Southern Pac. Co. v. Southern Rice Sales Co.

174 S.W.2d 1018
CourtCourt of Appeals of Texas
DecidedOctober 14, 1943
DocketNo. 11552.
StatusPublished
Cited by3 cases

This text of 174 S.W.2d 1018 (Southern Pac. Co. v. Southern Rice Sales Co.) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Southern Pac. Co. v. Southern Rice Sales Co., 174 S.W.2d 1018 (Tex. Ct. App. 1943).

Opinion

CODY, Justice.

This is an action by appellant, a common carrier by water, to collect from appellee undercharges on 147 carloads of clean rice, which were shipped from Houston to North Atlantic ports in the United States between April 4, 1940, and March 3, 1941. Appel-lee’s answer consisted of a denial that undercharges were outstanding; appellee further urged an alternative plea, both defensively and by way of cross-action, to the effect that the shipments in question had been misrouted.

The trial which was before the court without a jury resulted in a judgment for appellee. No findings of fact or conclusions of law were requested, and none were filed.

Appellant seeks a reversal of the judgment, and its rendition here in its favor upon these points:

1. That the court erroneously construed the tariff provision relating to the shipments as authorizing the application of the 26 cent proportional rate to that portion of the transportation between appellant’s docks at Houston and the docks at the several North Atlantic ports;

2. That the court erred in failing to find that the shipments were not misrouted.

There is, we believe, no dispute about the facts. Each of the shipments originated at mills or warehouses which were located at up-town points in the City of Houston, and moved over the terminal tracks (which are located partly within and partly without the corporate, but wholly within the switching limits of the City of Houston) for distances in the various shipments from 8½ to 16 miles, to the docks of appellant at the Turning Basin of the Houston ship channel in Houston. From appellant’s said docks each shipment moved via appellant’s ships to a North Atlantic port.

Thus each of the shipments was interstate commerce and is governed by the Interstate Commerce Act, and subject to the Interstate Commerce Commission’s jurisdiction. Hence the tariffs on file with the Commission contain the rates applicable to said shipments. Appellee inserted in each bill of lading, under the column designated thereon “Class or rate”, the rate of 26 cents. (Thereby giving instructions that the shipment involved should move by one of appellant’s ships from its docks in Houston to a North Atlantic port over a route to which said 26 cent rate applied.)

During the period these shipments moved, appellant’s tariffs, on file with the Commission,' contained a published rate of 26 cents per hundred pounds for the transportation of clean rice from appellant’s Houston docks to North Atlantic ports, subj ect to the following restrictions: “Ap • plicable only as proportional rate on traffic on which no transit privileges are accord ed, moving via rail lines to Galveston o* Houston, Texas, from points in Louisian'' and Texas.”

No transit privileges were accorded ar ' of the shipments involved, and a provision inserted into the bills of lading waived such privileges. The parties have stipulated, what is unquestionably the law, that if the 26 cent rate can be lawfully applied as the proportional rate on the shipments for that portion of the transportation performed by appellant (that is, so much of the transportation as was water borne from dock to dock), then the correct charges were collected by appellant.

The aforesaid tariff became effective about April 4, 1940. Both prior to and during the period said 26 cent rate has been *1020 in effect, there was available to Houston shippers a 42 cent joint, through rail and water rate (with the charge for transit privilege superadded) on shipments of clean rice from interior points (where the rice is produced and shipments thereof must originate except where the movement is broken) to North Atlantic ports. Under the 42 cent rate, the arrangement for the distribution thereof which the steamship companies had with the rail carriers, the steamship companies received substantially less than 26 cents for the water-borne portion of shipments of rice originating at interior points and going to North Atlantic ports (namely, from 18 cents to 21 cents). It was for the purpose of redressing this situation that the steamship companies concocted the aforesaid 26 cent proportional rate, whereby, without increasing (or, for that matter, without decreasing) the overall cost to the shipper of moving rice from interior points to the North Atlantic ports, though such movements were broken in two at Houston the steamship companies got the 26 cents. The steamship companies’ agent who published and filed the tariff under consideration thought that, by the use of the language in which said tariff is framed, this purpose of enabling the water carriers to receive the 26 cent rate without any over-all cost to the shipper had been accomplished. Appellant’s duly authorized agent wrote appellant a letter to the effect that the 26 cent rate applied and there is no question but that appellant believed it.

It was established by appellee that it was as cheap for Houston shippers to ship from interior points to North Atlantic ports (with the cost of transit added) as it was to ship from said interior points and break the shipment at Houston, and then use the 26 cent rate.

If the language used in the tariff will bear the meaning which the proof in this case has established it was intended to bear by its framers, then the 26 cent rate was lawfully applicable, otherwise not.

The Interstate Commerce Commission found on February 21, 1941, in the case of Port of Beaumont et al. v. Agwi-lines, Inc., et al., 243 I.C.C. 679, that appellant and other steamship lines were improperly applying the 26 cent rate on shipments such as those involved in this case. This decision was based upon the Commission’s conclusion that (so far as is relevant to this case) the language of the aforesaid tariff could not be construed to mean that the 26 cent rate was applicable to such shipments as are involved in this case, namely, shipments originating at up-town Houston points and which were transported by rail to appellant’s docks on the ship channel wholly within the switching limits (that is, over the terminal tracks) of Houston. Appellee was not a party to aforesaid proceeding before the Commission. And, as the tariffs have the force and effect of statutes, their construction is a question of law for the courts. Lowden v. Simonds-Shields-Lonsdale Grain Co., 8 Cir., 97 F.2d 816. Upon the authority of Swift v. United States, 7 Cir., 255 F. 291, the court held, in Atlantic Coast Line R. Co. v. Atlantic Bridge Co., 5 Cir., 57 F.2d 654, 655: “Tariffs, like statutes, have the force of law; like statutes, they must be expressed in clear and plain terms, so that those dealing with, and governed by them may understand them and act advisedly.” Of course, it is true of tariffs as it is of statutes that “Rules of statutory construction are to be invoked as aids to the ascertainment of the meaning or application of words otherwise obscure or doubtful. They have no place, as this court has many times held, except in the domain of ambiguity. * * * They may not be used to create but only to remove doubt.” Russell Motor Car Co. v. United States, 261 U.S. 514, 519, 43 S.Ct. 428, 430, 67 L.Ed. 778.

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Related

Petaluma & Santa Rosa R. Co. v. Commodity Credit Corp.
83 F. Supp. 639 (N.D. California, 1949)
Southern Pacific Co. v. Southern Rice Sales Co.
178 S.W.2d 264 (Texas Supreme Court, 1944)
Standard Rice Co. v. Southern Pac. Co.
139 F.2d 93 (Fifth Circuit, 1943)

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Bluebook (online)
174 S.W.2d 1018, Counsel Stack Legal Research, https://law.counselstack.com/opinion/southern-pac-co-v-southern-rice-sales-co-texapp-1943.