Westinghouse Electric Corporation v. United States

388 F. Supp. 1309, 1975 WL 350955
CourtDistrict Court, W.D. Pennsylvania
DecidedFebruary 4, 1975
DocketCiv. A. 73-432
StatusPublished
Cited by10 cases

This text of 388 F. Supp. 1309 (Westinghouse Electric Corporation v. United States) is published on Counsel Stack Legal Research, covering District Court, W.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Westinghouse Electric Corporation v. United States, 388 F. Supp. 1309, 1975 WL 350955 (W.D. Pa. 1975).

Opinion

*1311 OPINION

DUMBAULD, District Judge.

This case involves an interesting aspect of the time-honored principle that the rates charged by common carriers for the transportation of freight must be just and reasonable. At common law a shipper might sue the carrier to recover the excessive charges. Texas & Pacific Ry. Co. v. Abilene Cotton Oil Co., 204 U.S. 426, 436, 27 S.Ct. 350, 51 L.Ed. 553 (1907). A new era began with enactment of the Interstate Commerce Act in 1887, creating the Interstate Commerce Commission. Thereafter primary jurisdiction to determine the reasonableness of rates was vested in the Commission. Ibid., 442, 448, 27 S.Ct. 350. Judicial review of Commission orders, ordinarily effected through a three-judge court, is performed by a single judge in the case of orders granting or denying reparation for excessive charges by a carrier. United States v. I. C. C., 337 U.S. 426, 441-443, 69 S.Ct. 1410, 93 L.Ed. 1451 (1949). Such an order is attacked by a shipper in the case at bar. The limited scope of review is the same as when a three-judge court is required. That topic was recently discussed in some detail by this Court in Pgh. & New England Trucking Co. v. United States, 345 F.Supp. 743, 747-748 (W.D.Pa.1972), aff’d United States v. I. C. C., 409 U.S. 904, 93 S.Ct. 235, 34 L.Ed.2d 169 and 409 U.S. 1070, 93 S.Ct. 686, 34 L.Ed.2d 660.

Under the Interstate Commerce Act carriers are required to charge rates specified in published tariffs. Such rates are known as legal rates. However the legal rate is not necessarily a lawful rate: “it was lawful only if it was reasonable . . . [T]he shipper was bound to pay the legal rate; but if he could show that it was unreasonable, he might recover reparation.” Arizona Grocery Co. v. A., T. & S. F. Ry. Co., 284 U.S. 370, 384, 52 S.Ct. 183, 184, 76 L.Ed. 348 (1932). In the case of rates prescribed by the Commission (as distinguished from carrier-initiated rates) there is “no difference between the legal or published tariff rate and the lawful rate.” Ibid., 387, 52 S.Ct. 185. But “the great mass of rates” are “carrier-made rates, as to which the Commission need take no action except of its own volition or upon complaint, and may in such case award reparation by reason of the charges made to shippers under the theretofore existing rate.” Ibid., 390, 52 S.Ct. 186.

Since a carrier must be able to charge a legal published tariff rate for any article tendered to it for shipment anywhere, tariffs contain “classifications” or “lists containing descriptions of every commodity moving by freight and the class or classes to which it is assigned, i. e., its classification rating or ratings. . . . The class rates are in the form of a schedule which shows the price per 100 pounds for moving first-class freight every possible distance it may be moved. The cost of shipment for a given commodity is determined by ascertaining its classification rating, the first-class rate per 100 pounds for the haul involved, and the percentage of the first-class rate to which the classification rating in question is subject.” N. Y. v. United States, 331 U.S. 284, 290, 67 S.Ct. 1207, 1238, 91 L.Ed. 1492 (1947). But class rates “move but a small percentage of the traffic.” Ibid., 343, 67 S.Ct. 1238. Hence they are often called “paper rates.” Where there is a substantial volume of traffic moving, it usually moves on another type of rate, which is ordinarily lower than the class rate which must theoretically be available for any sort of unusual shipment which might be tendered to a carrier. It should be noted that

“Exception rates are rates resulting from the transfer of a commodity out of its regularly assigned class in the classification and into another class.
“Commodity rates are special rates established for particular commodities. For purposes of these rates a commodity is not given a classification rating; the result is that the com *1312 modity rates have no fixed percentage relationships to first-class rates.
“Column rates are fixed as definite percentages of first-class rates but like commodity rates they apply only to particular commodities and are assigned no regular class.” Ibid., 290, 67 S.Ct. 1210.

It should also be observed that where a shipment moves over the lines of two or more carriers, the through rate for such shipment may be calculated as a combination rate by adding the local rates of each carrier over its own line for the route of movement used; or may be a combination of several factors (“proportional” rates) published for use in determining through rates over such route; or may be the sum of local and joint factors; or may be a joint single-factor rate published specifically as a joint rate in which the carriers participate who are involved in the movement. St. L. S. W. Ry. Co. v. United States, 245 U.S. 136, 139, 38 S.Ct. 49, 62 L.Ed. 199 (1917) [Brandeis, J.].

The routes over which a rate is applicable must be specified in the published tariff, and the rate constitutes a legal rate only over available tariff routes. Any resemblance between available tariff routes and the most direct physical route over existing railroad tracks is purely coincidental. While carriers are compellable to establish reasonable through routes and joint rates, preference is ordinarily given to the carrier originating the traffic and each carrier is entitled to preserve its long haul over its own lines over as much of the distance as possible between the origin and destination points of the through route. Ibid., 143144, 33 S.Ct. 49.

