Constitution of Nebraska — Article X

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X-1 Reports under oath.

Reissue Revised Statutes of Nebraska

X-1

Reports under oath.

Every public utility corporation or common carrier organized or doing business in this state shall report, under oath, to the Railway Commission, when required by law or the order of said Commission. The reports so made shall include such matter as may be required by law or the order of said Commission.

Neb. Const. art. XI, sec. 1 (1875);

Amended 1920, Constitutional Convention, 1919-1920, No. 30;

Transferred by Constitutional Convention, 1919-1920, art. X, sec. 1.

X-2 Property liable to sale on execution.

Reissue Revised Statutes of Nebraska

X-2

Property liable to sale on execution.

The rolling stock and all other movable property belonging to any railroad company or corporation in this state, shall be liable to execution and sale in the same manner as the personal property of individuals, and the legislature shall pass no law exempting any such property from execution and sale.

Neb. Const. art. XI, sec. 2 (1875);

Transferred by Constitutional Convention, 1919-1920, art. X, sec. 2.

X-3 Consolidation of stock or property.

Reissue Revised Statutes of Nebraska

X-3

Consolidation of stock or property.

No public utility corporation or common carrier shall consolidate its stock, property, franchise, or earnings in whole or in part with any other public utility corporation or common carrier owning a parallel or competing property without permission of the Railway Commission; and in no case shall any consolidation take place except upon public notice of at least sixty days to all stockholders, in such manner as may be provided by law. The Legislature may by law require all public utilities and common carriers to exchange business through physical connection, joint use, connected service, or otherwise.

Neb. Const. art. XI, sec. 3 (1875);

Amended 1920, Constitutional Convention, 1919-1920, No. 31;

Transferred by Constitutional Convention, 1919-1920, art. X, sec. 3.

This Article permits but does not compel exchange of business through physical connections, joint use, connected service, or otherwise and public policy in the field is within the legislative domain. City of Lincoln v. Nebraska P.P. Dist., 191 Neb. 556, 216 N.W.2d 722 (1974).

Under section prior to amendment of 1920, the word "railroad" did not apply to street railway companies, and they were not prohibited from consolidating their lines. State ex rel. Winnett v. Omaha & C. B. St. Ry. Co., 96 Neb. 725, 148 N.W. 946 (1914); State ex rel. Tyrrell v. Lincoln Traction Co., 90 Neb. 535, 134 N.W. 278 (1912).

Prohibition against consolidation extends to leasing. State ex rel. Leese v. Atchison & Nebraska R. R. Co., 24 Neb. 143, 38 N.W. 43 (1888), 8 A.S.R. 164 (1888).

X-4 Railways declared public highways; maximum rates; liability not limited.

Reissue Revised Statutes of Nebraska

X-4

Railways declared public highways; maximum rates; liability not limited.

Railways heretofore constructed, or that may hereafter be constructed, in this state are hereby declared public highways, and shall be free to all persons for the transportation of their persons and property thereon, under such regulations as may be prescribed by law. And the legislature may from time to time pass laws establishing reasonable maximum rates of charges for the transportation of passengers and freight on the different railroads in this state. The liability of railroad corporations as common carriers shall never be limited.

Neb. Const. art. XI, sec. 4 (1875);

Transferred by Constitutional Convention, 1919-1920, art. X, sec. 4.

Railroads in this state are public highways, and title to right-of-way cannot be divested by adverse possession. Edholm v. Missouri P. R. R. Corp., 114 Neb. 845, 211 N.W. 206 (1926); McLucas v. St. Joseph & G. I. Ry. Co., 67 Neb. 603, 93 N.W. 928 (1903).

Railroad is liable for negligence notwithstanding contract limiting liability. Maucher v. Chicago, R. I. & P. Ry. Co., 100 Neb. 237, 159 N.W. 422 (1916).

This section does not prohibit Legislature from increasing common law liability of common carriers. Smith v. Chicago, St. P., M. & O. Ry. Co., 99 Neb. 719, 157 N.W. 622 (1916).

A side track connecting with main line of railroad will be presumed to be a part of the public system of the company, and a public highway. Roby v. State ex rel. Farmers Grain & Live Stock Co., 76 Neb. 450, 107 N.W. 766 (1906).

Railroads must receive cars of another road when gauge is suitable and cars offered are not defective. Chicago, B. & Q. R. Co. v. Curtis, 51 Neb. 442, 71 N.W. 42 (1897), 66 A.S.R. 456 (1897).

Congress has legislated upon the subject of liability of carriers for loss or damage to interstate shipments, superseding all provisions of state constitutions or laws prohibiting carriers from limiting their liability by contract. C., St. P., M. & O. R. Co. v. Latta, 226 U.S. 519 (1913); C., B. & Q. R. Co. v. Miller, 226 U.S. 513 (1913).

Agreement under which constructor of unloading pit agreed to indemnify railroad which owned trackage over pit against all claims arising out of the construction, maintenance, use, and existence of pit did not contravene this Article. Linden v. Chicago, B. & Q. R.R., 483 F.2d 29 (8th Cir. 1973).

