456, 73 L. ed., 452;
Dyer County v. Railroad, 87 Tenn., 712;
City of Harriman Vv. Southern Ry. Co., 111

Tenn., 538;

Chattanooga V. Southern Ry. Co., 128 Tenn.,
399;

N., C. & St. L. Ry. Vv. Drainage District, 149
Tenn., 491;

Cincinnati, N. O. & T. P. Ry. Co. v. Chatta-
nooga, 166 Tenn., 626;

~~

City of Memphis V. Southern Ry. Co., 167
Tenn., 181;

Erie R. Co. v. Pub. Service Commission
(1921), 271 Pa., 409, 114 Atl., 357;

Westmorland Chemical, etc. Co. V. Public
Service Commission (1925), 294 Pa., 451,
144 Atl., 407;

Chicago, etc. R. Co. V. Illinois Commerce
Commission (1927), 326 Ill., 625, 158 N.
E., 376;

Sidney v. Wabash R. Co. (1928), 333 IIL.
126, 164 N. E., 201;

Morris v. Indianapolis, 177 Ind., 369, 94 N.
E., 705;

Olear v. Penna. R. Co. (1928), 249 N. Y.,
364, 164 N. E., 251;

Re Staten Island Rapid Transit R. Co.
(1927), 220 App. Div., 80, 221 N. Y. 8.,
129;

Transit Commission v. Long Island R. Co.
(1930), 239 N. Y.S., 543;

North Dakota Highway Commission V. Great
Northern R. Co. (1924), 51 N. D., 680, 200
N. W., 796;

State, ex rel. Wabash R. Co. V. Public Service
Commission (1924), 306 Mo., 149, 267 S.
W., 102;

Baltimore & O. R. Co. v. Public Utilities Com-
mission (Ohio, 1930), 171 N. E., 854;

Chicago, etc. R. Co. v. Railroad Commission
(Wise., 1925), 204 N. W., 606 ;

Norwood v. New York & N. E. R. Co. (4394),
161 Mass., 259, 37 N. E., 199;

Re Brookline (1920), 236 Mass., 260, 128 N.
E.; 97;

Erie R. Co. Vv. Public Utilities Commission
(1916), 89 N. J. L., 57, 98 Atl., 13;

14

51 Corpus Juris, 691;

22 R. C. L., 787;

Annotations, 55 A. L. R., 660 and 62 A. L.
R., 805.

(a) In New York N. E. R. Co. v. Town of Bristol,
151 U.S., 556, 38 L. ed., 269, 273, the constitutional-
ity of an act which required railroads to bear part
of the cost of grade crossing elimination was sus-
tained. The contentions here presented were ex-
pressly refuted. The Court said:

“The argument is that the existing grades of
railroad crossings were legally established, in
accordance with the then wishes of the people,
but, with the increase in population, crossings
formerly safe had become no longer so; that the
highways were chiefiy for the benefit of the
local public, and it was the duty of the local
municipal corporation to keep them safe; that
this law applied to railroad corporations treat-
ment never accorded to other citizens in allow-
ing the imposition of the entire expense of
change of grade, both costs and damages, irre-
spective of benefits, on those companies, and in
that respect, and in the exemption of the town
from its just share of the burden, denied to
them the equal protection of the law.”

In rejecting this argument this Court held that
railroad corporations are subject to legislative con-
trol in all respects necessary to protect the public
against danger, that this Court cannot proceed upon
general ideas of the requirements of natural justice
and that there is no transgression of constitutional
power when a state requires a railroad to bear the
cost of a grade crossing separation.

15

(b) In the case of Chicago, M. & St. P. R. Co. V.
Minneapolis, 232 U.S., 430, 438, 58 L. ed., 671, 674,
this Court said:

“It is well settled that railroad corporations
may be required, at their own expense, not only
to abolish existing grade crossings, but also to
build and maintain suitable bridges or viaducts
to carry highways, newly laid out, over their
tracks, or to carry their tracks over such high-

ways.”

RES a ahaa

(c) In the-case of Missouri P. R. Co. v. Omaha,
935 U. S., 121, 127, 59 L. ed., 157, 160, this Court
said:

“That a railway company may be required by
the state, or by a duly authorized municipality
acting under its authority, to construct over-
head crossings or viaducts at its own expense,
and that the consequent cost to the company as
a matter of law is damnum absque injuria, or
deemed to be compensated by the public benefit
which the company is supposed to share, is well
settled by prior adjudication of this court. ...

“This is done in the exercise of the police
power, and the means to be employed to promote
the public safety are primarily in the judg- :
ment of the legislative branch of the govern-
ment, to whose authority such matters are com-
mitted, and so long as the means have a sub-
stantial relation to the purpose to be accom- ;

:

BEE TALE LLL GE SANE LI FE ON Der ees

plished, and there is no arbitrary interference
with private rights, the courts cannot interfere
with the exercise of the power by enjoining regu-
lations made in the interest of public safety
which the legislature has duly enacted.”

16

(d) In Erie Railroad Co. v. Board of Public Util-
ity Commissioners, 254 U. S., 394, 65 L. ed., 322, the
constitutionality of an order requiring a railroad
corporation to abolish fourteen grade crossings at
an expenditure of more than $2,000,000.U0 was sus-
tained. In this case, the Court said:

“Most of the streets concerned were laid out
later than the railroads, and this fact is relied
upon, so far as it goes, as an additional reason
for denying the power of the state to throw the
burden of this improvement upon the railroad.
This is the fundamental question in the case.
It might seem to be answered by the summary
of the decisions given in Chicago, M. & St. P.
R. Co. v. Minneapolis, 232 U. S., 430, 58 L. ed.,
671, 674, 34 Sup. Ct. Rep., 400: ‘It is well set-
tled that railroad corporations may be required,
at their own expense, not only to abolish exist-
ing grade crossings, but also to build and main-
tain suitable bridges or viaducts to carry high-
ways, newly laid out, over their tracks, or to
carry their tracks over such highways.’ Mis-
souri P. R. Co. v. Omaha, 235 U. S., 121, 59 L.
ed., 157, 35 Supt. Ct. Rep., 82; Northern Poh
Co. v. Puget Sound & W. H. R. Co., 250 DU. B
332, 63 L. ed., 1013, 39 Sup. Ct. Rep., 474. For
although the statement is said to be explained
as a matter of state law by the previous de-
cisions in Minnesota, it is made without refer-
ence to those decisions or to any local rule; and,
moreover, the intimation of the judgment in the
present case is that whatever may have been the
earlier rulings, the law of New Jersey now
adopts the same view. ...

