Northern Pacific Railway Co. v. United States

72 Ct. Cl. 563, 1931 U.S. Ct. Cl. LEXIS 267, 1931 WL 2352
CourtUnited States Court of Claims
DecidedOctober 20, 1931
DocketNo. H-281
StatusPublished
Cited by1 cases

This text of 72 Ct. Cl. 563 (Northern Pacific Railway Co. 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
Northern Pacific Railway Co. v. United States, 72 Ct. Cl. 563, 1931 U.S. Ct. Cl. LEXIS 267, 1931 WL 2352 (cc 1931).

Opinion

Williams, Judge,

delivered the opinion:

Plaintiff, a common carrier, owns and operates various lines of railroad extending from Wisconsin to the Pacific Coast. The line from Ashland, Wisconsin, to Portland, Oregon, and branches therefrom in the State of Washington were built by the aid of grants of public land, under the organic act of July 2, 1864 (18 Stat. 365), and other acts of Congress. Another line from St. Paul to Duluth, Minnesota, was similarly constructed under an act of Congress approved March 3, 1857 (11 Stat. 195), and subsequent acts.

Plaintiff, alone or in connection with other initial or intermediate carriers, in the period between July 17, 1920, and June 7, 1924, transported certain property of the United States at the instance of the United States Shipping Board Emergency Fleet Corporation, and delivered it to the designated consignees at Seattle, Olympia, and Tacoma, Washington, and at Portland, Oregon. For these shipments plaintiff rendered its bills at full commercial rates. Defendant’s accounting officers refused payment in full, and caused payment to be made with deductions for land-grant, the amount withheld being $6,946.03. As to a portion of these payments plaintiff protested, and as to others accepted the amounts tendered without protest.

During April, May, and June, 1920, shipments of oil belonging to the United States were consigned by a private [571]*571concern at Tulsa, Oklahoma, to the United States Shipping Board at Riverside, Minnesota, and plaintiff, in connection with other initial or intermediate carriers, transported them to Duluth, Minnesota. Plaintiff submitted its bills at full commercial rates and by mistake they were paid by defendant’s disbursing officers as rendered. Upon refusal of the plaintiff to make refund the accounting officers, over plaintiff’s protest, deducted from other bills of plaintiff sufficient to reduce the compensation to a land-grant basis. This deduction amounted to $351.55.

In March, April, and May, 1920, various parties consigned to the Fleet Corporation at Tacoma, Washington, from Seattle, Aberdeen, and Raymond, in said State, other property of the United States. Plaintiff transported these shipments as required and upon delivery rendered its bills to the Government at full commercial rates. These bills also were paid as rendered, and later, upon plaintiff’s refusal to make any refund, the accounting officers, in settlement of other items, withheld over plaintiff’s protest sufficient to reduce said commercial rates to a land-grant basis, the difference being $533.68.

These differences, totalling $7,831.26, plaintiff seeks to recover, abandoning all items on transportation moving subsequent to the act of June 7,1924 (43 Stat. 477, 486), limiting freight charges on Government property and troops over all land-grant roads to 50 per cent of rates charged the public.

Plaintiff contends, (1) that the organic act of July 2, 1864 (13 Stat. 365), section 11 of which is quoted below, did not of itself permit payment at less than full commercial rates, nor did any subsequent act or regulation, prior to June 7, 1924, limit compensation on other than Army transportation, and transportation in the Postal Service, to anything less than commercial rates; (2) that in consequence of the statutory situation and the fact that the property was not “ moved by the Quartermaster Corps, United States Army,” the “equalization” agreement, hereinafter referred to, can not be resorted to.

The comparatively short line extending from St. Paul to Duluth, Minnesota, was organized under an act (act of [572]*572March 3, 1857, supra) which provided that “ the said railroad shall be and remain a public highway for the use of the-Government of the United States, free from all toll or other charge upon the transportation of any property or troops of the United States,” a form of enactment used in connection with the organization of the majority of land-aided roads.. What we shall say with respect to plaintiff’s main line, extending from Duluth to Portland, will have its application-to the short line, as will appear.

At the time the transportation in this case took place, plaintiff, together with other carriers parties to the movements, had agreed with the defendant “to accept for the transportation of property moved by the Quartermaster Corps, United States Army, and for which the United States Government is lawfully entitled to reduced rates over land-grant roads, the lowest net rates lawfully available, as derived through deductions account of land-grant distance from a lawful rate filed with the Interstate Commerce Commission applying from point of origin to destination at time of movement.” This general acceptance was limited as follows:

“ On traffic destined to or received from points on lines of other carriers this agreement will only apply in connection with such carriers as have filed with the Chief, Quartermaster Corps, a general agreement in form substantially as-above.”

The movements in this case were made while this agreement was in force. The question therefore is not, primarily what, without the agreement, the plaintiff would be entitled’ to under the statute, except that in any event the plaintiff' is not entitled to more than the statute allows. If the agreement provides less compensation to the plaintiff than what,, without the agreement, the plaintiff would be entitled to, it may not have more.

It is immaterial whether any of these shipments actually moved over land-grant roads, except that, in so doing, the carriers may not collect more than is proper, under the statutes or regulations pursuant thereto, for that portion of land-aided line actually traversed. There is no contention in this case that anything less is due the carrier than can be computed under the terms of its “ equalization ” agreement.

[573]*573The agreement is limited in its terms to property “ for which the United States Government is lawfully entitled to reduced rates over land-grant roads.” The plaintiff’s contention is that the agreement is not here applicable because, to begin with, the statutes do not give to the Government reduced rates over certain of plaintiff’s lines involved therein, on property the transportation of which is not payable out of an appropriation for the Army, or not in Postal Service. That is to say, Congress, had not, at the time these movements took place, exercised the regulatory power given it under the granting act of July 2,1864 (13 Stat. 365),.except as to postal and Army transportation. Section 11 of that act is as follows:

- “ * * * said Northern Pacific Eailroad or any part thereof shall be a post route and a military road .subject to the use of the United States for postal, military, naval and all other Government service, and also subject to such regulations as Congress may impose restricting the charges of such Government transportation.”

Plaintiff contends that as to property of the United States, not in the Postal Service or defined as Army transportation, the Government is not lawfully entitled, under the statute, to reduced rates. Assuming here that the property was transported in the Government service, we think that the Government is entitled to reduced rates thereon under this statute. That Congress did not impose the restrictive regulations provided for must be admitted, and were we without the equalization agreement before us, it might be said that no deductions could be made from rates charged the public.

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Related

Southern Pacific Co. v. United States
67 F. Supp. 966 (Court of Claims, 1946)

Cite This Page — Counsel Stack

Bluebook (online)
72 Ct. Cl. 563, 1931 U.S. Ct. Cl. LEXIS 267, 1931 WL 2352, Counsel Stack Legal Research, https://law.counselstack.com/opinion/northern-pacific-railway-co-v-united-states-cc-1931.