United States v. Reading Co.

184 F. Supp. 206, 1960 U.S. Dist. LEXIS 2841
CourtDistrict Court, E.D. Pennsylvania
DecidedJune 2, 1960
DocketCiv. A. No. 22787
StatusPublished
Cited by1 cases

This text of 184 F. Supp. 206 (United States v. Reading Co.) is published on Counsel Stack Legal Research, covering District Court, E.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. Reading Co., 184 F. Supp. 206, 1960 U.S. Dist. LEXIS 2841 (E.D. Pa. 1960).

Opinion

GRIM, District Judge.

In May of 1955 the Commodity Credit Corporation shipped by rail several carloads of frozen beef which were to be loaded aboard ship in Philadelphia for export. Three carloads of beef, sent in refrigerator cars to defendant Reading Company’s Port Richmond Terminal in Philadelphia, were spoiled because the cars were not iced while they lay at the terminal for a period of more than a week. The cars remained at the terminal on instructions of American Export Lines, acting as agent for the government, to await the arrival of the ship on which the beef was to be loaded. When the ship docked, the cars were re-iced and moved to the pier. The spoilage was discovered when the cars were opened.

The government has brought this action to recover the value of the meat. The facts are stipulated. Each party has moved for summary judgment.

Two of the cars were shipped from Boston, Massachusetts, and the other from Austin, Minnesota. They moved under straight bills of lading, two of which bore this notation:

“Precool 24 hours before loading with coarse ice and 30% salt. Replenish to capacity and 30% salt at all regular icing stations and oftener if delayed.”

The third bill of lading contained the same notation, in which was incorporated before the words “all regular icing stations” the notation:

“Before forwarding reice to capacity and 30% salt.”

The notice of arrival of the cars which the railroad gave to American Export Lines contained the notation “Reice to cap and 30% salt.”

The issue in this case is whether there was a duty on the railroad to re-ice the refrigerator cars while they lay at Port Richmond. The government contends that there was such a duty on the railroad, and the railroad contends that there was not. Both parties base their positions on Perishable Protective Tariff No. 16, effective November 16, 1953.

The railroad contends that it was relieved of liability for re-icing at Port Richmond by a portion of Rule 406 of the tariff. Rule 406 provides:

“(A) When shipment * * * is held * * * after arrival in the terminal train yard serving the destination and up to the time it is in process of unloading on team tracks or until placed on private track * * * carrier will examine bunkers or tanks daily and unless written instructions * * * from shipper, owner or consignee are received to the contrary when car requires additional ice or ice and salt during such period it will be reiced.
* * * * * *
“(E) The provisions of this rule will not apply:
* * * * * •
[208]*208“3. On shipments of meat that have reached final destination1 and which are held on tracks of the Reading Company, pending instructions from consignees to place for unloading * * *”

There is no real dispute between the parties over the proposition that if Rule 406 applies, the railroad was not under a duty to re-ice.

The government contends that Rule 406 is not applicable, but that the matter is governed by Section 2 of the tariff, which requires re-icing. This contention is based on a statement on the title page of Section 4 (Rule 406 is part of Section 4):

“Section 2 Takes Precedence Over This Section”

and a statement on the title page of Section 2:

“The provisions of this Section take precedence over Section 4.”

The first portion of Section 4 of the tariff is Rule 400, which provides in part:

“(A) Charges for ice or salt * * * published in Items 22100 to 22188, inclusive, apply as follows:
“(1) When service supplied is not included within the charges applicable as provided in Sections 2 and 6, the rules and charges in this Section will apply to shipments of perishable freight including the following commodities:
“Meats (Fresh), in straight or mixed carloads * * * ”

Section 6 deals with less-than-carload shipments and hence has no application to this case.

The title of Section 2 is:

“Section No. 2.
“Charges and Special Rules Governing Refrigeration Services
(As provided in this Section)
On
Carload Shipments * * - *
Of
Fruits, Vegetables, Berries, Melons and Other Perishable Freight As Provided For In This Section * * *

The first provision of Section 2 is Rule 200, which provides:

“(A) Charges: — Refrigeration service charges as published in this Section apply on fruits, vegetables, berries, melons, and other perishable freight. Where a refrigeration charge on any commodity is published in this Section the rules, regulations and charges published in Section 4 will not apply, except as may be otherwise provided in individual rules in this Section.”

Rules 200 to 275 take up the first 51 pages of Section 2. The remaining 260 pages of Section 2 consist of tables of rates for different types of refrigeration services to various points in the United States and Canada. The first of these tables, for instance, is for shipments from all stations in Alabama to all these points (the destinations being grouped). Rates in dollars and cents per carload are given in columns for the following named commodities: Fruits,. Berries, Melons, Vegetables, and Cucumbers, and for different types of refrigeration services.

Two of the cars involved in this suit, were shipped from Boston, Massachusetts. The table at page 198 of the tariff gives the rates under Section 2 from all stations in Massachusetts. The only commodities listed on this table are: “Column 1 — Berries, Fruits (except Apples) and Vegetables. Column 2 — Melons. Column 3 — Apples.” The table gives no rate for any other commodity,, and specifically no rate is given for meat.

The third car involved in this suit was shipped from Austin, Minnesota. The tables at pages 258 to 261 of the tariff' [209]*209give the rates under Section 2 from all stations in Minnesota. The only commodities on this table are: “Fruits, Berries, Vegetables, Melons.” These tables give no rate for any other commodity, and specifically no rate is given for meat.

The tables on pages 198 and 258 are the only tables in Section 2 which give rates for shipments from Massachusetts and Minnesota. Since the tables in Section 2 give no rates for meat from these states, the excluding provision of Rulo 2002 does not operate, and Section 2 does not apply to the shipments in this case. This conclusion is buttressed by an examination of a number of the tables in Section 2. In none of the tables examined was any rate given for meat, and in every listing found for “Other Perishable Freight” a footnote excepted “Fresh Meats.”

Since Section 2 of the tariff does not apply to the shipments involved in this case, Rule 406(E) 3 does apply, and the tariff imposed no duty on the railroad to re-ice the three cars while they lay at Port Richmond.

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184 F. Supp. 206, 1960 U.S. Dist. LEXIS 2841, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-reading-co-paed-1960.