“Grade crossings call for a necessary adjust-
ment of two conflicting interests,—that of the

17

public using the streets, and that of the rail-
roads and the public using them. Generically
the streets represent the more important inter-
est of the two. There can be no doubt that they
did when these railroads were laid out, or that
the advent of automobiles has given them an
additional claim to consideration. They always
are the necessity of the whole public, which the
railroads, vital as they are, hardly can be
called to the same extent. Being places to which
the public is invited, and that it necessarily fre-
quents, the state, in the care of which this inter-
est is, and from which, ultimately, the rail-
roads derive their right to occupy the land, has
a constitutional right to insist that they shall
not be made dangerous to the public, whatever
may be the cost to the parties introducing the
danger. That is one of the most obvious cases
of the police power; or, to put the same proposi-
tion in another form, the authority of the rail-
roads to project their moving masses across
thoroughfares must be taken to be subject to
the implied limitation that it may be cut down
whenever and so far as the safety of the public
requires. It is said that if the same require-
ment were made for the other grade crossings
of the road, it would soon be bankrupt. That
the states might be so foolish as to kill a goose
that lays golden eggs for them has no bearing
on their constitutional rights. If it reasonably
can be said that safety requires the change, it
is for them to say whether they will insist upon
it, and neither prospective bankruptcy nor en-
gagement in interstate commerce can take away
this fundamental right of the sovereig” of the
ee

mmenrmenaty pr ocrrcanzmnosparsanoorermasenengees<

PAR mag ecnd

18

“If the burdens imposed are so great that
the road cannot be run at a profit, it can stop,
whatever the misfortunes the stopping may pro-
duce.”

(e) In Missouri, K. & T. T. Co. v. Oklahoma, de-
cided May 24, 1926, and reported in 271 U. S., 303,
70 L. ed., 957, the principle stated in the cases above
referred to was again announced. The Court said:

“It is elementary for the safety and conven-
ience of the public, the state, either directly or
through its municipalities, may reasonably
regulate the construction and use of highways
where they cross railroads. The legitimate ex-
ertion of police power to that end does not vio-
late the constitutional rights of railroad com-
panies. They may be required at their own ex-
pense to construct bridges or viaducts whenever
the elimination of grade crossings reasonably
may be required, whether constructed before or
after the building of the railroads.”

(f) In Lehigh Valley R. Co. v. Board of P. U. Com-
missioners, 278 U. S., 24, 73 L. ed., 161, this Court
sustained an order requiring a railroad to eliminate
two grade crossings at a cost of $324,000.00. In this
ease the action of the Public Utilities Commissioners
was sustained although a different method of elimi-
nating the grade crossing which was proposed by
the railroad, would have resulted in saving the rail-
road company $100,000.00. The Court again held
that a railroad company may be required to elimi-
nate grade crossings at highways where the danger
to the public from their existence is clear. An im-
portant limitation upon the doctrine of earlier cases,
which this case may be said to announce, is that when

19

the reasonableness of the cost is questioned it is for
the courts to determine whether the cost is within
reasonable limits. After affirming the principles
heretofore referred to the Court said:

“This is not to be construed as meaning that
danger to the public will justify great expendi-
tures unreasonably burdening the railroiad,
when less expenditure can reasonably accom-
plish the object of the improvements and avoid
the danger. If the danger is clear, reasonable
care must be taken to eliminate it and the police
power may be exerted to that end. But it be-
comes the duty of the court, where the cost is
questioned, to determine whether it is within
reasonable limits.”

(c) InN.,C.& St. L. Ry. v. White, 278 U.S., 456,
73 L. ed., 452, the railway challenged the right of
a municipality to require the maintenance of a flag-
man at a highway crossing. The railroad insisted
that it had already installed an electric appliance
which was cheaper and in some ways better than
the presence of a flagman. The Court held that the
argument in favor of the railroad was a legislative
argument to be addressed to the legislature and not
to the courts and that the legislature was entitled to
determine what safety devices at the crossing were
necessary, subject, of course, to the right of the
courts to ascertain whether the legislature had
adopted a method without any basis in reason or fact.

The Supreme Court of Tennessee in its determina-
tion of the same case (158 Tenn., 407), held that to
authorize the judicial setting aside of the legislative
discretion as to what was necessary at a particular
railroad crossing, there must be a clearly unreason-

SRMATTOSR LOTT et

Tes snide - |

20

able regulation. The Court said the legislature has
a right to express its judgment as to the means of
protection most conducive to the safety of the public
and that the power of the Court is limited to a de-
termination of whether or not the regulation was un-
reasonable.

(h) Chicago, St. P. M. & O. R. Co. v. Holmberg,
282 U. S., 162, 75 L. ed., 270, illustrates the limi-
tation of the principle under discussion. This case,
however, does not modify or qualify the extent of
the police power in grade crossing separations an-
nounced in earlier cases. In this case it was held
that a railroad may not be required to construct an
underpass solely for the convenience and benefit of
the land owner when an existing surface crossing is
not dangerous and is a private crossing. The de-
cision in this case clearly turned upon the fact that
the crossing at which the railroad was ordered to con-
struct an underpass was not a public crossing but
was a private crossing and the Supreme Court held
that this was not a proper exercise of the police
power.

(i) In City of Harriman Vv. Southern Ry. Co., 111
Tenn., 539, it was held that a municipal corporation
may compel a railroad to erect a viaduct over its
track at a public street crossing although the rail-
road tracks were laid before the street was built or
the city was incorporated.

In City of Chattanooga v. Southern Ry. Co., 128
Tenn., 399, the constitutionality of an act authoriz-
ing a city to require railroad companies to build at
their own expense approaches over their track when
crossing streets, was sustained as a proper exercise
of the police power. This Tennessee case even

21

went so far as to hold the statute not to impair the
obligation of a contract because a city had contracted
with the railroad to maintain a suitable bridge ata
crossing. This same conclusion, holding a statute
valid as a police measure notwithstanding a conflict-
ing contract, was reached by this Court in Northern
Pacific Ry. Co. v. State of Minnesota, ex rel., 208
U. S., 583, 52 L. ed., 630.

In N., C. & St. L. Ry. Vv. Drainage District, 149
Tenn., 490, it was held that a state may directly, or
through municipal agency, compel a railroad com-
pany to maintain a bridge already erected over a
public road, remodel it, or build a new one, if public
safety, welfare or necessity requires such an exer-
cise of the police power.

In Cincinnati, N. O. & T. P. Ry. Co. V. Chatta-
nooga, 166 Tenn., 626, which case involved the lia-
bility of a railroad company to abutting property
owners who were damaged by the construction of a
viaduct, this Court said:

“The right of the city to require the railway
companies to construct said viaduct and ap-
proaches entirely at their own expense is not
questioned, and is well supported by the au-
thorities.”’

(j) In Baltimore & O. R. R. Co. v. Public Utilities
Commission of Ohio, 122 Ohio St., 380, 171 N. E.,
854. it was held that the director of highways may
relocate a highway so as to eliminate a grade cross-
ing or he may relocate a highway so as to create a
new grade crossing and then require a railroad to
contribute to the cost of eliminating the new grade
crossing created. In other words, it was held that

Rr 7 Oe aaa

eran he SHEMERRLES MEER

22

the fact that a grade crossing is created by building
a new state highway does not relieve the railroad
from the necessity of contributing to its elimination.

