El Paso & S. W. R. Co. v. Phelps-Dodge Mercantile Co.

75 F.2d 873, 1935 U.S. App. LEXIS 3087
CourtCourt of Appeals for the Ninth Circuit
DecidedFebruary 11, 1935
DocketNos. 7341-7343
StatusPublished
Cited by2 cases

This text of 75 F.2d 873 (El Paso & S. W. R. Co. v. Phelps-Dodge Mercantile Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
El Paso & S. W. R. Co. v. Phelps-Dodge Mercantile Co., 75 F.2d 873, 1935 U.S. App. LEXIS 3087 (9th Cir. 1935).

Opinion

GARRECHT, Circuit Judge.

Involving similar facts and almost identical questions-of-law,-these-three- appeals have been prosecuted for the purpose of having this court review judgments rendered in actions at law in which the appellants were defendants and the appellees were plaintiffs.

Because of such similarities, our observations' herein, unless otherwise indicated, will apply equally to all three cases.

During the period between April 30, 1923, and June 1, 1928, the appellee in No. 7341, a New York corporation engaged in business in Arizona, received at Bisbee, Douglas, and Clifton, Ariz., 61 carload shipments of sugar, which had moved from various points of origin in California, and upon which freight charges were assessed by the appellant carriers at the contemporaneous commodity rates. The shipments to Bisbee and Douglas were all delivered on or before September 12, 1925, while those to Clifton moved at intervals during the entire period above mentioned.

On September 3, 1925,, the appellee in No. 7341 filed a complaint with the Interstate Commerce Commission, hereinafter referred to as the “Commission,” in which it was alleged that the appellants’ rates on sugar, in carloads, from California points to the three Arizona destinations had been, and in future would be, unreasonable, in violation of section 1 of the Interstate Commerce Act (49 USCA § 1). The Commission was asked to determine what would have been or would be reasonable rates in lieu of those attacked, and to award reparation both upon past shipments and those moving pendente lite.

In No. 7342 the appellee, on August 14, 1923, filed a similar complaint before the Commission, attacking sugar rates charged by the carriers on 31 shipments that had moved from various California points to Bowie, Ariz., during' the period between April 11, 1921, and December 10, 1923.

In No. 7343 the appellees’ complaint was filed on March 6, 1925, and February 6, 1926, and covered 41 carload shipments of sugar received at Tucson, Ariz., which had moved from California points during the' period between March 5, .1923, and May 1., 1928. All but three of the shipments were delivered on or before September 15, 1925. Those three shipments were delivered during March, April, and May, 1928.

On March 12, 1928, the Commission ren-. dered its report in all these three cases, as well as' in a number of others consolidated therewith, in which it declared inter alia-that-the-rates-attacked had been unreason[875]*875able, and that reparation was due. Docket 16742, Traffic Bureau of Phoenix Chamber of Commerce et al. v. A., T. & S. F. Ry. Co. et al., 140 I. C. C. 171. Adopting the designation used in prior cases before this court, we shall hereinafter refer to that report as the “Third Phoenix Case,” or “Docket 16742.”

Following the report in the Third Phoenix Case, and as directed therein, all the appellees herein complied and submitted to the Commission tabular statéments, known as “Rule V Statements,” setting forth essential information as to the shipments upon which reparation was claimed. On September 7, 1929, April 14, 1930, and April 13, 1931, the Commission entered supplementary orders, directing payments of reparations, in specified amounts, to all the appellees.

The carriers in all three cases declined to comply with the reparation orders, and thereupon the present suits were commenced, pursuant to section 16 (2) of the Interstate Commerce Act (49 USCA § 16 (2).

The cases were tried by the court below sitting without a jury, trial by jury having been duly waived in writing.

After making special findings of fact and conclusions of law, largely as proposed by the appellees, and rejecting those proposed by the appellants, the court below rendered judgments substantially as demanded in the respective complaints, and awarded interest and allowances of 20 per cent, of the total sum of principal and interest as attorneys’ fees. The cases now come to this court on appeals from those judgments.

The primary defense urged by the appellants in each of these three cases is that the rates and charges now under attack conformed to prior formal declarations by the Commission dealing with the same transportation services, and that the present award was therefore beyond the Commission’s power.

On April 15, 1914, the Arizona Corporation Commission filed a complaint with the Interstate Commerce Commission, attacking as unreasonable the rates on sugar and sirup in straight or mixed carloads from all producing points in California to all destinations in Arizona. The proceeding is reported as docket 6806, Arizona Corporation Commission v. A., T. & S. F. Ry. Co. et al., 34 I. C. C. 158. While Docket 6806 was pending, but before its final submission, the defendant carriers in that case voluntarily reduced their rates from virtually all California producing points to all important destinations in Arizona, including the five destinations involved in the instant cases; namely, Bisbee, Douglas, Clifton, Bowie, and Tucson. These reductions included the publication of lower rates than those previously in effect, and the initiation of rates upon still lower levels, subject to an increased minimum carload weight of 60,000 pounds. As thus established, the reduced rates became 55 cents per - hundred pounds to each of the five destinations just mentioned, except Clifton, which took a rate of 86 cents.

No reparations had been asked for in that case. In its report, which was handed down on May 25, 1915, the Commission took notice of the reductions just referred to, and held that, with certain exceptions not here involved, “the rates on sugar and sirup in straight carloads from points in California to points in Arizona in effect at the time of the hearing have not been shown to be unreasonable to a greater extent than the amounts of the reductions since made.”

The appellants contend that the rates assessed upon the shipments on which reparation is sought here were, in all instances, equal to or less than the rates approved as reasonable by the Commission in docket 6806, as modified in response to certain orders of the Director General of Railroads, head of the United States Railroad Administration, and to the recommendations of the Commission. Certain further and voluntary reductions had been also made by the carriers.

In our view of the case, we are not concerned with the changes in the rates that had been theretofore approved by the Commission in 1915, whether such changes were ordered by the Director General of Railroads or the Commission, or were voluntarily made by the carriers themselves.

Even from the appellants’ own recital of the increases in rates alleged to have been authorized by the Commission or by the Director General of Railroads it is quite apparent that none of those authorizations purported to prescribe or approve any specific rates. At most, all such authorized increases were expressed in percentages or as “flat advances,” thus requiring some base rate upon which such percentages or flat advances were to be computed.

[876]*876We stress this fact, for the reason that, at the time of those alleged authorized advances, there was no sugar base rate that had been-authorized by the Commission, to which base rate the above increases could be added. The report of May 25, 1915, 34 I. C. C. 158, supra, continued in ■ force until May 25, 1917. When that report was handed down, and for two' years thereafter, the duration of an order of the- Commission was limited to two years.

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

Related

Jackson Furniture Co. v. McLaughlin
85 F.2d 606 (Ninth Circuit, 1936)

Cite This Page — Counsel Stack

Bluebook (online)
75 F.2d 873, 1935 U.S. App. LEXIS 3087, Counsel Stack Legal Research, https://law.counselstack.com/opinion/el-paso-s-w-r-co-v-phelps-dodge-mercantile-co-ca9-1935.