Farmers' Grain Co. v. Illinois Central Railroad

201 Ill. App. 261, 1916 Ill. App. LEXIS 667
CourtAppellate Court of Illinois
DecidedApril 21, 1916
StatusPublished
Cited by2 cases

This text of 201 Ill. App. 261 (Farmers' Grain Co. v. Illinois Central Railroad) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Farmers' Grain Co. v. Illinois Central Railroad, 201 Ill. App. 261, 1916 Ill. App. LEXIS 667 (Ill. Ct. App. 1916).

Opinion

Mr. Justice Graves

delivered the opinion of the court.

Appellant brought suit in the City Court of Mattoon to recover of appellee, as a common carrier of grain, for losses claimed to have been sustained by appellant by reason of the failure of appellee to deliver at the destination points, parts of some eighty-nine different shipments made by appellant from Dorans, Illinois. The declaration contained a separate count for each shipment. Before the case was submitted to a jury all of these counts except eighteen had been eliminated. The plea of defendant was the general issue. At the close of appellant’s case, the jury by the peremptory instructions of the court returned a verdict finding appellee (defendant in the court below) not guilty.

It is not denied that appellee is liable to some one for any grain that was lost in transit, at its fair cash market value. Neither is it denied that appellant was the consignor in all the shipments in question, and that a bill of lading was duly issued to it on each of such shipments. It is, however, contended by appellee that all of the eighteen shipments except one were interstate shipments and governed by the provisions of the Carmack Amendment to the Interstate Commerce Act; that as to all of such shipments, whether interstate or intrastate, the evidence shows that appellant was not the owner of the grain or the lawful holder of the bill of lading when the loss, if any, occurred, and that in any event there is no proper evidence in the record to show either that there was a loss of grain in transit or what the market value of it was, either at Dorans, when it was received for shipment by appellee, or at the different points where the same should have been delivered.

The evidence shows that in seventeen of the eighteen shipments in question the destination of the grain was beyond the limits of the State of Illinois. Even if it be true, as is claimed by appellant, that some of these shipments were stopped and unloaded in Chicago, we think they must all be held to be interstate shipments, because when a contract is made for the transportation of guods from a point in one State to a point in another State, and the goods are loaded and are started for their destination, the laws governing interstate commerce control, whether the goods ever leave the State or not. United States v. Colorado & N. W. R. Co., 85 C. C. A. 27, 157 Fed. 321; Atlantic Coast Line R. Co. v. Riverside Mills, 219 U. S. 194.

' On the question of who was the owner of the grain while in transit, appellee claims that the course pursued constituted a sale and transfer of the title to the grain at the point of shipment.

The evidence, however, does not bear out all that appellee claims for it. It does show that immediately upon receiving the bills of lading sight drafts were drawn by appellant on different persons at the point of destination of the various shipments, and that the bills of lading were delivered to the same persons on whom the sight drafts were drawn, but it further shows that such sight drafts were not drawn for the whole amount of grain shipped, but for only about ninety per cent, of it; that the amounts so obtained were treated as loans or advancements, and drew interest until the deal was closed after the grain reached its destination; that as between the drawer and the drawee of the sight drafts, it was understood and intended that the title of the grain should not pass until it was weighed at the destination and. was found to be of the grade specified, and that only so much of the grain shipped as reached its destination and graded up should be accepted and paid for. The evidence further shows that appellant in fact never did receive pay for any of the grain involved in the shipments in question except that which reached its destination and graded up. The parties to those transactions had a right to make such a contract. If that was the contract then appellant was the owner of the grain while in transit, and unless there is something in the Car-mack Amendment, when applied to the facts in this case, to prevent it, appellant was entitled to maintain an action to recover for so much, if any, of the grain as was lost in transit.

The part of the Carmack Amendment relied on is as follows:

“That any common carrier, railroad, or transportation company receiving property for transportation from a point in one state to a point in another state shall issue a receipt or bill of lading therefor and shall be liable to the lawful holder thereof for any loss, damage or injury to such property caused by it or by any common carrier, railroad, or transportation company to which such property may be delivered or over whose line or lines such property may pass, and no contract, receipt, rule, or regulation shall exempt such common carrier, railroad or transportation company from the liability hereby imposed: Provided, that nothing in this section shall deprive any holder of such receipt or bill of lading of any remedy or right of action which he has under existing law.”

Appellee contends that after appellant delivered to the drawees of the sight drafts the bills of lading it was no longer the lawful holder of them, and was prohibited by this amendment from recovering for any loss of or injury to such property while in transit.

The object of that amendment was to help and not to hinder interstate shippers in recovering for losses of goods while in transit, and it should he construed in the light of such purpose. Looney v. Oregon Short Line R. Co., 271 Ill. 538,

While by this amendment the right to recover for loss of goods in transit in interstate shipments is given and limited to the lawful holder of the bill of lading, and while the possession of the bill of lading, even by assignment or mere delivery, raises the presumption that the one in possession is the lawful holder, it is not conclusive and is always subject to be overcome by a showing that he is not. The mere possession of a bill of lading may be in one person, while the lawful holder of it may be an entirely different one. Whether the one- in possession of it is the lawful holder depends upon the intent of the parties in giving and acquiring such possession, and what that intent was may be shown by any competent proof. Mr. Justice Duncan, now of the Supreme Court, gives emphasis to the effect of the intent with which an assignment or delivery of possession of a bill of lading is made as bearing on the question of whether the possessor of it is the lawful holder in Idaho Sheep Co. v. Oregon Short Line R. Co., 188 Ill. App. 591. On page 596 of that opinion he says:

“The right of action is in positive terms of said amendment given to the lawful holder of the receipt or bill of lading, and it requires the carrier to issue the same. These provisions are sound and simple and need little or no explanation. The owner of the bill of lading was regarded in law as an owner of the goods or the thing shipped before the Carmack Amendment was ever enacted. The lawful holder of the bill of lading, even by assignment or by mere delivery thereof with intent to transfer the goods, has at all times been regarded as having the right to the possession of the goods shipped, and property rights therein according to the intent of the parties to the assignment or delivery, and could maintain an action for the possession of the same.

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Bluebook (online)
201 Ill. App. 261, 1916 Ill. App. LEXIS 667, Counsel Stack Legal Research, https://law.counselstack.com/opinion/farmers-grain-co-v-illinois-central-railroad-illappct-1916.