Chicago & N. W. Ry. Co. v. Osborne

52 F. 912, 3 C.C.A. 347, 1892 U.S. App. LEXIS 1433
CourtCourt of Appeals for the Eighth Circuit
DecidedOctober 17, 1892
DocketNos. 67, 68
StatusPublished
Cited by19 cases

This text of 52 F. 912 (Chicago & N. W. Ry. Co. v. Osborne) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Chicago & N. W. Ry. Co. v. Osborne, 52 F. 912, 3 C.C.A. 347, 1892 U.S. App. LEXIS 1433 (8th Cir. 1892).

Opinion

Brewer, Circuit Justice,

(after stating the facts.) This case must be determined exclusively by the provisions of the interstate commerce law, as it was originally passed and before any amendment. No question was submitted to the jury, and no evidence was offered, as to whether 18 cents was or was not in fact a reasonable rate for carrying corn from Scranton to Chicago. The theory of the plaintiff’s case was that the defendant company had violated the fourth section of the act, by charging more for a short than for a long haul; and, of course, if it had, it is liable to the plaintiff.

[914]*914We do not care to enter into any extended discussion of the interstate commerce act. It was the first effort of the general government to regulate the great transportation business of the country. That business, though of a quasi public nature, and therefore subject to governmental regulation, has, as a matter of fact, been carried on by private capital through corporations. The fact that it was a quasi public business always prevented the owners of capital invested in it from charging, like ■owners of other property, any price they saw fit for its use. A reasonable compensation was all that they could exact, and he who felt aggrieved by a charge could always invoke the aid of the courts to protect himself against it. With him, however, lay the burden of proving the fact that the charge was unreasonable; a burden which all experience show's was onerous, and therefore seldom undertaken; the party aggrieved preferring to submit to the overcharge, rather than go to the expense and time of contesting it. Hence the efforts by state and nation to establish limits of charges, and means of evidence of easy and accurate ascertainment. While it is the duty of the courts to see that the provisions established by congress are not frittered away on technical or trilling grounds, yet it is also equally their duty to see that such a legislation is not carried beyond its eleár scope, and that the owners of private capital invested in the business of transportation be not deprived of their liberty •of contract and right of control any further than the lawmaking power has intended that they should be.

With these preliminary observations, we remark:

First. That congress has not attempted to require that the tariffs on all roads be uniform; nor has it attempted to place a limit in figures beyond which no company may go in its charges. The laws of business and of competition have, as yet, been deemed sufficient restraints in that direction. The Rock Island is, between Chicago and the Missouri river, a. parallel and competing road with the defendant company; yet there is nothing in the commerce act which compels either company to charge for through or local transportation the same as its competitor. Either company may reduce its rates as far as it pleases below what is reasonable and a fair compensation for the service without violating the act; and such reduction compels no change by .its competitor or any other ■company. This is obvious from a mere reading of the act.

Secondly. That, where two companies owning connecting lines of road unite in a joint through tariff, they form for the connected roads practically a new and independent line. Neither company is bound to adjust its own local tariff to suit the other, nor compellable to make a joint tariff with it. It may insist upon charging its local rates for all transportation over its line. If, therefore, the two companies by agreement make a joint tariff over their lines, or any parts of their lines, ■such joint tariff is not the basis by which the reasonableness of the local tariff of either line is determined. To illustrate: On the defendant’s road, the distance from Turner to Chicago is 30 miles; on the Lake Shore line, from Chicago to Cleveland it is two or three hundred miles. The defendant company may charge 15 cents for transporting grain the 30 [915]*915miles from Turner to Chicago, providing that be in fact only a reasonable charge for the service, although the Lake Shore Company charges no more for transporting it from Chicago to Cleveland; and the fact that the rate on each line is 15 cents for the distance named will not prevent the two companies from making a joint tariff for grain shipped from Turner to Cleveland of 12 cents; less than the local tariff of either. That we may not be misunderstood, we do not mean to intimate that the two companies, with a joint line, can make a tariff from Turner to ■Cleveland higher than from Turner to Buffalo, or any other intermediate point between Cleveland and Buffalo; for when the two companies, by their joint tariff, make a new and independent line, that new and independent line may become subject to the long and short haul clause. But what we mean to decide is that a through tariff on a joint line is not the standard by which the separate tariff of either company is to be. measured or condemned.

This proposition may not be as obvious as the former, and yet a careful study of the act leaves no doubt of its correctness. In the first section a definition is given of the term “railroad,” which, in addition to bridges and ferries, includes “also all the road in use by any corporation •operating a railroad, whether owned or operated under a contract, agreement, or lease.” A joint tariff does not bind road to .road in the sense that the two are used or operated by either corporation. There is neither unity of ownership nor unity of operation, but only a singleness •of charge, and a continuity of transportation over connecting roads. Neither is there any mandate to connecting companies to surrender any control over their .own roads, or to unite in a joint tariff. “Reasonable, proper, and equal facilities for the interchange of traffic” are commanded by the third section; but with the proviso: “This shall not be construed ■as requiring any such common carrier to give the use of its track or terminal facilities to another carrier engaged in like business.” No power «existed at common law, and none is given by the act to court or commission, to compel connecting companies to contract with each other, to abandon full control of their separate roads, or to unite in a joint tariff. Express Cases, 117 U S. 1, 6 Sup. Ct. Rep. 542, 628; Kentucky & I. Bridge Co. v. Louisville & N. R. Co., 87 Fed. Rep. 567; Little Rock & M. R. Co. v. St. Louis, I. M. & S. Ry. Co., 41 Fed. Rep. 559. The whole matter is left to the voluntary action of the companies; and, in forming by agreement any joint tariff, the basis of division and the proportion of moneys each shall take is also a matter left to their détermination.

The denunciation of the fourth section is against each separate common carrier, for its violation-of the “long and short haul” clause on its •own line. The language is:

“That it shall he unlawful for any common carrier, subject to the provisions of this act, to charge or receive any greater compensation in the aggregate for the transportation of passengers or of like kind of property, under substantially similar circumstances and conditions, for a shorter than for a longer distance over the same line, in the same direction; the shorter being included within the longer distance. ”

[916]*916The use of the word “line” is significant. Two carriers may use the same road, but each has its separate line.

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52 F. 912, 3 C.C.A. 347, 1892 U.S. App. LEXIS 1433, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chicago-n-w-ry-co-v-osborne-ca8-1892.