Missouri Pacific Railway Co. v. Crowell Lumber & Grain Co.

70 N.W. 964, 51 Neb. 293, 1897 Neb. LEXIS 298
CourtNebraska Supreme Court
DecidedApril 21, 1897
DocketNo. 7196
StatusPublished
Cited by4 cases

This text of 70 N.W. 964 (Missouri Pacific Railway Co. v. Crowell Lumber & Grain Co.) is published on Counsel Stack Legal Research, covering Nebraska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Missouri Pacific Railway Co. v. Crowell Lumber & Grain Co., 70 N.W. 964, 51 Neb. 293, 1897 Neb. LEXIS 298 (Neb. 1897).

Opinion

Ragan, O.

Tbe Crowell Lumber & Grain Company (hereinafter called tbe grain company) is a corporation organized under tbe laws and doing business in tbe state of Nebraska. Its business consists very largely in buying and shipping grain. Tbe Missouri Pacific Railway Company (hereinafter called tbe railway company) is a common [295]*295carrier doing’ business in Nebraska, Colorado, and other states. In the district court of Douglas county the grain company sued the railway company, alleging in its petition, that on the 11th day of December, 1890, the railway company entered into a contract with it in and by which it agreed to transport grain in -car-load lots from certain points in Nebraska to certain points in Colorado at a rate of thirty cents per hundred; that the grain company, relying upon this contract, purchased and shipped a large quantity of grain and sold it to persons at the said Colorado stations at a price based on said freight rate-mentioned in said contract with said railway company, the purchasers of said grain to pay the freight on delivery, the grain company guarantying that the said freight should not exceed thirty cents per hundred, as provided by its contract with the railway company; that when the grain reached Colorado the delivering carrier charged and demanded of the grain company’s purchasers, as a condition precedent to the delivery of the grain shipped to them, a freight rate largely in excess of the contract rate entered into between the grain company and the railway company; that the said purchasers, in order to obtain said grain, were compelled to and did advance and pay the freight rate demanded by the delivering carrier; and the grain company had been compelled to and had repaid to said purchasers the freight charges in excess of the rate fixed by the contract between the grain company and the railway company. In addition to a general denial, the railway company interposed to this action two defenses: (1) That it was induced to and did enter into the contract sued on, believing that the rate fixed in the said contract was the. rate then in force for the transportation of such freight between said points as agreed upon by itself and other carriers then constituting the Trans-Missouri Freight Association; that said rate was, as a matter of fact, not then in force, all of which the grain company knew at the time of making the contract; and (2) that the contract made was void under [296]*296the provisions of the interstate commerce act. The grain company had a verdict and judgment as prayed, and the railway company prosecutes here a petition in error.

1. The first assignment of error which we notice is that the verdict is not sustained by sufficient evidence. The issues of fact made by the pleadings in the case were (1) whether the railway company executed the contract sued upon; (2) whether the freight rate on grain from Nebraska to Colorado fixed by the Trans-Missouri Freight Association was in force at the time the contract in suit was made; (8) whether the grain company knew that the rate fixed by the Trans-Missouri Freight Association had been abolished at the time the contract was made; (4) whether the grain company, relying in good faith upon the contract sued on, purchased and shipped grain to Colorado, there sold it, and guarantied that the freight charges should not exceed the rate fixed by its contract with the railway company; (5) and whether the grain company, to make good its’guaranty, had paid to its purchasers the excess of freight charged and collected for transporting the grain.

There is practically no conflict in the evidence as to the first and fifth issues.

As to the second issue, the evidence tends to show that the railway company and a number of other carriers, on the 19th of July, 1890, became members of what is known in this record as the Trans-Missouri Freight Association; that this association fixed the rate for the transportation of grain in car-load lots from certain points in Nebraska to certain Colorado points at thirty cents per hundred; that they caused to be printed and published a tariff sheet setting out the rates fixed by this association and filed this tariff sheet with the interstate commerce commission on the 23d of July, 1890. No such thing as a rule, constitution, or by-law of this association is in the record, and we are not certainly advised how any member of this freight association might withdraw therefrom or cease to be bound by the mutual agreement of its members, [297]*297But it seems that the association had not given the interstate commerce commission any notice of the modification or abrogation of the tariff fixed by it at least earlier than the 6th day of February, 1891, before which date the transactions had occurred out of which this suit grew.

As to the third and fourth issues, the evidence tends to show that prior to the making of the contract in suit the grain company had heard, or had been informed, that the rate fixed on grain from Nebraska to Colorado-by the Trans-Missouri Freight Association had been abrogated or modified; that the officer of the grain company whose duty it was to look after freight rates called upon the assistant general freight agent of the railway company and told him that he had been advised of a modification or abrogation of the thirty-cent rate on grain to Colorado. This freight agent assured him that there had been no modification or change of that rate; that it was still thirty cents per hundred, and thereupon the contract in suit was entered into; that the grain company, relying upon the rate fixed in the contract, purchased and shipped large quantities of grain and sold it to Colorado parties, the purchasers to pay the freight on the delivery of the grain, the grain company guarantying that it should not exceed thirty cents per hundred; that the delivering carrier refused to- surrender the grain unless it was paid a rate of thirty-nine cents per hundred; that the purchasers were' compelled to pay this in order to receive the grain, and that the grain company, in pursuance of its guaranty with its purchasers, paid the excessive freight charges to their purchasers. The verdict of the jury found all the issues in favor of the grain company, and without further comment on the sufficiency of the evidence, we think the jury’s finding is abundantly supported.

2. A second argument is that the contract in suit is void under the provisions of the act of congress known as the “Interstate Commerce Act.” Section 2 of this act provides: “That if any common cqrrie? * * * [298]*298shall, * * * by any special rate, rebate, draw-bach, or other device, charge, demand, collect, or receive from any person * * * a greater or less compensation for any service rendered or to be rendered in the transportation of passengers or property * * * than it charges, demands, collects, or receives from any other person * * * for doing him * * * a like and contemporaneous service, * * * under substantially similar circumstances and conditions, such common carrier shall be deemed guilty of unjust discrimination, which is hereby prohibited and declared to be unlawful.” (U. S. Statutes at Large, vol. 24, ch. 104, p.

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Cite This Page — Counsel Stack

Bluebook (online)
70 N.W. 964, 51 Neb. 293, 1897 Neb. LEXIS 298, Counsel Stack Legal Research, https://law.counselstack.com/opinion/missouri-pacific-railway-co-v-crowell-lumber-grain-co-neb-1897.