With these facets of- “railroad jargon 1 ” in mind, we are in a position to examine what took place in the case at bar. The facts are basically undisputed, but are to be gleaned from the written statements filed by the parties rather than from the cross-examined testimony of witnesses “on the hoof”, since the case was heard under the Commission’s abbreviated “modified procedure.” Under this procedure the waggish pronouncement is perhaps truer than usual that in I.C.C. practice the lawyers do the testifying and the witnesses elucidate the applicable law.

Two types of shipment by the same shipper (the plaintiff) are involved. The plaintiff, hereinafter called Westinghouse, is a prominent manufacturer of electrical equipment. It shipped nine carloads of circuit breakers and parts from Trafford, Pa., to Buckeystown and Doub, Md. This transportation is involved in No. 35439. Plaintiff also shipped an electric generator, on a car owned by plaintiff, from East Pittsburgh, Pa., to Potomac Electric Power Co., at Woodzell, Md. This shipment gave rise to No.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

MidAmerican Energy Co. v. Surface Transportation Board
169 F.3d 1099 (Eighth Circuit, 1999)
Midamerican Energy Company, Western Coal Traffic League, Intervenor on Appeal v. Surface Transportation Board United States of America, Norfolk Southern Railway Company Union Pacific Corporation Southern Pacific Transportation Company Consolidated Rail Corporation Association of American Railroads, Intervenors on Appeal. Central Power & Light Company, Western Coal Traffic League, Intervenor on Appeal v. Surface Transportation Board United States of America, Norfolk Southern Railway Company Union Pacific Corporation Southern Pacific Transportation Company Consolidated Rail Corporation Association of American Railroads, Intervenors on Appeal. National Industrial Transportation League, Western Coal Traffic League, Intervenor on Appeal v. Surface Transportation Board United States of America, Pennsylvania Power & Light Company Norfolk Southern Railway Company Union Pacific Corporation Southern Pacific Transportation Company Consolidated Rail Corporation Association of American Railroads, Intervenors on Appeal. Union Pacific Railroad Company Southern Pacific Transportation Company v. Surface Transportation Board United States of America, Pennsylvania Power & Light Company Norfolk Southern Railway Company Midamerican Energy Company National Industrial Transportation League Union Pacific Corporation Consolidated Rail Corporation Association of American Railroads Western Coal Traffic League, Intervenors on Appeal. Consolidated Rail Corporation v. Surface Transportation Board United States of America, Pennsylvania Power & Light Company Norfolk Southern Railway Company National Industrial Transportation League Union Pacific Corporation Southern Pacific Transportation Company Association of American Railroads Western Coal Traffic League, Intervenors on Appeal. Association of American Railroads v. Surface Transportation Board United States of America, Pennsylvania Power & Light Company Norfolk Southern Railway Company National Industrial Transportation League Csx Transportation, Inc. Union Pacific Corporation Southern Pacific Transportation Company Consolidated Rail Corporation Western Coal Traffic League, Intervenors on Appeal. Western Coal Traffic League v. Surface Transportation Board United States of America, Union Pacific Corporation Southern Pacific Transportation Company Consolidated Rail Corporation Association of American Railroads, Intervenors on Appeal. Western Resources, Inc., Western Coal Traffic League, Intervenor on Appeal v. Surface Transportation Board United States of America, Consolidated Rail Corporation Union Pacific Railroad Company Southern Pacific Transportation Company Association of American Railroads Norfolk Southern Railway Company, Intervenors on Appeal. Association of American Railroads v. Surface Transportation Board United States of America, Pennsylvania Power & Light Company Norfolk Southern Railway Company Western Coal Traffic League National Industrial Transportation League Midamerican Energy Company Western Resources, Intervenors on Appeal. Consolidated Rail Corporation Association of American Railroads, Intervenor on Appeal v. Surface Transportation Board United States of America, Pennsylvania Power & Light Company Norfolk Southern Railway Company Western Coal Traffic League National Industrial Transportation League Midamerican Energy Company, Intervenors on Appeal. Union Pacific Corporation Southern Pacific Transportation Company, Association of American Railroads, Intervenor on Appeal v. Surface Transportation Board United States of America, Pennsylvania Power & Light Company Norfolk Southern Railway Company Western Coal Traffic League National Industrial Transportation League Midamerican Energy Company, Intervenors on Appeal. Western Coal Traffic League v. Surface Transportation Board United States of America, Consolidated Rail Corporation Association of American Railroads Norfolk Southern Railway Company Union Pacific Railroad Company Southern Pacific Transportation Company, Intervenors on Appeal. National Industrial Transportation League Western Coal Traffic League, Intervenor on Appeal v. Surface Transportation Board United States of America, Union Pacific Railroad Company Southern Pacific Transportation Company Association of American Railroads Consolidated Rail Corporation, Intervenors on Appeal. Midamerican Energy Company, Western Coal Traffic League, Intervenor on Appeal v. Surface Transportation Board United States of America, Union Pacific Railroad Company Southern Pacific Transportation Company Association of American Railroads Consolidated Rail Corporation, Intervenors on Appeal
169 F.3d 1099 (Eighth Circuit, 1999)
MidAmerican Energy v. STB
Eighth Circuit, 1999
Burlington Northern, Inc. v. United States
555 F.2d 637 (Eighth Circuit, 1977)
National Electrical Manufacturing Ass'n v. United States
407 F. Supp. 598 (W.D. Pennsylvania, 1976)

Cite This Page — Counsel Stack

Bluebook (online)
388 F. Supp. 1309, 1975 WL 350955, Counsel Stack Legal Research, https://law.counselstack.com/opinion/westinghouse-electric-corporation-v-united-states-pawd-1975.