(k) In Chicago and N. W. R. Co. v. Illinois Com-
merce Commission, 326 Ill., 625, 158 N. E., 376, the
validity of an order requiring a railroad to contrib-
ute to the construction of an underpass was sus-
tained, notwithstanding that there was an existing
urderpass on the state highway in question and that
the new crossing was created because of the desire
to shorten or cut off a part of the old route. In this
case there was no question of danger whatever be-
cause there was an existing grade separation but
when a new grade crossing was created by rerouting
the state highway, the railroad was required to con-
tribute to the cost of its elimination. The Court said
that a railroad is a public utility, and, in accepting
its franchise from the state, agrees to submit to all
burdens, conditions and regulations imposed by the
state with reference to its tracks and their intersec-
tion with highways necessary to promote and secure
safety of the traveling public.

(1) In Chicago, M. & St. P. R. Co. v. Railroad
Commission (Wis.), 204 N. W., 606, the Court de-
clined to consider the argument that it would benefit
bus line competitors of a railroad to require the lat-
ter to bear part of the expense of relocating grade
crossings. The Court held that this argument could
be addressed only to the legislature. In the opinion
it is said:

“Touching for a moment the other contention
made, that it is unfair to require the railroads
to contribute to the building of highways for the
benefit of their competitors, it is to be said that

ite
Fs

“e
ee:

23

highways are not primarily built for any class
of people. They are public in their nature, and
the bus lines are entitled to use them, subject to
legislative regulation and restriction, along with
all other members of society. The perfection
of the automobile.has worked a great transfor-
mation in the matter of public travel. Our peo-
ple demand better highways, and the state is
responding to their demands in this respect.
These highways are not built for bus line com-
petitors of the railroads. They are built for all
the people, and it is no argument whatever
against the justice of requiring railroad com- ;
panies to bear a portion of the expense, in mini-
mizing the danger incident to grade crossing,

which is increasing in proportion to the in-

creased use of our public highways. This bur-

den is placed upon railroads to promote the pub-

lic safety by removing sources of dangers which

the railroads have created. This is the funda-

mental basis of the state’s power and the state’s

action in these respects. At any rate, this argu-
ment is not one that may be entertained by a i
court. If it has any force, as a legitimate argu-
ment anywhere, it may properly be addressed '
only to the Legislature.”

(m) North Dakota Highway Commission v.
Great Northern Ry. Co. (N. D., 1924), 200 N. W.,
796, holds constitutional the statute of Iowa under
which railroads are required to contribute to the
cost of abolishing grade crossings. The crossing in
question was upon a highway known as a federal
aid project, but the traffic movement over the cross-
ing was reasonably light, varying from 135 to 256
daily movements. The Court held the statute valid

24

and the abolition order warranted, pointing out that
under the Federal Highway Acts this road is known
as a primary highway for the reason that it is inter-
state in character.

(n) In some of the cases particular orders made
pursuant to a statute have been declared unreason-
able as not justified by the public safety and con-
venience. For example, Chicago and N. W. R. Co. v.
Railroad Commission (Wis.), 238 N. W., 365, held
an order of the Public Service Commission to be un-
reasonable. In this case there was an order directing
a railroad company to construct a bridge at a high-
way intersection. There was in fact no grade cross-
ing then in existence, although the highway intersec-
tion already existed. A bridge had already been
constructed over which motor vehicle traffic was con-
veyed but this structure had become inadequate to
eare for the traffic. The order, successfully chal-
lenged as unreasonable, required the railroad to con-
struct a concrete, steel or other permanent structure
to replace the existing pile bridge at its sole expense.

In re Elimination of Grade Crossing, ete. (Ohio),
179 N. E., 139, holds an order for the separation of
a grade crossing unreasonable and void. The evi-
dence in that case disclosed that there was no sub-
stantial interruption of vision in either direction pre-
venting vehicular traffic from seeing approaching
trains, that flash light signals had been installed two
vears prior to the hearing, that since that time no
crossing accident had occurred, that the plan of un-
derpass construction would obscure the vision of ve-
hicular traffic and that the cost of the project would
be approximately $250,000.00. All that is deter-
mined by this case is that a particular elimination

25

was “unnecessary and inexpedient’” in view of the
large expenditures which would be required.

Town of Sidney Vv. Wabash Railroad Co. (Ill.), 164
N. E., 201, holds that orders of the Illinois Commerce
Commission requiring a separation of grades are
subject to review by the courts as to the reasonable-
ness of the order and that unreasonable orders are
illegal. The case holds an order unwarranted, and
therefore void, where the evidence showed that high-
way traffic was moderately light, that train move-
ments were not numerous, that there was a clear
view of trains approaching, that risks to traveling
public could be lessened by installation of certain
devices, that no accident had ever occurred at the
crossing, and that the cost of the separation would
be about $48,000.00. Moreover, the road in ques-
tion was not a part of any State Highway System,
a fact emphasized by the Court in stating its con-
clusion.

II.

The police power embraces regulations desivned to
promote the public convenience or the general wel-
fare and prosperity, as well as those in the interest
of public health, morals or safety.

Lake Shore & M.S. R. Co. v. Ohio, 173 U.S.,
285, 292, 43 L. ed., 702, 704;

Chicago B. & Q. R. Co. Vv. Ill., 200 U.S., 561,
592, 50 L. ed., 596, 609;

Bacon V. Walker, 204 U.S8., 311, 317, 51 L.
ed., 499, 502;

Chicago & A. R. Co. Vv. Tranbarger, 238 U.
S., 67, 59 L. ed., 1204.

BoP PEN A OE SOOTY t

Cee — entmeieeatebmnnstiee wiensay ) =
26

(a) In the case of Lake Shore & M.S. R. Co. v.
Ohio, 173 U.S., 285, 43 L. ed., 702, this Court sus-
tained an Ohio statute as against the contention that
it was an unconstitutional regulation of interstate
commerce. In the opinion it is said:

“It is insisted by counsel that these and ob-
servations to the same effect in different cases
show that the police powers of the states, when
exerted with reference to matters more or less
connected with interstate commerce, are re-
stricted in their exercise, so far as the national
Constitution is concerned, to regulations per-
taining to the health, morals, or safety of the |
public, and do not embrace regulations designed !
merely to promote the public convenience.

“This is an erroneous view of the adjudica-
tions of this court. While cases to which coun-
sel refer involved the validity of state laws, hav-
ing reference directly to the public health, the
public morals, or the public safety, in no one
of them was there any occasion to determine
whether the police powers of the states extended
to regulations incidentally affecting interstate
commerce, but which were designed only to pro-
mote the public convenience or the general wel-
fare. There are, however, numerous decisions |
by this court to the effect that the states may
legislate with reference simply to the public con-
venience, subject, of course, to the condition that
such legislation be not inconsistent with the na-
tional Constitution, nor with any act of Con-
gress passed in pursuance of that instrument,
nor in derogation of any right granted or se-
cured by it. As the question now presented is
one of great importance, it will be well to refer
to some cases of the latter class.”

or
il

(b) In Chicago B. & Q. R. Co. V. Illinois, ex rel.,
200 U.S., 561, 50 L. ed., 596, this Court determined
that to require a railroad company to bear the entire
expense of removing and rebuilding a railway
bridge, made necessary by the proposed widening of
a channel of a creek, did not violate anv constitu-
tional right. The Court said:

“We hold that the police power of a state em-
braced regulations designed to promote the pub-
lie convenience or the general prosperity, as well
as regulations designed to yromote the public
health, the public morals, or the public safety.”’

