United States ex rel. Members of Waste Merchants' Ass'n v. Interstate Commerce Commission

277 F. 538, 51 App. D.C. 136, 1921 U.S. App. LEXIS 2506
CourtCourt of Appeals for the D.C. Circuit
DecidedDecember 5, 1921
DocketNo. 3498
StatusPublished
Cited by7 cases

This text of 277 F. 538 (United States ex rel. Members of Waste Merchants' Ass'n v. Interstate Commerce Commission) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States ex rel. Members of Waste Merchants' Ass'n v. Interstate Commerce Commission, 277 F. 538, 51 App. D.C. 136, 1921 U.S. App. LEXIS 2506 (D.C. Cir. 1921).

Opinion

ROBE, Associate Justice.

This appeal is from a judgment in the Supreme Court of the District dismissing appellant’s petition for a writ of mandamus directing the appellee, Interstate Commerce Commission, to fix the amount of damages or compensation to which appellant alleges it is entitled for services performed for the carriers in connection with the loading of certain freight shipped by it. The case was disposed of on petition, answer, and demurrer to the answer.

Ordinarily, shippers are required to load carload freight, but carriers serving New York Harbor points, owing to conditions peculiar to that locality, have undertaken this work, and a charge therefor is in eluded in their published tariff rates. In the early part of 1917, shippers oí paper stock from New York were informed by the carriers that labor was so scarce and difficult to obtain that the service of loading cars must be performed by the shippers, and thereafter this service was performed by appellant as to freight shipped by it from that point, 10 the extent of many thousand carloads. A controversy having arisen as to compensation for the performance of this service by the shippers, a complaint was filed by them with the appellee Commission. An examiner was appointed, and the undisputed evidence adduced was to the [540]*540effect above indicated. The examiner recommended that the shippers receive as reparation an amount to be determined on the basis of 12 cents per ton and a minimum of $2 per car. A hearing before the Commission resulted in a report on June 1, 1920—the Commission holding that the variance from the practice of the tariff undertakings was as much in the interest of the shippers as of the carriers; that the rates collected were not unreasonable, unjustly discriminatory, or unduly prejudicial for the transportation service rendered, although, in reviewing the evidence, the Commission found:

“There is no evidence to indicate that the rates or the charges paid on complainant’s shipments were excessive for the total transportation service actually rendered to them by the carriers, excluding loading.” (Italics ours.)

In its report the Commission said:

“It is undisputed that defendants did not load a large part of complainant’s members’ paper stock into cars during this period, contrary to their tariff undertaking, and that employees of these shippers actually performed the loading service.”

The Commission then pointed out that, owing to unusual conditions, it was to the advantage of the shipper to be permitted to do the loading, as otherwise there would have been great delay and a corresponding limitation in the amount shipped. The Commission then said:

“Either the carriers or the shippers suggested that the movement of paper stock would be facilitated, if the shippers were willing to load their paper stock into empty cars for out-bound movement. The evidence is somewhat conflicting as to the origin of this suggestion. However,' from the evidence as a whole, there is little doubt that an agreement, tacit or expressed, was arrived at between the carriers and the shippers of paper stock by which the latter undertook to do their own loading of the cars if they were permitted to drive their trucks onto the piers of the former with but short periods of waiting.”

This arrangement the Commission found to have been “for the mutual benefit of both parties under the extraordinary conditions of war times,” but also said:

“It is obvious as pointed out above, that the carriers did not fulfill their-complete obligation under the tariffs during the prevalence of war conditions, and as a consequence the shippers were compelled to incur the expense of loading by means of their own employees.”

Further allusion to the departure of the carriers from their published tariffs was made in these words:

“For any failure to observe their published tariffs the carriers may be answerable in another process.”

[1] In section 15 of Act Feb. 4, 1887, c. 104, as amended by section 4 of Act June 29, 1906 (34 Stat. 584; Comp. St. § 8583 [8]), amending “An act to regulate commerce,” it is provided:

“If the owner of property transported under this act directly or indirectly renders any service connected with such transportation, or furnishes any instrumentality used therein, the charge and allowance therefor shall be no more than is just and reasonable, and the Commission may, after hearing on a complaint, * * * determine what is a reasonable charge as the maximum to be paid by the carrier or carriers for the services so rendered [541]*541or for the use of the instrumentality so furnished, and fix the same by appropriate order, which order shall have the same force and effect and be enforced in like manner as the orders above provided for under this section.”

In Interstate Com. Comm. v. Diffenbaugh, 222 U. S. 42, 32 Sup. Ct. 22, 56 L. Ed. 83, it was held that contracts made by various railroads for elevation expenses of grain at points of transshipment at rates not exceeding those fixed by the Commission as reasonable, did not amount to illegal discriminations or rebates when paid to owners of elevators on their own grain, although such owners performed services other than those paid for at the same time to their own advantage. It was further held that the act of 1906 contemplates payment of reasonable compensation by carriers for services rendered or facilities furnished by owners of property transported, the only power of the Commission being to determine the maximum of such compensation. After quoting that part of section 15 above set forth, the court said:

“Thus Congress clearly recognized that services such as those rendered by Peavey & Co. were services in transportation and were to be paid for notwithstanding the possibility that some advantage might be gained as a result.”

Later in the opinion the court said:

“The law does not attempt to equalize fortune, opportunities or abilities. On the contrary, the act of Congress in terms contemplates that if the carrier receives services from an owner of property transported, or usos instrumonialities furnished by the latter, he shall pay for them. That is taken for granted iu section 15, the only restriction being that he shall pay no -more than is reasonable, and the only permissive element being that the Commission may determine the maximum in case there is complaint (or now, upon its own motion. Act June 18, 1910, c. 309. § 12, 36 Slat. 589, 551.”

In Union Pac. R. R. v. Updike Grain Co., 222 U. S. 215, 32 Sup. Ct. 39, 56 L. Ed. 171, where a railroad company had refused to pay the owner of an elevator located on other railroads compensation for elevating grain .similar to that paid to owners of elevators located on its own railroad, because of failure to return cars within an unreasonable time fixed by that railroad, the court said:

“When the service was rendered, the carrier received value for which it was bound to pay, whether performed by the owner of the grain or some other person hired for the same purpose.

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277 F. 538, 51 App. D.C. 136, 1921 U.S. App. LEXIS 2506, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-ex-rel-members-of-waste-merchants-assn-v-interstate-cadc-1921.