World Pub. Co. v. Davis

16 F.2d 130, 1926 U.S. Dist. LEXIS 1569
CourtDistrict Court, N.D. Oklahoma
DecidedApril 23, 1926
DocketNos. 56, 58
StatusPublished
Cited by2 cases

This text of 16 F.2d 130 (World Pub. Co. v. Davis) is published on Counsel Stack Legal Research, covering District Court, N.D. Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
World Pub. Co. v. Davis, 16 F.2d 130, 1926 U.S. Dist. LEXIS 1569 (N.D. Okla. 1926).

Opinion

KENNAMER, District Judge.

These are suits brought to enforce an order of the Interstate Commerce Commission, based upon awards of reparation. On October 4, 1918, the plaintiffs herein filed a petition with the Interstate Commerce Commission (herein called the Commission), attacking freight rates on news print, wrapping paper, and toilet paper from Merrill and Park Palls, Wis., International Palls, Minn., and Nekoosha and Green Bay, Wis., to Tulsa, Okl. A hearing was had before the Commission on January 30, 1919, which, on June 16, 1919, rendered its report, finding the rates assailed to be unjust and unreasonable, and that the complainants had been damaged to the extent of the difference between the charges paid and those which would have accrued at the rates found just and reasonable, and that they were entitled to reparation. On November 8, 1920, the Commission entered an order requiring the Director General of Railroads, as Agent, to pay to the Tulsa Paper Company $1,335.44, with interest from October 1, 1918; to the Democrat Printing Company $4,444.08, with interest from September 10,1918; and to the World Publishing Company $5,876.89, with interest from November 25, 1918. Other carrier corporations were ordered to pay certain amounts, but that is not involved in this action. The Director General did not comply with the order, and petitions were filed in the district court of Tulsa county, state of Oklahoma, to enforce it. These cases were subsequently removed to the United States District Court, where they were tried to the court; both parties having waived a jury.

The report of the Commission, styled World Publishing Co. et al. v. Director General et al., reported in 53 Interst. Com. Com’n. R. 491, among other things, states: «* • * Yfe find that the rates to Tulsa assailed were, are, and for the future will be relatively unjust and unreasonable to the extent that they exceeded, exceed, and may ex[132]*132ceed on a ton-mile basis tbe rates on like commodities contemporaneously maintained to Joplin [Mo.].” A finding was made to tbe effect that tbe complainants bad made shipments and paid freight charges thereon at the rates found relatively unjust and unreasonable, and found them entitled to reparation. In accordance with the suggestions contained in the report, statements showing details of the shipments in accordance with rule Y of the Rules of Practice were prepared by the complainants, and were in no manner objected or excepted to by the defendant, the Director General. Upon these statements, awards were made by the Commission.

It is the contention of the Director General that the order of the Commission is void, because there was a finding that the rates were only relatively unreasonable, which it is insisted is equivalent to a finding of prejudice or preference under section 3 of the Act to Regulate Commerce (Comp. St. § 8565), and is not a finding of unreasonableness under section 1 (Comp. St. § 8563). In the course of its decision in the instant case the Commission states: “In the absence of proof to the contrary, the conclusions reached in the Muskogee Cases, supra, must be affirmed as sound, and at least equal ton-mile rates should be the maximum at Tulsa.” The Commission’s decision shows that in prior proceedings of the Commission, in the cases of Phœnix Printing Co. v. M., K. & T. Railway. Co., 31 Interst. Com. Com’n R. 289, and Adleta Paper Co. v. C. & N. W. Railway Co., 31 Interst. Com. Com’n R. 347, called by the Commission the “Muskogee Cases,” the Commission had prescribed rates on news print and wrapping paper from Northern mill points to Muskogee, basing them on the per ton mile rate to Joplin.

■ I am of the opinion that the Commission made an adequate finding of a maximum rate, as required by section 1 of the Act to Regulate Commerce. Under section 10 of the Federal Control Act (40 Statutes at Large, 451 [Comp. St. §> 3115%j]), the jurisdiction of the Commission with respect to rates charged by the Director General, during federal control, was limited to the “justness” and “reasonableness” of the rates. It thus appears that the Commission had no authority to make an “unjust discrimination” or “undue prejudice” finding against the Director General. The fact that no proof of damages was required by the Commission indicates to some extent that their finding was one of unreasonableness rather than one of discrimination or prejudice. The Commission is expert in the matters coming before it for determination. It is not vested with power to enforce awards of reparation. Furthermore it will be assumed that the Commission acts on the theory that proof of damages is required for a finding of unjust discrimination or undue prejudice; it is al-. so cognizant of the fact that questioned awards must bear the scrutiny of the courts. Therefore, in view of the report of the Commission finding the maximum rate for Tulsa to be the per ton mile rate to Joplin and Muskogee on the commodities involved, it cannot be presumed, merely from the use of the word “relatively”, in its report, that the Commission intended to make a finding which it had no authority under the law to make.

That a maximum rate for Tulsa on the commodities involved was announced by the Commission bears of little doubt. Instead of specific figures, the findings prescribed a formula. In the “Muskogee Cases” rates were prescribed, based upon the per mile rate to Joplin, and in the instant case the basis of the rate prescribed is the rate established to Muskogee and Joplin; it is capable of exact determination, just as if set out in figures in the record. The rule 5 statements were based upon the formula prescribed, and the Director General certified to the correctness of the calculations.

Defendant insists that, even if the order of the Commission is not void in its entirety, it is void as to all shipments which moved after the date of the hearing before the Commission. I cannot agree with this contention, in view of the fact that the rule 5 statement was certified by the Director General as correct. This statement contained shipments moving after the date of the hearing, which I am informed is the practice of the Commission. Such is generally accompanied by appropriate affidavits that complainants had paid and borne the charges. Carriers are afforded an opportunity to object to proof in affidavit form, and if there is objection a further hearing upon the point is necessary. This proceeding is used to eliminate the necessity of additional hearings. A new rate, when prescribed, is of course prescribed to take effect at a future date, to give time for publication of necessary tariffs. If the complainant must accept reparation only to the date of the hearing, he must attend-further hearings to cover shipments moving before the new rates'go into effect. The defendant in this case has had his opportunity to object to the manner of proof, but did not do so, and the Commission ordered payment of reparation. Since no objection was raised [133]*133by the defendant, I am of the opinion that the order of the Commission was based upon sufficient evidence, and that the complainants are entitled to reparation according to the terms and tenor of the order of the Commission.

Defendant contends that two roads, to wit, the Chicago, St. Paul, Minneapolis & Omaha Railroad and the International Bridge & Terminal Railroad, were not named in the petition filed with the Commission, and that Ft. Francis, Ont., was not named in the complaint nor in the Commission’s report as one of the points of origin involved, and for these reasons the order of the Commission must be declared void as to -them.

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Bluebook (online)
16 F.2d 130, 1926 U.S. Dist. LEXIS 1569, Counsel Stack Legal Research, https://law.counselstack.com/opinion/world-pub-co-v-davis-oknd-1926.