Lehigh Valley R. v. United States

188 F. 879, 1911 U.S. App. LEXIS 4367
CourtCourt of Appeals for the Third Circuit
DecidedJune 13, 1911
DocketNos. 21, 22, 23
StatusPublished
Cited by12 cases

This text of 188 F. 879 (Lehigh Valley R. v. United States) is published on Counsel Stack Legal Research, covering Court of Appeals for the Third Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lehigh Valley R. v. United States, 188 F. 879, 1911 U.S. App. LEXIS 4367 (3d Cir. 1911).

Opinion

YOUNG, District Judge.

All the defendants were indicted under the acts of Congress regulating commerce, as amended by the act of February 19, 1903, known as the "Elkins Act,” and as amended by the act of June 29, 1906, known as the “Hepburn Act,” in the following indictments:

The Lehigh Valley Railroad Company, hereinafter called the Le-high, at No. 23 and No. 24, March sessions, 1910. At No; 23 in 97 counts for ..failure to observe the tariff in force from April 1, 1907, by canceling and remittmg the demurrage charges upon 97 different cars delivered in interstate commerce by the Lehigh to the Bethlehem Steel Company, hereinafter called the Steel Company; and at No. 24 in 58 counts, in the 29 odd-numbered counts (from 1 to 57 ther’eof) in granting a concession of one day’s free time in excess of the 48 hours’ free time specified in the tariff filed and then in force, whereby the demurrage charge was reduced by $1 on each car, with respect to 29 different cars delivered to the Steel Company between October 1, 1907, and November 12, 1907, and- in the 29 evemnumbered counts (from 2 to 58, inclusive) with failure to observe the tariff in force as to the cars set out in the odd-numbered counts.

• The Philadelphia & Reading Railway Company, hereinafter called the “Reading,” was indicted at No. 25 andl No. 26, March sessions, 1910. At No. 25 in 63 counts for failure to observe the tariff then in force by canceling and remitting the demurrage charge on 63 different cars delivered to the Steel Company between April 1, 1907,- and October 9,-1907; and at No.. 26 in 24 counts, in the odd-numbered counts (from 1 to 23, inclusive), with granting a concession of one day’s free time'in excess of the .48 hours specified in the tariff, whereby the demurrage charge was reduced by $1 on 12 different cars delivered to the Steel Company”' between October 9 and October 24, 1907, and in the 12 even-numbered counts (from 2 to 24, inclusive), with a failure to observe the tariff in force as to the cars set out in the odd-numbered counts.

The Bethlehem -Steel Company was indicted at No. 33 and No. 34, March sessions* 1910. At No. 33, with soliciting- and receiving the concessions from the Reading specified at No. 25; and at No. 34, with soliciting and receiving the concessions from the Lehigh specified at No. 23.

By agreement of counsel the six indictments were tried together, and the jury returned a general verdict of guilty upon each of the indictments, and the defendants were respectively sentenced by the court in the first count of each indictment to pay a fine of $20,000; the Lehigh on the first counts of No. 23 and No. 24, the Reading on the first counts of No. 25 and No. 26, and the Steel Company on the first counts of No. 33 and 'No. 34. At the trial, as shown by the record, there was no dispute as to the cars, as to the amount of the demurrage on each car, or the time when it accrued, or the aggregate [881]*881amount charged as having accrued and been canceled and remitted. The record also shows the following facts as undisputed:

During the period covered by the indictments, the Lehigh and the Reading were members of the Northeastern Car Service Association, hereinafter called the '‘Association,” composed of certain railroads engaged in interstate commerce, and operating within a certain territorial division of northeastern Pennsylvania. The Steel Company was also within this territory. The Association, through its Car Demurrage Bureau, hereinafter called the “Bureau,” had charge of the business of supervising the application of the demurrage rules, auditing demurrage accounts, and adjusting claims for improper de-murrage charges collected by the railroad companies within its territory. This was accomplished by the freight agents of the different railroads reporting to the manager of the Bureau the arrival, placing, and release of cars subject to demurrage rules. The freight agents also reported to the accounting departments of their respective companies, and under the supervising of the manager of the Bureau collected the earnings for the companies in accordance with the tariffs and rules on file with the Interstate Commerce Commission, and it was the duty of the manager of the Bureau to see that these tariffs and rules were observed andi carried out. The Association adopted uniform rules for demurrage charges which applied to all the railroads within its territory. After the Hepburn act went into effect in August, 1906, the Association adopted car service rules, and on August 27, 1906, the Lehigh filed with the Interstate Commerce Commission these rules as its original tariff of charges for demurrage in tiie transportation of freight within the Association’s territory, and on November 23, 1906, the Reading filed the same rules, and by those rules it was provided that a charge of $1 per day should be made “for car service and use of track on all cars not unloaded within 48 hours after arrival, not including Sundays and legal holidays, the time to be computed from 7 a. m. of the following day on cars arriving after 7 a. in., and from 12 noon of the following day on cars arriving after 12 noon.” While these rules were in effect, the Lehigh and Reading, the former on August 27, 1907, and the latter on August 26, 1907, filed new rules, marked, respectively, 2208 and 200, with the Interstate Commerce Commission, which were to take effect on October 21, 1907, and which, when effective, would cancel the rules then in force. The only material change was that the 48 hours’ free time was to be computed in every case from 7 a. m. of the day following the arrival of the car instead of from 7 ,a. m. and 12 noon, respectively.

It appears the Association then adopted rules on October 9, 1907, by which the 48 hours’ free time should not only be computed from 7 a. m. of the day following placement, but that industrial plants performing their own switching would have an additional allowance of 24 hours for switching. This rule, marked “Supplement No. 1 to Lehigh Tariff,” was filed with the Interstate Commerce Commission by the Lehigh on October 10, 1907, to become effective November 12, 1907, and by the Reading on September 21, 1907, marked “Supplement No. 1 to the Reading Tariff,” and to become effective on [882]*882October 24, 1907. On October 9, 1907, the first vice president of the Lehigh and the general manager of the Reading notified Thomason, the manager of the Association, and under his protest, that the rule allowing 24 hours’ additional free time to those plants doing their own switching, and which would not become effective as to the Lehigh until November 12, 1907, and as to the Reading until October 24, 1907, would be put into effect October 9, 1907, thus giving 24 hours’ additional free time to the Steel Company from October 9, 1907.

On April 15, 1908, the Car Service Association adopted what were known as the “National Car Servicé Rules,” which by an order filed by the Reading as order 578 became effective May 15, 1908, and canceled the rules theretofore in effect. The same rules were put into effect June 15, 1908, by the Lehigh by a tariff marked “Supplement No. 2 to Tariff 2208,” which superseded the previous rules.

The evidence shows that the outstanding demurrage bills from January, 1901, to August, 1906, owing by the Steel Company to the Lehigh, were $26,539, and to the Reading, $23,424. These amounts were canceled on the ground that they were incorrect and the records unreliable, but as they accrued before the Hepburn act they were not made the subject of indictment. From September, 1906, after the Hepburn act became effective, to June 1908, exclusive of the period from April.

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Bluebook (online)
188 F. 879, 1911 U.S. App. LEXIS 4367, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lehigh-valley-r-v-united-states-ca3-1911.