United States v. Majure

162 F. Supp. 594, 1957 U.S. Dist. LEXIS 2708
CourtDistrict Court, S.D. Mississippi
DecidedJuly 5, 1957
DocketCiv. A. 574
StatusPublished
Cited by9 cases

This text of 162 F. Supp. 594 (United States v. Majure) is published on Counsel Stack Legal Research, covering District Court, S.D. Mississippi primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. Majure, 162 F. Supp. 594, 1957 U.S. Dist. LEXIS 2708 (S.D. Miss. 1957).

Opinion

MIZE, District Judge.

During World War II, from September 1943 to August, 1944 defendants transported aviation gasoline for plaintiff from Port Birmingham, Alabama to Craig Field, near Selma, Alabama. Plaintiff’s amended complaint seeks to recover $18,296.67, which is a portion of the total transportation charges paid by plaintiff to defendants for the transportation service rendered.

The material facts are these: During World War II plaintiff maintained and operated military airfields at Courtland, Alabama, Craig Field near Selma, Alabama, Maxwell and Gunter Fields near Montgomery, Alabama, Tuskegee, Alabama and Columbus, Mississippi. In order to secure a constant and uninterrupted flow of aviation gasoline to these fields plaintiff bought and took title to aviation gasoline in the Texas City, Texas area. To transport the gasoline so purchased plaintiff entered into a contract under the provisions of the First War Powers Act of 1941, 50 U.S.C.A. Appendix, § 601 et seq. and Executive Order 9001, issued December 27, 1941, 50 U.S.C.A.Appendix, § 611 note, with Southport Petroleum Company of Delaware. Under the terms of the contract Southport undertook to transport the gasoline for plaintiff from the Texas City area to the six airfields named above. The contract provided for transportation by barge as far as Port Birmingham, Alabama and thence by tank truck to-the airfields. The transportation by truck was to be effected by Southport or by such other person as plaintiff might direct. The contract fixed specific rates, per gallon for the entire haul from Texas City to the specific airfields named in the contract.

On or about August 15, 1943 Southport commenced the performance of the contract, including that portion of it requiring Southport to transport the gasoline by tank truck from Birmingham, Alabama to Craig Field, Alabama. However, shortly thereafter, Southport was forced to cease to perform the truck transportation because the Interstate Commerce Commission, exercising its jurisdiction under Section 207 of Part II of the Interstate Commerce Act, 49 U.S.C. A. § 307, rejected Southport’s application for authority under the Act to engage in that truck transportation.

*596 Southport being thus unable fully to perform its contract, plaintiff, exercising its right under the contract to cause the truck transportation to be done by someone other than Southport, requested defendants to transport the gasoline from Port Birmingham, Alabama to Craig Field, Alabama. Defendants undertook to do so at a rate of 34^ per 100 pounds. They sought and procured from the Interstate Commerce Commission temporary authority as a common carrier in interstate commerce to transport gasoline on United States Government bills of lading in bulk in tank trucks from Port Birmingham, Alabama to Craig Field, Alabama at a rate of 34{S per 100 pounds. Said temporary authority was extended from time to time by orders of the Interstate Commerce Commission. The Commission’s orders were issued upon applications of defendants to the Commission which were supported in writing by plaintiff. Ultimately, the Commission issued defendants a permanent Certificate of Public Convenience and Necessity to engage in said transportation as a common carrier in interstate commerce at a rate of 34^ per 100 pounds. Defendants have held such permanent authority continuously since it was granted and now hold it.

The actual method of operation was this: Plaintiff purchased and took title to large quantities of gasoline in the Texas City area. It tendered the gasoline so acquired to Southport. Southport moved it by barge to its Warrior River terminal at Port Birmingham, Alabama where it was unloaded into storage tanks owned and operated by Southport and then reloaded from the storage tanks into tank trucks owned and operated by defendants and carried by them to Craig Field, Alabama. The process of unloading into storage tanks and reloading into tank trucks was virtually continuous. Witness C. R. Wilder, employed by South-port as terminal superintendent at its Warrior River terminal during the period in question, testified that the operation was carried on 24 hours a day, seven days a week and that it was “as continuous as the thing could be”. A barge load of gasoline arrived at the terminal almost every other day and trucks were at the terminal loading gasoline all or some part of the 24 hours in every day. That there was a continuous through-put from barge to storage tank to tank truck is further evidenced by the fact that the toal capacity of the storage tanks was 1,764,000 gallons while movements to the airfields were in the neighborhood of more than two million gallons per month.

Allotments to the various airfields were made monthly by means of directives from plaintiff sent before the beginning of each month to Southport. While the directives making the allotments characterized them as estimates and stated that they were subject to change, such changes as were made simply re-divided the monthly quantities among the airfields named in Southport’s contract with the plaintiff. On at least one occasion a firm allotment of gasoline to a particular airfield was made before the gasoline left Texas City. All of the gasoline purchased by plaintiff and then delivered to Southport in the Texas City area for transportation pursuant to Southport’s contract with plaintiff was purchased for use at the six airfields named in the contract. Plaintiff did not intend to consume any part of it at Port Birmingham, Alabama and none of it was in fact consumed at Port Birmingham, Alabama. Plaintiff did not intend that any of it remain in storage at Port Birmingham, Alabama and none of it in fact remained in storage in Port Birmingham, Alabama. On the contrary, it was merely put through the storage tanks at Port Birmingham, Alabama to facilitate loading into trucks and this was done as continuously and as rapidly as possible. The only reason for loading the tank trucks from the storage tanks rather than directly from the barges was that it was not practicable or feasible to do the latter. Heavy pumping equipment was required to lift the gasoline from the *597 barges into the storage tanks, whereas it flowed by gravity from the storage tanks into the tank trucks. The capacity of the barges ranged from 350,000 to 630,000 gallons each. The capacity of the tank trucks ranged from 3,000 to 4,500 gallons each. The barges were equipped with 10 inch lines or hoses for pumping the gasoline from them into the storage tanks. These lines were too large for use in loading tank trucks.

As defendants’ tank trucks were loaded they were sealed with Government seals as directed by plaintiff and Government bills of lading were issued naming the United States as both consignor and consignee. In the usual course of their business defendants presented plaintiff with bills for their charges for transporting each tank truck load. The charges were computed by defendants on the basis of their rate of 340 per 100 pounds of gasoline. Plaintiff paid defendants’ charges as so computed.

Several years after World War II was over plaintiff’s agent General Accounting Office audited defendants’ bills. As a result of the audit it concluded that defendants’ rate of 340 per 100 pounds was too high, that a rate of 190 per 100 pounds was reasonable, and made demand on defendants for the difference. Defendants refused the demands and this suit followed.

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Cite This Page — Counsel Stack

Bluebook (online)
162 F. Supp. 594, 1957 U.S. Dist. LEXIS 2708, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-majure-mssd-1957.