Central R. v. United States

229 F. 501, 143 C.C.A. 569, 1915 U.S. App. LEXIS 1578
CourtCourt of Appeals for the Third Circuit
DecidedDecember 29, 1915
DocketNo. 1963
StatusPublished
Cited by2 cases

This text of 229 F. 501 (Central R. v. United States) 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
Central R. v. United States, 229 F. 501, 143 C.C.A. 569, 1915 U.S. App. LEXIS 1578 (3d Cir. 1915).

Opinion

McPHERSON, Circuit Judge.

In the court below the Central Railroad Company of New Jersey was convicted and fined for violating the so-called Elkins Act (Act Feb. 19, 1903, c. 708, 32 Stat. 847 [Comp. St. 1913, §§ 8597-8599]), as amended by the Hepburn Act (Act June 29, 1906, c. 3591, 34 Stat. 584). The offense was carrying anthracite coal for the Lehigh Coal & Navigation Company at less than the published tariff rate. The indictment was found in November, 1914, and contained 200 counts, covering the unlawful carriage of 200 separate carloads during the period from December, 1911, to June, 1914. The defendant was found guilty on 185 counts, and on 25 of these the court imposed fines aggregating a large sum. The amount of the fine is not in controversy, but an attack is made upon the correctness of certain rulings and instructions during the course of the trial.

In a few words, each count charges the offense substantially as follows: The defendant, an interstate common carrier, transports anthracite coal for hire; the coal moving in carload lots. Being subject to the acts regulating commerce, it filed printed tariffs and schedules with the Commission, showing its rates and charges for carrying coal from Nesquehoning, in Carbon county, Pa., to points in other states. While these tariffs were in force, the carload described in the count was carried for the Navigation Company at the tariff rate; but a specified portion of the rate was afterwards unlawfully and knowingly repaid, so that the coal was really carried at less than the tariff rate, and the Navigation Company received the advantage of an illegal rebate.

Some shipments were carried to points on the defendant’s own line, and others were carried to points on the lines of connecting carriers under agreements for through routes and joint rates. By stipulation some of the facts were agreed upon, and there was no real dispute about the others; the controversy being merely over the meaning they should bear. The defendant denied that the payments were rebates, asserting them to be compensation for the use of an instrumentality 'of transportation furnished by the Navigation Company. In order to present the situation fairly from the defendant’s point of view, we follow its statement in the main, and condense the facts therefrom, but we think with sufficient fullness.

Not long after 1860 the defendant; a New Jersey corporation, was [503]*503operating a railroad that crossed the state from Elizabethport and Jersey City, on New York Harbor, to: Easton, Pa., at the junctions, of the Delaware and the Lehigh rivers. At Easton it connected with the Lehigh Valley Railroad, a Pennsylvania road running westward up the Lehigh river to the anthracite coal field; and afterward it also connected at the same place with another Pennsylvania road, the Le-high Se Susquehanna Railroad, built and owned by the Navigation Company. The history of the Navigation Company is briefly this: Nearly a century ago, it was incorporated by the state of Pennsylvania to mine coal, and to operate a slackwater navigation on the Lehigh river. It dug a canal along the river from a point south of Wilkes-Barre to the Delaware river at Easton, and carried its coal to Easton by this canal before the railroad was built. The railroad was authorized and laid from time to time, and by the year 1867 or 1868 it was in operation from Wilkes-Barre to Easton, and (as already stated) was called the hchigh & Susquehanna Railroad. Nesquehoning Junction is a station on this road, a few miles north of Mauch Chunk. A railroad, 18 miles long, ran from the Junction up the valley of the Nesquehouing creek to Tamanend, and in 1868 this was leased to the Navigation Company. Not long afterward another branch line was built that ran in the same general direction into the valley of the Panther creek, which lies south of the Nesquehoning. On this branch is a point called Hauto, and between Hauto and the valley of the Panther creek the branch passed through the Nesquehoning tunnel, which penetrates the mountain separating the two valleys.

The mines of the Navigation Company are in the Lehigh region; nine of its ten collieries being in the Panther creek valley, and tlie tenth being at Nesquehoning (not the Junction), a station about midway between Mauch Chunk and Hauto. All these collieries were in operation before the Lehigh & Susquehanna Railroad was built, and the coal then mined along the Panther creek was brought to the canal over a gravity road south of Nesquehoning Mountain. The coal from the Nesquehoning colliery at first reached the canal by another gravity road, but, after the Nesquehoning road was built, the coal from that colliery was brought by rail to Mauch Chunk; and, after the tunnel ivas finished through the Nesquehoning Mountain, the Panther creek coal passed north through the tunnel and also reached Mauch Chunk by way of the Nesquehoning valley road. After the roads referred to had been finished, all the coal carried by them, as well as the coal carried by the Lehigh Valley Railroad, was sold “f. o. b. Mauch Chunk”' — that is, the shipper paid the freight from the mine to Mauch Chunk, and the buyer paid the freight from Mauch Chunk to destination. All these railroads were used by other miners and shippers, as well as by the Navigation Company.

Originally the Lehigh Valley Railroad ended at Mauch Chunk, a point on the Lehigh river 46 miles west of Easton. At Mauch Chunk it connected with two short local roads — one running up the river to Penn Haven, and thence westward into the Lehigh coal field; and the other running between Penn Haven and Hazelton, also a point in Ihe Lehigh field. Afterwards these two roads became part of the Lehigh Valley system; but, as they had formerly been separate roads, [504]*504the freight rates from the mines to Mauch Chunk continued to be charged in two parts, one from the mine to Penn Haven, and the other from Penn Haven to Mauch Chunk — these rates being called “laterals.” Anthracite coal reaches the market in several sizes, but the same rate was charged on each size until late in the ’80’s. The rate was- less, however, if the point of destination was the competitive market at tidewater than if it was an inland or way point. Tide “laterals” and way “laterals” were also charged, the former being less than the latter.

About 1870 or 1871 the coal-carrying roads furnishing traffic to the defendant at Easton had either' acquired, or were about to acquire, their own outlets to tidewater, and accordingly the defendant was face to face with the alternative, either of securing a new connection that would furnish it traffic and also an outlet to the west, or of becoming again a local road across the state of New Jersey. The only new connection then available was the Navigation Company’s road — the Lehigh & Susquehanna — and accordingly in March, 1871, the defendant leased it for 999 years. The lease included the main line and it§ branches— among them, the Nesquehoning valley branch — but did not include the tunnel through tire Nesquehoning mountain or the road in «the valley of Panther creek. The - length of the leased line and branches was 150 miles. For many years the defendant’s through traffic with the West has moved over the Nesquehoning branch'. As rent or compensation for the use of the demised premises, tire defendant agreed to pay one-third of the.gross receipts from the traffic or business to be derived therefrom, making certain deductions. By the tenth covenant the defendant also agreed (and this is the heart of the case) that on coal delivered for transportation by the Navigation Company—

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Bluebook (online)
229 F. 501, 143 C.C.A. 569, 1915 U.S. App. LEXIS 1578, Counsel Stack Legal Research, https://law.counselstack.com/opinion/central-r-v-united-states-ca3-1915.