Procter & Gamble Co. v. United States

225 U.S. 282, 32 S. Ct. 761, 56 L. Ed. 1091, 1912 U.S. LEXIS 2087
CourtSupreme Court of the United States
DecidedJune 7, 1912
Docket780
StatusPublished
Cited by115 cases

This text of 225 U.S. 282 (Procter & Gamble Co. v. United States) is published on Counsel Stack Legal Research, covering Supreme Court of the United States primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Procter & Gamble Co. v. United States, 225 U.S. 282, 32 S. Ct. 761, 56 L. Ed. 1091, 1912 U.S. LEXIS 2087 (1912).

Opinion

Mr. Chief Justice White

delivered the opinion of the court.

Having three manufacturing plants, one at Ivorydale, Ohio, a second at Port Ivory, New York, and a third at Kansas City, Kansas, in which they carried on the business of refining cottonseed and other oils and of manufacturing soap and other products from grease and oil, the Procter & *285 Gamble Company, to facilitate the transportation to their factories of 'the substances required for their operation and of shipping out the finished products, became the owner of about five hundred railroad tank cars. The cars were exclusively devoted to the business of the company in the following manner: On the property of the company - in the yards about their factories there were railroad tracks belonging to the company which served for holding empty or loaded cars, the cars thus situated being held for storage find for movement from place to place, as business required. At each of the factories there was also an interchange track connected with the tracks in the yards and with the tracks .of the railroad company or. companies through whom the business of shipping in interstate .commerce to and from the factories was'carried on. The movement of cars to the interchange tracks for outward shipment and from the interchange tracks when they were left there by railroad companies was at two of the factories carried on by the company through its own employés and motive power. At the other one this work was done by a railroad company, who made an independent and special charge for the service. The transportation of the private tank cars of the corporation by the railroad companies was governed by established rules, and .the price paid to the railroads for transporting the commodities of the company 'in its private cars was the regular price fixed for such commodities in the. established tariffs. The railroads, however, paid to the company for the use of its private cars a fixed sum per mile, this payment being alsq stated in the regular established tariffs in compliance with . law. A portion of the carrier’s rule (Rule 29), relating to the subject of compensation for hauling such private tank cars is in the margin. 1

*286 In 1910 among others the railroads engaged- in transporting tank cars from the plants of the Procter & Gamble Company adopted a system of rules governing the payment of demurrage by shippers. -The provisions of these rules pertinent to this case are excerpted in the margin. 1

The rules in question were prepared by a committee of the National Association of Railroad-Commissioners composed of a representative from each State having a rail *287 road commission and a member of the Interstate Commerce Commission, and were adopted in convention by the National Association and were subsequently approved by the Interstate Commerce Commission, although put-, ting them in force was not imperatively prescribed by that - body.

The Procter & Gamble Company, dissatisfied with the regulations concerning demurrage, in so far as they imposed in certain respects charges upon its tank cars, filed a complaint with the Interstate Commerce Commission charging the rules to be repugnant to the act to regulate commerce because unjust and oppressive and because to enforce them would create preferences and discriminations forbidden by the act. After hearing, the Commission made a report declaring that the rules complained of were in no sense in conflict with the act to regulate commerce, and on the contrary conformed to that act and tended to prevent and repress unlawful preferences and dis-criminations. An award of relief was therefore denied. In February, 1911, the Procter & Gamble Company filed a petition in the Commerce Court of the United States making defendants the United States, the Interstate Commerce Commission and the railroads who had been complained of in the proceeding before the Commission. The petition recited the facts stated above as to the character of the business of the petitioner, the ownership of tank cars, etc., the establishment of the rules for demurrage, their repugnancy to' the act to regulate commerce, the injury whichvhad resulted from being compelled to pay the charges for demurrage in accordance with the rules, the application made to the Commission and the refusal of that body to award relief. The conception upon which the petition was based is shown in the excerpt in the margin, 1 wherein it was also charged that the order of the *288 Commission dismissing the complaint as above set forth “is null and void and beyond the power of said Interstate Commerce Commission, in that it sustains the validity . of . . . said demurrage rules.”

The prayer was as follows:

“Wherefore, complainant prays that the aforesaid order of said Interstate. Commerce Commission made in said cause No. 3208 on November 14, 1910, be set aside and annulled, and that the defendant railway companies, and each of them, be enjoined from collecting or attempting to collect any demurrage charges upon complainant’s loaded tank cars after said cars have been delivered to complain-jant and placed upon tracks owned or controlled by it; and further, that said defendant railway companies and each of them be required to repay to complainant herein all sums found to have been wrongfully collected by them, or any of them, under the rule here complained of; and *289 that complainant be. granted such other and further relief as it may be entitled to in the premises,”

The railroads answered the bill. The United States and the Interstate Commerce Commission appearing for the purpose, challenged the jurisdiction of the court to entertain the cause, and moved to dismiss, upon this general ground: “Because the order of the Interstate Commerce Commission complained of directed no affirmative relief and the negative order of the Commission dismissing the complaint affords no ground for an action in this court;” and upon the following more detailed specifications filed on behalf of the United States:

“(a) It prays that the order of the Interstate Commerce Commission be enjoined, when said order directed no action against any party and therefore the same is not subject either to enforcement or to injunction,
(b) It prays that the defendant common carriers, who are not proper parties to this proceeding except on their own motion, be enjoined from collecting the demurrage mentioned, when no order inhibiting the same has been made by the Interstate Commerce Commission, and in the absence of such an order this court has no power to grant such relief:
“(c) It prays that the defendant common carriers be required to repay to complainant all sums- heretofore wrongfully collected as demurrage, when this court has no power or jurisdiction to grant such relief, either with or without an order of the Interstate Commerce Commission directing such repayment.”

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Bluebook (online)
225 U.S. 282, 32 S. Ct. 761, 56 L. Ed. 1091, 1912 U.S. LEXIS 2087, Counsel Stack Legal Research, https://law.counselstack.com/opinion/procter-gamble-co-v-united-states-scotus-1912.