A. E. West Petroleum Co. v. Atchison, T. & S. F. Ry. Co.

212 F.2d 812
CourtCourt of Appeals for the Eighth Circuit
DecidedJune 15, 1954
Docket14746_1
StatusPublished
Cited by18 cases

This text of 212 F.2d 812 (A. E. West Petroleum Co. v. Atchison, T. & S. F. Ry. Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
A. E. West Petroleum Co. v. Atchison, T. & S. F. Ry. Co., 212 F.2d 812 (8th Cir. 1954).

Opinion

STONE, Circuit Judge.

This is an appeal by the A. E. West Petroleum Company (a corporation) from a judgment dismissing its action against the several appellee railroads to recover the amounts of freight overcharge reparation payments ordered by the Interstate Commerce Commission, Federal transportation taxes paid by appellant upon the overcharges, and attorney fees. The broad issue is the applicability of an intermediate-point rate, as construed by the Commission, on shipments of petroleum products from Bradford, Pennsylvania to Kansas City, Missouri. 1

Jurisdiction

Before reaching the merits of this controversy, a matter of jurisdiction urged by plaintiff .(appellant) must be resolved. Plaintiff contends that the construction of the meaning of a rate regulation of the Commission made by the Commission is “not subject to judicial review unless arbitrary or in excess of the powers conferred” upon it. To this contention, defendants urge two answers: (1) that the District Court de *814 termined that the construction by the Commission was arbitrary; and (2) that the construction of the meaning of a tariff, where no factual issue is present and the words therein are used in their ordinary meaning, presents an issue of law which the Court may determine. Each of these answers is sound, insofar as jurisdiction of the District Court is involved. 2

Bearing on the first answer, the District Court states: the construction by the Commission “brings about absurd consequences and one which we do not believe can be sustained by reasonable construction, or is contemplated by the I.C.C. Act * * * ”. And again, the Court refers to certain other decisions of the Commission “for the purpose of better pointing up the arbitrary, ultimate absurdity and unreasonableness of the rule attempted to be enforced by the 1. C.C. in the instant award."

As to the second answer, there is here no issue of fact and the words of the tariffs are used in their ordinary significance. In such situation, the construction of the tariffs presents a purely law issue which Courts made decide. 3 Nor is such decision prevented because it may involve construction of a Rule of the Commission which is made part of the tariff. 4

Merits

The shipments involved here were car-lots of lubricating oil shipped from Bradford, Pennsylvania, which were consigned to plaintiff’s assignor at Kansas City, Missouri. Plaintiff and its assignor were distributors of such products at Kansas City. The carriers and routes from Bradford to “gateways” of the Central Freight Association territory are not involved here. The dispute has to do with the transportation of these articles beyond one of these “gateways” — here Chicago.

Agent Kipp and Agent Jones were two separately authorized agents of defendants and other carriers for the purpose of publishing tariffs governing carriage over participating carriers lines. The Kipp Tariff named a specific rate of 67 cents per hundred pounds for such petroleum products from Bradford to Kansas City. The Jones Tariff contained no named rate from Bradford to Kansas City but it did name a rate of 53 cents from Bradford to a group of stations in central and eastern Iowa— Moravia and Cedar Rapids being representative. Defendants collected the 67 cent rate. Plaintiff’s contention that the 53 cent rate was applicable was upheld by the Commission in a reparation proceeding. Defendants refused payment and this suit resulted.

The crucial dispute is whether Kansas City is, for freight rate purposes, an “intermediate-point” between Bradford and the Iowa stations within the meaning of certain general provisions of the Jones Tariff. These provisions concern intermediate-point rates and rputing instructions. These provisions were identical with certain general Rules of the Commission. The here pertinent parts-of such Rules are set forth in the footnote. 5

*815 The essence of the intermediate-point Rule is that where a rate is not named in the tariff for the destination station and where that station is “intermediate to a point to which a commodity rate on said article is published in this tariff via a route through the intermediate point over which such commodity rate applies from the same point of origin” the applicable rate is that published “to the next point beyond to which a commodity rate is published herein * * * via the same route.”

The essence of the routing Rule is that where the tariff is not restricted to specifically named routes, the rates apply “via all routes made by use of the lines of carriers parties to the tariff except as otherwise specifically provided in the tariff.” Since the Jones Tariff did not provide complete routing for such shipments from the Central Freight Association gateways to destination points beyond and since Kansas City was not “specifically” excepted in that Tariff, the routing provision that the rates apply “via all routes made by use of the lines of the carriers parties to the tariff” becomes activated.

Concisely stated, the opposed results of the Commission and of the District Court are based upon the following differences of construction of the Jones Tariff. The Commission gave literal final force to the routing provision that the tariff applied “via all routes made by use of the lines” of parties to the tariff (emphasis supplied); and, since a physically continuous route was possible from Chicago through Kansas City to the Iowa points, Kansas City was deemed an intermediate-point within that tariff and, therefore, entitled to the Iowa rate. The Commission thought it immaterial that this routing required appreciable back direction and longer circuitous haul; and that no actual shipments had ever used such route.

The Court thought the view of the Commission was too narrow in that it denied all effect to the unnatural factual situation; and gave no consideration to broad purposes of the Interstate Commerce Act, to the purposes of the intermediate-point provision of the Tariff, or to the absurd results of regarding Kansas City as an intermediate point on the Iowa stations route.

Since a physical connection of participating carriers exists from Chicago through Kansas City to the Iowa points, the ultimate test here is whether the matters which influenced the Court are sufficient to overcome the literal construction given to the Tariff by the Commission. In examining this matter, consideration must be given (1) to the factual situation, (2) to applicable doctrines of construction, (3) to the effect of the Act, and (4) to all pertinent provisions of this Tariff.

(1) . The Facts. To the gateways (here Chicago), these shipments were subject to specific routings which are not in question. Our concern is with the routing beyond Chicago. Kansas City is southwesterly from Chicago. Cedar Rapids is west of Chicago and north *816 easterly from Kansas City. Moravia is southwesterly from Chicago and northeasterly from Kansas City.

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Bluebook (online)
212 F.2d 812, Counsel Stack Legal Research, https://law.counselstack.com/opinion/a-e-west-petroleum-co-v-atchison-t-s-f-ry-co-ca8-1954.