Mitchell Coal & Coke Co. v. Pennsylvania Railroad

230 U.S. 247, 33 S. Ct. 916, 57 L. Ed. 1472, 1913 U.S. LEXIS 2710
CourtSupreme Court of the United States
DecidedJune 9, 1913
Docket674
StatusPublished
Cited by179 cases

This text of 230 U.S. 247 (Mitchell Coal & Coke Co. v. Pennsylvania Railroad) is published on Counsel Stack Legal Research, covering Supreme Court of the United States primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mitchell Coal & Coke Co. v. Pennsylvania Railroad, 230 U.S. 247, 33 S. Ct. 916, 57 L. Ed. 1472, 1913 U.S. LEXIS 2710 (1913).

Opinions

Mr. Justice Lamar

delivered the opinion of the court.

On November 20, 1905, the Mitchell Coal and Coke Company brought suit in the Circuit Court of the United States for the Eastern District of Pennsylvania against [249]*249the Pennsylvania Railroad for- damages alleged to have 'been occasioned by the payment of rebates to the Altoona, Glen "White, Millwood, Latrobe and Bolivar Companies. The complaint alleged that between April 1, 1897, and May 1, 1901, the plaintiff, in competition,with these companies, made shipments of coal and coke over the Pennsylvania road from the Clearfield District to the same general markets in other States and that, during all that time, the carrier paid rebates to these companies, pretending that the money given them was an allowance for transportation services rendered by them, in hauling cars over spur tracks between their mines and the railroad station.

The parties stipulated that the ease should be submitted to a Referee, who should have the powers of a special master. His findings were in favor of the plaintiff. His report, modified as to the measure of damages, was confirmed (181 Fed. Rep. 403), but before judgment was entered thereon the carrier moved to dismiss the case because the court, as a Federal court, had no jurisdiction of the cause of action until after the Interstate Commerce Commission had passed 'upon the legality of the allowances and the reasonableness of the amount paid to shippers for liauling cars between their mines and the'station. The motion was granted (183 Fed. Rep. 908), and the case was taken by writ of error to the Circuit Court of Appeals, which dismissed the case (192 Fed. Rep. 475) upon the ground that the question could only be reviewed by the Supreme Court of the United States. A writ of certiorari was denied (223 U. S. 733), and the plaintiff thereupon brought the case here by direct writ of error, the "judge certifying the following as the jurisdictional question: •

“Has the Circuit Court of the United States, in advance of any application to'the Interstate Commerce Commission and action thereon by that body, jurisdiction to entertain an action of trespass brought by a shipper of coal [250]*250and coke to recover damages because of alleged unlawful preferential rates accorded to other and competing shippers of coal and coke, when such alleged preferential rates are claimed to have resulted from payments-made'to such other shippers, which payments the plaintiff claimed were rebates from the published and filed freight rate, and the defendant claimed were made as compensation for services rendered by such shippers or for other accounts which justified it in making the same, and when it further appeared that such payments had been made pursuant to a practice of long standing, and that a number of shippers other 'than the plaintiff were interested in the question of the lawfulness thereof.”

1. The plaintiff’s cau.se of action for damages occasioned by the payment of illegal or unreasonable allowances was one which, under §§ 8 and 9 of the Commerce Act (24 Stat. 382), could only be brought in a District or Circuit Court of the United States. The motion to dismiss challenged the jurisdiction of the court, as a Federal court, and. its power “primarily to hear complaints concerning wrongs of the character of the one here complained of.” Texas &c. Ry. Co. v. Abilene Co., 204 U. S. 426, 442; B. & O. R. R. v. Pitcairn Coal Co., 215 U. S. 481, 495; Robinson v. B. & O., 222 U. S. 506. The order of dismissal was founded on the denial of jurisdiction, and this court has power to review that ruling. Ira M. Hedges, 218 U. S. 264, 270; The Steamship Jefferson, 215 U. S. 130. The case differs from Darnell v. Illinois R. R., 225 U. S. 243. There the Commission had found that the rate was unreasonable. The demurrer, based on the failure to allege that a reparation order had been made in favor of the plaintiff, did not attack the jurisdiction of the court, as a Federal court, since the cause of action sought to be enforced was one which, if properly brought could, under the-act of June 18, 1910 (36 Stat. 539, 554, c. 309), have been maintained either in a state or Federal court.

[251]*2512. In the present casé the motion to dismiss for want of jurisdiction was made at the end of the trial and was based, not upon the pleadings, but upon the evidence. It becomes necessary, therefore, to make a statement of the facts material to that issue: — The plaintiff, the Mitchell Coal and Coke Company, owned, six coal mines in the Clearfield District, and between 1897 and May 1, 1901, shipped its products over the Pennsylvania Railroad in state and interstate commerce. During that time the provisions of the Commerce Act were constantly violated and there were many instances in which the carrier gave secret rates to shippers from whom it collected the full tariff and subsequently refunded the difference between the legal and the illegal rate. Many such rebates were paid to-the plaintiff, the Mitchell Company, which in this case claimed the right to recover, as damages, the difference between these rebates paid to it and what it claimed were the additional rebates paid to the Altoona and other companies mentioned in the déclaration. The Referee found that, for a part of the time, 70 per cent, of plaintiff’s shipments had been made at secret rates, and held, citing Pa. R. R. v. International Co., 173 Fed. Rep. 1, 9, that, as to this tonnage, the plaintiff was as much a violator of the statute as was the carrier and that no cause of action arising out of this illegal contract would be enforced by the courts. He therefore limited the inquiry to a consideration of the damages in respect to that part of the plaintiff’s shipments on which no rebates had been paid.

From the Referee’s report, and the testimony returned therewith, it appears that Clearfield District is the name given to a large coal field reached by the lines of the Pennsylvania Railroad. In this district there were many mines — some near the railroad and others at considerable distances therefrom, but all reached by lateral lines or spur tracks, over which cars were carried to and from the [252]*252mines. This Clearfield District was treated as a single shipping station, and the rates from all points therein were the same where coal was transported to the same point beyond the State. The published tariff named the rate from station to destination, but it was uniformly construed to include the haul from the mine. The published rate was so applied on all shipments made by the plaintiff as well as .on those made by the Altoona and other companies named in the complaint.

It further appeared that to these companies the carrier paid what is called a trackage or lateral allowance, claiming that it was compensation allowed them for hauling cars from their mines to the station.

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Cite This Page — Counsel Stack

Bluebook (online)
230 U.S. 247, 33 S. Ct. 916, 57 L. Ed. 1472, 1913 U.S. LEXIS 2710, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mitchell-coal-coke-co-v-pennsylvania-railroad-scotus-1913.