Long Beach Banana Distributors, Inc. v. Atchison, Topeka & Santa Fe Railway Co.

407 F.2d 1173
CourtCourt of Appeals for the Ninth Circuit
DecidedFebruary 6, 1969
DocketNos. 21345, 21345-A, 21345-B
StatusPublished
Cited by1 cases

This text of 407 F.2d 1173 (Long Beach Banana Distributors, Inc. v. Atchison, Topeka & Santa Fe Railway Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Long Beach Banana Distributors, Inc. v. Atchison, Topeka & Santa Fe Railway Co., 407 F.2d 1173 (9th Cir. 1969).

Opinion

HAMLEY, Circuit Judge:

In the above-entitled actions, consolidated for trial and appeal, plaintiff banana wholesalers seek the refund of part of the freight charges collected by defendant railroads on the rail movement of bananas wholly within California. The railroads had charged freight rates stated in tariffs filed with the Interstate Commerce Commission, whereas plaintiffs assert that the lower California intrastate rates should have been collected. A summary judgment was entered for defendants and plaintiffs appeal.

The following facts were established by stipulation of the parties. The bananas were grown in either Costa Rica, Panama or Ecuador by subsidiaries of United Fruit Company (United Fruit) or purchased by the subsidiaries from independent producers in those countries. United Fruit purchased the bananas from its subsidiaries f.o.b. steamships at the tropic ports. The bananas were carried by various public carriers (none owned by United Fruit) from the fields to tropic ports where they were immediately transferred by barges to ocean-going ships for carriage to the United States.

Prior to departure of the ships from the tropic ports, the bananas that were to be sold in the United States were consigned to a subsidiary of United Fruit, known as Fruit Dispatch Company (Fruit Dispatch). During the ocean voyage the bananas were covered by negotiable ocean bills of lading showing the producing company in Central America as the shipper, Fruit Dispatch as the consignee, United Fruit as the carrier, and the Port of San Francisco or the Port of Los Angeles as the destination of the shipment.

The original bill of lading accompanied the bananas and was delivered by the ship’s master upon the arrival of the bananas at the respective California ports. The bananas were carried on the ships under a schedule of “Banana Freight Rates” on a tonnage basis and freight charges were recorded in United Fruit’s books of account.1 When the bananas entered the United States ports, a Treasury Department Bureau of Customs “Consumption Entry” was filed by Fruit Dispatch showing Fruit Dispatch as the importer of the bananas. Similarly, a “Notice of Arrival” to the United States Department of Agriculture showed Fruit Dispatch as the importer of the bananas.

The bananas were carried on the high seas from the tropic ports to the ports of California in ships chartered by United Fruit under “demise,” “time,” and “freight” charters. Some of these charters were from subsidiaries of United Fruit and some were from companies having no connection with that company. [1175]*1175The bananas involved in this litigation were carried in thirty-five ships which included registries in six different countries.

There were no storage facilities for bananas at the San Francisco and Los Angeles docks. Prior to the arrival of the ships the defendant rail carriers were requested to place the required number of cars at dockside for loading. Upon arrival of the ships, the bananas were immediately unloaded into the waiting rail cars. Bananas which had already been sold were immediately moved on to wholesalers within the state of California. The remainder were either held aboard the railroad cars awaiting disposition, or were started away from the harbor pending sale in transit. The trial court found, however, that it was the intention of the parties from the time the bananas were grown in the tropics that they were destined for points beyond the port of entry.

The bananas were sold to the plaintiff wholesalers under a memorandum of sale which provided for delivery at seaboard and required the purchasers to pay all freight charges. The plaintiff wholesalers paid Fruit Dispatch for the bananas. The latter company prepared rail bills of lading showing itself as the shipper and one of the plaintiffs as the consignees. It was stated in the bills of lading that the bananas were imported on a named ship from a designated port in Central or South America.

Prior to 1927 bananas destined for California had been transported by vessel to United States Gulf ports and then moved by rail. The importation of bananas through United States West Coast ports commenced in 1927. To provide commodity rates tailored to this particular traffic, shipside import rail rates were established to various specified destinations in California, Nevada, Oregon, Idaho, Montana and Utah. These rates, which we will refer to as “Tariff 197” rates, were published in various tariffs of the Pacific Freight Traffic Bureau, now known as the Pacific South-coast Freight Bureau, and were filed with the Interstate Commerce Commission (Commission).

Whether, under these facts, the interstate or the intrastate rates should have been applied to the bananas sent by rail wholly to points within California depends upon the construction to be placed upon section 1(2) (a) of the Interstate Commerce Act (Act), 24 Stat. 379 (1887), as amended, 49 U.S.C. § 1(2) (a) (1964). In the margin is set out subparagraph (a) in its context with the relevant parts of sections 1(1) and (2).2

[1176]*1176It will be observed that, under what we will call the “and not” clause at the end of section 1(2) (a), the provisions of the Act relating to railroad rate regulation, with exceptions not here relevant, do not apply to the rail transportation of property wholly within one state (here California) unless the property is “shipped to or from a foreign country from or to any place in the United States as aforesaid, * * *

The bananas in question were moved from foreign countries to places in the United States, but were they shipped “as aforesaid,” within the meaning of the “and not” clause? Plaintiffs argue that in order for the foreign part of the through movement to be “as aforesaid,” within the meaning of the “and not” clause, it must be by common carrier, and that here the foreign part of the through movement of the bananas in question was by private carrier. Defendants, on the other hand, argue that the words “as aforesaid” do not mean that the foreign part of the movement must be by common carrier, and that, in any event, the foreign part of this through banana movement was by common carrier.

In granting summary judgment for defendants, the district court made no determination as to whether the movement of the bananas from Central and South American ports to San Francisco and Los Angeles was by private or common carrier. Presumably, then, the district court was of the view that this was immaterial, and that the “and not” clause applies whether the foreign part of the movement is by common or private carrier. The first question presented on this appeal is the correctness of this view. If this is correct, and if these bananas were “shipped” within the meaning of the “and not” clause, we must affirm even if plaintiffs are right in contending that the waterborne part of the movement was by private carrier.

If the decision of this court in Chicago, M. St. P. & P. Ry. v. Campbell River Mills Co., 9 Cir., 53 F.2d 69, is controlling here, it would be necessary to rule that the district court erred in holding, by implication, that the “and not” clause applies whether the foreign part of the through movement was by common or private carrier.

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

Related

Cite This Page — Counsel Stack

Bluebook (online)
407 F.2d 1173, Counsel Stack Legal Research, https://law.counselstack.com/opinion/long-beach-banana-distributors-inc-v-atchison-topeka-santa-fe-railway-ca9-1969.