Atlantic Coast Line R. v. Baltimore & O. R.

12 F. Supp. 711, 1935 U.S. Dist. LEXIS 1197
CourtDistrict Court, D. Maryland
DecidedNovember 8, 1935
DocketNo. 2325
StatusPublished
Cited by18 cases

This text of 12 F. Supp. 711 (Atlantic Coast Line R. v. Baltimore & O. R.) is published on Counsel Stack Legal Research, covering District Court, D. Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Atlantic Coast Line R. v. Baltimore & O. R., 12 F. Supp. 711, 1935 U.S. Dist. LEXIS 1197 (D. Md. 1935).

Opinion

CHESNUT, District Judge.

In this case the plaintiff is seeking an accounting from the defendant and, based thereon, a fair division of joint rates for transportation of citrus fruit from Florida collected by the defendant from consignees on the delivery of the freight. The case is perhaps a natural sequel to Baltimore & Ohio Railroad Co. v. United States, 9 F. Supp. 181, where a three-judge district court, for the Eastern District of Virginia, refused to annul and set aside an order of the Interstate Commerce Commission determining the proper division between northern and southern carriers (with gateway at Richmond, Virginia) of joint rates for through carriage of citrus fruit from Florida to points north of Washington, D. C. As there classified the plaintiff here is a southern carrier, and the defendant a northern carrier. The order of the Commission, made effective June 1, 1934, also required readjustment between the carriers of the divisions as thus fixed to the prior date of November 22, 1930, at which time the complaint of the southern carriers for determination of the divisions was filed with the Commission. See Atlantic Coast Line R. R. Co., et al. v. Arcade & Attica R. R. Corp. et al., 194 I.C.C. 729; Id., 198 I.C.C. 375. The joint rates as to which divisions were thus made by the Commission, had been prescribed by the Commission effective November 9, 1928. R. R. Com’rs v. Aberdeen & Rockfish R. Co., 144 I.C.C. 603. As the order of the Commission for readjustment between the carriers was not effective antedating November 22, 1930 (and could not have been made effective for an earlier period, by reason of the limitation contained in the Interstate Commerce Act, § 15(6), as amended bv the Transportation Act of 1920, § 418, 49 USCA § 15 (6), the plaintiff is now seeking an extension of the readjustment as made by the Commission or as otherwise may be properly determined to be just and reasonable for the period between November 9, 1928, when the new prescribed rate became effective, and November 22, 1930, when the complaint was first filed with the Commission. The opinion of the three-judge case above referred to (9 F.Supp. 181) was filed December 1, 1934. An appeal therefrom' is now pending in the Supreme Court of the United States. The instant suit was filed April 18, 1935.

The defendant’s motion to dismiss the bill of complaint presents a three point defense: (1) The court is without jurisdiction of the cause; (2) limitations, and (3) defect of parties. They will be discussed in this order.

The first defense is the principal one and the one of most general importance. [713]*713The answer to it must be found in the proper construction and effect of section 15(6) of the Interstate Commerce Act as amended by the Transportation Act of February 28, 1920, c. 91, § 418, 41 Stat. 486. See U.S.C., title 49, § 15(6), 49 USCA § 15(6). By this section the Commission is authorized to prescribe the just, reasonable and equitable divisions of joint rates, fares or charges in interstate commerce (whether the rates were agreed upon by the carriers or otherwise established) ; “and in cases where the joint rate, fare, or charge was established pursuant to a finding or order of the commission and the divisions thereof are found by it to have been unjust, unreasonable, or inequitable, or unduly preferential or prejudicial, the commission may also by order determine what (for the period subsequent to the filing of the complaint or petition or the making of the order of investigation) would have been the just, reasonable, and equitable divisions thereof to be received by the several carriers, and require adjustment to be made in accordance therewith.”

It will be observed that the Commission is not given power to make the .readjustment effective antedating the filing of the complaint before it. In this respect the amendment changes the particular statute as it was in force from 1910 to 1920 which authorized the Commission (but only on failure of the carriers to agree) to prescribe the proper divisions of joint rates “which order shall take effect as a part of the original order.” 36 Stat. 551, § 12. That is to say, the statute formerly authorized the Commission in making proper division of joint rates, to require adjustment as between the carriers back to the date of the original order of the Commission prescribing the particular joint rate. The statute as amended in 1920 was considered at some length by the Supreme Court in Brimstone R. & Canal Co. v. United States, 276 U.S. 104, at page 121, 48 S.Ct. 282, 286, 72 L.Ed. 487, where Mr. Justice McReynolds, speaking for the Court said:

“Section 15(6) should be construed in the light of the recognized difficulties. Under the earlier act a clear distinction was made between joint rates ‘agreed upon’ and those ‘determined and prescribed’ by the Commission after full hearing ‘to be thereafter observed.’ The Commission had power to declare proper divisions of those in the latter category by order ‘which shall take effect as part of the original order’— that is from the date the rate was prescribed. Whether it could determine divisions of agreed rates for the future was not clear; but certainly it could not require readjustments of divisions of such rates for past periods. Morgantown & Kingwood Divisions, 40 I.C.C. 509, Id., 49 I.C.C. 540, 551. Section 15(6) established the right to prescribe future divisions of agreed rates, but we think the studied purpose was to grant no power to require readjustments of past receipts from agreed joint rates. Theretofore power in respect of past divisions existed only when rates had been determined and prescribed after full hearing—that is: where the Commission had passed upon the. reasonableness of the rate and required observance. Obviously a carrier may have assented to a through rate only because of the divisions accorded to it: to permit the Commission to change this arrangement as to past transactions would be exceedingly harsh, if not wholly unreasonable. Ordinarily, divisions of a particular rate are not of public interest if the rate itself is reasonable. Probably aware of hardships under the old rule, the new act shortened the time during which readjustment might be required—limited its beginning to the commencement of investigation or filing of complaint.”

Clear as this language is with respect to the factual situation before the court, in its explanation of the limitation as to the period for required adjustment of divisions, the language used would seem not to have application to the quite different situation involved in the present case. There the court was dealing with the readjustment of rates previously agreed upon but here the situation is quite different and would seem not to have been in contemplation in the language used in the Brimstone Case. The divisions here as made by the B. and O. Railroad, which are now sought to be readjusted, were never agreed upon by the northern and southern carriers, but on the contrary the proper divisions were a constant source of dispute and negotiation from the period when the joint rate as prescribed by the Commission took effect on November 9, 1928, until November 22, 1930, when the southern carriers filed their complaint with the Commission. At the request of the court, counsel in this case have been at pains to make an examination of the legislative history of section 15(6) as amended in 1920 but the result-of the search is substantially negative with respect to the particular amendment with which we are here concerned as to the period during which [714]

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Cite This Page — Counsel Stack

Bluebook (online)
12 F. Supp. 711, 1935 U.S. Dist. LEXIS 1197, Counsel Stack Legal Research, https://law.counselstack.com/opinion/atlantic-coast-line-r-v-baltimore-o-r-mdd-1935.