Smith v. Wells, Fargo & Co.

96 F. 375, 1899 U.S. App. LEXIS 3252
CourtU.S. Circuit Court for the District of Southern California
DecidedAugust 28, 1899
DocketNo. 754
StatusPublished

This text of 96 F. 375 (Smith v. Wells, Fargo & Co.) is published on Counsel Stack Legal Research, covering U.S. Circuit Court for the District of Southern California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Smith v. Wells, Fargo & Co., 96 F. 375, 1899 U.S. App. LEXIS 3252 (circtsdca 1899).

Opinion

ROWS, Circuit Judge.

This case is submitted for decision upon a demurrer fo the complaint, as amended by two stipulations enleral Into between the respective parlies. The case has been so submitted, as stated by counsel, for the purpose of presenting the entire merits of the cause, and obtaining an adjudication thereon without further proceedings. As thus presented, the facts hereinafter stated appear.

On the 1st day of December, 1892, Wells, Fargo & Co. (hereinafter referred to, for convenience, as the “Express Company”) and the Atchison, Topeka & Santa Fé Railroad Company (hereinafter referred to, for convenience, as the “Atchison Company”) entered into a contract, in willing, which recited that whereas the Atchison Company then owned, operated, or conli-olled a large and extensive system o"f railways, and, by certain le-ases, contracts, agreements, understandings, and arrangements, constituted a part of a still Larger system of railways, made up of its own lines and the lines of the St. Louis & San Francisco Railway Company, the Gulf, Colorado & Santa Fé Railway Company, the Atlantic & Pacific Railroad Company, the [376]*376Southern California Railway Company, the Colorado Midland Railway Company, and the Sonora Railway Company (the line of the latter company being in the state of Sonora, republic of Mexico), which said system was commonly known as the “Atchison, Topeka & Santa Fé System,” or “Santa Fé Route,” and that whereas the Express Company was then engaged in carrying on the express business in various states and territories of the United States and in foreign countries, and in operating an extensive system of express business on and over various railway, stage, and steamship lines in the United States and foreign countries, including the line from New York and other points on the Atlantic coast to San Francisco and other points on the Pacific coast, and to Chicago, St. Louis, Galveston, El Paso, Denver, Los Angeles, San Diego, and other important cities and towns of the United States, therefore, in consideration of the premises, and of the covenants, promises, and agreements therein made by the Atchison Company and the Express Company, and of the benefits to be secured, services to be performed, rights and facilities acquired, and payments to be made as therein set forth, mutually covenanted and agreed, among other things, as follows, to wit:

By article 1 of the contract the Atchison Company agreed to provide and cause to be provided on each of its regular daily passenger trains, and on each of the regular daily passenger trains of the other above-named railroad companies, sufficient facilities of the kind customarily furnished to express companies by railroad companies for the transportation of all freight and express matter which might be tendered by the Express Company to the railroad company, or to either or any of the railroad companies named, at any station at which such passenger trains may stop, and to receive and transport such freight and express matter upon such passenger trains leaving such station next following said tender, and to carry and deliver the same without detention.

By article 2 the Express Company agreed to pay the Atchison Company for the said facilities by the first article agreed to be furnished by the Atchison Company 55 per cent, of the entire gross earnings, of all kinds and character whatsoever, including earnings on money orders received by it in the operation of the express business, upon all of the said named lines of railroad, taken as a whole, as they then /existed; and the Express Company, upon the consideration stated, further stipulated and guarantied that the said 55 per cent, of the gross earnings to be paid to the Atchison Company should amount to not less than $1,450,000 per annum, upon all of the said lines of the said different railway companies, taken together as a whole, as they then existed.

By article 3 the Express Company further agreed that it would make payments on account of the contract as follows: On the 1st day of each calendar month, during the existence of the contract, it would pay to the Atchison Company the sum of $120,833.33, being one-twelfth of the said sum of $1,450,000 so guarantied as aforesaid, and would thereafter, without unreasonable delay, ascertain and adjust the earnings of said month, and, as soon as ascertained and adjusted, would pay over promptly any balance that might be due the Atchison Company under the contract for and on account of the earn[377]*377ings for said month, and that if, upon the adjustment for any one month, it should be found that 55 per cent, of the gross earnings was loss than the sum for said month paid under the guaranty, then the difference between the said 55 per cent, and the amount paid under the guaranty should be deducted from the amount found due the Atchison Company above the guaranty for the next month, and so on from month to month during the year. Article 3 of the contract further provided that at the end of each calendar year, during the existence of the contract, an adjustment should be made of all the earnings under the contract for the said year, and of payments made by the Express Company to the Atchison Company, and that, if any sum should be found due on the 55 per cent, of the gross earnings upon said final adjustment for said year, the sum so found due, if anything, should be paid by the Express Company to the Atchison Company as soon as such sum should be ascertained.

By article 4 it was provided that, for the purpose of settlement and adjustment as provided for in the contract, the Exi>m;s Company should report monthly to the Atchison Company the express traffic carried over the several lines of railroad embraced in the contract, and the gross earnings therefrom, in such form as might be agreed upon between the parties to the contract, and further agreed that it would furnish to the Atchison Company such other statements, reports, and information as the Atchison Company might reasonably require, regarding the traffic covered by the agreement and the rates and earnings thereunder', and that the Atchison Company should at any and all times have access to the books and papers of the Express Company for the purpose of verifying the statements, records, and information furnished by the Express Company.

By article 5 the Express Company further agreed that it would not, without the consent of the Atchison Company, charge less than 1⅛ current railroad tariff freight rates on any matter from or to any intermediate points exclusive to the liuc-s covered by the contract, and, further, that it would not charge, without the consent of the Atchison Company, less than 1⅛ current railroad tariff freight rates on any matter from or to any points whatever upon the said named railroad lines, except: where it should he necessary to do so to meet the competition of other express companies.

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Bluebook (online)
96 F. 375, 1899 U.S. App. LEXIS 3252, Counsel Stack Legal Research, https://law.counselstack.com/opinion/smith-v-wells-fargo-co-circtsdca-1899.