Baltimore & L. Ry. Co. v. Steel Rail Supply Co.

123 F. 655, 59 C.C.A. 419, 1903 U.S. App. LEXIS 4030
CourtCourt of Appeals for the Third Circuit
DecidedJune 22, 1903
DocketNo. 11
StatusPublished
Cited by10 cases

This text of 123 F. 655 (Baltimore & L. Ry. Co. v. Steel Rail Supply Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Third Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Baltimore & L. Ry. Co. v. Steel Rail Supply Co., 123 F. 655, 59 C.C.A. 419, 1903 U.S. App. LEXIS 4030 (3d Cir. 1903).

Opinion

ACHESON, Circuit Judge.

This was a suit brought by the Baltimore & Eehigh Railway Company against the Steel Rail Supply Company to recover damages for the refusal of the defendant to accept a lot of old steel rails, etc., which the defendant had bought from the plaintiff. On the 26th day of February, 1900, these parties entered into two written contracts. By one of the contracts the defendant sold to the plaintiff about 5,000 tons of new steel rails, shipments thereof “to be completed by May 31st, 1900.” By the other contract the plaintiff sold, and the defendant purchased, the old steel rails which were to be taken up from the plaintiff’s road, the same being about 46 miles in length, and having a junction with the Pennsyl[656]*656vania Railroad in the city of Baltimore, the contract providing as follows:

“Shipment to be made during June and July next, or as soon as your new rails are laid. Price: Twenty two dollars and fifty cents (22.50) per ton •of 2240 lbs. delivered f. o. b. Pennsylvania Railroad cars, Baltimore and Le-high Junction, Baltimore, Md.”

The shipment of the new rails was not completed until June 39th. They were in position on August 23d, and a train was run over them on that day. A schedule of trains over the new rails went into effect on August 26th. In so far as the contract in suit was executed, the course of business pursued was this: The defendant sent to the plaintiff written shipping orders stating the quantity of rails to be shipped, the destination, and other particulars. Only two shipping orders, however, were given. The first shipping order was for 100 tons, and was sent on July 26, 1900. This order the plaintiff promptly filled by taking up a third or extra rail, which had been in former use, and {with the defendant’s consent) ‘sending these rails in wagons to the vessel of a transportation line. On August 21, 1900, the defendant sent to the plaintiff the second shipping order, which embraced 189 tons. It appears that immediately on the receipt of this shipping order the plaintiff placed an order with the Pennsylvania Railroad Company for cars for the shipment of these 189 tons of rails. There was great delay on the part of the railroad company in furnishing the cars thus called for, the reason for such delay assigned by the railroad company being the scarcity of cars. The proof is that the plaintiff made daily demands on the Pennsylvania Railroad Company for cars to make the shipment. The first two cars received by the plaintiff under its requisition came on August 31st, and thereafter at intervals, and on various days, the railroad company furnished to the plaintiff the rest of the cars for the shipment of the 189 tons of rails, the last car being received by the plaintiff on September .18th. There was evidence to show that the plaintiff promptly loaded the rails upon the cars as the latter were received, and returned the loaded cars to the Pennsylvania Railroad Company without any unnecessary delay. The defendant never gave to the plaintiff any further shipping instructions after the shipping order of August 21st. Mr. Neu, an official of the defendant company, was a witness on its behalf, and on cross-examination testified thus:

“Q. You did not expect them to take these rails and dump them down on the platform of the Pennsylvania Railroad station, did you? A. We ex.pected them to load them. Q. Expected them to load them after they got the order from you? A. Yes, sir. Q. With directions as to where they should go? A. Yes, sir. Q. You only gave them two orders, and nothing more? A. That is all we gave them.”

On September 10th, Mr. Neu, the defendant company’s treasurer, visited Baltimore, and saw, at the plaintiff company’s office, Mr. Shinn, the plaintiff’s assistant manager, to whom he complained of the delay in the delivery of the rails. He was informed by Mr. Shinn that the delay was due altogether to the fact that the plaintiff was unable to get cars from the Pennsylvania Railroad Company. Mr. Neu himself admits that this explanation was given to him. Mr. Shinn testifies:

[657]*657“We were prepared on September 10th to complete delivery of all the rails as fast as they could be loaded, as fast as cars were furnished and they c could be loaded on the cars. Hr. Neu was told that by myself on that date.”

Mr. Neu suggested to Shinn a cancellation of the contract, and then and there Neu wrote and signed a paper (in the form of a letter) embodying his proposal, of which the following is a copy:

“Baltimore, September 10th, 1900.
“W. A. Moore, Esq., General Manager, B. & L. Ry Co.
“Dear Sir: Referring to the contract made between us and your Company, dated Feb’y 28th, wherein we agreed to purchase a lot of relaying 40 lb steel rails and spliced bars, it is agreed between us by mutual consent that we, the Steel Rail Supply Company, cancel this contract with your company, for said material, with the exception of the 189 tons now loading, which we agree to take, and release your Company from any loss or damages we may hereafter sustain on account of non-delivery of this material.
“The Steel Rail Supply Company.
“Wm. F. Neu, Treas.”

Later on the same day Mr. Neu saw and conversed with Mr. Moore, the plaintiff company’s general manager. Mr. Moore testifies that Mr. Neu showed him “a paper which he [Neu] had drawn up, mutually canceling the contract for the delivery of old rails and fastenings,” and that he [Moore] “positively refused to sign the agreement.” Mr. Moore explained to Mr. Neu that the delay in delivering the rails was because the plaintiff could not get cars from the Pennsylvania Railroad Company. ' Moore testifies that he informed Mr. Neu he had made repeated requests for cars which had not been furnished, that there were then several cars of old rails in the plaintiff company’s junction yard waiting to be loaded on the Pennsylvania Railroad cars, and that he “was making and would continue to make every effort to complete the delivery.” Mr. Neu gave his letter of September ioth to Mr. Shinn, who turned it over to Mr. Brown, the president of the plaintiff company. Mr. Neu testifies that Shinn told him that Mr. Brown would not be in the city until Thursday, September 13th, “and on Thursday he would answer my letter or confirm my letter.” This Mr. Shinn denies, and he testifies that what he said was, “probably we will be able to give you an answer on the 13th—give you some reply.” On September 17th the defendant sent the following letter to Mr. Moore, the plaintiff’s general manager:

“New York, Sept. 17th, 1900.
“W. A. Moore, Es<|., Gen. Mgr. Baltimore & Lehigh R’y Co. Baltimore, Md.
“Dear Sir: Referring to the letter written you by our Mr. Neu, when in Baltimore on the 10th inst., and which letter you were to confirm to us by the 13th inst., not hearing from you we of course assume that the balance of this contract has been cancelled with the exception of the lot of 189 tons for which we have already given you shipping instructions. Be good enough to hurry forward the balance of this lot, sending us shipping documents, when we will pay for same, and this will close the transaction between us.
“Awaiting your further advices, we are yours very truly,
“G. H. Humphreys, Pt.”

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Cite This Page — Counsel Stack

Bluebook (online)
123 F. 655, 59 C.C.A. 419, 1903 U.S. App. LEXIS 4030, Counsel Stack Legal Research, https://law.counselstack.com/opinion/baltimore-l-ry-co-v-steel-rail-supply-co-ca3-1903.