Acme Transit Co. v. 133,000 Bushels of Wheat

243 F. 970, 1917 U.S. Dist. LEXIS 1202
CourtDistrict Court, W.D. New York
DecidedMay 24, 1917
DocketNo. 1035
StatusPublished
Cited by3 cases

This text of 243 F. 970 (Acme Transit Co. v. 133,000 Bushels of Wheat) is published on Counsel Stack Legal Research, covering District Court, W.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Acme Transit Co. v. 133,000 Bushels of Wheat, 243 F. 970, 1917 U.S. Dist. LEXIS 1202 (W.D.N.Y. 1917).

Opinion

HAZEL, District Judge.

This is a libel in rem for demurrage. The material facts show that on November 26, 1915, the large freight steamer, Edwin F. Holmes, was chartered by W. A. and A. H. Haw-good of Cleveland, managers, to the Tomlinson Company for transporting wheat from Duluth to Buffalo at the rate of 4% cents per bushel. The steamer was upbound from Toledo to Duluth at the rime, and received orders at the Sault to report at Duluth to the Tomlinson Company, which had previously confirmed the charter party, and had rechartered the vessel to the W. S. Moore Grain Company; the specified shipment to be made during the first five days of December following. The wheat, consisting of 187,000 bushels, was loaded in holds 1, 3, and 4 of the vessel and consigned to W. S. Moore Grain Company, care of C. E. Strasmer, superintendent Connecting Terminal Elevator at Buffalo, with instructions on the bill of lading to notify Otto Stude & Co. of Baltimore, account James Richardson & Son, Kingston, Ontario, to whom the wheat was sold while in transit to Buffalo. Hold No. 2 contained 63,000 bushels of wheat consigned to W. S. Moore Grain Company in care of Lunham & Moore of Buffalo, to be forwarded to Boston.

The steamer arrived early in the morning Sunday, December 5th, at which time there were 39 wheat laden vessels in port, carrying in the aggregate 9,243,000 bushels of grain, awaiting discharge at various elevators—an unusually large number for so near the close of navigation. The evidence shows that 2,000,000 bushels of the grain afloat in the port of Buffalo were consigned to the Connecting Terminal Elevator where the principal cargo of the Holmes was to be unloaded for transportation to Baltimore by the Pennsylvania Railroad, as Strasmer was advised about December 8th. The amount of grain arriving in Buffalo in the autumn of 1915 is said to have exceeded all previous arrivals. This, together with the scarcity of railroad cars for trans[972]*972porting the grain to seaboard points, caused a congestion of the Buffalo grain elevators. It is also fairly shown that there was a scarcity of ocean bottoms and tonnage at Baltimore and at the Pennsylvania Railroad terminals, which made it impossible to relieve the congestion at Buffalo and prevented the expeditious discharge of lake cargoes.

It was customary to unload cargoes in- turn at the -elevators to which they were consigned. Efforts were made by the trade to expedite unloading, and the managers of elevators and agents of vessels conferred daily as to the best means for remedying th# situation; but, as the railroads had stopped transporting grain freely in the early days of December, it was impossible to hurry the unloading.

When the Holmes arrived at Buffalo, the Connecting Terminal Elevator, which was to receive the consignment in question, was loaded to nearly its full capacity, and the Pennsylvania Railroad, which had trackage facilities extending into the elevator, was refusing to supply cars for transportation. Her agent was informed that there were a number of cargoes awaiting unloading at the Connecting Terminal Elevator, and that he was at liberty to unload her at any other elevator in the port. But this was impossible, as other elevators were all more or less crowded, and were refusing to take export grain for transportation over Pennsylvania lines, fearing a scarcity of cars. Vessel agents were made acquainted with changes in the situation at elevators in daily meetings and conferences and by means of bulletins.

The bill of lading in evidence shows that the grain which is the subject of this controversy was to be exported to Greece by way of Baltimore, and there is evidence that it should have reached the seaboard in time for shipment during the latter part of December. Claimant did not learn of the delay until nearly the end of the month. On December 20th, a portion of the cargo was unloaded at the Marine Elevator; but there was further delay, unloading not being completed until January 3, 1916, at the Dakota Elevator. Prior thereto, on December 15th, the cargo was delivered for transportation to the Pennsylvania Railroad, and Mr. Rodgers, the agent of the steamer, accepted the “turn over.”

The libel alleges generally that, as the libelant gave notice of the arrival of the grain at Buffalo and of readiness to discharge, the vessel should have been unloaded within a reasonable time, i. e., in about 6 days, and that, as the consignee was aware of the steamer’s desire to leave Buffalo before midnight of December 12th (that being the time when marine insurance expired) for Ft. William to take on a storage cargo'for delivery the following spring, the burden of finding a place of discharge was upon it; and that in storing grain in her hold during the winter the Holmes would have netted a profit of about $9,475. :

An amendment to the libel alleges, that there existed at the port a custom of unloading vessels in turn, and that, as there was failure to comply with this custom, the Holmes sustained damages amounting to $100 per day from December 12, 1915, to January 4, 1916, aggregating $1,402.50. , The amended answer denied the right to recovery on the ground that the conditions were extraordinary and could not be foreseen, and prevented speedier discharge.

[973]*973What are the rights of the parties ?

The charter and bills of lading in evidence show fairly enough that the grain was a through shipment, as distinguished from a storage cargo, and any doubt there may have been as to this was removed by the evidence. There was some question as to whether the Richardson & Son consignment or the consignment of wheat in hold No. 2 was actually responsible for the delay; but the evidence definitely shows that whatever delay there was, was not attributable to the 63,000 bushels in care of Lunbam & Moore for delivery to the Kellogg Elevator.

[1] It is true, as argued by libelant, that the rule of law ordinarily is that the charterer of the vessel, even in the absence of an express agreement to unload with reasonable dispatch, impliedly agrees that tlie freight shall be unloaded without unreasonable delay and in conformity to the custom and usage of the port. Scrutton on Charter Parties (4th Ed.) p. 244; McArthur Bros. Co. v. 622,714 Feet of Lumber (D. C.) 131 Fed. 389. But this is not a hard and fast rule, and, when it appears that the charter party or bill of lading of contract of affreightment makes no specific allowance for demurrage or for any number of lay days for unloading nor specifies a definite time of discharge, due regard must be given to the particular circumstances contributing to the delay and legitimately hearing thereon. Cross et al. v. Beard, 26 N. Y. 85; The M. S. Bacon v. Erie & Western Transportation Co. (C. C.) 3 Fed. 344; Empire Transportation Co. v. Phila. & R. Coal & Iron Co., 77 Fed. 919, 23 C. C. A. 564, 35 L. R. A. 623.

The original charter and bills of lading in evidence constituting the agreement were in the usual form, and contained no words of limitation as to the time of unloading at the elevator specified therein, and therefore in my opinion whether or not the delay was unreasonable depends entirely upon the circumstances existing when the vessel arrived in port. The clogging of the elevators because of failure on the part of the railroad companies to supply cars is an element to be considered in placing responsibility for the delay.

[2]

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Related

Kinsman Transit Co. v. 50,000 Bushels of Wheat
51 F.2d 377 (W.D. New York, 1931)
The G. A. Tomlinson
293 F. 51 (W.D. New York, 1923)

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243 F. 970, 1917 U.S. Dist. LEXIS 1202, Counsel Stack Legal Research, https://law.counselstack.com/opinion/acme-transit-co-v-133000-bushels-of-wheat-nywd-1917.