Corn Products Refining Co. v. United States

69 F. Supp. 869, 1947 U.S. Dist. LEXIS 2936
CourtDistrict Court, N.D. Illinois
DecidedFebruary 6, 1947
Docket46 C 1604
StatusPublished
Cited by1 cases

This text of 69 F. Supp. 869 (Corn Products Refining Co. v. United States) 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
Corn Products Refining Co. v. United States, 69 F. Supp. 869, 1947 U.S. Dist. LEXIS 2936 (N.D. Ill. 1947).

Opinion

CAMPBELL, District Judge.

The plaintiff has filed a motion to set aside the court’s findings of fact, conclusions of law, and decree entered in this cause on December 5, 1946, and to grant the plaintiff a new trial.

This action was brought to enjoin the enforcement of an order of the Interstate Commerce Commission which defined and limited the point at which the carriers’ transportation duty ended and beyond which the carriers could not move cars in making deliveries at plaintiff’s plant at Argo, Illinois, unless they made a charge in addition to the line-haul rate. The plaintiff argued that it was denied a proper hearing because the Commission excluded certain proffered evidence. That evidence pertained to practices of carriers generally throughout the country and in the Chicago area, in making deliveries of cars in similar and other industries, and was excluded by the Commission on the ground that in this type of proceeding comparisons with other situations are irrelevant. This offer of evidence was the result of plaintiff’s apparent misconception of the Commission’s duty and of the rules applicable in this type of proceeding.

In Ex parte 104, 209 I.C.C. 11 (1935), the Commission made an extensive investigation of the service rendered by interstate railroads in spotting cars at points upon the systems of plant trackage maintained by large industries. It decided that, in determining the point at which the carriers’ transportation duty ends, the standard to be applied is whether the movement from the interchange tracks to points of loading and unloading is a plant service for the convenience of the industry, or is a part of the carrier service comparable to the usual car delivery at a team track or siding. In applying this standard in particular cases, the Commission determined that when a carrier is prevented from performing an uninterrupted service to the points of loading or unloading within the confines of an industrial plant because of some action or disability of the industry or its plant, the carrier’s duty with respect to the delivery or receipt of cars does not extend beyond the point of interruption or interference; and that where delivery and receipt of freight is effected by carriers on interchange tracks because of interruption or interference with the work of the carrier and the industry which would be encountered beyond such tracks, delivery or receipt on such tracks constitutes delivery or receipt under the line-haul rates.

Plaintiff’s counsel has stated his conception of the Commission’s test in determining whether or not the service within a plant is included within the line-haul rates to be “whether the service is, in the first place, customary, * * * whether it is reasonable and whether it is in excess of what the Commission has called simple switching or team track delivery”. (Plaintiff’s Brief in Support of Petition for Permanent Injunction, p. 95.) On the basis of this belief that evidence of the customary practices of carriers in making delivery of cars to industrial plants is relevant in determining the *871 extent of their legal duty to deliver at a particular plant, plaintiff sought to introduce before the Commission the aforesaid evidence, which was rejected by the Commission as irrelevant.

A review of the authorities will make plaintiff’s misconception apparent.

On page 6 of the Plaintiff’s Brief above mentioned appears a quotation from the original report in Ex parte 104 (209 I.C.C. 11, 18): “We come then to the test, which vague as it is, is the only safe one, that is, whether in the light of all the circumstances such a form of delivery is customary or reasonable.” The Commission continued, in the following sentence which the plaintiff did not quote: “That it is not customary is established, we think, by uncontroverted evidence.” At this point in its report the Commission was considering the insistence of many industries that the carriers haul cars beyond the interchange tracks, which correspond to ordinary spurs or sidings, over an intricate system of plant trackage and distribute the cars among the mills and warehouses in order to meet the industrial needs of the plant. The Commission was thus considering the same demand which the plaintiff made in this proceeding, and determined, on the basis of a nation-wide review of carriers’ practices, that such delivery was not customary.

In United States v. American Sheet & Tin Plate Co., 1937, 301 U.S. 402, 57 S.Ct. 804, 81 L.Ed. 1186, the Supreme Court reviewed the record before the Commission in Ex parte 104. The Court declared, with reference to the performance by carriers of spotting service on plant trackage as part of the carrier’s customary duty under the line-haul rate: “The record fails to establish any such custom.” 301 U.S. 402, 410, 57 S.Ct. 804, 808, 81 L.Ed. 1186, cited in Plaintiff’s Brief in Support of Petition for Permanent Injunction, p. 43. The plaintiff assumes that this statement is a negative finding by the Court that there was a lack of evidence in the record concerning the customary performance by carriers of spotting services without additional charge, and therefore argues that its offer of such evidence should have been accepted to show the existence of such custom. But the Court went on, in the Tin Plate case, to discuss the Commission’s record and indicated that the record showed positively the lack of a nation-wide custom with reference to spotting cars on plant trackage, and said, 301 U.S. at page 410, 57 S.Ct. at page 808, 81 L.Ed. 1186: “There is no custom or practice which has the force of a rule of law that the line-haul rate includes plant spotting service.”

In United States v. Wabash Railroad Co., 1944, 321 U.S. 403, 64 S.Ct. 752, 756, 88 L.Ed 827, the type of evidence excluded here was admitted by the Commission, and was relied on by the District Court in setting aside the Commission’s order on the ground that there was lack of evidence to support the Commission’s finding of a “preferential service not accorded to shippers generally” and that the order discriminated against the plant. The Supreme Court, stating that this was a mistaken interpretation of the Commission’s findings and misapprehended their legal effect, said, 321 U.S. at page 412, 64 S.Ct. at page 756, 88 L.Ed. 827: “If the commission’s reference, in its conclusion of law, to ‘a preferential service not accorded to shippers generally’ means more than the statement in the fifth finding of fact that the service is ‘in excess of those rendered shippers generally in the receipt and delivery of traffic at team tracks’, it is obviously irrelevant to the present proceeding * * *. But a reading of the Commission’s report and findings makes abundantly clear that it was not concerned with discriminations or preferences between the Staley plant and others, such as are prohibited by §§ 2 and 3(1); that the ‘preference’ to which it referred was not based upon a comparison of conditions at the Staley plant with those of others, but upon an application to the actual conditions at the Staley plant of the standards laid down in its report in Ex parte 104, in order to ascertain whether the service rendered there is in excess of that which the carriers are obliged to perform by their tariffs.”

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Cite This Page — Counsel Stack

Bluebook (online)
69 F. Supp. 869, 1947 U.S. Dist. LEXIS 2936, Counsel Stack Legal Research, https://law.counselstack.com/opinion/corn-products-refining-co-v-united-states-ilnd-1947.