Interstate Commerce Commission v. Philadelphia & R. Ry. Co.

123 F. 969, 1903 U.S. App. LEXIS 4961
CourtDistrict Court, S.D. New York
DecidedJune 12, 1903
StatusPublished
Cited by1 cases

This text of 123 F. 969 (Interstate Commerce Commission v. Philadelphia & R. Ry. Co.) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Interstate Commerce Commission v. Philadelphia & R. Ry. Co., 123 F. 969, 1903 U.S. App. LEXIS 4961 (S.D.N.Y. 1903).

Opinion

RACOMBE, Circuit Judge.

All parties pressed the court for an early decision, and it was understood that adjournments were being taken to await its action. Therefore it seems best merely to indicate the conclusions reached, without going into any discussion of the grounds for such conclusion.

It appears from the record that William R. Hearst heretofore duly filed a petition and complaint against the defendants, alleging (x) that the freight rates charged by them for the transportation of anthracite coal are unreasonable and unjust; (2) that said rates are relatively unreasonable and unjust as compared with the rates charged for transportation Of bituminous coal and with the rates for other car load freight generally; (3) that defendants have combined to pool and divide among themselves freights and freight traffic of anthracite coal; and (4) that they have discriminated against private operators of coal mines by charging them a higher rate of freight than chárged other private operators or coal companies owned by said defendants—all in violation of the interstate commerce act.

Answers having been interposed, the commission duly ordered a hearing upon this complaint, and upon such hearing certain witnesses declined to produce specific documents or to answer specific questions, wherefore petitioner prays for an order or orders requiring the production of such documents and answers to the questions.

It would appear, from the decision of the Supreme Court in the Brimson Case, 154 U. S. 447, 14 Sup. Ct. 1125, 38 L. Ed. 1047, that upon application for such an order the Circuit Court does not sit as an appellate tribunal, but should decide all questions raised as to relevancy of testimony as if such questions were raised before it in the first instance.

There are several witnesses proceeded against, although for convenience their cases have been heard together on' a single petition. Separate orders, however, should be made in each case, for each case is a separate proceeding instituted in this court against the particular individual.

Among the objections advanced to the granting of this petition, it is contended that the Interstate Commerce Commission has no jurisdiction to hear the complaint for the reason that the complainant is not himself a shipper of coal. It was contended in opposition that the commission is conducting a general investigation into the conduct of the business of transportation by the defendant carriers, which it has a right to do under the statutes, independent of any complaint by a person aggrieved. The record, however, does not sustain this proposition. The proceeding before the- commission was begun by the serv[971]*971ice of a formal verified complaint, to which separate answers were interposed by the several defendants. The petition presented to this court avers that the refusals to produce documents and answer questions took place in the course of “a hearing upon said complaint” which the commission had duly ordered. The prosecution of the complaint before the commission is being conducted, as it is most appropriate that such a prosecution should be, by the counsel for the complainant.

In view of the language of the interstate commerce act (Act Feb. 4, 1887, c. 104, 24 Stat. 379 [U. S. Comp. St. 1901, p. 3154]), there is great force in the contention that the prosecution before the Interstate Commerce Commission of carriers who violate the statutes should be at the instance of a shipper, and that an individual who merely purchases merchandise, the price of which is advanced by reason of its including the cost of transportation from the place of production to the place of sale, may not institute and prosecute such a proceeding where no shipper raises any objections to the rates charged. In view of the other grounds of objection which have been interposed, however, it will not be necessary to decide this question.

The specific points raised in each case are as follows:

(1) In the case of David G. Baird, secretary of the Lehigh Valley Coal Company, it is asked that he be required to produce “all contracts for the purchase and transportation of anthracite coal entered into since January 1, 1901, between that company and any producers of anthracite coal or owners or operators of coal mines.” In opposition it is suggested that the Lehigh Valley Coal Company is a corporation independent of any of the defendants, and that the contracts asked for are between it, a third party, and other outsiders. It appears by the record that the capital stock of the Lehigh Valley Coal Company is all owned by the Lehigh Valley Railroad Company, and it may fairly be contended that its transactions, if not those of an agent of the railroad company, were conducted solely in its interests. The contract, or at least one of the contracts, asked for, has been produced and submitted to the court, and it does not provide, as indicated in the petition, that the “prices paid to the seller are certain percentages of the prices for which the coal is sold at tide-water terminals.” It is entirely a contract of purchase, and does not deal at all with the subject of transportation. It fixes the price which the Lehigh Valley Coal Company is to pay the seller for coal at a certain percentage of the price at which coal of the same quality and size shall be sold during the month at a specified place. It is in no -way different from a contract for the purchase of a specified number of tons of coal at a specified sum in dollars and cents—a contract made in the state of Pennsylvania, and to be completed therein by the delivery of coal at the breakers. Whether the Lehigh Valley Coal Company is to be considered as an independent corporation, or whether in the transaction it is to be taken as the alter ego of the railroad company, and the coal bought under the contract be treated as the coal of the railroad company, this particular contract is not relevant to the questions of reasonable rates, discrimination, etc., which were presented by the complaint. The petition to direct the production of this contract is therefore denied. If, however, there are any contracts in the possession [972]*972of the witness which deal with the subject of transportation as well as with the subject of purchase they should be produced.

(2) In the case of Fred F. Chambers, secretary of the Delaware, Lackawanna & Western Railroad Company, the contracts referred to have been submitted to the court, and as in the other case they appear to be all contracts of purchase only. The order to produce is therefore denied.

(3) In the case of Orlando C. Post, auditor of the Delaware, Lackawanna & Western Railroad Company, it appears that the original: vouchers asked for show the transactions for the purchase of coal under the contracts last referred to, and contain no information whatsoever on the subject of transportation. The motion to require their production is denied.

(4) In the case of George O. Waterman, secretary of the Lehigh & Wilkesbarre Coal Company, the contracts appear to be all contracts-of purchase only, and the petition is denied.

(5) In the case of-Richardson, secretary of the Hillside Coal & Iron Company and of the Pennsylvania Coal Company, the motion for order to produce is denied for the same reason.

(6) In the case of William G. Brown, secretary of the Philadelphia & Reading Coal & Iron Company, the motion to produce the contracts is denied for the reasons given above.

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

Related

United States v. Union Pac. R.
188 F. 102 (U.S. Circuit Court for the District of Utah, 1911)

Cite This Page — Counsel Stack

Bluebook (online)
123 F. 969, 1903 U.S. App. LEXIS 4961, Counsel Stack Legal Research, https://law.counselstack.com/opinion/interstate-commerce-commission-v-philadelphia-r-ry-co-nysd-1903.