New Orleans & Northeastern Railroad v. United States

137 F. Supp. 731, 133 Ct. Cl. 535, 1956 U.S. Ct. Cl. LEXIS 44
CourtUnited States Court of Claims
DecidedJanuary 31, 1956
DocketNo. 50184
StatusPublished

This text of 137 F. Supp. 731 (New Orleans & Northeastern Railroad v. United States) is published on Counsel Stack Legal Research, covering United States Court of Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
New Orleans & Northeastern Railroad v. United States, 137 F. Supp. 731, 133 Ct. Cl. 535, 1956 U.S. Ct. Cl. LEXIS 44 (cc 1956).

Opinion

Jones, Chief Judge,

delivered the opinion of the court:

This case presents the issue of whether the class rate or the commodity rate was applicable to a shipment of jeeps which moved over the lines of plaintiff and connecting carriers in August 1945 from Toledo, Ohio, to New Orleans, Louisiana, crated for export.

At the time the shipments were made there was in effect Item 48785 of Consolidated Freight Classification No. 16, which provided that the first-class rate applied on ship[536]*536ments of passenger motor vehicles, either loose or in packages, when shipped in carload lots, with a minimum weight of 10,000 pounds. The first-class rate on shipments from Toledo to New Orleans was $1.70 per hundred pounds, as published in Agent B. T. Jones’ Tariff No. 548-C.

At the same time there was also in effect Supplement 13 to Agent B. T. Jones’ Freight Tariff No. 548-C, which set forth a commodity rate applicable to automobiles shipped from Ohio to New Orleans. The commodity rate provided for in this tariff was 70 cents per hundred pounds on automobiles and automobile parts, boxed.

It is plaintiff’s position that since these jeeps were crated and not boxed the class rate of $1.70 per hundred is applicable and that plaintiff therefore is entitled to recover on the basis of transportation at that rate.

It is defendant’s position that the word “boxed,” as used in the commodity tariff, includes the containers in which the jeeps were shipped and that accordingly it was entitled to have the jeeps shipped at the rate provided for in that tariff.

From an examination of the several tariffs and a study of the evidence offered by both parties, it seems clear that the rate of 70 cents per hundred pounds, as set out in Supplement 13 to Tariff 548-C, was applicable to these shipments.

• To begin with, it should be noted that the class rate was a general rate which applied to the shipment of automobiles both loose and in packages, provided that the minimum weight of the shipment was 10,000 pounds. It would appear that this general rate was designed, in part, to insure that the carrier would receive a return of not less that $170 per carload on a shipment of automobiles without regard to whether the vehicles were packaged or loaded loose in the cars.

On . the other hand, it appears equally clear that Supplement 13, which specified the commodity rate, was issued to provide a lower rate when the vehicles were shipped in containers that could be easily loaded and unloaded and which reduced the chances of loss to the carrier from breakage, theft, etc. At the same time, this tariff assured the carrier of a fair return on the traffic, because the commodity rate [537]*537was applicable only to shipments having a minimum weight of 30,000 pounds.

We lind several provisions in Supplement 13 which lead us to the conclusion stated above. As shown in our finding 5, Note F of the commodity description in Supplement 13 refers to “boxing or crating” and to “boxed or crated,''' leaving the inference that these terms are used synonymously.

One of the exceptions to the application of the commodity rates was Item 180 entitled “transboetation of automobiles” and it stated—

The rates on Automobiles, boxed or crated, to Gulf ports for export, apply only when Automobiles so boxed or crated can be handled through the car doors.

This language creates a strong inference that the use of the word “boxed” in the commodity description also includes the word “crated” and further indicates that at least one purpose of the tariff was to provide for a type of shipping container that could be handled by the carrier without difficulty.

The illustrations and descriptions of the so-called boxes and crates in- the record show that they had the same handling and shipping characteristics, were about the same size, and were otherwise similar in all respects, except that the sides and ends of the so-called crates were not completely sheathed.

Every consideration which caused the reduced rate for automobiles shipped in boxes applied equally to those shipped in crates. We quote the following from the testimony of Mr. Marks, a witness for the plaintiff, who states the reason for the difference in the rates:

. 62. XQ. If you take the same vehicle, you take a jeep, and consider whether or not to put it under one rate or another, considering whether or not it is boxed or to be shipped openly, without any packaging, the main consideration, then, in fixing those rates is whether the jeep, as boxed, is easier to handle, is not fragile, will not be liable to cause loss to the railroad, either; by theft or by breakage, and so forth.
That would be your consideration in setting a boxed rate, where you have originally a class rate for a jeep?
[538]*538A. That is right. This rate was materially reduced in consideration of the fact that it was going to be boxed.
63. X Q. And part of that consideration was that you could load a much heavier load on one railway car?
A. That is right.
64. X Q. And the railroad is to be paid per hundred pounds ?
A. The rate is in cents per hundred pounds.
65. X Q. And further consideration there also is the fact that when boxed they can be piled up and you can ship many more jeeps on one car?
A. That is right. In handling automobiles unboxed we actually have to provide a special loader. We have the Evans loaders, where you can put four vehicles in a car and protect the cargo.

The main reason for using crates instead of boxes was that the crates could be reused whereas the original boxes could not well be reused, and the additional fact that there was less trouble from moisture when boxed in such a way as to contain openings. The so-called crates, as shown by the illustrations in the record, have the same characteristics as the boxes. The so-called crate is just as easy to handle; can be loaded through the car door and, because it was reinforced, was stronger. It could be shipped with about 40 pounds additional load to the crate which made it more, rather than less, advantageous to the railway company in respect to the revenue to be derived. One of the advantages to the boxes was that they could be stacked in such a way as to haul a greater load. Exactly the same advantages apply to the so-called crates.

It was repeatedly testified by the experts that the bulk, density, the value, packing or loading requirements, the fragility or liability to damage, the risk of handling — whether it is dangerous to itself and other freight, or whether it has inherent dangerous qualities — are among the important considerations in establishing a freight rate schedule.

Prior to 1942 only boxes were used for export shipments of this character and the Army referred to the containers as export boxes, but in 1942, after the Forest Products Laboratory of the Department of Agriculture prepared specifications on shipping containers, the wooden containers in which jeeps were shipped for export were designated as [539]*539crates by the Army, regardless of whether or not the package was fully sheathed.

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137 F. Supp. 731, 133 Ct. Cl. 535, 1956 U.S. Ct. Cl. LEXIS 44, Counsel Stack Legal Research, https://law.counselstack.com/opinion/new-orleans-northeastern-railroad-v-united-states-cc-1956.