Cleveland, Columbus, Cincinnati & Indianapolis Railway Co. v. Closser

9 L.R.A. 754, 26 N.E. 159, 126 Ind. 348, 1890 Ind. LEXIS 582
CourtIndiana Supreme Court
DecidedDecember 17, 1890
DocketNo. 13,247
StatusPublished
Cited by34 cases

This text of 9 L.R.A. 754 (Cleveland, Columbus, Cincinnati & Indianapolis Railway Co. v. Closser) is published on Counsel Stack Legal Research, covering Indiana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cleveland, Columbus, Cincinnati & Indianapolis Railway Co. v. Closser, 9 L.R.A. 754, 26 N.E. 159, 126 Ind. 348, 1890 Ind. LEXIS 582 (Ind. 1890).

Opinion

Elliott, J.

— The appellees were partners, under the name of Closser & Co., and as such prosecute this action against the appellant. They base their right of action upon contracts made with the appellant wherein it undertook to transport grain from Indianapolis to the seaboard, and they charge that the appellant agreed to receive, at the time of the shipment, a designated sum as compensation for the transporta[351]*351tion of the grain, and to refund to them a certain part of the sum received. They demand that the appellant be compelled to respond in damages for a breach of the agreement to refund part of the money paid to it as freight on the grain carried under the contracts.

In the first paragraph of the complaint it is alleged that on the 15th day of September, 1884, the appellant made a contract with Closser & Co. wherein it agreed to transport grain from Indianapolis to Philadelphia at the price of 16 J cents per hundred weight, at the same time stipulating that Closser & Co. should pay the defendant at the rate of 21 cents per hundred weight, but should be entitled to a rebate of 4J cents per hundred weight, to be repaid to Closser & Co. promptly after such shipments.”

The contract described is valid. It is not different, in any material respect, from the ordinary one in which the carrier stipulates directly to carry goods at a fixed rate, for the agreement to repay does not of itself change the legal effect of the undertaking to such an extent as to transform it into an illegal contract. It is, in contemplation of law, nothing more than an agreement to carry the grain at the compensation ultimately agreed upon, inasmuch as the provision binding the carrier to pay back part of the nominal compensation simply fixes the amount of the actual compensation, although it does provide for a peculiar mode of payment. There is no element of moral or legal wrong in an agreement to repay part of the compensation received ; to give an illegal character to such an agreement more must be shown than the mere fact that the parties stipulated for a rebate. In simply making a rebate, or in providing for a drawback, parties violate no law, and their contract must stand. It can not be presumed that fraud was intended, or practiced, nor can it be presumed that there was any wrongful combination to secure an undue advantage over other shippers; neither can it be presumed that in stipulating for a rebate the carrier intended to make, in favor of the particular shipper, a discrimination forbid- [352]*352' den by law. It is, by no means, every favor shown a particular shipper, although it may constitute, in some measure, a discrimination favorable to him and unfavorable to other shippers, that impresses upon a contract for the carriage of goods the seal of condemnation. The common law authorities (and by them this case is ruled) fully support the doctrine that a mere discrimination will not invalidate a contract; to have that effect other elements must enter into the contract; but when such elements are present in .such force as to make the discrimination unjust or oppressive the contract will be illegal. It is not necessarily, or jper se, a legal wrong for a carrier to give better rates to one who ships many car-loads of grain than to one who ships a single car-load, or a single bushel. It is a matter of common knowledge, and, therefore, one of which judicial notice is taken, that an increase in the volume of business is desirable and advantageous; and in the rivalry of business competition it is lawful to favor those whose business is great, rather than those whose business is small, or inconsiderable.

In the case of Nicholson v. Great Western M. W. Co., 7 C. B. N. S. 755 (1 Nev. & McN. R. W. Cases, 143), Erle, C. J., 'said: “I take the free power of making contracts to be essential for making commercial profit. Railway companies have that power as free as any merchants, subject only (as to this court) to the duty of acting impartially, without respect of persons: and this duty is performed, when the offer of contract is made, to all who wish to adopt it. Large contracts may be beyond the means of small capitalists; contracts for long distances may be beyond the needs of those whose traffic is confined to a home district; but the power of the railway company to contract is not restricted by these considerations.”

It is obvious that whether the common carrier acts impartially or not depends upon the circumstances of the particular case, for regard must be had to such circumstances as quantity, distance, and kindred considerations. The hinge [353]*353of the question is not found in the single fact of discrimination, for discrimination without partiality is inoffensive, and partiality exists only in cases where advantages are equal, and one party is unduly favored at the expense of another who stands upon an equal footing. Many English cases support this general doctrine. Garton v. Bristol, etc., R. W. Co., 1 B. & S. 112; Hozier v. Caledonian R. W. Co., 1 Nev. & McN. R. W. Cases, 27; Great Western Railway Co. v. Sutton, 4 L. R. H. L. 226; Ransome v. Eastern, etc., R. W. Co., 1 C. B. N. S. 437; Jones v. Eastern, etc., R. W. Co., 1 Nev. & McN. R. W. Cases, 45; Oxlade v. North Eastern R. W. Co., 1 Nev. & McN. R. W. Cases, 72 ; Baxendale v. Railway •Co., 5 C. B. N. S. 336; Bellsdyke, etc., Co. v. North British R. W Co., 2 Nev. & McN. R. W. Cases, 105.

