Montgomery v. Chicago, B. &. Q. R.

228 F. 616, 143 C.C.A. 138, 1915 U.S. App. LEXIS 2048
CourtCourt of Appeals for the Eighth Circuit
DecidedNovember 16, 1915
DocketNo. 4488
StatusPublished
Cited by5 cases

This text of 228 F. 616 (Montgomery v. Chicago, B. &. Q. R.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Montgomery v. Chicago, B. &. Q. R., 228 F. 616, 143 C.C.A. 138, 1915 U.S. App. LEXIS 2048 (8th Cir. 1915).

Opinion

VAN s VALKENBURGH, District Judge.

Plaintiff in error brings suit against the Chicago, Burlington & Quincy Railroad Company under section 8 of the act to regulate commerce, approved February 4, 1887 (24 Stat 382, c. 104 [Comp. St. 1913, § 8572]), and the various amendments thereto, which provide:

“That in case any common carrier * * * shall do or cause to be done any act * * * in this act declared to be unlawful, such common carrier shall be liable to the person injured thereby for the full amount of damages sustained, together with reasonable attorney’s fee to be taxed * * * as costs.”

Plaintiff in error, since 1908, has been in the restaurant business in Gillette, Campbell county, Wyo., which point is local to the line of the defendant railroad company. May 15, 1912, defendant opened an eating house or restaurant in Gillette in connection with its station there, and has since operated the same for the accommodation of its passengers and employes; and it is further alleged in the bill that it caters to and serves at its restaurant the general public as well. It is further alleged that the defendant ships on its trains most of the commodities and supplies needed and used by it in its said restaurant business free of any charge for carriage whatever, while plaintiff for like shipments has always been required by defendant to pay thereon the regular published schedule rates then in force on defendant’s railroad; that this is largely to plaintiff’s prejudice and disadvantage, in that, [618]*618by reason of said defendant obtaining most of its supplies free for which similar supplies the plaintiff has been compelled to pay large tariff and freight charges, tire defendant is able to sell, and since May 15, 1912, has sold its commodities in its restaurant and eating'house at prices much below those for which plaintiff can sell and make a profit. The petition states that prior to the date last aforesaid he had established a lucrative restaurant business, with daily receipts in excess of $100 per day, and net profits in excess of $25 per day; that tire competition of defendant immediately caused a decrease in plaintiff’s business of daily receipts from $100 per day, as aforesaid, to less than $50 per day, and a decrease of net profits from $25 per day, as aforesaid, to practically nothing; that plaintiff has been damaged by loss of profits in his business in the sum of $2,900, for which he prays judgment, together with a reasonable attorney’s fee to be taxed as costs.

It is conceded in the petition that it is lawful for defendant'to ship, free of charge, such supplies, articles, or commodities as may be necessary and intended for its use in the conduct of its business as a common carrier; but it is avefred that the operation and maintenance of the said restaurant by defendant, and the transporting of commodities and supplies therefor free of charge, is not necessary within the contemplation of the law, because “always, since May 15th, 1912, there has been ample facility, not only at the restaurant of plaintiff, but at other eating houses in Gillette, for the accommodation of the general public, including all employés of defendant.” It is charged that by demanding, collecting, and receiving a less compensation for the service rendered in the transportation of the commodities and supplies for its eating house than it charges and receives from other persons, including the plaintiff, for doing for them a like and contemporaneous service, the defendant has been guilty of unjust discrimination and of an unlawful departure from the rates named in its published tariffs.

The defendant demurred to this petition upon the ground that the question, as to whether a railroad company can lawfully run a restaurant in connection with the operation of its road, is an administrative one, and must be referred to the Interstate Commerce Commission for its consideration and determination as a condition precedent to a suit of this nature. The trial court adopted this view. The demurrer was sustained, and, “it further appearing from the petition and from the arguments of counsel that the petition does not admit of being so amended as to state a cause of action,” the case was dismissed, from which judgment of the court below plaintiff has sued out this writ of error.

[1, 2] It may be freely conceded that, in the present state of law, a common carrier -has no right to enter the field of general business and transport the articles and commodities used and sold therein at less than the regular published rates available to the general public. It has the right to provide eating houses for its passengers and employés-at points on its line, and may transport the articles and commodities for the use of such eating houses at less than tire full published rate. Such practices are administrative in their nature, and the ultimate primary judgment and discretion which govern and condition them is now [619]*619lodged in the Interstate Commerce Commission, to be exercised^ on request and after due investigation and consideration of the public interest concerned, and in view of the preference and discrimination clauses of the Interstate Commerce Act. [ntermountain Rate Cases, 234 U. S. 476, 34 Sup. Ct. 986, 58 L. Ed. 1408. Assuming the burden thus cast upon it, the Commission has considered it its duty to construe the law in advance wherever it has appeared obscure or ambiguous, so that, the obligations of the railroads and the rights of the public might be promptly understood; and, with respect to the subject in controversy, it has established a rule for the guidance of carriers and. public alike. This rule reads as follows:

“Transportation for Bating Houses Operated l)y or for Carriers. Carriers subject to tbo act may provide at points on their linos, eating houses for passengers and employes oí such carriers, and property for use of such eating houses may properly be regarded as necessary and intended for the use of such carriers in the conduct of their business. Such eating houses, however, must not serve the general public or any portion thereof, with food prepared from commodities which have been carried at less than the full published rate, and no utensils, fuel, or servants at all employed in serving others than passengers and employes of the carriers as such should be carried at less than tariff rates. Such privilege as may be extended under this rule shall be applied only as to points local to the line on which the eating house is situated.” Barnes on Interstate Transportation, p. 484, par. 315B.

From common-knowledge and experience, as well as from the permissive provisions of the statute as thus administratively construed, it must be assumed that railroad eating houses, within the prescribed limitations, are desirable for the convenience of passengers and employes. In this sense they are necessary, and this whether or not other and privately owned restaurants are available at the same point. The advantage of a common control of train schedules and eating facilities makes this so.

[3] Courts have no power to fix rates or establish practices and cannot interfere with those fixed and established by the Commission except in cases where the orders are void. Interstate Commerce Commission v. Union Pac. R. R. Co., 222 U. S. 547, 32 Sup. Ct. 108, 56 L. Ed. 308; Atchison, Topeka & S. F. Ry. Co. v. United States, 232 U. S. 199, 34 Sup.

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Cite This Page — Counsel Stack

Bluebook (online)
228 F. 616, 143 C.C.A. 138, 1915 U.S. App. LEXIS 2048, Counsel Stack Legal Research, https://law.counselstack.com/opinion/montgomery-v-chicago-b-q-r-ca8-1915.