Samuels v. Louisville & N. R. Co.

31 F. 57
CourtUnited States Circuit Court
DecidedApril 15, 1887
StatusPublished
Cited by1 cases

This text of 31 F. 57 (Samuels v. Louisville & N. R. Co.) is published on Counsel Stack Legal Research, covering United States Circuit Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Samuels v. Louisville & N. R. Co., 31 F. 57 (uscirct 1887).

Opinion

Bruce, J.

The plaintiffs allege they were engaged as common carriers for hire by means of steam-boats on the Tennessee river, between Decatur and intermediate points, to Bridgeport, in the year 1886; that at the same time, and between the same points on the Tennessee river, the steamboats Chattanooga and Wilder were also running on the river between the same points, as carriers, in competition with the plaintiffs; that the [58]*58defendant, the Louisville & Nashville Railroad Company, a common carrier by rail, operating its roads south from Louisville, Kentucky, to points on the Tennessee river, discriminated against plaintiffs in the matter of freights delivered to them by plaintiffs for transportation to points of destination, and in favor of the steam-boats Chattanooga and Wilder; that the discrimination consisted in this: that, for substantially the same service in the carriage of the same class of freight, under like circumstances and conditions, and to the same points of destination, the defendant railroad company charged and received from plaintiffs 50 cents more per hundred than it charged and received from. the steam-boats Chattanooga and Wilder. Plaintiffs say that, by reason of such discrimination and charges for freight against them, they were injured in their business as common carriers on the river, and were put to expense, trouble, and increased risk in carrying their freight long distances on the river, to obtain carriage for it to points of destination, for which alleged injury to them they bring this complaint and suit for damages. The demurrer admits the discrimination in the rates, as stated; and the question at once suggests itself whether a common carrier, under the circumstances stated, has the right to have and maintain two price's, or different prices to different parties, for substantially the same service rendered under like conditions.

The question here is not whether a common carrier must necessarily have one and the same price for all, or whether a discrimination in a single case can be made the ground of an action; but here were two lines of steam-boats on the Tennessee river, plying between the same points, ■carrying freight for hire, and bearing the same relation to the defendant railroad company, both seeking its service to carry their freight to the same points of destination; and the question1 is, has the defendant the right to discriminate against one, and in favor of the other, not in a single or isolated case, when different circumstances and conditions might be at once suggested, but systematically, in a course of dealing with the plaintiff's in the transportation* of their freight?

The idea that lies at the very base of the law of common carriers is that they are public servants, and serve all alike. The general proposition needs no citation of authority, and, as applied to railroad companies, the doctrine is thus stated by McCrary, J., in the case of Southern Exp. Co. v. Memphis R.R., 13 Cent. Law J. 68, 8 Fed. Rep. 802.

“ (1) A railroad company is a quasi public corporation, and bound by the law regulating the powers and duties of common carriers of persons and property; (2) it is the duty of such a company, as a public servant, to receive and carry goods for all persons alike, without injurious discrimination as to rates or terms.”

Other cases might be cited to the same purport. In Hays v. Pennsylvania Co., 12 Fed. Rep. 311, Baxter, J. says:

“The defendant is a common carrier by rail. Its road, although owned by a corporation, was nevertheless constructed for public uses, and is, in a qualified sense, a public highway. Hence everybody constituting a part of the public, for whose benefit it was authorized, is entitled to an equal and impar[59]*59tial participation in the use oi the facilities which it is capable of affording. Its ownership by the corporation is in trust, as well for tho public as for the shareholders; but its first and primary obligation is to the public.”

lu Ü10 light of these authorities, where can this defendant railroad company and public servant base its right to make the discrimination claimed by this demurrer? If a discrimination of 50 cents per hundred can be thus made and sustained, under such circumstances, then any discrimination, however groat and oppressive, can be made; and practically the defendant can say who may and who may not serve the public, as common carriers on tho Tennessee river, one of the great water-ways of commerce in the United States.

It is true there is a line of decisions to the effect that railroad companies may make different rates to different persons; and tho cases show upon what grounds discrimination in rates may bo and are sustained, and upon wliat grounds they have been held to bo vicious, and are condemned, by the courts. But it is not necessary here to go into any examination of the cases on Lids lino of decision until advised by plea or otherwise 1131011 what ground, and under what circumstances and conditions, the defendant made the discrimination here complained of. lie admits the fact of discrimination; and when the service is stated to have been substantially the same, and rendered under substantially the same circumstances and conditions, the burden is on him to justify it.

The demurrer, however, goes to the point that tho mere ['act that tho defendant charged a higher price to tho plaintiffs than to the lino of rival steam-boats is no ground of complaint, unless it is alleged that the price charged the plaintiffs was unreasonable. In other words, the proposition seems to lie that the defendant liad the right to make the discrimination up to the point that tho charge became unreasonable, and that charging a less price to tho rival line of boats is no ground of complaint, unless the larger price is an unreasonable one. It Is said that to charge one loo lítale for a service is not to charge another too much for the same service; that the smaller charge does not make tho greater charge more than the service is really worth, for that tho service may have been worth every penny asked and received for it. Concede that, then it follows that the defendant company ivas serving tho steam-boals Wilder and Chattanooga for a less hire and compensation than the service ivas really worth; and the practical result to these plaintiffs, as carriers on tho river, is Ike same, whether tho defendant charged them 50 cents per hundred too much, or charged their rivals 50 cents per hundred too little. I11 cither case, tho defendant railroad company makes the discrimination, ami the plaintiffs Loso and are deprived by the defendant of their equal right and opportunity for business as common carriers on the river. And tho question recurs, what right, or upon what ground, can this public servant, owing an equal duty to the entire public, say to one, “1 will serve you for less than I will serve your neighbor?” The proposition insisted upon is that a common carrier is bound to carry for a reasonable remuneration, but is not bound to carry for the same price for all; and the case oi Johnson v. Pensacola R. Co., 16 Fla. 623, is cited, where the [60]*60supreme court of that state say: “The rule is not that all shall be charged equally, but reasonably, because the law is for the reasonable charge, and not the equal charge;” and other authorities are cited on the same line.

It would add nothing to the complaint, in its statement of fact, if the word “unreasonable” had been used.

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Bluebook (online)
31 F. 57, Counsel Stack Legal Research, https://law.counselstack.com/opinion/samuels-v-louisville-n-r-co-uscirct-1887.