American Sheet & Tin Plate Co. v. United States

15 F. Supp. 711, 1936 U.S. Dist. LEXIS 2102
CourtDistrict Court, W.D. Pennsylvania
DecidedMay 23, 1936
DocketNos. 3110-3113, 3130, 3136
StatusPublished
Cited by4 cases

This text of 15 F. Supp. 711 (American Sheet & Tin Plate Co. v. United States) is published on Counsel Stack Legal Research, covering District Court, W.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
American Sheet & Tin Plate Co. v. United States, 15 F. Supp. 711, 1936 U.S. Dist. LEXIS 2102 (W.D. Pa. 1936).

Opinion

SCHOONMAKER, District Judge.

The six above-entitled cases involving similar issues were brought under the Act of Congress of October 22, 1913, 38 Stat. at Large 219, 28 U.S.C.A. §§ 41 (28), 45, 46, 47 (amending Act June 18, 1910, 36 Stat. 519), to enjoin orders of the Interstate Commerce Commission requiring railroad companies to discontinue payments of allowances to plaintiffs for the performance of certain terminal service commonly called “spotting.”

These cases were heard before J. WARREN DAVIS, Circuit Judge; R. M. GIBSON and F. P. SCPIOONMAKER, District Judges.

By agreement of counsel in open court, the trials of these six cases were consolidated; they were heard and are to be determined on one record.

The orders of the Interstate Commerce Commission involved in these suits were entered in a proceeding entitled “Ex Parte No. 104, Practices of Carriers affecting operating Revenues or Expenses, Part II, Terminal Services.”

The specific orders involved in these suits were issued respectively in connection with supplemental reports to that in “Ex Parte No. Í04,” dealing' with the terminal practices obtaining at the particular industrial plants of the plaintiffs, as follows:

American Sheet & Tin Plate Company Terminal Allowance, 209 I.C.C. 719 (July 5, 1935).

Allegheny Steel Company Terminal Allowance, 209 I.C.C. 273 (June 7, 1935).

Pittsburgh Plate Glass Company Terminal Allowance, 209 I.C.C. 467 (June 25, 1935).

Weirton Steel Company Terminal Allowance, 209 I.C.C. 445 (June 24, 1935).

West Leechburg Steel Company Terminal Allowance, 210 I.C.C. 213 (July 29, 1935).

Pittsburgh Plate Glass Company Terminal Allowance, 210 I.C.C. 527 (September 12, 1935).

The plaintiffs all operate manufacturing plants which are located in the vicinity of Pittsburgh, Pa., with the exception of the Pittsburgh Plate Glass Company, which, in addition to a plant in the Pittsburgh District at Ford City, Pa., also operates a plant at Crystal City, Mo. The plants of the other plaintiffs are located respectivly as follows: American Sheet & Tin Plate Company, Vandegrift and Scottdale, Pa., and Wellsville, Ohio; the Allegheny Steel Company, at Breckenridge, Pa.; the Weirton Steel Company, at Weirton, W. Va.; and the West Leechburg Steel Company, at Leechburg, Pa.

All of these plants are served by the Pennsylvania Railroad Company, a. common carrier engaged in interstate commerce, except*the plant of the Pittsburgh Plate Glass Company located at Crystal City, Mo., which is served by the Missouri Pacific Railroad Company and the St. Louis, San Francisco Railway Company, common carriers engaged in interstate commerce.

At each of plaintiffs’ plants, terminal switching is performed in connection with the receipt and delivery of freight under the provisions of duly filed and published railroad tariffs.

We quote from a typical tariff (Pennsylvania R. R. Tariff), effective Juné 1, 1917, applying to c.oal and coke traffic switched by American Sheet & Tin Plate Company at Vandegrift, as defining this switching service:

“On all carload revenue shipments, destined to or coming from the plant of the [713]*713American Sheet and Tin Plate Company, the latter company performs the terminal switching service for account of the Pennsylvania Railroad Company.
“The American Sheet and Tin Plate Company will be allowed for such service, out of the current Vandegrift, Pa., rate, the actual cost of service performed, as specified in monthly bills computed and submitted in accordance with the terms of agreement dated April 7, 1917, between the American Sheet & Tin Plate Company and the Pennsylvania Railroad Company, but not exceeding $1.10 per car.”

The defendant railroad, pursuant to the several recited orders of the Interstate Commerce Commission, undertook to cancel and discontinue these switching allowances by tariffs; the wording of the tariff for the American Tin Plate Company at Vandegrift being typical of all:

“The Pennsylvania Railroad Company —Cancellation Notice — Local Freight Tariff — Terminal ■ Allowances to American Sheet and Tin Plate Company at Vandegrift, Pa. * * * is hereby cancelled. Terminal allowances discontinued. Effective- August 22, 1935. In compliance with Eighteen Supplemental Report and Order of Interstate Commerce Commission in Ex Parte No. 104, Part 2, July 5, 1935.”

The plaintiffs contend that these cancellation orders are unlawful because this “spotting” terminal switching service is a transportation service which the railroads are required by law to perform, and if the plaintiffs themselves perform it, they arc entitled to compensation from the railroads. The Interstate Commerce Commission, on the other hand, contends that this service is not transportation service, because that service lawfully ends when the railroads deliver the car for loading or unloading at the interchange of holding switch of the plant being served, and therefore the service complained of is a device to make an unlawful rebate to shippers.

The plaintiffs contend that the line-haul tariff rates cover not only delivery of cars to the interchange track of the industry, but also the delivery of cars beyond that point on a system of tracks leading to mills and warehouses, and “spotting” them at convenient points for loading and unloading ; and that if the plaintiff's perform that service they are entitled to an allowance from the railroad company for that service.

The Interstate Commerce Commission contends that the line-haul tariff rate is for delivery of the freight car only at the interchange switch, and that the railroad cannot be called upon either to “spot” freight cars at mill and warehouse platforms or to pay the shipper for doing what is exclusively its own work.

The question to be decided in the instant case is therefore whether the switching done by the plaintiffs within their own plants between the interchange or storage tracks and the platforms of their mills and warehouses is work that the railroads are required to do as a part of transportation.

There appears to be no exact formula that can be applied in answering this) question. The most that we can get from the decided cases is that the limits of place within which delivery is due will vary with varying conditions, and that such delivery is required, as is customary and reasonable. Mitchell Coal & Coke Co. v. Pennsylvania R. R. Co., 230 U.S. 247, 263, 33 S.Ct. 916, 57 L.Ed. 1472; New York Central & H. R. R. R. Co. v. General Electric Co., 219 N.Y. 227, 114 N.E. 115, 117, 1 A.L.R. 1417.

The Interstate Commerce Act, § 1 (3), U.S.C.A. title 49, c. 1, § 1 (3), Definitions, defines “transportation” thus:

“The term ‘transportation’ as used in this chapter shall include locomotives, cars, and other vehicles, vessels, and all instrumentalities and facilities of shipment or carriage, irrespective of ownership or of any contract, express or implied, for the use thereof, and all services in connection with the receipt, delivery, elevation, and transfer in transit, * * * and handling of property transported.”

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Related

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183 S.W.2d 953 (Court of Appeals of Kentucky (pre-1976), 1944)
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Bluebook (online)
15 F. Supp. 711, 1936 U.S. Dist. LEXIS 2102, Counsel Stack Legal Research, https://law.counselstack.com/opinion/american-sheet-tin-plate-co-v-united-states-pawd-1936.