Dexter & Carpenter, Inc. v. Davis

281 F. 385, 25 A.L.R. 1173, 1922 U.S. App. LEXIS 2088
CourtCourt of Appeals for the Fourth Circuit
DecidedMay 31, 1922
DocketNo. 1934
StatusPublished
Cited by8 cases

This text of 281 F. 385 (Dexter & Carpenter, Inc. v. Davis) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fourth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dexter & Carpenter, Inc. v. Davis, 281 F. 385, 25 A.L.R. 1173, 1922 U.S. App. LEXIS 2088 (4th Cir. 1922).

Opinions

KNAPP, Circuit Judge.

In September and October, 1919, Dexter & Carpenter, Inc., plaintiff below and herein so called, shipped from certain mines in West Virginia a large quantity of coal, aggregating 23,508.05 tons, over the Baltimore & Ohio Railroad to Baltimore, Md., for export. All this coal was confiscated for railroad use before arriving at destination, some of it prior to October 31st, but the greater portion on or after that date. Plaintiff was paid for the coal the cost to it at the mines, and this suit is brought to recover the difference between that amount and the “just compensation” which it claims as a constitutional right. In the court below, where by stipulation the case was tried without a jury, judgment was rendered for defendant, and plaintiff brings the case here on writ of error.

[387]*387That the coal in suit was intended for export is not disputed. Indeed, counsel for defendant stated at the trial:

“In this case there is no suggestion on our part at all that Dexter & Carpenter were not trying all they knew how to get the coal abroad.”

When this coal moved from the mines, the Baltimore & Ohio Railroad was under operation by the government, and coal for export could be shipped only on permits and in accordance with rules established by the Tidewater Coal Exchange. Rule 15 required the coal to be consigned to the Exchange for account of the shipping member, who received credit therefor in designated “pools”; and this credit was at once available to him for loading vessels or making deliveries at tidewater. At that time plaintiff had two contracts for the sale of export coal, one with G. & R. Beijer, Mahno, Sweden, for 15,000 tons of pool 33 coal, f. o. b. steamer at Baltimore, and one with the Netherlands government for 75,000 tons of pools 36 and 37 coal, c. i. f. Rotterdam, and the larger part of the confiscated coal was intended to apply on those contracts, which were then unfilled. For this portion plaintiff claims the contract price. There was also a contract with the Coal Trading Association of Rotterdam for a quantity of pool 34 coal, of which 2,375.60 tons were confiscated, but which contract was after-wards filled. For* this coal plaintiff claims $4.31 a gross ton, the government price at the mine plus the export allowance, which is slightly less than the market value shown by the testimony.

[1] As to the coal confiscated prior to October 31st, the defense relied upon is that plaintiff’s compensation is fixed and limited by the following provision in the tariff under which the coal was transported:

“Tbe amount of any loss or damage for which the carrier is liable shall be computed on the basis of the value of the property at the time and place of shipment.”

As plaintiff was paid on that basis the question to be determined is whether the tariff provision is controlling. The confiscation of plaintiff’s coal was the taking by the government of private property for public use, and that may not be_ done, under the Fifth Amendment, “without just compensation.” Even if it be conceded that the phrase “loss or damage” includes confiscation, which seems at least doubtful, it is manifest that a tariff provision cannot serve to destroy or diminish a constitutional right. We see no escape from the conclusion that plaintiff, whose coal was taken for government use, is entitled to recover therefor on the basis guaranteed by the Constitution. Monongahela Navigation Co. v. United States, 148 U. S. 312, 13 Sup. Ct. 622, 37 L. Ed. 463; Filbin Corporation v. United States (D. C.) 265 Fed. 354; National City Bank v. United States (D. C.) 275 Fed. 855; United States v. New River Collieries Co. (C. C. A.) 276 Fed. 690. In the last-named case the United States requisitiqned a large quantity of coal belonging to the Collieries Company, and tendered payment at a price named by the Navy Department. This was refused and suit brought. The court says:

“At tbe trial, both parties offered evidence in support of what they respectively regarded as the true measure of compensation, fully realizing that in providing that compensation be made for private property taken for public [388]*388use tbe Congress intended compensation of a character that would conform with the ‘just compensation’ prescribed, in like event, by the Fifth Amendment to the Constitution. United States v. Cohen Grocery Co., 255 U. S. 88.”

National City Bank v. United States, supra, was also a suit under the Never Act (Comp. St. 1918, Comp. St. Ann. Supp. 1919, §§ 3115%e—3115%kk, 3115%!—3115%r). The opinion of Judge Mayer, in which numerous authorities are cited, leaves little to be said. It is sufficient to quote the following:

“To carry out the purposes of the act, the President could make regulations in the way, inter alia, of fixing prices in ordinary trading or commercial transactions; but when the United States itself took foods—i. e., property—it was bound to award just compensation, and what is just compensation under, the Constitution is determined by the same legal principles in war as in peace.”

[2] The same measure of damages would apply if the railroad company itself had converted the coal. The limitations of value in the ordinary bill of lading have no application to loss due to the conversion of the property by the carrier. 4 R. C. L. pp. 792, 793; Adams Express Co. v. Berry, 35 App. D. C. 208, 31 L. R. A. (N. S.) 309, and note; Ann. Cas. 1913D, 990; Central of Georgia Ry. Co. v. Chicago Portrait Co., 122 Ga. 11, 49 S. E. 727, 106 Am. St. Rep. 87.

[3] We agree with defendant that the Cummins Amendment to the Carmack Amendment (paragraph 11, section 20 of the Act-to regulate commerce. [Comp. St. § 8604a]) has no application, because, in a word, the amended section is confined to transportation which is wholly interstate, “or from any point in the United States to * * * an adjacent foreign country,” while the transportation here in question was to a foreign country not adjacent. The Interstate Commerce Commission has so held in Re Cummins Amendment, 33 Interst. Com. Com’n 682, 693, and so has the Court of Appeals of Maryland, in Fahey v. Baltimore & O. R. Co., 139 Md. 161, 114 Atl. 905.

[4] As to the coal appropriated on or after October 31st, the defense set up is that plaintiff is entitled only to the mine price, which it has received, because of certain orders of the United States Fuel Administrator. It appears and is conceded that all prior orders were suspended on January 31, 1919, except those mentioned in the order of that date. In consequence, the only order here involved which remained in force at the time plaintiff shipped its coal was the so-called “contract order” of January 17, 1919.

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Bluebook (online)
281 F. 385, 25 A.L.R. 1173, 1922 U.S. App. LEXIS 2088, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dexter-carpenter-inc-v-davis-ca4-1922.