This holding is especia!ly applicable in the case at
bar because the railway's contention is that a crade
crossing on the highway would not be dangerous if
all motor vehicles were required to stop. There 1s
no contention that such zrade crossing at the inter-
section of the railway’s main line and a main state
highway would not be very inecnvenient.

(c) In Bacon v. Walker, 204 U.S., 311, 317, 51 L.
ed., 499, 502, the Court said:

“These cases make it unnecessary to consider
the argument of counsel based upon what they
deem to be the limits of the police power of a
state, and their contention that the statute of
Idaho transcends those limits. It is enough to
say that they have fallen into the error exposed
in Chicago, B. & Q. R. Co. Vv. [linois, 200 U.S...
561, 592, 50 L. ed., 596, 609, 26 Sup. Ct. Rep.,
541. In that case we rejected the view that the
police power cannot be exercised for the ven-
eral well-being of the community. That power,
we said, embraces regulations designed to pro-

:

28

mote the public convenience or the general pros-
perity, as well as regulations designed to pro-
mote the public health, the public morals, or the
public safety.”

ITT.

The proportion of the expense which a railroad
company will be required to bear in the elimination
of a grade crossing is a matter exclusively within
the control of the legislature.

Chicago, B. & Q. R. Co. Vv. Illinois, ex rel., 200
U.S., 561, 50 L. ed., 596;

Chicago, M. & St. P. R. Co. Vv. Minneapolis,
232 U.S., 430, 58 L. ed., 671;

Erie Railroad Co. v. Board of P. U. Commis-
sioners, 254 U. S., 394, 65 L. ed., 322.

(a) In Chicago, B. & Q. R. Co. Vv. Illinois, supra,
this Court held that the imposition upon a railway
company of the entire cost of removing and rebuild-
ing a railway bridge and culvert made necessary by
the proposed widening and deepening of a creek, did
not amount to an unconstitutional taking of private
property for public use.

(b) Chicago, M. & St. P. R. Co. Vv. Minneapolis,
supra, it was held that the expense of constructing
and maintaining the necessary bridge over the gap
in a railway right of way made by the municipal
construction across it of a canal or water way with
footpaths on each side connecting two lakes used for
public recreation may be cast upon the railway com-
pany without denying it due process of law.

(c) In Erie Railroad Co. v. Board of Publie Util-
ity Commissioners, supra, this Court said:

29

“We agree with the contentions below that,
as the railroad company might have been
charged with the whole expense, the fact that no
more than ten per centum of the cost of three
crossings is thrown upon a street railway com-
pany is a matter of which it cannot complain.”

IV.

Engagement in interstate commerce does not de-
stroy the right of a state to compel a railroad com-
pany to abolish a highway grade crossing.

Erie Railroad Co. v. Board of Public Utility
Commissioner's, 254 U. S., 394, 410, 65 L.
ed., 322, 334.

(a) In the Erie case, this Court said:

“If it reasonably can be said that safety re-
quires the change, it is for them to say whether
they will insist upon it, and neither prospective
bankruptcy nor engagement in interstate com-
merce can take away this fundamental right of
the sovereign of the soil. Denver & R.G. R. Co.
v. Denver, 250 U. S., 241, 246, 63 L. ed., 958,
962, 39 Sup. Ct. Rep., 450. To engage in inter-
state commerce the railroad must get on to the
land: and, to get on to it, must comply with the
conditions imposed by the state for the safety
of its citizens.”

(b) This principle is but one phase of the more
general principle that regulations are not invalid
merely because they affect interstate commerce inci-
dentally.

Hall v. Geiger Jones Co., 242 U.S., 539, 61

L. ed., 480;
Nashville, C. & St. L. Ry. v. Wallace, 288 U.
S., 249, 267, 77 L. ed., 730;

E
*
i
Fr
i
§

30

Denver Rio Grande R. Co. vy. Denver, 250 U.
S., 241, 63 L. ed., 958:

Honnold’s Supreme Court Law, page 361 and
cases therein cited.

V.

The public policy of Tennessee is not to minimize
restrictions and taxes on commen carriers by motor
vehicle ard to impose restrictions and taxes on com-
mon carriers by railroad.

(a) The public policy of the State is to be found
in its const.tution, its statutory enactments and its
judiciai decisions.

Hartford Fire Ins. Co. v. Chicago, M. & St.
P. R. Co., 175 U.S., 91, 44 L. ed., 84;

Clark V. Railroad, 123 Tenn... 232, 240;

00 Corpus Juris, 858, 859, and cases therein
cited.

(b) The Constitution of Tennessee, Article 2, Sec-
tion 28, requires that all property shall be taxed
equally. The taxing statutes of Tennessee make nu
distinct:on or discrimination between property be-
longing to common carriers operating by railroad and
property belonging to common carriers Operating by
motor vehicle.

(c) The bill does not allege and the evidence does
not reveal any intentional or systematic discrimina-
tion in the administration of the statutes of Tennes-
see by its public officials.

(d) The statutes of Tennessee regulate and tax
the operation of motor vehicles in the following par-
ticulars:

31

The Code of Tennessee, Section 1126, et seq., and
Chapter 11, Acts of Second Extra Session cf 1931,
levy a privilege tax of 7e per gallon unon the sale
and/or storage of gasoline.

The Code of Tennessee, Section 1149, et seg., as
amended by Chapter 36, Acts of 1933, levies sub-
stantial registration fees upon motor vehicles. For
example, the annual fee upon a 1!., ton truck (fac-
tory rating) is $25.00, and the fee for registration
of a 3 ton truck (factory rating) is $70.00.

Chapter 82 of the Public Acts of 1931 regulates the
operation of vehicles upon public highways and pro-
vides penalties for violations of the law. This stat-
ute forbids any person to drive any vehicie upon any
road, street or highway, carelessly and heedlessly,
in willful or wanton disregard of the rights or safety
of others, and without due caution and circumspec-
tion at a speed and in a manner so as to endanger or
be likely to endanger any person or property. This
statute, among other reguiations, requires that the
driver of every motor vehicle shall come to a full
stop at any railroad crossing when a clearly visible
and positive signa! gives warning of the approach of
a train, or when any such crossing is designeted and
signposted by the Highway Department as a par-
ticularly dangerous crossing.

Chapter 35 of ‘he Public Acts of 1935 reculates the
weight, length, width, speed and braking facilities
of motor trucks operating upon public hichwavys. By
the provisions of this statute motor vehicles subject
to the Act are required to weigh in the aggregate not
exceeding 18,000 pounds; to have a length not ex-
ceeding 27 feet (except that a vehicle and trailer may
‘have a total length not exceeding 35 feet); to have

on 8 ee ment. bere!

32

a width of not exceeding 8 feet or a height not exceed-
ing 12 feet and to operate at a maximum speed of
not exceeding 35 miles per hour. This statute was
held constitutional by the Supreme Court of Tennes-
see in Hoover Motor Express Co., Inc.v . Fort, et al.,
167 Tenn., 628, the appeal from which decision was
dismissed by this Court on November 12, 1934, for
the want of a substantial Federal question.

