Wisconsin & Michigan Transportation Co. v. Pere Marquette Line Steamers

245 N.W. 671, 210 Wis. 391, 1933 Wisc. LEXIS 301
CourtWisconsin Supreme Court
DecidedFebruary 7, 1933
StatusPublished
Cited by2 cases

This text of 245 N.W. 671 (Wisconsin & Michigan Transportation Co. v. Pere Marquette Line Steamers) is published on Counsel Stack Legal Research, covering Wisconsin Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wisconsin & Michigan Transportation Co. v. Pere Marquette Line Steamers, 245 N.W. 671, 210 Wis. 391, 1933 Wisc. LEXIS 301 (Wis. 1933).

Opinion

The following opinion'was filed December 6, 1932:

Owen, J.

The complaint alleges that the plaintiff and its predecessors had for many years operated a line of steamships between the ports of Milwaukee, Wisconsin, and the ports of Muskegon and Grand Haven, Michigan, for the purpose of transportation of passengers and freight, and the traffic available over said water route has never been, and is not now, sufficient to support more than one steamship line on said route; that for many years the defendant has been a common carrier engaged in the transportation of freight and passengers between the ports of Milwaukee, Wisconsin, and'Ludington, Michigan; that said defendant, well knowing that the freight and passenger traffic on plaintiff’s said route, as aforesaid, is not now, and never has been at any time, sufficient to support more than one steamship line thereon, and well knowing that the said plaintiff is amply able to, and does, furnish adequate transportation facilities and service for all traffic, both freight and passenger, available to said route, now threatens to, and intends to, enter upon the said route of the plaintiff, as aforesaid, with its said steamships in competition with the said plaintiff, and intends to render freight and passenger service between said ports at a rate much less than the rates now charged by plaintiff, and at much less than are required to pay the cost of furnishing the service, all for the purpose of greatly damaging the plaintiff and putting the plaintiff out of business.

[393]*393The plaintiff bases its right to maintain this action upon the provisions of sec. 14 of the Shipping Act of 1916 (now sec. 812, title 46, USCA), which prohibits common carriers by water from using a “fighting ship, either separately or in conjunction with any other carrier, through agreement or otherwise,” and a “fighting ship” is defined to be “a vessel used in a particular trade by a carrier or group of carriers for the purpose of excluding, preventing, or reducing competition by driving another carrier out of said trade.”

While the demurrer to the complaint raises the question of the extent of the jurisdiction of state courts over maritime matters, and that question has been ably briefed and argued, we do not find it necessary to indulge in its consideration.

The federal supreme court, in United States Navigation Co. v. Cunard Steamship Co. 284 U. S. 474, 52 Sup. Ct. 247, has held that the Shipping Board Act is a legislative attempt to apply to common carriers by water, in interstate and foreign commerce, the same principles of regulation and control that are applied to common carriers by land by the Interstate Commerce Act, and that the decisions relating to the power and authority of the Interstate Commerce Commission should apply to the power and authority of the United States Shipping Board established by the Shipping-Act in question.

In the Cunará Case the United States Navigation Company, a corporation operating ships in foreign commerce, brought suit to enjoin the defendants from continuing an alleged combination and conspiracy in violation of the Sherman Anti-Trust Act. The plaintiff or petitioner operated steamships for the carriage of general cargo between the port of New York and specified foreign ports. The defendants or respondents were corporations engaged in foreign commerce between the United States ánd specified for[394]*394eign countries, carrying ninety-five per cent, of the* general cargo trade from North Atlantic ports in the United States to the ports of Great Britain and Ireland. According to the allegations of the bill, the respondents had entered into and were engaged in a combination and conspiracy to restrain the foreign trade and commerce of the United States in respect of the carriage of general cargo from the United States to the foreign ports named, with the object and purpose of driving the petitioner and all others not parties to the combination out of, and of monopolizing, such trade and commerce. The conspiracy involved the establishment of a general tariff rate and a lower contract rate, the latter to be made available only to shippers who agreed to confine their shipments to the lines of respondents, which differentials thus created between the two rates were not predicated upon volume of traffic or frequency or regularity of shipment, but were purely arbitrary and wholly disproportionate to any difference in service rendered, the sole consideration being their effect as a coercive measure. The tariff rate in numerous instances was as much as one hundred per cent, higher than the contract rate. Many other practices were alleged, all being resorted to for the purpose of coercing shippers to deal exclusively with respondents and refrain from shipping by the vessels of petitioner, and thus exclude it entirely from the carrying trade between the United States and Great Britain.

The court conceded that, “looking alone to the Sherman Anti-Trust Act, the bill states a cause of action under secs. 1 and 2 of that act, and, consequently, furnishes ground for an injunction under sec. 16 of the Clayton Act, unless the Shipping Act stands in the way.” The court then points out the analogy between the United States Shipping Act and the Interstate Commerce Act, and declares that “we cannot escape the conclusion that Congress intended that the [395]*395two acts, each in its own field, should have like interpretation, application, and effect.” Reference was made to the; court’s declining to take jurisdiction of questions before the Interstate Commerce Commission had acted where “preliminary resort to the commission ‘is required because the inquiry is essentially one of fact and of discretion in technical matters; and uniformity can be secured only if its determination is left to the commission. Morever, that determination is reached ordinarily upon voluminous and conflicting evidence, for the adequate appreciation of which acquaintance with many intricate facts of transportation is indispensable; and such acquaintance is commonly to be found only in a body of experts.’ ” Speaking of the scope of the Shipping Board Act the court said:

“The act is restrictive in its operation upon some of the activities of common carriers by water, and permissive in respect of others. Their business involves questions of an exceptional character, the solution of which may call for the exercise of a high degree of expert and technical knowledge. Whether a given agreement among such carriers should be held to contravene the act may depend upon a consideration of economic relations, of facts peculiar to the business or its history, of competitive conditions in respect of the shipping of foreign countries, and of other relevant circumstances, generally unfamiliar to a judicial tribunal, but well understood by an administrative body especially trained and experienced in the intricate and technical facts and usages of the shipping trade; and with which that body, conse--quently, is better able to deal.”

That provision of the Shipping Board Act here sought to be invoked is the one prohibiting the use of a “fighting ship,” which is defined to be a “vessel used in a particular trade by a carrier or group of carriers for the purpose of excluding, preventing, or reducing competition by driving another carrier out of said trade.” Whether the defendant’s invasion of plaintiff’s water route constitutes the use [396]

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Cite This Page — Counsel Stack

Bluebook (online)
245 N.W. 671, 210 Wis. 391, 1933 Wisc. LEXIS 301, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wisconsin-michigan-transportation-co-v-pere-marquette-line-steamers-wis-1933.