St. Louis Southwestern Ry. Co. v. United States

234 F. 668, 1916 U.S. Dist. LEXIS 1503
CourtDistrict Court, W.D. Kentucky
DecidedApril 13, 1916
DocketNo. 33
StatusPublished

This text of 234 F. 668 (St. Louis Southwestern Ry. Co. v. United States) is published on Counsel Stack Legal Research, covering District Court, W.D. Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
St. Louis Southwestern Ry. Co. v. United States, 234 F. 668, 1916 U.S. Dist. LEXIS 1503 (W.D. Ky. 1916).

Opinion

PER CURIAM.

The controversy relates to through routes and joint freight rates on yellow pine and lumber in carload lots to Cairo, Ill., and Paducah, Ky., originating from the territory in Louisiana and Arkansas, bounded on the north by the line of the Rock Island from Memphis, Tenn., to Little Rock, Ark., including Des Arc, Ark.; on the east by the Mississippi river; on the south by the Gulf Of Mexico; and on the west by a line drawn through Kansas City, Mo., and Houston, Tex. — embracing a tract about 400 miles long by 300 miles wide.

The petitioners operate west of the Mississippi river. The Cotton Belt and Iron Mountain extend far into the territory described, each having its own rails to Bird’s Point on the Mississippi opposite Cairo. The Rock Island, extending far into this territory, may send its lumber to Cairo and to Paducah by the Iron Mountain or the Cotton Belt west of the river, or by delivery at Memphis to the Illinois Central, or the Nashville, Chattanooga & St. Louis Railway.

There is no bridge or other present method of crossing the Mississippi at Cairo, and the lumber is hauled across the river at Thebes, some 30 miles northwest of Cairo, thence to Cairo by the Iron Mountain over its own line, and by the Cotton Belt over the Chicago & Eastern Illinois, or Illinois Central, with which roads it has trackage agreements. The Louisiana & Arkansas Railway operates its own lines far within the lumber territory in which it crosses the lines of the other petitioners and connects with them- for this traffic. The Iron Mountain and Rock Island have their own lines to Memphis. From Memphis and east of the Mississippi, the line of the Illinois Central runs to both Cairo and Paducah; and Memphis and Paducah are also connected by the line of the Nashville, Chattanooga & St. Louis. It appears, therefore, that the lines of none of the petitioners reach Paducah, whether the lumber is routed via Cairo or via Memphis. The Paducah rates are combination — not through joint — rates.

Production of yellow pine in this territory is a comparatively modern development, the railroads gradually extending their lines • southwardly as the northern market for it developed, and in the beginning established low rates to assist in overcoming the then prejudice against southern pine. When the production was extended south of the Arkansas river, the rate to Thebes and Cairo from that territory was made 13 cents per 100 pounds, and was by the railroads themselves made a blanket rate covering the entire territory at that time exploited. [671]*671As further production extended southwardly, the railroads built further into the territory, but the same blanket rate existed until 1899, when the Cairo rate was increased to 14 cents, and in 1903, to 16 cents, at which figure the rate remained up to the time of the institution of the proceedings involved in this controversy.

This increase of 2 cents was attacked by producers as unreasonable and unjustly discriminatory, but was sustained by the commission (May 4, 1909), because the evidence did not warrant a disturbance of the blanket adjustment, and because transportation conditions west of the Mississippi were sufficiently different from those east to warrant higher rates from the southwest than from the pine districts extending through the southern tier of states .from the Mississippi river to Florida. Chicago Lumber & Coal Co. v. Tioga S. E. Ry. Co., 16 lnterst. Com. Com’n R. 323. The Cairo rate was again attacked (Wisconsin & Arkansas Lumber Co. v. St. Louis, I. M. & S. Ry. Co., 33 lnterst. Com. Com’n R. 33), but the commission found (January 12, 1915) that neither the existing blanket arrangement nor the rates were shown to be unreasonable or unjustly discriminatory. Thereafter, upon the filing and suspension of tariffs by these petitioners and others proposing to increase the rates on lumber from all southern points to the Ohio river crossings and other points, the petitioners, seeking an increase from 16 cents to 17 cents from the southwestern blanket to Cairo, the commission, in an elaborate opinion by McChord, Chairman, reviewing the history of the development of the yellow pine production in the entire southern territory, and the rates on the same, both east and west of the Mississippi river, found that the proposed increase on yellow pine to Cairo was not shown to be reasonable, and the 16-cent rate not shown to be unremunerative. Investigation and Suspension Docket No. 520, decided July 12, 1915; 34 lnterst. Com. Com’n R. 652.

[1] While in these cases the commission recognized the competitive character of the Cairo rate, yet, when they were determining the application of these very railroads to increase the rate, they, with all the facts before them, and dealing with an intricate situation, could see no justification for making the increase. The problem before them in that application directly concerned rate making, and their duty was peculiarly administrative in character. Loomis v. Lehigh Valley R. Co., 240 U. S. 43, 50, 36 Sup. Ct. 228, 60 L. Ed. 517. The fixing of rates was in the exercise of one of their especial functions; and when they expressed the opinion, as they did, that the Cairo rate was not unduly low, all the presumptions are in favor of their finding. Interstate Commerce Commission v. Illinois Central R. Co., 215 U. S. 452, 470, 30 Sup. Ct. 155, 54 L. Ed. 280; Interstate Commerce Commission v. Chicago & A. R. Co., 215 U. S. 479, 480, 481, 30 Sup. Ct. 163, 54 L. Ed. 291; Interstate Commerce Commission v. Chicago, Rock Island & Pac. Ry. Co., 218 U. S. 88, 110, 30 Sup. Ct. 651, 54 L. Ed. 946. It may, for present purposes, be assumed that the 16-cent rate to Cairo was reasonable for the service performed.

The rate to Paducah via Cairo is 22 cents, and is made by adding [672]*672to the Cairo rate the local rate (6 cents) charged by the Illinois Central for its haul of- 42 miles. There was evidence tending to show that this was reasonable for the service rendered, and nothing appears to the contrary. It may be conceded, for it is the law (Interstate Commerce Commission v. L. & N. R. Co., 227 U. S. 88, 91, 33 Sup. Ct. 185, 57 L. Ed. 431), that the commission cannot condemn a rate without a finding to that effect on substantial evidence; and, if there were no other route to Paducah except through Cairo, it is quite sure the commission could make no order in any way depriving the petitioners of their reasonable rate*to Cairo. But the commission was also dealing in this case, as will appear, with the route to Paducah via Memphis, which, in its opinion, based on substantial evidence, was the more natural, and hence the logical route to Paducah.

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Bluebook (online)
234 F. 668, 1916 U.S. Dist. LEXIS 1503, Counsel Stack Legal Research, https://law.counselstack.com/opinion/st-louis-southwestern-ry-co-v-united-states-kywd-1916.