James v. Norfolk & Western Railway Co.

129 S.E. 321, 143 Va. 865, 1925 Va. LEXIS 309
CourtSupreme Court of Virginia
DecidedOctober 1, 1925
StatusPublished
Cited by1 cases

This text of 129 S.E. 321 (James v. Norfolk & Western Railway Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
James v. Norfolk & Western Railway Co., 129 S.E. 321, 143 Va. 865, 1925 Va. LEXIS 309 (Va. 1925).

Opinion

Christian, J.,

delivered the opinion of the court.

Paul L. James and W. W. Houston, partners trading as Pan Handle Coal Company, were shippers of coal from West Virginia over the Norfolk and Western railway, to the railway company’s piers at Lambert’s Point, Virginia, where the coal was trans-shipped by being dumped into vessels, or reconsigned for local or inland trade. This suit arose out of the trans-shipment of coal by vessel.

The assembling of a cargo of coal in cars at a port for the arrival of a vessel to receive the cargo usually entails delay of some of the cars at the piers, pending the arrival of the remaining cars to complete the cargo; or entails the delay of the vessel pending the arrival of the cars; or entails the holding of all ears pending the arrival of the vessel; or all of these various delays.

[867]*867It is therefore customary for the railroads to provide in their demurrage tariffs a certain free time. The tariff of the Norfolk and Western Railway Company accordingly provided for five days free time per car and also excluded holidays and Sundays.

Carload shipments of coal on arrival at railroad tidewater terminals are classified on different tracks according to grade and consignee-ship. . It is apparent there will be as many different classifications as there are grades of each consignee.

Trans-shipment of coal at railroad tidewater terminals entails the practical problem of assembling carload units into cargoes and bunker lots, with as little delay as possible to cars or vessels. During the war the scheme of pooling coals of the same grade was developed, so that carloads of coal of a given grade might be dumped on the order of any consignee who had sufficient coal of that grade in the pool, without regard to the ownership of the particular cars. An important object attained by pooling coal was the reduction of the number of classifications to the number of different grades of coal (no longer multiplied by consignees), so that all the cars of coal of each grade were assembled upon tracks set apart for that particular grade of coal without regard to ownership of the particular cars; but a record was kept of the number of cars of each consignee in the pool, with the date of their arrival and other facts, which were known as credits.

In order to make the pooling arrangements effective, the Lambert’s Point Coal Exchange was established among the tidewater shippers. This association was voluntary, in charge of an exchange manager, who kept the records of cars of coal in the various pools to the credit of different consignee members. Each member of the exchange agreed to swap cars of coal of the same [868]*868grade with the other members. The members of the exchange got credit for cars of coal as soon as the ears passed the Bluefield, W. Va., scales, instead of upon arrival at Lambert’s Point piers, but each shipper was responsible for the tariff charges, including demurrage.

The plaintiffs in error and thirteen other members of the exchange became indebted to the railway company in various amounts for demurrage under its filed tariff, and proceedings by motion for the recovery of judgment against each consignee shipper was brought in the Circuit Court of the city of Norfolk, Virginia. The issues and evidence in the cases being the same, that of the plaintiffs in error was, by agreement, submitted to the trial court without a jury as a test ease. The court entered judgment in favor of the plaintiff against the defendants for the sum of three thousand six hundred and thirty-four dollars and twenty-five cents ($3,634.25), with legal interest on $3,212.00 thereof from the 10th day of November, 1923, till paid, and its costs by it about its suit in this behalf expended. For alleged erroneous rulings by the trial court (properly preserved in the record), during the trial of the case, and entering judgment for the plaintiff, a writ of error was granted and the ease is before us for review.

Under Exchange Rule 23, the shipper in shipping his coal to a particular pool was required to have it billed:

“To........................................, eare of

Lambert’s Point Coal Exchange, Pool No..............”

When the ears arrived at Lambert’s Point they were not segregated in accordance with the ownership of the coal, but were physically commingled with the cars of all the other members. The individual member having a book credit in the exchange or pool had the right to have the exchange order equivalent tonnage dumped from these common cars into his vessel.

[869]*869The plaintiffs in error most earnestly press upon this court’s attention that the trial court erred in not holding, as a matter of law, that the Lambert’s Point Coal Exchange was the common consignee of all the coal shipped to it by its members, so far as the applicable demurrage tariff was concerned. This claim was presented to the trial court by demurrer as well as upon the trial on the merits, and it will be considered here as a single assignment of error.

The plaintiffs in error contend that the United States Supreme Court, in the so-called “Forwarding Case” (I. C. C. v. Delaware, Lackawanna and Western Railway, et al., 220 U. S. 235, 31 S. Ct. 392, 55 L. Ed. 449) has ruled on this point directly, and it is the doctrine of this decision on which they rely to sustain their position.

The “Forwarding Case” grew out of the following state of facts: The railway companies, in their published tariffs, promulgated a through rate upon certain articles in carload lots at much less than the same articles in less than carload lots. Whereupon a practice grew up of shippers of articles in less than carload lots assembling their goods at a central point, where a shipping agent combined the goods in carload lots, and shipped them to some common point near their several destinations,- consigned to the shipping agent, where, upon arrival, the goods were unloaded and reshipped in less than carload lots to their ultimate destination. The forwarding agent and the shipper divided the difference between the amount of freight on carload lots and that on less than carload lots.

This practice became so general, that it developed into an established business known as the forwarding business. The railroads, with the design to break up this business, presented to the Interstate Commerce Commission a qualification of their tariffs to the effect [870]*870that unless the shipper was the owner of the goods shipped, he could not get the advantage of carload rates, and requested that said qualification might become a part of their tariffs. The Commission refused to allow the qualification because discriminatory and unreasonable, thereupon the railroads appealed to the courts. The case finally reached the Supreme Court where the ruling of the Commission was sustained upon the principle that the carrier may not discriminate in fixing the charge for carriage where there is no difference inhering in the goods or in the cost of the service rendered in transporting them; or, what is equivalent thereto, that the carrier did not have the right to make the ownership of goods the criterion by which his charge is to be measured.

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

Related

Eastern Coal & Export Corp. v. Norfolk & Western Railway Co.
138 S.E. 471 (Supreme Court of Virginia, 1927)

Cite This Page — Counsel Stack

Bluebook (online)
129 S.E. 321, 143 Va. 865, 1925 Va. LEXIS 309, Counsel Stack Legal Research, https://law.counselstack.com/opinion/james-v-norfolk-western-railway-co-va-1925.