Chapter 114 of the Public Acts of 1933 requires
the operators of motor vehicles using the highways
for the transportation of property to pay the State
reasonable compensation for the use of its highways.
This Act imposes a mileage tax of one-half (14)
cent per mile traveled by each motor vehicle of one
ton and not more than three tons capacity. It im-
poses a mileage tax (or compensation) of one cent
(1c) per mile traveled by each motor vehicle of from
three tons capacity. By the provisions of Chapter 13,
Acts of the Second Extra Session of 1931, Item 108,
a mileage tax is also imposed upon motor busses car-
rying passengers upon the public highways.

Chapter 119 of the Public Acts of 1933 regulates
the operation of motor vehicles for the transportation
of persons or property for compensation upon the
public highways. This statute regulates common
carriers and contract haulers, requiring that all car-
riers for compensation shall be licensed. In the is-
suance of any license, including an interstate hauler’s
permit, the Railroad and Public Utilities Commis-
sion is required to give reasonable consideration to
the nature of the highways over which the license is
applied for, to the effect of such operation thereon
and upon the traveling public using said highway,
and to the nature and character and probable condi-
tion of the vehicles to be used upon said highway. In

33

the issuance of intrastate licenses, the Commission
is also required to give reasonable consideration to
the transportation service being furnished by any
railroad or other carrier on the route or in the ter-
ritory in which the applicant proposes to operate and
to the effect which such proposed transportation
service may have upon other transportation service
being rendered. Railroads and other carriers are
declared to be interested parties entitled to notice of
such applications and entitled to be heard with re-
spect to the granting of such permits.

(e) In City of Memphis v. Southern Ry., 167
Tenn., 181, the Supreme Court of Tennessee held
that the statute involved in the case at bar (Chapter
132, Acts of 1921, Code of Tennessee, Sec. 2638,
et seg.), evinced a legislative policy to require rail-
roads to pay only part of the cost of eliminating
grade crossings so that a municipality could not re-
quire a railroad to construct an underpass at its own
entire expense. Thus construed, the statute requires
railroads to contribute to grade crossing separations
upon state highways, but it also prohibits a munic-
ipality or other governmental agency from assessing
more than one-half the cost of a separation against
a railroad company. In the absence of this statute
a municipality might assess against a railroad the
entire cost of eliminating a dangerous crossing. The
statute thus imposes a burden and also gives protec-
tion to railroads.

(f) The fact that taxes collected from the opera-
tions of motor vehicles are generally used for the
construction of highways and the payment of high-
way indebtedness does not prevent such taxes from
being used for a public purpose. The construction

;
;
i
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&

AEE ROT ERE RIOD COE PARI ne ay

SE RECT EE LI | D OR ey e SRT er

eT

Bi a a er ee ee eee ee es
}

|

f public highways is purely a governmental function
and the highways of a state are public property.
Stephenson V. Binford, 287 U. S., 251, 264, 77
L. ed., 288, 294;
Packard v. Banton, 264 U. S., 140, 144; 68 L.
ed., 596, 607;
13 Ruling Case Law 79.

VI.

Whether or not economic conditions have so
changed that statutes requiring railroads to bear the
cost, or a part of the cost, of grade crossing separa-
tions, ought to be repealed or modified presents a
question of public policy exclusively within the con-
trol of the Legislature.

McLean Vv. Arkansas, 211 U. S., 539, 547, 53
L. ed., 315, 319;

Chicago, B. & Q. R. Co. v. McGuire, 219 U.
S., 549, 569, 55 L. ed., 328, 339.

German Alliance Ins. Co. v. Lewis, 233 U. S.,
389, 414, 58 L. ed., 1011, 1022:

Green V. Frazier, 253 U. S., 283, 240, 64 L.
ed., 878, 882;

Motlow v. State, 125 Tenn., 547, 589;

Quinn V. Hester, 135 Tenn., 374, 380;

N.,C. & St. L. Ry. v. Marshall Co., 161 Tenn.,
236, 247.

(a) In McLean v. Arkansas, 211 U. S., 539, 547,
53 L. ed., 315, 319, this Court, sustaining the valid-
ity of a state statute, said:

“The legislature, being familiar with local
conditions, is, primarily, the judge of the neces-
sity of such enactments. The mere fact that a
court may differ with the legislature in its views
of public policy, or that judges may hold views

35

inconsistent with the propriety of the legislation
in question, affords no ground for judicial inter-
ference, unless the act in question is unmistak-
ably and palpably in excess of legislative power.”

(b) In Chicago, B. & Q. R. Co. V. McGuire, 219 U.
S., 549, 569, 55 L. ed., 328, 339, also sustaining the
validity of a state statute, this Court in an opinion
prepared by the present Chief Justice, said:

“The principle involved in these decisions is
that where the legislative action is arbitrary
and has no reasonable relation to a purpose
which it is competent for government to effect, |
the legislature transcends the limits of its power
in interfering with liberty of contract; but
where there is reasonable relation to an object
within the governmental authority, the exer-
cise of the legislative discretion is not subject
to judicial review. The scope of judicial in-
quiry in deciding the question of power is not to
be confused with the scope of legislative con-
siderations in dealing with the matter of policy.
Whether the enactment is wise or unwise, >
whether it is based on sound economic theory,
whether it is the best means to achieve the de-
sired result, whether, in short, the legislative
discretion within its prescribed limits should be
exercised in a particular manner, are matters
for the judgment of the legisiature, and the
earnest conflict of serious opinion does not
suffice to bring them within the range of judicial
cognizance.”

SO ROFL eon

(c) In Green V. Frazier, 253 U. S., 2383, 240, 64
L. ed., 878, 882, also sustaining the validity of a
state statute, this Court said:

Pr: MOE MERMRN TET

36

“Questions of policy are not submitted to
judicial determination, and the courts have no
general authority of supervision over the exer-
cise of discretion which, under our system, is
reposed in the people or other departments of
government.”

(d) In numerous cases the Supreme Court of Ten-

nessee has asserted the same principles. In Motlow
V. State, 125 Tenn., 547, at 589, it is said:

“The police power is a necessary one, inher-
ing in every sovereignty, for the preservation
of the public safety, the public health, and the
public morals. It is of vast and undefined ex-
tent, expanding and enlarging in the multiplic-
ity of its activities as exigencies demanding its
service arise in the development of our complex
civilization. It isa function of government sole-
ly within the domain of the legislature to de-
clare when this power shall be brought into
operation, for the protection or advancement of
the public welfare. It is said that the courts
have the right to determine whether such law
is reasonable. By this expression, however, it
is not meant that they have power to pass upon
the act with a view to determining whether it
was dictated by a wise or a foolish policy, or
whether it will ultimately redound to the public
good, or whether it is contrary to natural justice
and equity. These are considerations solely for
the legislature. In determining whether such
act is reasonable, the courts decide merely
whether it has any real tendency to carry into
effect the purposes designed—that is, the pro-
tection of the public safety, the public health,
or the public morals—and whether that is really

37

the end had in view, and whether the interests
of the public generally, as distinguished from
those of a particular class, require such inter-
ference, and whether the act in question vio-
lates any provision of the State or federal con-
stitution.”

