Smokeless Fuel Co. v. Chesapeake & Ohio Railway Co.

128 S.E. 624, 142 Va. 355, 1925 Va. LEXIS 343
CourtSupreme Court of Virginia
DecidedJune 11, 1925
StatusPublished
Cited by11 cases

This text of 128 S.E. 624 (Smokeless Fuel Co. v. Chesapeake & Ohio Railway Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Smokeless Fuel Co. v. Chesapeake & Ohio Railway Co., 128 S.E. 624, 142 Va. 355, 1925 Va. LEXIS 343 (Va. 1925).

Opinion

Burks, J.,

delivered the opinion of the court.

This is a proceeding by notice of a motion for a judgment brought by The Chesapeake and Ohio Railway Company against the Smokeless Fuel Company to recover for car demurrage. The notice was as follows:

“To Smokeless Fuel Company, a corporation:
“Take notice: That the Chesapeake and Ohio Railway Company, a corporation, will move the Circuit Court of the city of Newport News, on the first day of May, 1922, for a judgment against you in the sum of ten thousand six hundred and sixty-eight dollars and forty-three cents ($10,668.43), with interest on ten. thousand three hundred and fifty-seven dollars and seventy cents ($10,357.70) from March 1, 1922, which is for demurrage, and three hundred and ten dollars and seventy-three cents ($310.73) is war tax thereon, all of which is on account of coal shipped by you over said railroad, consigned to the Newport News Coal Exchange, at Newport News, Virginia,, of which you were a member and subscribed to and are bound by the rules and regulations of said coal exchange. Rule seventeen being:
“Demurrage Bills. — 17. The Chesapeake and Ohio Railway Company will submit a statement to the exchange at the close of each calendar month, as required by its tariffs, itemized to show dates of arrival and release of cars, covering total demurrage accruing against the exchange during the month. The exchange will compile ear or tonnage days detention accounts against each member and apportion to each member, having car or tonnage days detention during the cal[360]*360endar month during which the demurrage accrued, his proportion on the basis of his ear or tonnage days detention, as compared to the total car or tonnage days detention. Bills to individual members will then be rendered by the Chesapeake and Ohio Railway Company, in accordance therewith, and payment must be made by members immediately on receipt of bill.
“That the said railway company submitted said statement to the exchange as above provided and the monthly amount of demurrage due by you, as compiled, apportioned and ascertained by the said coal exchange, and for which bills have been rendered you, pursuant to said agreement, were as follows:
“1921 Demurrage War Tax Total.
“Jan. $ 4,667.87 $140.04
“Feb. 5,464.83 163.94
“Sept. 225.00 6.75
“$10,357.70 $310.73 $10,668.43
“All of which you agreed in writing on the 20th day of January, 1921, that you would pay to the said railway company, as follows, to-wit:
“Newport News Coal Exchange, Inc.
“Agreement — Form ‘C'
■ “Dated at Charleston, W. Va. 1-20-1921.
“To Mr. L. C. Spengler, General Agent,
“The Chesapeake and Ohio Railway Company,
“Newport News, Virginia.
“Dear ¡Sir:
“I (or we) hereby agree to pay all freight charges, when way billed collect; loading barges; and car de-murrage charges assigned to me (or us) by authority of [361]*361tlie commissioner or deputy commissioner of the Newport News Coal Exchange, Inc., on coal shipments ■going into vessels for my (or our) account at Newport News, Virginia, under the Newport News Coai Exchange, Inc., agreement, whether shipped from mines, or obtained elsewhere, for my (or our) account, or for the account of any other member of the Exchange.
“Smokeless Fuel Company,
“(Name of Exchange Members)
“Per Geo. P. Daniels.
“Which amount, or any part thereof, you have omitted, refused and failed to pay, so that the same is now due and owing to said railway company, for which it will ask judgment with interest thereon as aforesaid.
“The Chesapeake and Ohio
Railway Company,
“By Counse 1.”

Both the plaintiff and the defendant were members •of the Newport News Coal Exchange, Inc., a corporation formed for the purpose of facilitating the transshipment of tidewater coal from car to vessel. This was accomplished by pooling the coal of all its members. All of the coal was consigned to the exchange, with proper designation of the shipper. The coal was never dumped into a common heap, but was held in the cars of the railway company until dumped into vessels. The coal was divided into pools according to the quality, size, etc., of the coal, and the shipper designated the pool into which he thought it should be put, and upon arrival the coal was inspected and placed in its proper pool. In order to ship through the exchange it was necessary to become a member by the purchase of one share of its stock of the value of $50.00, and signing an agreement to abide by the rules and regulations of the exchange and to carry out the terms and conditions of [362]*362membership. Under the rules and regulations the shipper got credit in the pool for his coal as soon as the exchange was notified of its shipment from the mines , and might dump it immediately. Coal in the pool to which the shipper’s belonged could be ordered dumped by him although his coal was still rolling. Elaborate and detailed arrangements were provided for demur-rage debits and credits, and the apportionment thereof among the members, and the methods of settlement and payment thereof. These will more fully appear in the discussion following. The rules provided for an average demurrage agreement. While all of the coal was shipped to the exchange as the consignee, and the monthly statements of the demurrage were rendered to the exchange, the apportionment of the demurrage charges among the members had to be made by the commissioner of the exchange, and, when approved by the members, payment had to be made by the members to whom it was so apportioned, and not by the exchange. The exchange was not liable for the demur-rage. When a member approved the apportionment made to him by the commissioner of the exchange, the apportionment became the bill of the. railway company against the member for his share of the demurrage.

In 1921 the railway company rendered to the exchange statements of demurrage charges for the months of January, February and September, 1921, and they were apportioned by the commissioner of the exchange among its members, and the amount found due by the fuel company was $10,668.43. This amount was not approved by the fuel company, but demand was made on it for payment by the railway company and refused. Thereupon this action was brought on May 1, 1922. After the action was brought, to-wit: On June 6, 1922,' the board of directors of the exchange appointed an [363]*363audit committee and directed it to employ an auditor to make the necessary cheeks of the accounts, and undertook to suspend the apportionment that had theretofore been made by the commissioner of the exchange. An auditor was appointed by the committee and made two audits of the account. One of these was made in accordance with the view of the railway company of its demurrage tariff, and the other in accordance with the views of the exchange.

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Bluebook (online)
128 S.E. 624, 142 Va. 355, 1925 Va. LEXIS 343, Counsel Stack Legal Research, https://law.counselstack.com/opinion/smokeless-fuel-co-v-chesapeake-ohio-railway-co-va-1925.