The current of judicial opinion in America flows in the general channel marked out and opened by the courts of England. Bayles v. Kansas, etc., R. W. Co., 13 Col. 181; Spofford v. Boston, etc., Railroad, 128 Mass. 326; Fitchburg R. R. Co. v. Gage, 12 Gray, 393; Johnson v. Pensacola, etc., R. R. Co., 16 Fla. 623 (26 Am. Rep. 731); Ragan v. Aiken, 9 Lea, 609 (42 Am. Rep. 684); McDuffee v. Portland, etc., R. R., 52 N. H. 430 (13 Am. Rep. 72); Hersh v. Northern Central R. W. Co., 74 Pa. St. 181; Christie v. Missouri Pacific R. W. Co., 94 Mo. 453; Chicago, etc., R. R. Co. v. People, ex rel., 67 Ill. 1; Toledo, etc., R. W. Co. v. Elliott, 76 Ill. 67; Erie and Pacific Despatch v. Cecil, 112 Ill. 185; Root v. Long Island R. R. Co., 114 N. Y. 300; Kilmer v. New York, etc., R. R. Co., 100 N.Y. 395; Stewart v. Lehigh, etc., R. R. Co., 38 N. J. L. 505; Union Pacific R. W. Co. v. United States, 117 U. S. 355; Hays v. Pennsylvania Co., 12 Fed. Rep. 309; Interstate Commerce Comm. v. Baltimore, etc., R. R. Co., 8 R. W. & Corp. Law J. 343.

The cases of State, ex rel., v. Cincinnati, etc., R. W. Co., 23 N. E. Rep. 928, Scofield v. Railway Co., 43 Ohio St. 571, and Messenger v. Pennsylvania R. R. Co., 36 N. J. L. 407, [354]*354are not entirely out of line with the decisions to which we have referred, although fragmentary expressions found in some of the opinions seemingly pass the lilies of principle. It is very doubtful whether the reasoning in the case of Burlington, etc., R. W. Co. v.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Rader v. Derby
89 N.E.2d 724 (Indiana Court of Appeals, 1950)
Pisarski v. Glowiszyn, Admr.
47 N.E.2d 831 (Indiana Court of Appeals, 1943)
Sabinske v. Patterson
196 N.E. 539 (Indiana Court of Appeals, 1935)
Miller v. Eagle Star & British Dominions Insurance
143 S.E. 663 (Supreme Court of South Carolina, 1928)
Herschensohn v. Weisman
119 A. 705 (Supreme Court of New Hampshire, 1923)
Wright v. Woodward
111 A. 494 (Supreme Court of New Hampshire, 1920)
Hansen v. Oregon-Wash. R. & N. Co.
188 P. 963 (Oregon Supreme Court, 1920)
Bankers Surety Co. v. German Investment & Securities Co.
126 N.E. 6 (Indiana Supreme Court, 1920)
Venner v. New York Central & Hudson River Railroad
177 A.D. 296 (Appellate Division of the Supreme Court of New York, 1917)
Shedd v. American Maize Products Co.
60 Ind. App. 146 (Indiana Court of Appeals, 1916)
National Surety Co. v. State ex rel. Heimann
103 N.E. 105 (Indiana Supreme Court, 1913)
Judah v. F. H. Cheyne Electric Co.
101 N.E. 1039 (Indiana Court of Appeals, 1913)
Snyder v. Frank
101 N.E. 684 (Indiana Court of Appeals, 1913)
Ness v. Board of Commissioners
98 N.E. 33 (Indiana Supreme Court, 1912)
Mott v. Jackson
55 So. 528 (Supreme Court of Alabama, 1911)
Bessire & Co. v. Corn Products Manufacturing Co.
94 N.E. 353 (Indiana Court of Appeals, 1911)
Tousey v. City of Indianapolis
94 N.E. 225 (Indiana Supreme Court, 1911)
Rexroth v. Holloway
90 N.E. 87 (Indiana Court of Appeals, 1909)
Wolcott v. Hayes
88 N.E. 111 (Indiana Court of Appeals, 1909)

Cite This Page — Counsel Stack

Bluebook (online)
9 L.R.A. 754, 26 N.E. 159, 126 Ind. 348, 1890 Ind. LEXIS 582, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cleveland-columbus-cincinnati-indianapolis-railway-co-v-closser-ind-1890.