Foster Lumber Co. v. Atchison, Topeka & Santa Fe Railway Co.

194 S.W. 281, 270 Mo. 629, 1917 Mo. LEXIS 51
CourtSupreme Court of Missouri
DecidedApril 10, 1917
StatusPublished
Cited by2 cases

This text of 194 S.W. 281 (Foster Lumber Co. v. Atchison, Topeka & Santa Fe Railway Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Foster Lumber Co. v. Atchison, Topeka & Santa Fe Railway Co., 194 S.W. 281, 270 Mo. 629, 1917 Mo. LEXIS 51 (Mo. 1917).

Opinion

WHITE, C.

— The suit is for damages for breach of contract.

The plaintiff obtained judgment in the circuit court of Jackson County for the sum of $4572.54, and after an appeal to the Kansas City Court of Appeals the cause was transferred to this court on motion of the appellants on the ground that the construction of the Fourteenth Amendment to the Constitution of the United States and of section 30, article 2, of the Constitution of Missouri, was involved.

Plaintiff was a corporation engaged in the manufacture and sale of lumber, with headquarters at Houston, in the State of Texas. The petition, filed March 24, 1910, alleges that in the middle of the year 1905 the plaintiff desired to erect large mills for the manufacture of lumber at Clinesburg, in the State of Texas; that the defendants desired to have such mills eréeted so they “might obtain freight from the hauling of the lumber” so manufactured; the defendants in order to induce the plaintiffs to erect the mills at that time agreed with the plaintiff: “In consideration of the plaintiff erecting said mills at said'place that they would pay to the plaintiff an amount equal to one-half of the defendants’ proportion of all freight charges for the hauling of all the necessary machinery, material and equipment for the erection and installation-of the said mills.” That “in consideration of the above” the plaintiff agreed to erect and did erect said mills.

The petition then sets out in detail the machinery and material shipped from various points in other states to Clinesburg, Texas, for that purpose, over the defendants’ [634]*634lines and other railroads, and the amount of freight charges paid to the defendants, one-half of which amount so received by the defendants was $4572.54. It then alleges demand of payment and refusal by defendants to pay; wherefore, plaintiff claimed damages in the sum of $4572.54.

After a general denial, the answer alleges that the contract sued on, if such there were, was illegal, void and unenforcible, and in violation of the Interstate Commerce Act.

The defendants objected to the introduction of any evidence on the ground that the petition failed to state a cause of action, demurred to the evidence at the close of plaintiff’s evidence and again at the close of all the evidence; all of which objections and demurrers were overruled, and the cause was submitted to the jury.

There is little or no dispute as to the facts in the case. An agreed statement was introduced which covered all the formal requirements in making out the ease as plaintiff conceived it, including the erection of lumber mills at Clinesburg; the interstate character of the shipments over the railways of the defendants of the materials and machinery that went into its construction; the amount of freight charges received by the defendants for such transportation, one-half of which was $4572.54. The stipulation then provides: ‘ ‘ That during the entire time mentioned in the petition to this suit, said freight rates charged and paid by the plaintiff were the regular published tariff rates on said commodities, and that no new tariff, reducing the amount of the rate of said freight charges, was published during said time.”

The Poster Lumber Company at the time had its headquarters at Houston, Texas, and owned large tracts of lumber lands located in San Jacinto County, Montgomery County, Harris County and Liberty County, the total amounting to over one hundred thousand acres. The plaintiff desired to erect mills at Clinesburg, which was situated on the line of defendants’ railroad, in Montgomery County, within convenient distance of the several tracts. Before beginning the erection of the mills Mr. [635]*635Womack, assistant manager, and Mr. Foster, vice-president, of plaintiff, had two or three conversations with Mr. Hershey, general freight agent, and Mr. Coleman, industrial agent, representing the defendants. The plaintiff’s representatives wanted to know what the defendants “could do for us in the way of concession or donation;” and put forward the advantages which the plan would he to the road. It would cost approximately five hundred thousand dollars, a town of probably fifteen hundred people would grow up at the point where it would be erected and the defendants would be furnished about a hundred and twenty-five carloads of lumber per month for transportation. Defendants’ representatives then suggested that they would give, in consideration of the erection of the mills, an amount equal to half of the freight charges received by defendants on shipments of material that went into the construction of the plant. A telephone conversation finally concluded the agreement on those terms. The only difference between the testimony of plaintiff’s witnesses as to what was said at these conversations and that of Mr. Hershey for the defendants, was in the use of terms, the plaintiff’s representatives saying they were to receive a “donation” for erecting the mills and Mr. Hershey speaks of it as “reduced rates” for shipping the material used in erecting them. Mr.. Hershey stated that his company wanted to get the mills on their roadway “to make business for our railroad,” for they would “get to haul that lumber out;” also, the location of a plant of that magnitude would make something of a town and the company would profit by the freight and passenger traffic Avhich would ensue.

After the mills were erected the defendants neglected to pay according to agreement, and the plaintiff began to write letters urging the payment. The word donation was not used in any of these letters. Such expressions as these: " refund that is due us; ” " a refund of overcharge on certain shipments; ” " our claim for overcharge on machinery,” were used.

Mr. Hershey, it appears, desired to pay the claim and took up the matter with the home office in Chicago, but [636]*636was notified that it conld not he paid, because the Hepburn amendment had become effective, making it unlawful to pay it.

The court instructed the jury that if the defendants agreed with the plaintiff “in consideration of plaintiff erecting said mills at said place” defendants would pay to plaintiff an amount equal to one-half of defendants.’ proportion of freight charges for handling all necessary machinery, etc., for the erection of said mills, and if plaintiff did erect said mills, etc., the jury would find for the plaintiff in the sum sued for. On behalf of the defendants the court instructed the jury if they found from the evidence that a contract or arrangement was made by the plaintiff and defendants to the effect that the plaintiff was to have “refunded or paid back to it one-half the amount the defendants collected in accordance with the tariffs and schedules filed and published as required by the Interstate Commerce Act,” then plaintiff could not recover. The verdict was for the plaintiff in the amount above mentioned.

Bonus or Refund on Interstate Shipments for Increased Business. I. The liability of a carrier upon contracts concerning interstate shipments is governed entirely by the Interstate Comerce Act, and amendments thereto. The construction of that Act by the Federal courts is conclusive upon the State courts. [Donovan v. Wells Fargo, 265 Mo. 291; Haseltine v. Central National Bank, 155 Mo. l. c. 74; Barber Asphalt Pav. Co. v. French, 158 Mo. 534; American Silver Mfg. Co. v. Wabash R. R. Co., 174 Mo. App. 184; Hardwick v. Wabash R. R. Co., 181 Mo. App. 156.]

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Bluebook (online)
194 S.W. 281, 270 Mo. 629, 1917 Mo. LEXIS 51, Counsel Stack Legal Research, https://law.counselstack.com/opinion/foster-lumber-co-v-atchison-topeka-santa-fe-railway-co-mo-1917.