Cincinnati, Hamilton & Dayton Railway Co. v. Interstate Commerce Commission

206 U.S. 142, 51 L. Ed. 995, 27 S. Ct. 648, 1907 U.S. LEXIS 1150
CourtSupreme Court of the United States
DecidedMay 13, 1907
DocketNo. 201
StatusPublished
Cited by14 cases

This text of 206 U.S. 142 (Cincinnati, Hamilton & Dayton Railway Co. v. Interstate Commerce Commission) is published on Counsel Stack Legal Research, covering Supreme Court of the United States primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cincinnati, Hamilton & Dayton Railway Co. v. Interstate Commerce Commission, 206 U.S. 142, 51 L. Ed. 995, 27 S. Ct. 648, 1907 U.S. LEXIS 1150 (1907).

Opinion

Mr. Justice White

delivered the opinion of the court.'

Official Classification territory embraces that portion of the United States lying between Canada on the north, the Atlantic' [143]*143Ocean on the east, the Potomac and Ohio Rivers on the south- and the Mississippi River on the west. This territory includes what is known as Central Freight Association territory and Trunk Line territory, both being governed by the . Official Classification. The Central Freight Association territory comprises the area west of Pittsburg and Buffalo, including the lower peninsula of Michigan and east of a line from Chicago to St. Louis, the Mississippi River from St.- Louis to Cairo and north of the Ohio River. Trunk Line territory lies north of the Potomac River and east of Pittsburg and Buffalo. Whilst Official Classification governed throughout the whole of Official Classification territory, the rates throughout the whole <}f the Official Classification territory were not uniform because of .a difference of rates prevailing in the subdivision, that is, in the Central Freight and Trunk Line territory. Thus although on shipments from points in the Central Freight Association territory to points in the Trunk Line territory or vice versa rates were.the same for similar distances,, yet on shipments between termini wholly within one or the 'other of these territories the rates varied because of the different rules governing rates which prevailed as to traffic éxclusively moving in that particular territory.

. The first classification adopted by the railroads to control in the territory above described as Official Classification territory was made contemporaneously with the going into effect of the _act to regulate commerce, presumably to comply with that act, and took effect on April 1, 1887. From that date, until January 1, 1-900, nineteen general classifications of freight, numbered from 1 to 19, were at various times adopted to govern in Official Glassification territory. The articles embraced in these classifications were divided into classes, numbered from 1- to 6, the rate increasing as the numbér of the class decreased. From the beginning, until June 1, 1891, common soap in boxes in carloads was rated as fifth class, and fourth class for less than carloads. On the last-named date, in consequence of an 'order entered by the Commission on a complaint, as tp the [144]*144classification of common soap in carloads, made by Procter & Gamble, soap manufacturers of Cincinnati, Ohio, soap in carloads was reduced to sixth class. This classification continued to govern until January 1, 1900, when a new classification, known as Official Classification No.' 20, went into effect, by virtue of which soap in carloads was advanced from sixth to fifth class and- soap in less than carloads was advanced from fourth to third class'.

After the going into effect of Classification No. 20, the Procter-& Gamble Company,, successor of the firm of Procter & Gamble, complained to the Interstate Commerce Commission in respect to the alterations made in the- classification of common soap. The petition recited the prior complaint by the firm of Procter & Gamble, and the making in 1890 of the order which led to the reduction from fifth to sixth class, heretofore referred to. .

It was charged in the petition that in Official Classification No. 20 there had been an inequitable selection of particular articles and an increase in the rates upon such articles alone by the device of changing them from a lower to a higher class, for the sole purpose of increasing revenues to cover an alleged increase of cost of operation of the railroads, and that “ by such course defendants have subjected and do thereby subject the said traffic in the articles changed, including common soap in -carloads.and less than carload lots, to an undue and unreason- . able prejudice and disadvantage with respect to the traffic in all of the • articles whose classification was not changed in Official Classification No. 20.” It was further alleged as follows:

“If there are any qualities and conditions which, though not considered by defendants at the time of the adoption of said Classification No. 20, justify, nevertheless, the making of any or part of said changes, the same, at any rate, do not apply to common soap in carloads.or less than carload lots. The same should, at least, have remained in sixth class in carload lots, as ordered by this Commission as aforesaid, and in fourth class [145]*145in less than carload lots, so as to maintain the proper relation and difference of rates between carload and less than carload lots. The changing of particular articles as aforesaid from lower to higher classes for the sole purpose of increasing the revenues of the railroads interested therein, is not a condition or circumstance justifying the said change of classification in common soap.”

It was prayed that an order might be entered requiring the Cincinnati, Hamilton and Dayton Railroad Company and seven other named railroad companies, forming various connecting and joint lines of railroad in the territory governed by Official'Classification No. 20, to “cease and desist from refusing to carry common soap- in carload lots at sixth-class rates, and from refusing to carry common soap in less than carload lots at fourth-class rates.” After the filing of the petition and before answer, Official Classification No. 20, was, in part, changed by making a new class, intermediate classes three and four for soap in less than carload lots and on some other articles, this class being determined by giving the articles in question the benefit of a reduction on the third-class rate of 20 per cent, provided the application of the 20 per cent reduction did not reduce the charge-below the fourth-class rate, in which event the 20 per cent reduction should not be-fully applied, but would only be applied to the extent necessary to make the fate not less than fourth class. The classification thus operating is spoken of as 20 per cent less than third class, but not less than fourth class, and we shall speak of it hereafter in' this way.

In the answers filed the defendants in substance denied that common soap was improperly classified in Official Classification No. 20, originally or as modified, or that an unreasonable or unlawful rate was exacted for the carriage of soap, or that the defendants subjected the soap traffic to any undue or unreasonable prejudice, disadvantage or discrimination.

The taking of testimony was ended on September 26, 1900, and the report and opinion of the Commission was filed about [146]*146two and a half years thereafter, viz., on April 10, 1903. 9 I. C. .C. Rep. 440. As respects, putting carload soap in the fifth class, the Commission refrained both from deciding that the classification was unreasonable per se or that its reasonableness had been affirmatively established. It said:

“We regard the primary and controlling question in this case as a question of classification; that is, of relative rates, and dispose of it accordingly. In that view it is sufficient to hold that carload soap is not improperly placed in the' fifth class, and that fifth-class rates therefore are not shown to be unlawful. So long as most articles entitled to as low rates as carload soap are put in the fifth class and required to pay fifth-class rates, we are not warranted, on the evidence .before us, in condemning the same . rating for that commodity.

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CINCINNATI & C. RY. CO. v. Inter. Com. Com'n
206 U.S. 142 (Supreme Court, 1907)

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Bluebook (online)
206 U.S. 142, 51 L. Ed. 995, 27 S. Ct. 648, 1907 U.S. LEXIS 1150, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cincinnati-hamilton-dayton-railway-co-v-interstate-commerce-commission-scotus-1907.