Viscose Co. v. Hines

263 F. 726, 1920 U.S. Dist. LEXIS 1280
CourtDistrict Court, E.D. Pennsylvania
DecidedMarch 23, 1920
DocketNo. 2019
StatusPublished
Cited by1 cases

This text of 263 F. 726 (Viscose Co. v. Hines) 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
Viscose Co. v. Hines, 263 F. 726, 1920 U.S. Dist. LEXIS 1280 (E.D. Pa. 1920).

Opinion

THOMPSON, District Judge.

From the hill and moving affidavits it appears that the plaintiff, the Viscose Company, is a corporation of Pennsylvania, engaged at Marcus Hook, Pa., and Roanoke, Va., in the manufacture and sale of artificial or fiber silk. At its plant at Marcus Hook it began its business in 1910. Its product is used in the manufacture of hosiery, neckties, underwear, and rugs, and is sold to manufacturers of these commodities in interstate commerce in various parts of the United States. It employs at its Marcus Hook plant about 3,500 persons, at its Roanoke plant 1,800, and has'under construction and expects to have completed within a year a plant at Dewistown, Pa., at a cost of about $3,000,000, where it will require the services of from 2,000 to 2,500 employes. • At its Marcus Hook plant it is producing about 9,000,000 pounds, and at its Roanoke plant about 2,-000,000 pounds, of artificial silk per year, and its total production, when the Dewistown plant is completed, will be about 17,000,000 pounds a year.

It is necessary for the plaintiff to transport about 80 per cent, of its product by railroad, and since the commencement of its business the carriers by rail, including the defendants, have accepted and carried the product, participating in the various freight classifications containing descriptions and ratings for the transportation of silk, such as manufactured by the plaintiff, and upon which rates were based and published by the various railroads, including the carriers defendant, in their freight tariffs. During the period of federal control the railroads operating under the Director General, under freight classifications and tariffs published and filed, have continued to accept and carry tire plain[727]*727tiff’s product under such classifications, tariffs, and rates. On December 10, 1919, the Director General of Railroads published and issued a tariff, known as “Consolidated Freight Classification No. 1,” which became effective December 30, 1919, and was participated in by the defendant carriers. This classification, at page 363, items 31, 32, 33, and 34, contains descriptions and ratings covering artificial silk, such as manufactured by the plaintiff, and under the same the defendant carriers up to February 29, 1920, accepted all such artificial silk for transportation from the plaintiff’s plants iti interstate commerce.

By “Supplement No. 2” to “Consolidated Freight Classification No. 1,” dated January 28, 1920, and under “Freight Rate Authority No. 21474,” issued by the Director General and participated in by the defendant carriers, and published and filed with the Interstate Commerce Commission, the descriptions and ratings in “Consolidated Freight Classification No. 1” were amended, so as to cancel the ratings on silk provided for in items 32, 33, and 34, page 363, and to amend rule 3 of said Classification to include the same articles in the list of commodities that would not be accepted for shipment. Rule 3, which was amended hy including artificial silk, such as manufactured by the plaintiff, is as follows:

“Rule 3. Unless otherwise provided, the following property will not bo accepted for shipment nor as premiums accompanying other articles:
“Bank hills, coin or currency, deeds, drafts, notes, or valuable papers of any kind; jewelry; postage stamps or articles with postage stamps affixed; precious metals or articles manufactured therefrom; precious stones; revenue stamps; or other articles of extraordinary value.”
Property of extraordinary value not accepted.

Cancellation of the classification of silk under items 31, 32, 33, and 34 of the Freight Classification was to be effective on and after February 29, 1920. It appearing that irreparable injury would result to the plaintiff, a temporary restraining order was issued February 26, 1920, resti'aining the defendants from putting into effect and enforcing the amendment canceling the ratings on artificial silk, and including artificial or fiber silk in the list of commodities that would not be accepted for shipment on and after February 29, 1920, and the defendant carriei's were enjoined from refusing to accept from the plaintiff artificial or fiber silk for transportation in intei*state commerce.

Counsel for tbe defendants at the argument denied the jurisdiction of the court to entertain the bill, or to issue a restraining order or injunction, upon the ground that, in order to do so, the court will be obliged to determine the reasonableness of classification rules or regulations which affect or determine the rates or the value of the service rendered, which the court is pi'ecluded from doing, because these questions of reasonahlexxess are administrative questions, exclusively for the Interstate Commerce Commission as the tribunal of first instance.

The duties of the carrier arise under the common law and under the acts of Congress to regulate commerce. Section 1 of the act of Febrxxary 4, 1887, as amended (Comp. St. § 8563, subd. 4), makes it the duty of all common carriers subject to the provisions of the act — ■

[728]*728" to establish, observe, and enforce just and reasonable classifications of property for transportation, with reference to which rates, tariffs, regulations, or practices are or may be made or prescribed, and just and reasonable regulations and practices affecting classifications, rates, or tariffs, * * * and all other matters relating to or connected with the receiving, handling, transporting, storing, and delivery of property subject to the provisions of this act which may be necessary or proper to secure the safe and prompt receipt, handling, transportation, and delivery of property subject to the provisions of this act upon just and reasonable terms, and every such unjust and unreasonable classification, regulation, and practice with reference to commerce between the states and with foreign countries is prohibited and declared to be unlawful.”

The cancellation of the classification under which the plaintiff’s commodity has been carried and rated is contended by the defendants to be a classification, regulation, and practice, the reasonableness of which is in dispute, and which therefore is subject to the primary action of the Interstate Commerce Commission.

An examination of the facts makes it apparent that what the defendants have done is not to establish a classification of the plaintiff’s property for transportation with reference to which rates may be prescribed, nor has it done anything required by the act relating to or connected with the receiving, handling, transporting, storing, or delivery of the plaintiff’s property. Prior to January 28, 1920, the defendants complied with the requirements of the act by having on file schedules of classification and rates for the transportation of the plaintiff’s product, but on that date they withdrew the plaintiff’s product from classification, so that, so far as it was concerned, there was no longer established for it any classification for transportation with reference to which rates might be prescribed. The plaintiff’s product is not classified. It is excluded from classification. It is not the subject of a tariff rate. It is excluded from transportation, and no questions of just and reasonable rates, charges, classifications, regulations, or practices connected with transportation arise.

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Related

Cheney Bros. v. Hines
266 F. 310 (Second Circuit, 1920)

Cite This Page — Counsel Stack

Bluebook (online)
263 F. 726, 1920 U.S. Dist. LEXIS 1280, Counsel Stack Legal Research, https://law.counselstack.com/opinion/viscose-co-v-hines-paed-1920.