Schuster's Wholesale Produce Co. v. Texas & P. Ry. Co.

145 So. 368, 176 La. 167, 1932 La. LEXIS 1956
CourtSupreme Court of Louisiana
DecidedOctober 31, 1932
DocketNo. 31320.
StatusPublished
Cited by3 cases

This text of 145 So. 368 (Schuster's Wholesale Produce Co. v. Texas & P. Ry. Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Schuster's Wholesale Produce Co. v. Texas & P. Ry. Co., 145 So. 368, 176 La. 167, 1932 La. LEXIS 1956 (La. 1932).

Opinion

ODOM, J.

Plaintiff is a wholesale dealer in produce, including bananas and cocoanuts, with its domicile and place in Shreveport, La., and the defendant is a common carrier of freight in Louisiana. Plaintiff prosecutes the present suit to recover of defendant $4,129.06', alleged to be due for excess charge on freight from New Orleans to Shreveport.

It appears that the interstate rate on fruit shipped from New Orleans, a seaport, to Shreveport, an inland city, is 61 cents per hundredweight,, which was the charge made by defendant and paid by plaintiff, and that the intrastate rate on this character of freight is only 50% cents. Plaintiff contends that defendant’s charges should have .been based on the intrastate rate, as the shipments were wholly within the state. Defendant contends that the shipments were interstate in character, being part of a continuing movement of *169 freight from a foreign port through New Or-lens to an inland city.

It is not disputed that, if the shipments were intrastate, the defendant’s charges were excessive, and that it is due plaintiff the amount claimed. On the other hand, if the shipments were interstate in character, then defendant owes plaintiff nothing.

The trial court held that 'the shipments were intrastate in character, and rendered judgment for plaintiff for the amount prayed for. Defendant appealed.

1. From the above statement it readily apt-pears that the only controverted point is whether tthe shipments of bananas and cocoanuts into Shreveport were intrastate or interstate commerce, and that depends upon the nature of the traffic.

The nature of the traffic is to be determined from the facts and circumstances involved. The ease was submitted on an agreed statement of facts which shows that the Fruit Dispatch Company, which is authorized to transact business in New Orleans, is an importer and sold the fruit which comprised these shipments to the plaintiff. The fruit was grown by the Dispatch Company on its plantations in Central America or was acquired by it there not later than the date it was loaded on the vessels in the Central American port. The fruit moved from the Central American port to New Orleans, a port of entry, in ships, and was entered through the customs. All fruit on each vessel, consisting of approximately fifty carloads, was carried on one bill of lading. ,The importers did not intend to sell the fruit in New Orleans, nor did they intend to sell it at any specific point, but “had the intention to sell it to jobbers and fruit dealers in various places served by the port of New Orleans.” Vessels with cargoes belonging to the Dispatch Company arrived in New Orleans almost daily, and the importer was given notice by cable or radio of the approach of each vessel; whereupop the importers arranged with railroads for the necessary cars to be placed on sidings for prompt movement of the fruit on its Arrival. When the fruit arrived, it was immediately and rapidly removed from the ships and placed in the waiting cars. Not exceeding six hours elapsed between the arrival of the ships and the loading of the fruit into the waiting ears, and the cars “were given prompt dispatch and quick movement to points beyond New Orleans a few hours after being loaded.”

At the time the ships were loaded in Central American ports, the importing owners did not know the precise, ultimate destination of any particular part of the cargo, but did know that the entire cargo was to be unloaded at New Orleans and from there carried on by rail to dealers at- interior points, except about 2 per cent., consisting mainly of oven-ripe fruit not susceptible of further shipment, which was sold to dealers in New Orleans.'

The importers had no warehouses or storehouses in New Orleans for the storage of fruit, and it was never intended that any should remain there longer than was necessary to transfer it from ship to cars. They had an established place of business in New Orleans, and, when plaintiff desired to pún chase fruit, it communicated with the office there and asked for quotations. Response was made by telephone, and the sales were closed, and confirmation by letter followed. No particular fruit was allocated to plaintiff *171 until such fruit in kind and quality as ordered was taken from the ship and put into the ears. A bill of lading was then taken out .showing the plaintiff as consignee and the im- . porter as the consignor, and the shipment moved the day the purchase was made. All ■ bills of lading, etc., showed on their face that the fruit was received by the rail carrier from a named vessel and had been imported from a foreign country.

Orders for fruit were received and accepted by the importers while the fruit was on the ’ships between the foreign ports and New Orleans, and, in ease sufficient orders to take up the entire cargo had not been received when the ship arrived, “the unsold fruit was loaded into cars and forwarded to points where it was expected that a market would be found and when sales were made while the fruit 'was rolling, the ear containing such .fruit was diverted to the purchaser of it.”

The stipulation filed shows that the schedule of tariffs on file with the Interstate Commerce Commission authorized defendant to absorb, on import shipments through the port of New Orleans, all port and terminal charges, so as to relieve shippers of any cost of removal of freight from shipside to railroad cars, and that the defendant railroad company for many years has absorbed all port and terminal charges on shipments of bananas- made by this importer over defendant’s road from New Orleans to all points, whether within or without the state of Louisiana, and that such charges were -absorbed on all the shipments involved in this suit.

,, Under these admitted facts it is manifest that the shipment by rail of this freight from ■the port of New Orleans to the inland city of Shreveport was but a part of a through shipment from a foreign port. The importer did not intend when it loaded the fruit on board the vessels in Central America, nor did it ever intend, that the fruit should come to rest in New Orleans, except the small fraction of 2 per cent, of it which was usually too ripe for further shipment. As a matter of fact, it did not come to rest there, but was moved immediately after its arrival from ship to waiting cars ordered specially to carry it to its ultimate destination in the interior. This movement from ship to cars did not constitute a break in the shipment. Transshipment at the seaboard was necessary in order that the freight might reach its intended ultimate destination.

The fact that the importers, who were plaintiff’s vendors, did not know when the cargo left the foreign port precisely where any part of it would ultimately land does not destroy the interstate character of the shipments. The pertinent fact is that the entire cargo was destined for points beyond the port, of entry. New Orleans was never intended to ' be and was not the destination of the fruit, but these were through continuous shipments from the foreign ports to the points of delivery in the interior. The stipulations filed recite specifically that the importers “had the intention to sell it (the fruit) to jobbers and fruit dealers in various places served by the port of New Orleans.”

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145 So. 368, 176 La. 167, 1932 La. LEXIS 1956, Counsel Stack Legal Research, https://law.counselstack.com/opinion/schusters-wholesale-produce-co-v-texas-p-ry-co-la-1932.