(e) In Quinn V. Hester, 135 Tenn., 373, at 380, it
is said:

“The arguments made against the validity of
this statute when analyzed reduce themselves to
questions of policy, with which this court has
nothing to do. The power of the legislature is
limited only by the Constitution, and when we
come to search the Constitution we find no pro-
vision thereof forbidding the enactment of such
law.”

VIL.

The statute in question affords an opportunity to
be heard and an opportunity for judicial review.

Code of Tennessee, Sections 2638, ef seq., and
9008, et seq.;

Lehigh Valley R. Co. v. Board of P. U. Com-
missioners, 278 U. S., 24, 73 L. ed., 161;
Southern Railway Co. v. Virginia, 290 U.S.,

190, 78 L. ed., 260;
N., C. & St. L. Ry. V. Baker, 167 Tenn., 470.

(a) The statute herein involved contains the fol-
lowing provision :

“When any such grade crossing is ordered to
be eliminated, the commissioner shall determine
the location of the crossing to be substituted and
the grade thereof whether it shall pass over or

Were; oe
_ > EV ome

Or ors.

er

8 ee a

_———_—ma

38

under the railroad tracks; provided, on appeal
from any such order by the railroad company
affected, to the railroad and public utilities com-
mission, that that commission shall have the
power to make any change in the order appealed
from with regard to the location and grade of
the crossing to be constructed which may appear
to said commission to be necessary to adequate-
ly protect the safety of passenger and freight
traffic on said railroad; and provided, further,
that said appeal must be made within thirty
days of the date the order appealed from is cer-
tified to the railroad company affected, and dis-
position of said appeal must be made within
thirty days of the date said appeal is made, un-
less the commissioner of said department and
the railroad company agree on a further exten-
sion of time.”’

(b) This statute, as construed by the Supreme
Court of Tennessee, provides for a right of appeal
by which the railroad may have the action of the
Highway Commissioner reviewed by the Railroad
and Public Utilities Commission.

N., C. & St. L. Ry. v. Baker, 167 Tenn., 470,
472.

(c) The Code of Tennessee, Sections 9008-9018,
provide that any one who may be aggrieved by any
final order or judgment of any board or commission
functioning under the laws of the state may have said
order or judgment reviewed by the courts. The re-
view provided for by this statute is upon the proof
introduced before the board or commission, together
with such other evidence as either party may desire
to introduce.

39

When the grade crossing separation statute of
Tennessee is construed in connection with the stat-
utes referred to, it merely provides for the issuance
of an order by the Highway Commissioner in the
nature of a show-cause order requiring a railroad
to contribute to the cost of a separation. If the rail-
road wishes to contest its liability, a full and original
judicial proceeding is provided in which all questions
of law and of fact may be raised. The Highway Com-
missioner’s ruling upon the fundamental question
of whether or not public convenience and necessity
require an elimination is not final. Thus the failure
to provide for notice and a hearing prior to the order
of the Commissioner of Highways is immaterial be-
cause the railroad is given the right to a hearing de
novo under the statutes referred to. The Tennessee
statute, as construed by the Supreme Court of Ten-
nessee, is essentially different from the Virginia
statute before this Court in Southern Railway Co.
v. Virginia, 290 U.S., 190. Indeed, the Railway has
been afforded a full and complete review in the pres-
ent suit (a declaratory judgments proceeding).

The appellant railway, either at the time the
ordex was made or at any subsequent time, in-
cluding the present appeal, did not question the
validity of the statute upon the ground that no op-
portunity for adequate judicial review was provided.

bs ER ROR

- AS RP ay a OSES

SPOS UP Le Bnet Norte
4 :

am ane et lah RA Beha.

40

SUMMARY OF ARGUMENT.
I.

Public safety and public convenience require the
construction of an underpass at the railroad cross-
ing in question and the cost of this separation is not
unreasonable or excessive.

If:

A state may require railroads at their own ex-
pense to abolish grade crossings upon public high-
ways, including crossings upon newly laid out pub-
lic highways. When such separation is demanded,
the question for judicial determination is whether

or not public safety and convenience require the
abolition in view of the expenditures involved.

ITI.

The police power embraces regulations designed
to promote the public convenience or the general wel-
fare, as well as those in the interest of public health,
morals or safety.

IV.
Since regulations are not invalid merely because
they affect interstate commerce incidentally, it fol-
lows that the power of a state to compel a railroad

company to eliminate a grade crossing is not affected
by the fact that such railroad is an interstate carrier.

7:

The public policy of Tennessee, as revealed by the
Constitution, statutes and judicial decisions of the
State, does not discriminate between railroads and
their competitors by motor vehicle.

41
VI.

Even if the taxing statutes of Tennessee contained
an unconstitutional discrimination in favor of motor
carriers and adverse to railroads, such fact would
not invalidate a statute, otherwise constitutional, en-
acted under the police power.

VIl.

Whether or not economic conditions have so
changed that statutes requiring railroads to bear the
cost, or a part of the cost, of grade crossing separa-
tions ought to be repealed or modified presents a
question of public policy exclusively within the con-
trol of the legislature.

VIII.

The grade crossing separation statute of Tennes-
see affords the railroad an opportunity to be heard
and an opportunity for judicial review.

IX.

The state may exercise police power by eliminat-
ing grade crossings from state highways without re-
quest from municipal, county or other local authori-
ties.

X.

The public officers directing the elimination herein
involved had the necessary information to conclude
that the grade separation was essential in the inter-
est of public safety and convenience.

XI.

State highways are not the right of way of a com-
petitor of railroads, but are public property. Their

a ae ed

+ rr Lp?
eens

42

primary and preferred use is for private purposes
and their use for purposes of gain is special and
extraordinary.

XII.

State highways are built for local and intrastate
traffic, for social use and for private use as well as
for the encouragement and stimulation of interstate
traffic.

43
CONCLUSION.

Most of the propositions of law and of fact relied
upon in the summary of argument above given have
been covered and these wil! not be enlarged upon
now. This conelusiop will be confined to a few mat-
ters not heretofore elaborated upon.

The brief for appellant asserts as a proposition of
law that constructing highvavs and making them
safe for nonexistent or anticipated fast, heavy com-
mercial traffic, in direct competition with railroads,
is not an exercise of the police power. Which of the
elements contained in this statement prevent the con-
struction of a grade separation fiom being an exer-
cise of the police power, is not ciear. The construc-
tion and maintenance of public highways is purely
a governmental function. The elimination of grade
crossings over public highways, by which the public
safety and convenience are promoted, has been de-
clared to be an exercise of the police power in numer-
cus cases. For example, in the case of Missouri P.
R. Co. v. Omaha, 235 U.S., 121, 127, this Court, re-
ferring to a grade crossing elimination, said that
“this is done in the exercise cf the police power.”’

