Rio Grande & E. P. Ry. Co. v. Texas-Mexican Railway Co.

173 S.W. 236, 1915 Tex. App. LEXIS 133
Court of Appeals of Texas·Decided January 20, 1915·No. No. 5370. [fn†]·Published·Cited by 2 cases

Opinion

CARL, J.

Appellee, Texas-Mexican Railway Company, and appellant, Rio Grande & Eagle Pass Railway Company, are connecting railways at Laredo. Appellee’s line extends from Laredo east to Corpus Christi, about 160 miles distant; and appellant’s line of road extends from Laredo up the river northwest, about 26 miles to Minera, a point where the Santo Tomas Coal Company operates coal miles. From this coal company the ap-pellee buys its coal for its shops and engines, and ships same over the appellant railway to Laredo, where same is delivered to ap-pellee’s road. The siding, called Pescadito, is about 18 miles east of Laredo, on appel-lee’s line. At that place there is no station agent or office, no coal bins, and, in fact, nothing but a section house and a switch with a capacity to hold about 33 cars. From Minera to Pescadito the Railway Commission of Texas had fixed a through rate of 80 cents per ton on coal, which was apportioned to the parties herein according to their respective local rates of 65 cents per ton for appellant and 55 cents per ton for appellee.

The railways had differed as to the freight charges on shipments made from Minera to Pescadito, appellee contending that it was entitled to a division of the 80 cents through charges, while appellant claimed that, since the coal was at home when it reached ap-pellee’s line at Laredo, it was entitled to charge its local rate of 65 cents per ton, and that the mere fact that the coal was hilled through to Pescadito did not entitle appellee to a division for hauling its own coal. It was further contended that nearly all of the shipments billed to Pescadito from Minera were, in fact, stopped at Laredo, and were never intended to be taken to Pescadito, and that those which were hauled to that point were brought back to' Laredo. So about Oe- *237 tober 29, 1912, appellant railway began requiring tlie Santo Tomas Coal Company, which was acting as agent for tbe Texas-Mexican Railway in tbe shipment of its coal to Pescadito, to prepay the 80 cents through rate charges between the two points, and continued thereafter so to require freight charges to be paid in advance.

The petition alleges that the total tonnage for the 17 months beginning October 29, 1912, and ending March 1, 1914, was 18,286.22, on which appellee paid the gross sum of §14,616.-60, at the rate of 80 cents per ton.

By its order of date February 24, 1914, the Railway Commission of Texas divided the 80 cents per ton theretofore existing on the basis of the local rates aforesaid of 65 cents and 55 cents per ton, which resulted in 43.3 cents to appellant and 36.7 cents to appellee.

Appellee brought suit on three counts for damages: •

(1) It prayed for the 36.7 cents part of the 80 cents through rate, amounting to §6,400.11.

(2) It prayed for 36.7 cents per ton on all coal actually hauled to Pescadito, and $2.50 per car switching charges on those cars stopped at Laredo, as well as for 15 cents per ton of the prepaid freight on cars so stopped at Laredo. Under this count the amount claimed was §5,220.58. This is the count upon which the court rendered judgment. Special exceptions were sustained to the first and third counts, the latter of which charged unlawful discriminations, etc., and sought to recover penalties.

Appellant admitted that it owed appellee $2,281.99 upon cars of coal billed to Pescadi-to, and on which it had collected 80 cents per ton through rate from Minera, and says it offered to pay that amount before the suit was filed, but appellee demanded 40 cents per ton or an equal division. It is also charged that said billings to Pescadito were fraudulently made by appellee for the purpose of getting -25 cents per ton more than it was entitled to receive; and, in substance, that the billing to Pescadito was a mere subterfuge to avoid appellant’s local rate on coal from Min-era to Laredo which is 65 cents per ton. It was also pleaded that appellee was not entitled to a prorate for hauling its own coal on its own road; that it was not entitled to switching charges for handling its own coal on its own switches; and that appellant was entitled to charge its local rate of 65 cents from Minera to Laredo.

The 21 assignments of error, when brought to the last analysis, may be discussed under three propositions, viz.: (1) That no railway company is entitled to a revenue pro rata for hauling its own coal on its own line of railway; (2) that no railway company is entitled to charge for switching its own coal on its own switches; (3) that the court erred in refusing to permit appellant to show the construction placed by the Railway Commission on its order No. 1427, and that suclj construction is the only reasonable construction to be placed thereon.

Some of the cars of coal were carried through to Pescadito,- and some were stopped at Laredo without advising appellant thereof, nor was any offer made to change the billing. By billing coal to Pescadito from Minera, ap-pellee gets a larger division of revenue prorate than it would by billing to any other point on its line. There were 271 cars, with a total tonnage of 10,146.392, and with freight charges of §8,080.37, hauled through to Pescadito, and 211 cars, with 8,157.81 tons, and $6,526.-23 in freight charges, that were stopped off at Laredo, and never carried to Pescadito, although billed to that place.

The coal stopped at Laredo was used in coaling engines to go on appellee’s line, and in coaling its switch engines, and at the roundhouse and shops in Laredo owned by the National Railways of Mexico, where the engines in use by appellee were housed and repaired. Out. of a shipment to Pescadito in September, 1913, one car containing 264 tons was stopped at Laredo, and there delivered to the National Railways of Mexico, at its request, and 2 cars out of 42 contained in the February, 1914, billing to Pescadito were returned from that point to Laredo and sold to the National Railways of Mexico. A large per cent, of the other cars actually sent to Pescadito were returned to Laredo and there used by appellee. Pescadito was used by appellee as a distributing point, and it had coal bins at Corpus Christi, Robstown, Alice, and I-Iebbronville. The only coal parceled out at Pescadito was what an occasional engine on appellee’s line would take if it happened to need it to get to a coaling station. Ap-pellee had an arrangement with the National' Railways of Mexico at Laredo whereby the latter company paid 85 per cent, of the cost of switching service; the items of that expense being coal, lubricating oil, and grease, as well as the wages of switchmen. The items so charged, and including the 3 cars of coal and 216.85 tons of coal used in operating the shops, amounts to $12,525.36.

Appellant has paid appellee no part of the 80 cents per ton collected on said shipments, but has indicated a willingness, before the suit was filed, and since, to pay 15 cents per ton; and has paid no switching charges on said cars of coal.

The Railway Commission had fixed $2 as the switching charge allowable at Laredo, because it was more than one, and less than two, miles. This was a general order-applying to all places where interchanges of freight between roads were made, where made in ear load lots.

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Rio Grande & E. P. Ry. Co. v. Texas-Mexican Railway Co., 173 S.W. 236, 1915 Tex. App. LEXIS 133 (Tex. Ct. App. 1915).

173 S.W. 236 (Rio Grande & E. P. Ry. Co. v. Texas-Mexican Railway Co.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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