Tex-O-Kan Flour Mills v. United States

49 F. Supp. 516, 1943 U.S. Dist. LEXIS 2912
CourtDistrict Court, N.D. Texas
DecidedMarch 15, 1943
DocketCiv. A. No. 801
StatusPublished
Cited by1 cases

This text of 49 F. Supp. 516 (Tex-O-Kan Flour Mills v. United States) is published on Counsel Stack Legal Research, covering District Court, N.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Tex-O-Kan Flour Mills v. United States, 49 F. Supp. 516, 1943 U.S. Dist. LEXIS 2912 (N.D. Tex. 1943).

Opinions

ATWELL, District Judge.

The plaintiff, a Delaware corporation, has its general office and place of business in Dallas, Texas. It is engaged in the business of buying and selling grain and operating mills for the conversion of grain. In the selling of American, Argentina and Canadian grain, it is in competition with similar business institutions throughout the United States, but particularly with those located in Buffalo, Chicago, Minneapolis, Kansas City, New Orleans, and the gulf ports.

It alleges that wheat and barley grown in Canada has always moved and now moves in bond in railroad transportation from Canada across the United States to consuming centers in the West Indies, Central America, South America, and the Republic of Mexico. There has been a movement of rice from Mexico into Canada and it is now so moving. Cotton and peanuts move in all rail transportation from Mexico to Canada, across the United States.

That the normal movement of wheat into Mexico is from five to eight million bushels per annum, equalling three thousand to five thousand loaded box cars. Due to unusual conditions, this demand has increased to ten million bushels, equalling sixty-five hundred loaded box cars.

That the normal movement of grain and its products in such producing sections of the United States and Canada to the West Indies, Central America and South America, is from fifteen to twenty million bushels per annum, equalling approximately ten to fourteen thousand loaded box cars.

The normal route from Canada has been via water to Buffalo, Chicago, and Minneapolis, thence via rail to Atlantic gulf ports, and thence via steamship to destination. Also, a normal movement of grain and its products from Canada by way of railroads across the United States to gulf ports.

Due to the shortage of boats and of coastwise service, as a result of the World War, the normal route for grain produced in the United States and in Canada to the Latin American countries has been materially disrupted and the movement has been diverted to all rail routes.

That on or about February 15, 1943, there was in storage at Buffalo 2,404,000 bushels of Canadian wheat for the purpose of moving across the United States to the said countries. That the movement to Mexico has been increased due to the policy of the American government. That this is well known to the Department of [518]*518Agriculture, the I. C. C., and the office of Defense Transportation.

Early in August, 1942, the Department of Agriculture was informed of the increased needs of Mexico for wheat, and plaintiff and many of its competitors sought to supply such need, sealed bids being made early in December. Such bids covered Canadian grain and American grain. The plaintiff’s bid for 2,600,000 bushels was accepted by the Republic of Mexico on December 17, 1942, it having on hand at that time 600,000 bushels at the port of Galveston, which left 2,000,000 bushels to move from Canada.

That it consulted the railways with reference to such movement from Canada without involving in any way the transportation of war materials for the United States. That the railways advised it that they had available surplus box cars and motive power and that no shortage would be created by this movement, and the contract was entered into for the sale of such grain.

That the sale price of American grain is controlled by the loan policy of the C.C.C., an agency of the Department of Agriculture.

It then pleads the prevailing price for Canadian grain, and for American grain, showing how that resulted in the sale of the Canadian wheat to Mexico, and that plaintiff really preferred to buy and sell American wheat and had repeatedly called the attention of the Department of Agriculture and government officials to the situation.

That upon completion of the deal, the plaintiff notified the railroads and they begun the movement of empty box cars into Canada for the transportation thereof. On January 12, 1943, the defendant, I. C. C., issued service order No. 103 in the following words to-wit:

“At a session of the Interstate Commerce 'Commission, Division 3, held at its office in Washington, D. C., on the 12th day of January, A. D. 1943.
“It appearing, That an unusual movement by railroad of grain, in carloads, from points in a foreign country through the United States to points in another foreign country may result in shortage of railroad equipment and congestion of traffic, and that the office of Defense Transportation has requested this Commission to take action in the matter; and that an emergency exists requiring immediate action;
“It is ordered, That:
Title 49 — Transportation and Railroads
Chapter 1 — Interstate Commerce Commission
Subchapter A — General Rules and Regulations
Part 95 — Car Service
“§ 95.4 Grain from a foreign country, (a) All common carriers by railroad are hereby ordered not to accept or move grain, in carloads, originating in a foreign country and moving by railroad through the United States, all-rail, to points in another foreign country; and all common carriers by railroad are hereby ordered not to furnish cars for such a movement.
“(b) Special and general permits. The provisions of this order shall be subject to any special or general permit issued by the Director of the Bureau of Service, Interstate Commerce Commission, Washington, D. C., to meet specific needs or exceptional circumstances (40 Stat. 101, sec. 402, 41 Stat. 476, sec. 4, 54 Stat. 901; 49 U.S.C. § 1(10) — (17).
“It is further ordered, That this order shall become effective immediately and shall remain in force until further order of the Commission; .that copies of this order and direction shall be served upon all common carriers by railroad subject to the Interstate Commerce Act and upon the Association of American Railroads, Car Service Division; and that notice of this order be given to the general public by depositing a copy in the office of the Secretary of the Commission at Washington, D. C., and by filing it with the Director, Division of the Federal Register, the National Archives,
“By the Commission, division 3.
“W. P. Bartel, Secretary.”
(SEAL)

That this particular order was directed at its transactions. The I. C. C. immediately thereafter issued certain exceptions for the benefit of others. That it applied for general and special permission to go forward but it was allowed to move only ninety-five cars. Thereupon, it petitioned for a hearing, which was denied.

That plaintiff is unable to ship by water, because of the winter season. That by [519]*519reason of its inability to obtain transportation not covered by Order No. 103, plaintiff’s competitors have sold more than five million bushels of American grain to Mexico and plaintiff will lose its profit, unless it can obtain transportation.

That thereafter, on January 30, 1943, another order was issued by the I. C. C.

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Bluebook (online)
49 F. Supp. 516, 1943 U.S. Dist. LEXIS 2912, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tex-o-kan-flour-mills-v-united-states-txnd-1943.