Adversary counsel would not insist that the fact
that the traffic was nonexistent, if reasonably antic-
ipated, prevented the elimination from being an
exercise of the police power, for this insistence wouid
be the advancing of an argument already rejected
by this Court, e. g., that separations cannot be re-
quired upon newly laid out highways. The fact that
the traffic is fast and heavy affords no support to the
idea that making it safe is not an exercise of the
police power. The character of the traffic is not the

NER get

ok ta

te ee ee

44

determinative element but the existence of danger
and of public inconvenience is the test. Since the
police power includes everything essential to the pub-
lic health, morals, comfort and general welfare, it
necessarily includes the elimination of grade cross-
ings.

Appellant’s brief also places emphasis upon the
fact that neither the city nor county authorities ever
suggested the need for this grade separation. The
reason for this is clear. The grade separation in
question was one upon a newly constructed State
highway. No request from local authorities could
be made because the demand for separation by the
State came before this highway was ever opened to
traffic. Furthermore, it is not essential to an exer-
cise of the police power by the State that local au-
thorities should request the elimination. It would be
evidence that the elimination was unnecessarv if the
crossing to be separated were in actual use and if the
local authorities in such situation did not seek the
change. However, the existence of the power of the
State to eliminate the crossing could not depend upon
the local authorities. Appellant relies upon the fact
that the Clifton street crossing was not designated
as a dangerous one by the Tennessee State officials.
However, appellant’s brief (page 19), quotes the
estimate of highway engineers without contradic-
tion that through motor traffic on the new road
would increase 1000‘;. Under these circumstances,
it is clear that the test of danger and convenience at
the new crossing is not to be measured by the ex-
istence of danger at the old crossing.

The only question with regard to the danger of the
crossing to be eliminated which arises in this suit is
the danger which would result from a new grade

45

crossing upon the newly constructed highway. The
record contains abundant and undisputed evidence
that in view of the anticipated increase in traffic, in
view of the nature of traffic which will use the new
highway and in view of its speedier route, a grade
crossing thereon would be dangerous and very incon-
venient.

Collier v. Baker, 160 Tenn., 571, is relied upon by
appellant for the proposition that an exercise of the
police power over roads within municipalities is to
be exercised by the local authorities to the exclusion
of State officials. This case merely held that the
selection of city streets by the State Highway De-
partment for the routing of State highways did not
withdraw such streets from the police power of the
city. In other words, municipal regulations with re-
spect to movement of traffic apply to State highways
within the city limits. Of course, this is a matter
of Tennessee law and the construction given the
statute by the Supreme Court of Tennessee in the
case at bar to the effect that the State may require ;
a railroad to eliminate a grade crossing upon a State
highway within a municipality is conclusive as re-
gards the interpretation of the statute, leaving open
only the question of its constitutional validity so con-

strued.

Appellant’s brief emphasizes the fact that the
State officials ordering this separation did not know
how many trains appellant ran or at what hours.
It is insisted that such knowledge was essential. The
officers directing this elimination knew that they
were dealing with a main State highway connecting
the two largest cities in Tennessee. They knew that
the crossing in question was upon the main line of
appellant railway. It was not essential, we respect-

46

fully submit, that they determine the number of
trains or their hourly schedules. The order issued
by them was subject to judicial review and to a de-
termination de novo with regard to its propriety and
necessity. Under these circumstances the Commis-
sioner of Highways cannot be said to have acted in
ignorance of the facts.

Appellant’s brief insists that the use of State and
federal aid roads is no longer primarily either local
or social but commercial. We deny this. On the con-
trary, we insist that local traffic is greatly stimu-
lated by the modern highway and that it is inaccurate
to say that modern highway construction is designed
primarily for commercial or interstate traffic. It is
true that such highways serve two purposes, neither
of which can be called secondary. These purposes
are the encouragement and stimulation of local
traffic and the fostering of state-wide and nation-
wide long distance travel. The Commissioner of
Highways testified that the primary object in the
construction of new Route No. 20 was the connection
of adjacent county seats in Tennessee and the open-
ing up of country which has not heretofore been
served with adequate roads. (R., p. 188.)

We believe that the appellant falls into the error
of assuming that public highways have been con-
structed and are being constructed for operators for
hire. On page 47 of appellant’s brief it is said that
where a new right-of-way of a commercial transpor-
tation company crosses the right-of-way of an exist-
ing commercial road the new one must pay the cross-
ing cost. If the public highways are the right-of-way
of commercial operators and if these operators have
a property right in the highways so that such high-
ways are not under the control of the State, then this

47

proposition is undoubtedly true. However, in recent
cases, notably Stephenson Vv. Binford, 287 U. S., 251,
77 L. ed., 288, this Court has emphasized the well
established rule of law that the highways of the State
are public property, that their primary and preferred
use is for private purposes, and that their use for
purposes of gain is special and extraordinary,
which, generally, at least, the legislature may pro-
hibit or condition as it sees fit. In Hoover Motor Ex-
press Co., Inc., et al. Vv. Fort, et al., 167 Tenn., 628,
the Supreme Court of Tennessee recognized and gave
effect to this principle of law.

Appellant emphasizes the fact that the form of
traffic requiring protection upon this hishway is
interstate and not local travel. The record reveals
(R., p. 223) that the character of traffic which will
use this road would make a grade crossing more
dangerous than if the same volume of local traffic
used the road. If local traffic, using the crossing fre-
quently enough to be familiar with existine condi-
tions, was the principal traffic upon the road, the haz-
ard would be reduced. When the road carries a sub-
stantial amount of traffic which is not familiar with
local conditions, obviously, the hazard of a grade
crossing is increased.

Adversary counsel would not seriously contend
that the safety and convenience of interstate traffic
were less important than the safety and convenience
of local traffic. Yet the argument apparent!y is that
if safety of local traffic demanded the separation the
police power might be exercised validly when it can-
not be exercised if the safety of through traffic de-
mands the separation.

We have heretofore pointed out that in numer-
ous cases this Court has held the police power to in-

t

f tPA Satine DELIA T at te ata 86 elt mde dr

48

clude public convenience as well as public safety. In
the case at bar it is not contended that the underpass
ought not to be constructed in the interest of public
convenience and safety. The insistence is that the
safety and convenience of the traveling public re-
quire the separation and that the relative benefit ac-
cruing to travel upon the highway is so vastly greater
than the benefit of the railroad as to make the statute
involved invalid. In the case of New York N. E. R.
Co. V. Town of Bristol, supra, and in many other
cases, this Court has sustained the statutes “irre-
spective of benefits.” Appellant now insists that the
relative benefit has changed sc that a railroad secures
even less advantages from a separation than ever
before. This is immaterial unless the principle upon
which cases heretofore decided that statutes are sus-
tainable “irrespective of benefits” is not correct. In
other words, this Court has said that these changing
conditions are not those which affect the validity of
such a statute.

The appellant railway has not been harshly
treated by the State of Tennessee in the enforcement
of its grade crossing separation statute. The High-
way Department in Tennssee was organized in 1919
and from the time of its organization through De-
cember, 1931, its total expenditures upon public
highways were approximately $190,000,000.00. (R.,
pp. 185, 186.) The statute requiring railroads to
share the cost of grade crossing eliminations was
enacted in 1919. Since that statute was enacted the
appellant railway has contributed, pursuant to the
provisions of this statute, approximately $250,000.-
00 on grade crossing projects in Tennessee. (R., p.
400.) The State Highway System of Tennessee is
practically complete. (R., p. 205.) Expenditures

4

49

under this statute, which are limited to grade cross-
ings “‘on any of the main traveled highways desig-
nated by the Commissioner as included in the gen-
eral highway plan of the State,” in the future will
necessarily be restricted because the number of grade
crossings existing in the State Highway System is
limited.

