National Carloading Corporation v. United States

221 F.2d 81, 95 U.S. App. D.C. 208, 1955 U.S. App. LEXIS 4675, 1955 WL 76266
CourtCourt of Appeals for the D.C. Circuit
DecidedFebruary 10, 1955
Docket11898_1
StatusPublished
Cited by2 cases

This text of 221 F.2d 81 (National Carloading Corporation v. United States) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
National Carloading Corporation v. United States, 221 F.2d 81, 95 U.S. App. D.C. 208, 1955 U.S. App. LEXIS 4675, 1955 WL 76266 (D.C. Cir. 1955).

Opinions

PEB CURIAM.

Appellant complains of that part of a judgment of the District Court which dismissed with prejudice the appellant’s claim for $3,015.04 for transportation of Government property. The controversy relates to 60 different bills submitted by the appellant, a freight forwarder, covering more than 300 different shipments which were made between October 1941 and January 1944. The parties stipulated that the facts as to one shipment might be deemed representative of all.

The particular subject shipment on October 7, 1941 covered 800 pounds of iron valves comprising an item of supply for the Emergency Ship Construction Program and had been purchased by the United States Maritime Commission. The shipment was transported by railroad from Pittsburgh, Pennsylvania to the Richmond Shipbuilding Corporation at Richmond, California. The parties agreed that had the Government delivered its property directly to a railroad for shipment by a route which included land-grant railroad mileage, its shipments “would have been subject to the rates or charges that would be applicable under the appropriate land-grant acts of such railroads.” 1 Nor did the parties make any special determination or agreement, in regard to any of the shipments at issue, that the reduced land-grant rates would not be applicable.

Appellant’s forwarding business consisted of the assembling of small shipments of freight, less-than-carload lots, and the consolidation of such shipments into mixed carloads. The rates for less-than-carload lots were substantially higher than the carload rate. Appellant initially picked up the Government’s shipments by motor carrier, consolidated them with shipments in which the Government had no interest, and thereafter delivered them in carload lots to various railroads. The Maritime Commission and the War Department over the period in question delivered to the appellant various less-than-carload shipments of freight for transportation in forwarder service from points of origin east of Chicago to various destinations west of Chicago, most of them on the Pacific Coast. Appellant régularly submitted its freight voucher covering the charges due for the transportation of the Government property, and appellant’s bills were paid as presented, subject to post-audit and assessment of overcharges by the General Accounting Office. Appellant paid the transporting railroads their charges [83]*83at the regular published rates, without deduction for land-grant status. In due course the General Accounting Office notified appellant of overcharges because the amounts originally paid failed to reflect the land-grant deductions from the published tariff. Deductions were thereupon made by the General Accounting Office and applied as credits toward payment of the bills now in suit.

“Congress, in most of the legislative acts by which it has made donations of the public lands to the States in which they lie for the purpose of aiding in the construction of railroads, has stipulated that the railroads so aided shall be pub-lie highways for the use of the government, free from all tolls or other charge for transportation of its property or troops.” Lake Superior & Miss. R. Co. v. United States, 1876, 93 U.S. 442, 443, 23 L.Ed. 965.2 Over the period here involved, it was provided by Section 321 (a) of the Transportation Act of 1940 3 that the Government should pay full rates for shipments over land-grant routes except for “the transportation of military or naval property of the United States moving for military or naval and not for civil use * * *.”4 In 1946 Congress abolished all reduced land-grant rates.5

That the shipments here in question, property of the Maritime Corn-mission, were “for military or naval * * * use,” would seem to follow from the stipulation of the parties that land-grant rates would have applied to the shipments if they had been tendered by the Government directly to the railroads. If the parties had any doubt on the point, we deem it resolved by Northern Pacific Ry.Co. v. United States, 1946, 330 U.S. 248, 67 S.Ct. 747, 91 L.Ed. 876.6 Cf.. Atlantic Coast Line R. Co. v. United States, 1954, 120 F.Supp. 917, 128 Ct.Cl 747. The Government, therefore,, claims the benefit of land-grant rates, while appellant urges that whatever ri8'hts the Government might have had to such rates were surrendered when it used freight forwarder service instead of shipping by rail.

Appellant, on the other hand, says that it was not obligated to protect the Government by land-grant rates even though the Government tendered its shipments to appellant on Government bills of lading, It urges that when the Government tendered its shipments to a freight forwarder, it did so fully recognizing that forwarders provide a service different from, superior to and faster and more efficient than the service of rail carriers, that the.[84]*84Government did not negotiate special rates when it could have done so, and that it tendered its property for forwarding under shipping documents which failed to reveal that the Government would claim a rate deduction for land-grant rail mileage employed in the forwarding process.

The District Court resolved the issue thus posed in favor of the Government. We, too, arrive at the same conclusion.

While the freight forwarder may not be considered a common carrier for every purpose,7 8it is in relation to the public which entrusts it with the shipment of goods clearly in the position of a common carrier agency 8 and is in effect now treated as such by statute.9 Moreover, it is well established that the land-grant rebate is a charge upon the aided railroad highway and accrues not only against the owning railroad but also against others utilizing the rail highway for purposes of transportation. Lake Superior & Miss. R. Co. v. United States, 1876, 93 U.S. 442, 23 L.Ed. 965; Chicago, St. Paul, Minneapolis & Omaha Ry. v. United States, 1910, 217 U.S. 180, 30 S.Ct. 470, 54 L.Ed. 721; Astoria & Columbia River R. Co. v. United States, 1906, 41 Ct.Cl. 284.

In the Lake Superior cáse, supra, decided in 1876 when the land-grant acts provided that Government property would be transported “free from all tolls or other charge,” the Court considered the question whether “this reservation includes the free use of the roads alone, or transportation [facilities] also.” 93 U.S. at page 443. The Court concluded that the carriers were entitled to compensation for the actual transportation of Government property, but that an allowance or rebate to the Government should be made, attributable to the land-grant reservation of toll free use of the railroad, its fixtures and appurtenances. Thus to the Government was assured a “fair deduction for the use of [the] respective railroads,” Id. at page 455, even where the property was not tendered directly to the owning railroad company.

Again, in Chicago, St. P., M. & Omaha Ry. v.

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221 F.2d 81, 95 U.S. App. D.C. 208, 1955 U.S. App. LEXIS 4675, 1955 WL 76266, Counsel Stack Legal Research, https://law.counselstack.com/opinion/national-carloading-corporation-v-united-states-cadc-1955.