Atchison, T. & S. F. Ry. Co. v. United States

204 F. 647, 1913 U.S. Commerce Ct. LEXIS 8
Procedural entryThis page is a short order in Atchison, T. & S. F. Ry. Co. v. United States. Read the opinion of the Court — 203 F. 56
Commerce Court·Decided March 31, 1913·No. No. 41·Published

Opinion

CARLAND, Judge.

The questions to be decided in this case arise in this way: The petitioners, as well as other carriers, parties to the orders of the Interstate Commerce Commission hereinafter referred to, are and have been engaged in transporting from points in Southern California to various points in the United States citrus fruits in car load lots under refrigeration as well as under ventilation. At certain times of the year refrigeration is necessary to protect such shipments. Under standard refrigeration the oranges are loaded into a refrigerator car before either the fruit or the car has been artificially cooled; the boxes being so packed as to allow a free circulation of air between and around them. After being loaded, the car is taken to some gathering point, usually San Bernardino, upon the line of the Santa Fé and Colton upon the line of the Southern Pacific, when the shipments originate in Southern California, and the bunkers are there filled with ice. As the car journeys eastward, the bunkers are opened from time to time and replenished with additional ice.

The charges for refrigeration from California points in case of oranges and lemons are, per standard car, to the Missouri river, $60; to Chicago and similar points $62.50; to Buffalo and Pittsburgh, $72.-50; to New York, $75; and to Boston, $77.50. The Interstate Commerce Commission found that the cost of refrigeration to Chicago over the Santa Fé was $55 per caí-, and itemized said cost as follows: Cost of ice, $30; cost of repairs to bunkers, $5; hauling of ice, $20 — and' upon complaint in Arlington Heights Fruit Exchange et al. v. Southern Pacific Company et al., 20 Interst. Com. Com’n R. 106, found the charges for the transportation of oranges and lemons from California points under standard refrigeration to the points hereinbefore mentioned were reasonable.

On or about July 5, 1909, petitioners amended their refrigeration rules so as to provide as follows:

“On all car loads of citrus fruit pre-cooled and pre-iced, or pre-iced by shipper, offered for shipment with instructions ‘Do not re-ice en route,’ a charge of $30 per car of 32,000 pounds or less will be made, excess weight to be charged for at 9.375 cents per 100 pounds. On all cars handled under this rule, shipper will sign the following release, which must in all cases appear on shipping ticket and bill of lading and be copied on waybill by agent: ‘The giving and acceptance of these special instructions from the shipper releases the initial carrier and its connections from all liability for damages caused by nonicing in transit or at destination.’ In event any such car is re-iced in transit, the above charge of $30 will be canceled and the regular refrigeration rate applicable from San Bernardino' or Los Angeles, Cal., to final destination, as shown in this tariff, will apply and must be added to the waybill for collection in the usual manner.”

We take from the report of the Commission in the case above cited the following description of pre-cooling and pre-icing, referred to in the above amended -rule:

“The system of refrigeration known as pre-cooling, which is essentially different from the standard refrigeration just considered, grew out of experiments conducted by the United States Department of Agriculture into the [649]*649handling oC oranges. Those researches demonstrated that, decay in oranges was due mainly to mechanical injury in the handling, and that if this could be avoided refrigeration was not necessary to prevent decay, but only to preserve the appearance of the fruit. While the greatest care is now exercised in the handling of the orange from the tree to the car, abrasions of the shin cannot be entirely avoided, and the experiments above referred to further demonstrated that in case of such injury the result was minimized by cooling the fruit at the earliest possible moment and maintaining thereafter a low temperature. It was more difficult to arrest and control the process of decay when it had once fairly set in than it was to check it at its inception. Pro-cooling grew out of these investigations of Prof. Powell and was tried by him in the course of his experiments. In actual practice it takes two forms, which may lie termed pre-cooling by the shipper and pre-cooling by the railroad. These two methods are essentially different, and must be understood in order to intelligently appreciate the question presented.
‘•In pre-cooling by the shipper the basic idea is to bring the fruit under the influence of a low temperature at the earliest possible moment. The oranges are brought from the tree to the packing house and packed in a, box which is immediately deposited in a cold room. Here the process of extracting the heat from the orange at once begins and gradually continues until at the end of from 24 to 48 hours all parts of the fruit in all parts of the box have "been reduced to a uniform temperature of from 33° to 35° If. The box remains in this cold room at this temperature until it is to be loaded. The ear is then connected with the room by a collapsible passageway, and-fhe oranges are taken directly from the cold storage to the car, where they are placed, not with air spaces between, as in case of ordinary refrigeration or ventilation, but close together. The bunkers of tlie car are filled with large blocks of ice especially intended for that purpose, and the bunkers and vents are now sealed up so as to make the car as nearly air-tight as possible. All this is done by the packer at the packing house, and the car is now delivered to the railroad with instructions to transport to destination without re-icing and without breaking the seals.
“The cost of pro-cooling and pre-icing a car in this manner, including interest on the investment and depreciation of the plant, is from $30 to $35; a fair average boing, perhaps, $32.50.”

On January 14, 1911, the Commission found that a charge oí $30 per car as provided in the above amended refrigeration rule, when the citrus fruit was pre-cooled and pre-iced by the shipper, was excessive and unreasonable, and ordered said charge to be reduced to $7.50 per car, and that no more than said last-named amount should be charged for a period of two years from April 15, 1911. Whereupon petition--ers, on May 4, 1911, filed their original petition in this court to annul said order reducing the charge of $30 on pre-cooled and pre-iced citrus fruit. The case subsequently came on before this court on motion for a preliminary injunction, and the motion was denied; this court being of the opinion that the order of the Commission did not compel the carriers to permit shippers to pre-cool and pre-ice their fruit, and that the charge of $7.50 prescribed by the Commission was not unreasonable. Whereupon the Atchison, Topeka & Santa he Railway Company, the Southern Pacific Company, and the San Pedro, Ros Angeles & Salt Lake Railroad Company filed with the Commission amendments to their tariffs, whereby what the carriers denominated the privilege of permitting the shippers of citrus fruit to pre-cool and pre-ice carload shipments was withdrawn; the carriers asserting in said amended tariffs that they had the exclusive.right and control of furnishing and doing all icing and refrigeration of citrus fruits in all [650]*650cases where shippers did not specifically request or instruct shipments to move solely under ventilation.

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Atchison, T. & S. F. Ry. Co. v. United States, 204 F. 647, 1913 U.S. Commerce Ct. LEXIS 8 (Colo. 1913).

204 F. 647 (Atchison, T. & S. F. Ry. Co. v. United States) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.