Davis v. Ferguson

132 So. 289, 17 La. App. 149, 1931 La. App. LEXIS 672
CourtLouisiana Court of Appeal
DecidedFebruary 2, 1931
DocketNo. 13,522
StatusPublished
Cited by1 cases

This text of 132 So. 289 (Davis v. Ferguson) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Davis v. Ferguson, 132 So. 289, 17 La. App. 149, 1931 La. App. LEXIS 672 (La. Ct. App. 1931).

Opinion

HIGGINS, J.

This is. a suit brought during December, 1922, by the Director ” General of Railroads, as Agent for the United States of America, against the defendant for the collection of1 the sum of $878.50 demurrage charges alleged to have accrued upon seven carload shipments of hay during the months of April, May, and June of 1918.

The defendant first entered a plea of prescription, which was sustained by the district court, and the suit dismissed. On appeal to this court, the judgment was reversed on April 30, 1925, and the plea of prescription overruled, and the case remanded to the lower court for further proceedings.

The defendant admits the shipments, but ' denies that there was any demurrage due by him, because: First, the tariffs on which the plaintiff brbught the suit does not provide for demurrage or storage on cars loaded with hay and consigned to dealers in New Orleans, unless and until the cars, are unloaded; second, that there is no allegation, evidence, or proof that notice of the arrival of the ears consigned to the defendant was given to him in writing; third, that there was no delivery of the cars to defendant, which was a condition precedent to the accrual of demurrage, because the cars were not unloaded in accordance with the universal custom and practice and also the standing instructions given to the railroad company by the .hay dealers of New Orleans.

The record shows that, after the suit was filed and before its trial, Andrew W. Mellon was appointed as Director General of Railroads of the Uniied States of America in place of James G. Davis; by appropriate motion and order entered in this cause, the name of Andrew W. Mellon was. substituted for that of James C. Davis as Director General of Railroads and Agent of the United States, and as plaintiff in this cause, all in accordance with the acts of Congress governing such substitution.

[151]*151On the trial of the case on its merits, there was judgment dismissing plaintiff’s suit, and plaintiff has appealed.

It is conceded by the defendant that the demurrage charges on the respective cars have been correctly figured and would be due the plaintiff if the defenses interposed are not well founded.

Taking up these defenses in the above order, we observe that on December 26, 1917, the President of the United States, in accordance with the power vested in him under an Act of Congress of August 29, 1916 (39 Statutes 645 [10 USCA sec. 1361]), by a proclamation took possession and assumed control of the railroad transportation systems of the United States. By this proclamation a Director General of Railroads was appointed with full authority to take possession and control of the railroads and to operate them. Northern Pacific Railway Co. v. North Dakota, 250 U. S. 135, 39 S. Ct. 502, 63 L. Ed. 897; Krichman v. United States (C. C. A.) 263 F. 538.

It appears from the record that prior to February 10, Í918, the demurrage tariffs, which were enforced in New Orleans, did not require that demurrage be assessed on earload shipments of hay shipped into New Orleans, but provided that, where ears could not be unloaded on account of crowded warehouse conditions, they be held subject to storage charges and not demurrage charges. This provision of the tariff conformed to a further tariff rule where-under the railroads at New Orleans reserved to themselves the right to waive the requirement that carload shipments of freight be unloaded by consignees, and the right to unload such freight at the freight terminals of the railroads in the city of New Orleans for the purpose of expediting the release of equipment.

This tariff rule had been in existence for a considerable number of years prior to February, 1918, and New Orleans hay dealers had adopted the practice of giving the railroads standing orders to unload the hay in railroad warehouses, in accordance with the tariff, unless instructed to the contrary. Thus, under this tariff, cars containing hay were eliminated from the application of demurrage- charges, and storage rates were made applicable instead.

On December 29, 1917, the Director General of Railroads issued General Order No. 7 to be effective February 10, 1918, the pertinent portion of which reads as. follows:

“All carriers by railroads, subject to the jurisdiction of the undersigned, are hereby ordered and directed forthwith to publish and file, and to continue in effect until further order, tariffs in the form shown in the attached appendix, effective February 10, 1918, changed so as to provide:
“A (1) Forty-eight- hours (two days) free time for loading or unloading, on all commodities.
“(2) Twenty-four hours, (one day) free time on cars held for any other purpose permitted by tariff. * * *
“D. That the demurrage charge on all cars, after the expiration of the free time allowed, be $3.00 for each of the first four days, $6.00 for each of the next three days, and $10,000 for each succeeding day. * * *
“These charges will supersede all those named in any existing tariffs applicable to carload freight except (here follows a list of exceptions but car load shipments of hay were not included among same). * *

After providing for these exemptions, we find this language:

“And specifically contemplate the cancellation of all conflicting provisions of existing tariffs.”

Nowhere in the general order or the appendix thereto are carload shipments, of [152]*152hay excepted from the operation of the demurrage tariff.

On February 7, 1918, the carriers issued Joint Demurrage and Storage Tariff No. 1-C, which was. “issued under special authority of the Railroad Commission of Louisiana, Order No. 2169, without formal hearing, in conformity with Order No. 7 of the Director-General of Railroads of the United States.”

The provisions of Tariff No. 1-C, conformed to the requirements of General Order No. 7 and the appendix thereto, and the cars to which the demurrage tariff was applicable are listed in item No. 1, Rule No. 1, of the Tariff, as follows:

“Cars held for or by consignors or consignees for loading, unloading, forwarding directions, or for any other purpose, are subject to these Demurrage Rules, except as follows. * * * ”

An examination of the exceptions provided shows that carload shipments of hay are not included in them.

We further find in this, tariff item No. 13, rule No. 1, dealing with freight subject to the rules, section B of which provides:

“Section B — Other carload freight held in cars for delivery and subsequently unloaded in or on railroad premises is subject to demurrage rules while in cars and to these storage rules after it is unloaded.”

After a careful examination of the record, we have reached the conclusion that Tariff No. 1-C conforms to the General Order No. 7, and eliminates those provisions of the earlier tariff, effective prior to February 10, 1918, whereunder carload shipments of hay arriving in New Orleans could be retained in ears subject to storage and not demurrage charges.

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Related

Davis v. Ferguson
136 So. 293 (Supreme Court of Louisiana, 1931)

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Bluebook (online)
132 So. 289, 17 La. App. 149, 1931 La. App. LEXIS 672, Counsel Stack Legal Research, https://law.counselstack.com/opinion/davis-v-ferguson-lactapp-1931.