Chicago Great Western R. v. Postal Telegraph-Cable Co.

245 F. 592, 1917 U.S. Dist. LEXIS 988
CourtDistrict Court, N.D. Illinois
DecidedAugust 14, 1917
DocketNo. 735
StatusPublished

This text of 245 F. 592 (Chicago Great Western R. v. Postal Telegraph-Cable Co.) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Chicago Great Western R. v. Postal Telegraph-Cable Co., 245 F. 592, 1917 U.S. Dist. LEXIS 988 (N.D. Ill. 1917).

Opinion

EVANS, Acting District Judge.

Plaintiff in this suit seeks to compel defendant to comply with the terms of a certain contract made December 26, 1888, between the defendant and plaintiff’s predecessor, and to restrain the prosecution of certain actions instituted by defendant to collect moneys alleged to be due for services rendered plaintiff by defendant. Sufficient allegations appear in the bill and are admitted in the answer and were conceded upon the trial to give a court of equity jurisdiction of the cause. In other words, it is conceded that, if the contract he upheld, the decree must be for the plaintiff.

The contract under consideration provided generally for the rendition of service by the parties to this action to each other and was to continue for 99 years from its date. The substance of a very similar contract is set forth at some length in the opinion of the court in deciding the case of Baltimore & Ohio Railroad Co. v. Western Union Telegraph Co. (D. C.) 241 Fed. 162. Only a few of the more important paragraphs will be quoted. Paragraphs 2, 3, 7, and 8 read as follows:

“2. The railway company agrees to furnish all labor necessary for the maintenance, repairs, and renewals of said telegraph lines, and for any extensions thereto that may hereafter be made upon property that is now or may hereafter be owned or controlled by the railway company, and to furnish office room in its railway stations, and that its railway telegraph operators shall handle the business of tho telegraph company at all stations along the line of said railway, except at such places as the telegraph company may establish a separate office for the better accommodation of tho telegraph business of such places. It is understood and agreed, however, that, whenever the commercial or public business at any office maintained by the railway company shall become greater than can be properly carried on by the operator or operators employed by the railway company, then the telegraph company shall furnish and pay for its own operating service at such office. And it is agreed that the employes of the railway company, in the performance of their duties in connection with the maintenance and operation of said telegraph' lines, shall observe the rules and regulations of the telegraph company applicable thereto, and shall exercise the same care and diligence in the maintenance and repair of the wire or wires that the telegraph company has or may have along said railway for its business, and in the transaction of tho commercial telegraph business, as in the maintenance and repair of the wire or wires of the railway company, and in the transaction of __the telegraph business of the railway company.
“3. The railway company agrees to transport free of charge over its railway, upon application of the superintendent or other officer of the telegraph company, employés of the telegraph company, when traveling upon tho business of said company, and also to transport and distribute free of charge along the line of its railway all poles or other material and supplies for the construction, maintenance, renewal, repair, and operation of the lines and wires covered by this agreement, and of such additional lines of poles and wires as may be erected under the provisions of this agreement, and also of material and supplies for the establishment, maintenance, and operation of the offices of both parties hereto at places along and adjacent to said railway.”
“7. The telegraph company agrees to transmit free, over its lines beyond [594]*594said railway telegraph lines, business of the railway company to the extent of -$10 per mile of railway per annum, including any extensions that may hereafter be made of said railway, such business being charged at the regular rates of the telegraph company, and for this purpose the telegraph company will issue to said officers of the railway company as may be designated by the president, vice president, or general manager thereof, annual franks of the telegraph company, authorizing such free transmission of messages relating strictly to the railway or corporate business of the railway company, originating at or destined to points on the telegraph company's line within the United States, either upon or’ off the line of said railway; and in case the telegraph business of thq railway company beyond its lines shall amount to more than $10 per mile of railway per annum, the excess shall be paid for .at one-half the regular rates of the telegraph company. It is understood and agreed, however, that the telegraph service herein provided for applies only to the transmission of messages concerning business of the railway company, and shall not be extended to messages for transmission by ocean cable, nor to messages ordering sleeping car, parlor car, or steamer berths, or other .accommodations for customers of the railway company, the tolls upon which should properly be chargeable to such customers.
“8. It is mutually understood and agreed that the business of the railway company shall have precedence over all other business upon the wires set apart for the use of the railway company," and that the railway company shall have the full use of all the wires now in operation, and of two wires upon any extensions of said railway that may hereafter be made in case.the railway company require the same; free of charge, but that until the railway company shall find it necessary to have the sole use of said wires the commercial business of the telegraph company shall also be. done over the said wires. In case the railway company shall require the use of an additional wire or wires for railway business over and above the two wires hereinbefore mentioned, the same shall be paid for by the railway company, and in case an additional wire or wires shall be required for commercial business, the same shall be paid for by the telegraph company, and in either case such additional wire or wires shall come in under the terms of this contract as to maintenance, repairs, and renewals. In case the two wires, or either of them, set apart for the use of .the railway company, shall be at any time unfit for use, the railway company shall have the free use of such of the wires set apart for commercial business -as shall be necessary to transact its business until the wires set apart to it shall be put in fit condition for use.”

[1] Defendant’s counsel attempts to make a distinction between -what is termed “on-line” service and “off-line” service. When the railroad transports material or supplies for use on its own right of way, the service is described as “on-line” service. When the carrier transports material or supplies over its road to be used in constructing or repairing the telegraph company’s lines beyond the carrier’s lines, it is “off-line” service. Uikewise the telegraph company conveys mes-' sages for the railroad company along the common line of the two companies, and in doing so renders what it calls “on-line” service. When the same company conveys messages to points beyond the lines of the carrier, the service is said to be “off-line” service. Defendant assails the present validity of that portion of the contract that calls for the rendition of “off-line” service at other than regular rates.

The precise question is this: Under the laws as they exist to-day, can a carrier or telegraph company render “off-line” service to the other at a rate other than that published in the regular schedules and different from the rate charged the general public?

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Bluebook (online)
245 F. 592, 1917 U.S. Dist. LEXIS 988, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chicago-great-western-r-v-postal-telegraph-cable-co-ilnd-1917.