Wallower v. United States

32 F.2d 524, 1928 U.S. Dist. LEXIS 1751
CourtDistrict Court, W.D. Missouri
DecidedJune 22, 1928
StatusPublished
Cited by3 cases

This text of 32 F.2d 524 (Wallower v. United States) is published on Counsel Stack Legal Research, covering District Court, W.D. Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wallower v. United States, 32 F.2d 524, 1928 U.S. Dist. LEXIS 1751 (W.D. Mo. 1928).

Opinion

PER CURIAM.

This action is to enjoin the operation of an order m.ade by the Interstate Commerce Commission, directing plaintiffs to cancel certain proposed schedules theretofore filed with the Commission. The facts are not difficult nor in serious dispute. The law applicable is more difficult.

The plaintiffs are receivers of an electric interurban railway, 42 miles long, running from Joplin, Mo., through the southeastern corner of Kansas, to Picher, Okl. This is lead and zinc country. Hard roads and the motorcar cut heavily into its revenues, and it has undertaken, and by this proceeding is undertaking, to recoup a part of its passenger losses by an increase in its freight business. Chartered to do a general railroad business, it has always done some small package business, and in the last few years has aggressively pushed on for carload business, particularly in ore and chat and lumber. The petition alleges that the plaintiffs’ lines offer the best outlet, from the location under consideration, to the vast territories served by' the Missouri Pacific, the Santa Fé, the Kan- ■ sas City Southern, and other trunk line carriers. Its principal business is still passenger traffic; the 1926 figures being: From passenger business, $526,063.10; from freight on ore, $176,585.79.. It owns no freight cars and but two steam locomotives.

[525]*525The plaintiffs’ lines (sometimes hereafter called the Southwest Missouri) built into the Richer mine district in 1918. This district extends about 3 or 4 miles north and south by 6 or 7 miles east and west. In this area are about 150 mines. When the plaintiffs’ line came in, it found tbe district covered with a network of tracks and sidings, owned by two other short lines, hereafter called the Northeast and the Miami Belt, which in turn were controlled by the Frisco and the M. K. & T. trunk lines. The sidings of these two competitors brought loading facilities within a “few hundred feet of almost every mine in tbe district.” I, C. C. R. No. 12404.

Tbe light for the ore business bogan; and this case is but a part of that fight, as was stated by counsel for both sides on argument. Manifestly shippers would not pay a cartage charge for the privilege of using the Southwest Missouri lines, rather than its competitors. The Southwest Missouri undertook to take its sidings to the ore; but tbe Corporation Commission of Oklahoma denied it that light, probably because it believed the field was already well served.

Failing there, the Southwest Missouri undertook to get a place in the sun by various schedules, the general intent of which was to give it an even chance at the business by absorbing the cartage cost necessary to get the ore to its tracks. Two earlier efforts failed; the last effort is now before us.

To understand the proposed sehdule, one custom of the field should be understood. For many years the practice has been to weigh each load of ore on wagon scales, before loading, in order to arrive at the royalty due the landowner and perhaps the wage due the miner. A charge of 50 cents a ton for this service, performed by teamsters, has become established, and that charge includes a haul up to a quarter of a mile. This is referred to as a “turn-around haul.” The only significance .this custom has is this: At present, a shipper adjoining a siding must pay the 50 cents, and that charge pays for a quarter-mile haul. So, as to any mine within a quarter of a mile of the plaintiffs’ lines, no change in tariff-is needed to give it equality of opportunity with its competitors. But, since practically all of the mines are within that distance of a siding of its competitors, and practically none within that distance of its own, where it needs a change in tariff is beyond that zone.

The proposed tariff provides that, if any shipper in the district delivers his ore to certain designated trucking companies, the railroad will transport it from the quarter-mile limit, to the siding free of charge. The tariff reads:

“Item 2. The following trucking companies, operating under contract with the re-' ceivers of this company, will transport the shipments from the Ore Bins of the off track mines shown in Item 5, to the Loading Stations as indicated. They will not act as agents of the receivers of this company from the Ore Bins to the end of the turn-around service (% of a mile from the Ore Bins), but beyond that, they will act as agents of the receivers of the Company and Receivers of this company assume all carrier’s liability for tbe service from the end of the turn-around haul to the loading station indicated in Item 5. [Here follows list of trucking companies.]
“Item 3. The rate from any off track mine, not shown in Item 5, which is directly intermediate in line of haul, to the Loading Station indicated at any off track mine shown therein, will be the same as the off track mine to which it is intermediate.”

The competitors protested, and the Interstate Commerce Commission ordered the tariff canceled. This injunction action followed.

The government’s contentions are:

(1) That the business is already well served by tbe two companies first in the field; that such a tariff would deprive them of their business, would result in destructive competition, and would not, in the end, help the plaintiffs.

(2) That the tariff discriminates (a) between individuals in the same community, and (b) as between different communities, and is unduly preferential in the same respects.

(3) That the tariff constitutes an unreasonable practice.

The problem of a proper regulation of carrier is most difficult and complex. Villages and cities spring along railroad rights of way, and the junking of a railroad brings disaster and ruin to whole communities. Rates which will enable less fortunate lines to exist bring unconscionable returns to better located, better financed, and better managed lines. Yet, between competitive points, the tariffs must be the same, or the lesser ones would die of inanition. If discrimination is allowed between competitive and noncompetitive points, or between big and little shippers, again tbe big swallows tbe little. These but suggest the complexities of the problem. Congress has struggled with it, and courts should be and are mindful of tbe difficulties of administration. Yet, if there are still rough spots in the law, a proper ad[526]*526ministration of our government requires that Congress and not the courts change the law.

First, as to the question of discrimination as to individual shippers. Section 2 of the act (49 USCA § 2) prohibits rebates and discrimination among shippers. It is well settled that this section is to “enforce equality between shippers * * * shipping over the same line, the same distance, under the same circumstances.” I. C. C. v. Alabama Midland Ry. Co., 168 U. S. 144, 18 S. Ct. 45, 42 L. Ed. 414; Seaboard Air Line v. U. S., 254 U. S. 57, 41 S. Ct. 24, 65 L. Ed. 129.

The tariff under consideration here offers the same service to every shipper. Every shipper in the zone may have his ore hauled free, except the first quarter mile, to plaintiffs’ lines. There is no discrimination. Every shipper pays for the first quarter mile; the plaintiffs .pay the rest.

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Bluebook (online)
32 F.2d 524, 1928 U.S. Dist. LEXIS 1751, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wallower-v-united-states-mowd-1928.