Atchison, Topeka & Santa Fe Railway Co. v. United States

52 Ct. Cl. 338, 1917 U.S. Ct. Cl. LEXIS 130, 1917 WL 1322
CourtUnited States Court of Claims
DecidedApril 23, 1917
DocketNo. 32876
StatusPublished
Cited by1 cases

This text of 52 Ct. Cl. 338 (Atchison, Topeka & Santa Fe Railway Co. v. United States) is published on Counsel Stack Legal Research, covering United States Court of Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Atchison, Topeka & Santa Fe Railway Co. v. United States, 52 Ct. Cl. 338, 1917 U.S. Ct. Cl. LEXIS 130, 1917 WL 1322 (cc 1917).

Opinions

Campbell, Chief Justice,

reviewing the facts found to be established, delivered the opinion of the court:

In the act of March 4, 1913, 37 Stats., 791, making appropriations for the expenses of the Post Office Department for the fiscal year 1914, there was incorporated a provision relating to compensation on railroad routes “on account of the increased weight of mails resulting from” the parcel post system which had become established on January 1, 1913. Excepted from the operation of said provision, were the routes on which the usual quadrennial weighing of mails would occur before July 1, 1913, the beginning of the fiscal year 1914.

The plaintiff company operated a large number of railroad postal routes (75 or more) under contracts with the Postmaster General. The quadrennial weighing of mails on its routes had occurred in 1910 and 1911, effective for the fiscal year 1911 and afterwards unless lawfully changed. In explanation of the “ quadrennial ” weighings, it may be stated that in execution of his powers and duties under the laws of Congress relative to the transportation of mails by railroads the Postmaster Generai had divided the United States into four sections comprised' of groups of States, and he conducted a weighing of the mails in each of said sections once every four years. Upon the result of these weighings in the several sections, the compensation to be received by the railroads for transporting the mails over routes in the section concerned was adjusted and fixed by contracts, the terms of which are not material in the instant case except as to the amount of the compensation stated therein. The petition avers that plaintiff had entered into contracts with the Post Office Department for the quadrennial period from July 1, 1911, to June 30, 1915, over a large number of routes mentioned in an exhibit to [342]*342its petition. As already said, no question as to whether the contracts contained reservations which authorized a change or readjustment of the compensation at the will of the department, is involved in this case. We may assume, and, according to our view of the act under consideration, we must assume, that there were existing contracts having some time to run in three of the weighing sections. The Congress recognized as much when they used the words in the act “ for the remainder of the contract terms.”

The Parcel Post System was established by the act of August 24, 1912, 37 Stats., 557. That system was designed to open the facilities of the mails, under the classification of fourth-class mail matter, to “ all other matter, including farm and factory products, not now embraced in either the first, second or third class, not exceeding eleven pounds in ■weight,” under certain restrictions mentioned in the act. A result which it was naturally to be supposed would follow from making available to said products and other matter the cheaper or more rapid transportation afforded by the mail service was a large increase in the weights of the mails. The extent of the increase could not be forecast. One provision of the act was that “ the Postmaster General may readjust the compensation of star routes and screen wagon contractors if it should appear that as a result of the parcel post system the weight of the mails handled by them has been materially increased.” 37 Stats., 558. The act was silent as to any increase of weights resulting from the system upon railroad postal routes.

In the following year a provision was inserted in said general appropriation act which forms the basis of the plaintiff’s claim. That provision is as follows, the words which we have italicized showing the portion which the contentions of the parties are addressed to:

“ For inland transportation by railroad routes $51,500,-000: Provided, That no part of this appropriation shall be paid for carrying the mail over the bridge across the Mississippi River at Saint Louis, Missouri, other* than upon a mileage basis: But, provided, further, That the Postmaster General may in his discretion pay within the present law a fair and reasonable price for the special transfer and termi[343]*343nal service at the Union Station at East Saint Louis, Illinois, and at the Union Station at Saint Louis, Missouri, including the use; lighting and heating of the mail building and transfer service at Saint Louis, Missouri, provided the amount so paid shall not exceed $35,000: Provided further, That on account of the increased weight of mails resulting from the enactment of section eight of the act of August twenty-fourth, nineteen hundred and twelve, making appropriations for the service of the Post Office Department for the fiscal year ending June thirtieth, nineteen hundred and thirteen, the Postmaster General is authorized to add to the compensation paid for transportation on railroad routes on and after July first, nineteen hundred and thirteen, for the remainder of the contract terms, not exceeding five per centum thereof per annum, excepting upon routes weighed since January first, nineteen hundred and thirteen, and to be readjusted from July first, nineteen hundred and thirteen, until otherwise provided by law." [Italics ours.] „ 37 Stats,, 797.

When the department came to apply said provision they adopted a method which is stated in the findings of fact. Securing estimates of the increase of weights of mails resulting from the parcel post on the several railroad routes which were made by its field agents and with these estimates and other elements as factors, the department made computations to ascertain the increase which should be allowed the respective routes, taking into its consideration section 4002 of the Revised Statutes and amendatory acts. The results obtained by said method were diverse. In some instances upon routes on plaintiff’s road the amount of increase allowed was equal to 5 per cent of the compensation stated in tlie contracts; in others the amount of the increase was below 5 per cent of the compensation, and the percentages varied; while on some routes no addition was made to the contract compensation. The method adopted is illustrated by what was done as to route 153013 set out in Finding VII. It will be seen therefrom that an estimated increase in weight as a result of parcel post was 8 per cent, and the computation adopted resulted in an increase of compensation on that route of 3.27 per cent. But an estimated increase in weight resulting from parcel post on routes 155065 and 155055 of 9 per cent and 21 per centj respectively, produced [344]*344. under said method no increase whatever in the amount of compensation.

An estimated increase of 6 per cent, as a result of parcel post on route 176095, resulted in an increase of compensation of 2.08 per cent, while the same estimated increase in weight on route 176103 resulted in an increase of compensation of 3.77 per cent on that route, or more than 50 per cent more than upon said route where the estimated increase of weight was the same.

That the method adopted and applied can be sustained upon the theory of defendants that said act, being permissive merely, gave the Postmaster General a discretion to add to the compensation of the several routes 5 per cent thereof or nothing; and that whatever method he adopted is controlling, alike on the plaintiff and the court, may be conceded, but that Congress anticipated that results so diverse could follow an application of the language used by them in the act, we may well hesitate to believe.

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Related

New York, New Haven & Hartford Railroad v. United States
53 Ct. Cl. 222 (Court of Claims, 1918)

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Bluebook (online)
52 Ct. Cl. 338, 1917 U.S. Ct. Cl. LEXIS 130, 1917 WL 1322, Counsel Stack Legal Research, https://law.counselstack.com/opinion/atchison-topeka-santa-fe-railway-co-v-united-states-cc-1917.