The fact that the constitutional validity of this
statute had never been determined by the Supreme
Court of Tennessee prior to the present suit is strong
evidence that no effort to abuse the power confided
in the Department of Highways by it was ever made.
In other words, in the elimination of grade crossings
the appellant railway, running from one end of Ten-
‘nessee to the other, has been called upon to contribute
one-eighth of one per cent of the amount expended
for highways and such contribution has never be-
fore been demanded in any case which the railroad
thought sufficiently important to litigate. Indeed,
the attack here is not upon the propriety of eliminat-
ing a particular crossing but upon the unfair
economic conditions, sought to be established by na-
tional statistics and not by especial reference to Ten-
nessee, which allegedly treat railroads unfairly. (R.,
p. 26.)

Reference is made by appellant to the fact that the
United States has no police power, from which the
conclusion is sought to be drawn that because fed-
eral aid funds were spent upon this road the State
is without police power to require a grade crossing
separation. The statutes of Tennessee are designed
to provide a state system of highways. The road in
question is a state highway notwithstanding the
expenditure upon it of federal funds. The State
clearly has police power and it is the exercise of its

2 TT RT SR Ree oP ETN Ae errs

OL ORT LE ET RE pa eS TOT er a gs

Oe ee a Oe ee 2

50

power, and not of the power of the United States,
which is invoked to sustain the elimination in ques-
tion. The fact that the Federal Bureau of Roads
adopts the policy of eliminating railroad crossings
from federal aid roads is evidence that such crossings
are dangerous and inconvenient. Of course, we do
not insist that this is conclusive. In any case, the
railroad might show that a particular crossing was
not dangerous or inconvenient and that the expendi-
ture was so excessive that the elimination ought not
be required. In such ease, the railroad could nut he
required to contribute but this would not be upon the
theory that the Federal police power was invoked but
upon a finding that the elimination of the crossing
involved was unreasonable.

The construction of the new Highway 20 re-
sults in the elimination from the State Highway Sys-
tem of eight grade crossings by the construction of
one underpass. (R., p. 199.) Appellant’s b-‘ef,
page 2, states that the old route 20 will be continued
to meet demands of local travels. This statement is
true but it does not mean that the old route 20 will
be continued as a part of the State Highway System.
The eight grade crossings in question have been
eliminated from the State Highway System. No
liability upon the railroad under the statute exists
to contribute to the elimination of these crossincs.
Obviously, the Commissioner of Highway does not
include them in the highway system and if he soucht
to do so for the purpose of requiring the railroad to
eliminate them, such action would be held unreason-
able. The statutes provide for a state highway sys-
tem connecting adjacent county seats. The new route
20 does this and eliminates from the Highway Sys-
tem the old route 20.

51

—-

We have heretofore endeavored to show that the
public policy of Tennessee does not discriminate
against railroads. However, assuming, but not con-
ceding, that the public policy of Tennessee, as evi-
denced by its statutes and decisions, is discrimina-
tory, we do not believe that such fact would invali-
date the present statute. Allegations that the public
policy of Tennessee is to minimize restrictions on
motor vehicles and to impose burdens on railroads
und that the taxing system of Tennessee is more
burdensome on common carriers by railroad than on
common carriers by motor vehicle are immaterial
to the determination of whether or not a grade cross-
ing elimination statute is constitutional. This is true
because such statute is enacted under the police
power and because of the essential nature of the
police power. The police power is a necessary at-
tribute of sovereignty. Upon it the very existence of
government depends. It is said to be the most es-
sential and the least limitable of the powers of gov-
ernment. The police power is in no wise dependent
upon the taxing power.

Neither contract nor prescription can be intro-
duced to defeat the cxercise of the police power, nor
can estoppel be invoked as against public interest.

With these elementary principles in mind it is
clear that the enforcement of a police regulation can-
not be defeated because there is a discrimination in
taxing statutes separately enacted which unconstitu-
tionally favor the competitors of the one resisting the
police regulation. A question of this kind could be
raised only in a taxing suit. Two wrongs do not
make a right. If the railroad is aggrieved by the
taxing statutes of Tennessee, such grievances must
be litigated in a suit to resist a tax or to compel

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taxing officials to assess its competitors. This ques-
tion could not be raised to defeat the enforcement of
a police regulation.

52

Most of the evidence introduced on behalf of the
railway is intended to prove that there has been a
revolution in transportation methods resulting from
the development of motor vehicles and the improve-
ment of public highways. This evidence is also de-
signed to show the disastrous effect on the revenue
of railroads resulting from highway competition.
There is a substantial amount of truth in the conten-
tion that highway building has adversely affected the
economic condition of railroads. The facts resulting
in a public policy which requires a railroad to con-
tribute to the elimination of a grade crossing have,
to some extent, changed but we do not think that
such a change presents a justiciable controversy.
This Court in many cases has recognized the general
principle that the courts have nothing to do with
questions of public policy and the power of state
legislatures is limited only by the Constitution.
When the attack upon a statute reduces itself to a
question of the policy of the statute the courts can-
not consider the attack. With the wisdom of legisla-
tion and the soundness of the economic policy therein
expressed the courts are not concerned.

In the recommendation of the National Transpor-
tation Committee (the so-called Coolidge Commit-
tee), it is said:

“State laws requiring railroads to make capi-
tal expenditures for grade crossing elimination
in excess of capitalized savings in operating ex-
penses therefrom should be repealed.”

53

No doubt appellant’s able counsel agreed with this
recommendation. The appellant Railway endeavored
to persuade the Tennessee legislature in 1931 to re-
peal the law in question. (R., p. 28.) The legisla-
ture declined to do so. Adversary counsel now ap-
peal to thisforum. They seek to litigate an economic
question. They seek to have the courts legislate for
them because the legislature refused to do so. Per-
haps in view of the change in transportation policy,
the statute herein attacked ought to be repealed but
the legislature must do the repealing. The Transpor-
tation Committee recognized this in its reeommenda-
tion.

The present litigation is really an effort to change
the public policy of the State of Tennessee. When a
subject lies within the police power of a state, de-
batable questions as to reasonableness are not for the
court but for the legislature, which is entitled to
form its own judgment. It is upon this principle
that we rely. The crossing in question ought not be
a grade crossing. Under principles of constitutional
law heretofore announced by this Court, the railroad
may be required to share the cost of separation, “‘ir-
respective of benefits.”

For the foregoing reasons we believe that the judg-
ment of the Supreme Court of Tennessee ought to be
affirmed.

Respectfully submitted,

Roy H. BEELER,
Attorney-General of the State of Tennessee.

EDWIN F. HUNT,
Assistant Attorney-General.
For Appellees.

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40386009_0176%3A4. Public record. Not legal advice.