X-5 Capital stock; dividends.

Reissue Revised Statutes of Nebraska

X-5

Capital stock; dividends.

The capital stock of public utility corporations or common carriers shall not be increased for any purpose, except after public notice for sixty days, and in such manner as may be provided by law. No dividend shall be declared or distributed except out of net earnings after paying all operating expenses including a depreciation reserve sufficient to keep the investment intact.

Neb. Const. art. XI, sec. 5 (1875);

Amended 1920, Constitutional Convention, 1919-1920, No. 32;

Transferred by Constitutional Convention, 1919-1920, art. X, sec. 5.

X-6 Eminent domain.

Reissue Revised Statutes of Nebraska

X-6

Eminent domain.

The exercise of the power and the right of eminent domain shall never be so construed or abridged as to prevent the taking by the legislature, of the property and franchises of incorporated companies already organized, or hereafter to be organized, and subjecting them to the public necessity the same as of individuals.

Neb. Const. art. XI, sec. 6 (1875);

Transferred by Constitutional Convention, 1919-1920, art. X, sec. 6.

Lands acquired by eminent domain by railroad for right-of-way are dedicated to public use, and title thereto cannot be divested by adverse possession so long as railroad is operated. Edholm v. Missouri P. R. R. Corp., 114 Neb. 845, 211 N.W. 206 (1926).

Compensatory damages should be allowed for land taken for right-of-way for public road. Missouri Pac. R. R. Co. v. Cass County, 76 Neb. 396, 107 N.W. 773 (1906).

X-7 Unjust discrimination and extortion.

Reissue Revised Statutes of Nebraska

X-7

Unjust discrimination and extortion.

The Legislature shall pass laws to correct abuses and prevent unjust discrimination and extortion in all charges of express, telegraph and railroad companies in this state and enforce such laws by adequate penalties to the extent, if necessary for that purpose, of forfeiture of their property and franchises.

Neb. Const. art. XI, sec. 7 (1875);

Transferred by Constitutional Convention, 1919-1920, art. X, sec. 7.

The Public Service Commission has exclusive power and jurisdiction to inquire into complaints concerning telephone rates and where service is woefully inadequate, may require rebates. Myers v. Blair Tel. Co., 194 Neb. 55, 230 N.W.2d 190 (1975).

Legislature delegated power hereunder to inquire into discriminatory rates to the railway commission. Allen v. Omaha Transit Co., Inc., 187 Neb. 156, 187 N.W.2d 760 (1971).

Not all discriminations are prohibited by this section. Statute permitting free transportation to ministers and charity workers is not violative of this section. State ex rel. Sorensen v. Chicago, B. & Q. R. R. Co., 112 Neb. 248, 199 N.W. 534 (1924).

Railway Commission Act follows the mandate of this section. State v. Union Pacific R. R. Co., 87 Neb. 29, 126 N.W. 859 (1910).

Telegraph companies were placed in the same class with railroad companies and other common carriers. Western Union Tel. Co. v. State, 86 Neb. 17, 124 N.W. 937 (1910).

Anti-pass law, applied to intrastate transportation, is constitutional. State v. Martyn, 82 Neb. 225, 117 N.W. 719 (1908).

It is not undue preference to give one patron a less rate where fairly justified by differences in conditions affecting expense or difficulty of rendering service. Western Union Tel. Co. v. Call Pub. Co., 44 Neb. 326, 62 N.W. 506 (1895), affirmed by 181 U.S. 92 (1901).

X-8 Eminent domain for depot or other uses.

Reissue Revised Statutes of Nebraska

X-8

Eminent domain for depot or other uses.

No railroad corporation organized under the laws of any other state, or of the United States and doing business in this state shall be entitled to exercise the right of eminent domain or have power to acquire the right of way, or real estate for depot or other uses, until it shall have become a body corporate pursuant to and in accordance with the laws of this state.

Neb. Const. art. XI, sec. 8 (1875);

Transferred by Constitutional Convention, 1919-1920, art. X, sec. 8.

Railroad corporation is required to become a body corporate of this state to exercise right of eminent domain. Omaha Nat. Bank v. Jensen, 157 Neb. 22, 58 N.W.2d 582 (1953).

Foreign corporation cannot exercise right of eminent domain. Koenig v. Chicago, B. & Q. R. R. Co., 27 Neb. 699, 43 N.W. 423 (1889); State ex rel. Burlington & Missouri R.R. Co. v. Scott, 22 Neb. 628, 36 N.W. 121 (1888).

Foreign corporation may consolidate with domestic and exercise power of eminent domain. State ex rel. Leese v. Chicago, B. & Q. R. R. Co., 25 Neb. 156, 41 N.W. 125 (1888), 2 L.R.A. 564 (1888).

No foreign railway company doing business in this state can exercise right of eminent domain or have power to acquire right-of-way unless organized as a corporation under laws of this state. Trester v. Missouri P. Ry. Co., 23 Neb. 242, 36 N.W. 502 (1888).