Powell v. United States

60 F. Supp. 433, 1945 U.S. Dist. LEXIS 2400
CourtDistrict Court, E.D. Virginia
DecidedMarch 24, 1945
DocketCivil Action No. 321
StatusPublished
Cited by8 cases

This text of 60 F. Supp. 433 (Powell v. United States) is published on Counsel Stack Legal Research, covering District Court, E.D. Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Powell v. United States, 60 F. Supp. 433, 1945 U.S. Dist. LEXIS 2400 (E.D. Va. 1945).

Opinion

HUTCHESON, District Judge.

This is a suit brought under Paragraph 20 of Section 24 of the Judicial Code of March 3, 1911, 36 Stat. 1093, as amended, 28 U.S.C.A. § 41(20), known as the Tucker Act.

The parties have entered into statements of agreed facts, respectively denominated “Stipulation of Facts” and “Supplemental Stipulation of Facts”, with certain exhibits attached thereto.

The claim sued upon is for unpaid transportation charges in the amount of $637.54, in respect of which the stipulation of facts reads as follows:

“During July, 1942, the Seaboard rendered its bill (PD-7-23) against the United States in the sum of $733.79 for freight charges on six carloads of wood pulp which had been transported by the Seaboard from Savannah, Georgia, to Norfolk, Virginia. The United States did not question the correctness of said charges, but deducted from the amount due the sum of $637.54, and on September 14, 1942, paid to the Seaboard the balance of $96.25. The sum of $96.25 was accepted by the Seaboard, but under protest and as part payment only. The Seaboard instituted this action to recover the balance due on said bill, to-wit, the sum of $637.54, and the United States has filed herein its counterclaim for the deduction made from said bill.”

The pertinent facts as to the counterclaim asserted by the United States, as shown by the stipulation of facts, are as follows:

During August, 1941, fifty-six (56) carloads of phosphate rock, property of the United States, were transported over the Seaboard from Brewster, Florida, to Tampa, Florida, consigned to the British Ministry of War Transport, an agency representative in the United States of His Majesty’s Government in the United Kingdom. The shipment moved for export, and was exported, to England under the Lend-Lease Program, Act of March 11, 1941, Public No. 11, 55 Stat. 31, 22 U.S.C.A. § 411 et seq., and Act of March 27, 1941, Public No. 23, 55 Stat. 53. In due course, upon bill rendered, the United States paid to the Seaboard for transportation of this shipment the sum of $2,608.70.

During the same month several shipments aggregating twenty-two (22) carloads of superphosphate, property of the United States, were transported over the [435]*435Seaboard from Nichols, Florida, to Tampa, Florida, likewise consigned to the British Ministry of War Transport. These shipments also moved for export, and were exported, to England under the Lend-Lease Program. Upon bill rendered, the United States paid to the Seaboard for transportation of these shipments the sum of $546.17. On all shipments the Seaboard’s charge was computed at full commercial tariff rates for like services to the general public.

In August, 1942, upon post audit, the United States notified the Seaboard that it took exception to the bills for $2,608.70 and $546.17, both of which it had already, paid in full. It was claimed that the bills in question included overcharges in the respective amounts of $472.81 and $164.73, or a total overcharge of $637.54. Accordingly, this amount was deducted from the unpaid bill for $733.79 covering the shipment of wood pulp above mentioned, and the balance of $96.25 only was paid.

The exception taken by the United States to the bills rendered by the Seaboard for transportation of the phosphate rock and superphosphate shipments above described, was based upon the contention that these shipments constituted “military or naval property of the United States moving for military or naval and not for civil use”, within the meaning of Section 321(a) of the Transportation Act of 1940, 49 U.S.C.A. § 65(a).1 If this contention be sound, the shipments were entitled to move subject to so-called “land grant” deductions from the full commercial rates, as hereinafter explained. It is not disputed that the deduction made was accurately computed. But, as set forth in petitioners’ Reply to Counterclaim, “petitioners deny that said phosphate rock and superphosphate were military or naval property of- the United States moving for military or naval and not for civil use, and entitled to land-grant deductions”.

No controversy exists as to the validity of the claim sued upon independently of the foregoing counterclaim set up by way of defense. If the counterclaim asserted is valid, the suit should be dismissed, and if not valid, judgment should be rendered the plaintiffs in accordance with the prayer of the petition. This is agreed upon between the parties and so appears from the stipulation.

Reduced to simple terms, the question is whether the phosphate rock and superphosphate constituting the shipments involved constituted “military or naval property of the United States moving for military or naval and not for civil use” within the meaning of the Transportation Act of 1940.

The contentions of the respective parties have been ably presented by both oral argument and briefs.

In approaching the subject it is helpful to give some consideration to the history of both the Transportation Act and the Lend-Lease Act.

During the early years of expanding railroad development the United States granted public lands to numerous railroads, particularly in the West and to many in the South. The underlying policy of the Government was to encourage the building of railroads in unsettled or sparsely settled areas to facilitate the development of such areas and to ultimately afford additional markets and sources of produce to the more congested sections of the country and to provide a means of transporting troops and military equipment in time of need. Among the roads to which such grants were made were certain corporations which were predecessors in title of the Seaboard (the plaintiff here). This result in respect of the Seaboard was accomplished through grants directly to the State of Florida and by that State in turn to such corporations. The original grant was made for the construction of a main line of railroad from Fernandina to Tampa Bay and a branch line from Waldo to Cedar Key and contained the following condition:

“And the said railroad * * * shall be and remain a public highway for the use of the government of the United States, free from toll or other charges upon the transportation of any property or troops of the United States.” Act of May 17, 1856, Section 3, 11 Stat. 15.

[436]*436Similar conditions were imposed by the terms of other grants.

In Lake Superior & M. R. Co. v. United States, 93 U.S. 442, 23 L.Ed. 965, decided in 1877, the Supreme Court construed the condition of such grant as reserving to the Government only the free use of the road bed as a highway but held that the railroad could not be required to transport over such road troops or property of the Government free of charge.

Following the foregoing decision the Court of Claims held, that by reason of the right of the Government as provided in the reservation to- use the road bed, a reduction of fifty per cent in rates should be allowed by the railroad in transporting such property. Thus the Government bore 50% of the total burden of such tranportation in the form of its right to use the road bed and the railroad was paid the remaining 50% as compensation for the use and operation of its equipment.2

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Frederick v. Presque Isle County Circuit Judge
476 N.W.2d 142 (Michigan Supreme Court, 1991)
Marks v. Superior Court
245 Cal. App. 2d 779 (California Court of Appeal, 1966)
Amarillo Air Force Base Exchange v. Leavey
232 F. Supp. 963 (N.D. Texas, 1964)
Louisville & NR Co. v. United States
106 F. Supp. 999 (W.D. Kentucky, 1952)
Northern Pac. Ry. Co. v. United States
156 F.2d 346 (Seventh Circuit, 1946)
Southern Pac. Co. v. Defense Supplies Corporation
64 F. Supp. 605 (N.D. California, 1946)
United States v. Powell
152 F.2d 228 (Fourth Circuit, 1945)

Cite This Page — Counsel Stack

Bluebook (online)
60 F. Supp. 433, 1945 U.S. Dist. LEXIS 2400, Counsel Stack Legal Research, https://law.counselstack.com/opinion/powell-v-united-states-vaed-1945.