Youghiogheny & Ohio Coal Co. v. Erie Ry. Co.

14 Ohio C.C. Dec. 289
CourtCuyahoga Circuit Court
DecidedDecember 8, 1902
StatusPublished
Cited by1 cases

This text of 14 Ohio C.C. Dec. 289 (Youghiogheny & Ohio Coal Co. v. Erie Ry. Co.) is published on Counsel Stack Legal Research, covering Cuyahoga Circuit Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Youghiogheny & Ohio Coal Co. v. Erie Ry. Co., 14 Ohio C.C. Dec. 289 (Ohio Super. Ct. 1902).

Opinion

HALE, J.

The plaintiff brought its action to prevent what it alleges to be a discrimination against it by the defendant, The Erie Railroad Company, [290]*290in the handling ol freight at Cleveland. This discrimination is alleged to result by depriving it of the use of certain machinery for the rapid transfer of coal from cars to boats which is granted by the railroad company to the defendant, The Pittsburgh Coal Company.

It is made manifest'by the evidence, that the use of such machinery is indispensable to the successful prosecution of the business in which both of these companies are engaged.

The case of the Rhodes & Beidler Company v. Erie Railroad Company et al. (not reported), decided by this court at a former term, involved facts and issues in some respects identical with, and, in other respects, very similar to, those to be considered in the determination of this case. Because of the criticism made on our decision in that case, and the further fact that the court is now diiferently constituted, we have carefully considered all the facts bearing upon this case and the law therein announced.

The defendant, The Erie Railroad Company, is a common carrier of freight and passengers, and, as such, hauls large quantites of coal from the mines in Pennsylvania to Cleveland, designed for transshipment there to vessels for carriage to the upper lakes., Coal transferred over its road by the railroad company for this purpose, constitutes a distinct class of freight, for which a special or distinct rate is fixed by the company. This railroad company owns a large dock frontage on the Cuyahoga river, with which its tracks do, and for many years have, connected. A dock, owned by the railroad company with which its tracks thus connect, has, for a number oí years, been used mainly, if not solely, for the transfer of coal from cars to vessels or for loading coal on boats. The methods of doing this have been of various kinds and improved from time to time.

In 1895 several shippers of coal over this road caused to be incorporated the defendant, The Erie Coal Transfer Company. The business of this corporation was the unloading of coal from cars to vessels, which, up to this time, had been principally done by each individual shipper in his own way, but upon the docks provided by the railroad company. It was, undoubtedly, in contemplation of all parties to that arrangement, including the railroad company, that better facilities should be provided for that work. In furtherance of such purpose, the railroad company and transfer company, on March 9, 1895, entered into a written agreement as follows:

“This memorandum of agreement entered into this ninth day of March, 1895, between the New York, Rake Erie & Western Railroad Company, and John King and John McCullough, as receiver of the property of said company, and the successors and assigns ol each of [291]*291them, party of the first part, and the Erie Coal Transfer Company (hereinafter called the transfer company), party of the second part, witnesseth: The party of the first part is to furnish, at his own expense, and maintain certain tracks and dock facilities on the Cuyahoga river, at Cleveland,, Ohio, as shown on the attached plans, to be used tor the transfer from cars to vessels of coal shipped over its lines. The transfer company agrees to provide, maintain and operate at its own cost and at its own risk, a machine for the dumping of coal from cars, via chutes into vessels. In so maintaining it second party shall keep it in good repair and condition so that in case of any purchase by the first party of the machine, or of stock of the transfer company, as hereinaiter provided, the machine shall be at the time of such purchase, as good as new, depreciating from ordinary use, wear and tear, that cannot be made good by such repairs as a prudent owner would naturally make, alone excepted. The plans for the said machine are to be submitted to and approved by the chief engineer of the said receivers, and the transfer company is to have the right to enter upon and use so much of the first party’s property as may be necessary for the erection, maintenance and operation of said machine, as shown on plan hereto attached. The transfer company is to influence as far as possible the shipments erf coal over the line of first party, for handling at its plant, and is to charge parties for coal handled at the plant, a price for said handling which shall be fixed from time to time by first party’s general freight agent at Cleveland, which price, however, shall in no event be less than the minimum charge for similar services at Cleveland, Ashtabula, Fair-port, Conneaut and Erie, nor less than the costs to the second party handling the same, in such cost of handling to be taken into consideration the expense of keeping the machine in good repair and condition, and a five per cent, annual profit on the costs of the machine.
“Should the chief engineer of the first party within the first sixty days of operation of the machine, after its erection, decide the machine to be a failure tor the purposes for which it is intended, this contract shall terminate on notice from first party, and thereupon second party shall remove the machine, and the net loss to second party on the cost of the machine shall be borne, half by the second party aad halt by the first party, first party paying second party halt of such net loss. Second party agrees to use its best endeavors to keep the plant in operation up to its full capacity during the whole of each season, and if second party shall fail, and after five days’ notice from first party continue to fail to comply with such agreements, first party may require second party to handle at the plant such coal as first party may tender, or cause to be tendered, at a price fixed by said general freight agent, such price, [292]*292however, not to be lower than the minimum price for like service, at the time being, at the ports above mentioned. Should second party-fail for ten days thereafter to handle such coal at such price, then first party may terminate this contract upon five days’ notice to second, party, and thereupon second party shall be required to remove its machine and withdraw from the premises. First party shall have the privilege, during the month of January in any year during the continuance of this contract, of purchasing from second party the transferring machine herein provided for, or of purchasing from any stockholder of second party all or any of his stock upon giving at any time, during said month of January, thirty days’ notice of its desire so to do, at a price equal to the cost price of such machine as the stock purchased shall be of $te total stock of the second party, less the depreciation on such cost price from the ordinary wear and tear of such machine, not to be made good by the repairs that second party is to make, which depreciation is hereby fixed for the purpose of this provision at 6ve per cent, per annum; and first party agrees at the election of second party to purchase the machine, or at the election of any stockholder of second party to purchase his stock at a price measured by the cost price of the machine, less depreciation in the manner above described; provided, thirty days’ notice of such election of second party or of its stockholders shall be given first party in the month of January in any year during the continuance of this contract.

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Bluebook (online)
14 Ohio C.C. Dec. 289, Counsel Stack Legal Research, https://law.counselstack.com/opinion/youghiogheny-ohio-coal-co-v-erie-ry-co-ohcirctcuyahoga-1902.