Illinois Central Railroad v. United States

58 Ct. Cl. 182, 1923 U.S. Ct. Cl. LEXIS 349
United States Court of Claims·Decided March 19, 1923·No. No. 237-A·Published·Cited by 10 cases

Opinion

Campbell, Chief Justice,

delivered the opinion of the court:

The plaintiff sues for an amount alleged to be due on account of transportation furnished by plaintiff and its connecting carriers upon bills of lading covering certain camp equipment and impedimenta, the same being property of the United States. For this transportation the plaintiff submitted to the officers of the Government its several bills wherein its charges were computed upon certain rates claimed by the carrier, but from the bills the Auditor for the War Department made deductions and disallowances be[183] cause he denied the application of the rates claimed and he applied to the bills plaintiff's tariff rates applicable to the transportation of “household goods and emigrants’ movables.”

The plaintiff had on file with the Interstate Commerce Commission a schedule of rates, filed May 9, 1916, in force from and after September 7, 1916, and during the time the shipments in question were made. Included in this schedule of rates were stated “ Ordnance and quartermaster’s stores, Government freight,” followed by words “ Camp equipage; minimum weight, 30,000 pounds,” and “All other articles, comprising ordnance and other munitions of war — not including camp equipage or baggage — carload, minimum weight 30,000 pounds,” giving both classes the rate “ class A, net cash.” In other words, the plaintiff had filed with the Interstate Commerce Commission a schedule of rates which were applicable alone to certain Government property, and now contends that it is entitled to the rates stated in this schedule without land-grant deductions. Both parties admit, and indeed this court has heretofore held in several cases, that the deductions made by the auditor under what he held to be the applicable rate, namely, “emigrants’ movables,” etc., were erroneous.

We hold that a railroad company can not by filing a schedule of rates with the Interstate Commerce Commission avoid the effect of the statutes making, or authorizing, grants of land in aid of the railroad upon terms stated in such statutes. This proposition is not denied by the plaintiff, but is admitted in its brief in the following language: “A carrier can not simply by publishing and filing with the Interstate Commerce Commission a ‘ net cash ’ rate (meaning without land-grant deduction) nullify the land-grant statutes.” And while conceding that the Government at all times and in any case is entitled to the lowest tariff rate “ open to the public,” less land-grant deductions, or (to use its language) “in other words, is entitled to make land-grant deductions from any rate open to the public,” the plaintiff contends that “ whenever there is no rate open to the general public (as there is no rate on camp equipage and military impedí-[184] menta) and the carrier publishes a special rate for the Government, expressly stipulating that such special rate is ‘ net cash ’ — not subject to land-grant deductions, and the Government ships property of the character mentioned, without demanding a different rate and without repudiating the special rate published or offered, then the Government is bound on an implied contract to pay the rate named.”

The court can not yield assent to this contention. There is no statute requiring, or even providing for, the publishing by a transportation company of a schedule of rates or a “ special rate ” ' applicable alone to Government property; but there is a requirement that a schedule or tariff of rates be published that are open to the public. In the latter case, the tariff is binding on both carrier and shipper, and is sufficient notice to the shipper of the rate after it has been filed and published as required. But in the former case, the filing, voluntarily, of a special rate as being applicable alone to Government property does not, and should not, charge its shipping officers with any constructive notice of a rate thus stated. Obviously plaintiff’s contention would enable the carrier to. avoid the effect of the land-grant statute by the simple device of “publishing and filing” a tariff schedule applicable in terms to Government property and not open to the public. Whatever the effect of filing tariff schedules may be upon individuals and other shippers, the provisions of the act to regulate commerce are not binding in that regard on the Government, which may stipulate for other or lower rates than the schedules provide. The plaintiff’s brief speaks of land-grant deductions “from any rate open to the public,” referring, we assume, to the statutory rule that the compensation to land-aided roads “shall be computed upon the basis of the tariff or lower special rates, for like transportation, performed for the public at large,” with appropriate land-grant deductions.

It is not suggested by plaintiff that the Interstate Commerce Commission is empowered to fix rates binding on the Government. See Cincinnati, N. O. & Tex. Pac. Ry. Co. v. Interstate Commerce Commission, 162 U. S. 184 and 28 I. C. C. 184, 524. But in view of statements in the briefs as [185] to the action, of this court in some cases heretofore decided we mention some of these.

In A., T. & S. F. Ry. Co., No. 33681, decided December 1, 1919, there was a stipulation as to the facts, and, among other things, it was stipulated, and so found, that “the freight under these bills moved upon special expedited passenger train service.” As to the larger part of the bills involved there was a special contract, and as to items mentioned in three of the bills it was stipulated that there was a class or commodity rate provided for each of the articles in the carrier’s tariffs. Emphasis was laid upon the meaning of the terms “emigrants’ movables” and “household goods,” those being the classifications under which the auditor made deductions from the bills, and of which the carrier was complaining. Nothing in that case adds support to the plaintiff’s contention here.

In A., T. & S. F. Ry. Co., No. 34457, decided March 14, 1921, there was an agreed statement of facts, and it appeared that the items claimed, or some of them, were originally included in the petition in No. 33681, supra, and all of them involved the same question. The carrier had submitted its bills “ based upon its published tariff rates, being the usual class and commodity rates open to the public,” with appropriate land-grant deductions. The bills were accordingly paid as rendered, and deductions were subsequently made by the auditor on the basis of rates applicable to “ emigrants ’ movables” and “household goods.”

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Illinois Central Railroad v. United States, 58 Ct. Cl. 182, 1923 U.S. Ct. Cl. LEXIS 349 (cc 1923).

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