Zoller Hop Co. v. Southern Pac. Co.

143 P. 931, 72 Or. 262, 1914 Ore. LEXIS 28
CourtOregon Supreme Court
DecidedSeptember 8, 1914
StatusPublished
Cited by10 cases

This text of 143 P. 931 (Zoller Hop Co. v. Southern Pac. Co.) is published on Counsel Stack Legal Research, covering Oregon Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Zoller Hop Co. v. Southern Pac. Co., 143 P. 931, 72 Or. 262, 1914 Ore. LEXIS 28 (Or. 1914).

Opinion

Mr. Justice Burnett

delivered the opinion of the court.

The essence of the dispute here involved is the validity of the condition of the bill of lading prescribing the invoice price of the hops as the basis upon which to compute damages in case of loss. Error of the trial court is assigned in various'forms, all centering on the excerpt noted. The judge presiding at the hearing instructed the jury that the condition quoted was void, as against public policy, and that the parties to the action “are bound by the rules of law placing the liability of a comm oh carrier to the shipper of a commodity as if the contract referred to had not been entered into.” The court also refused the carrier’s offer to prove that the plaintiff’s agent, who shipped the hops, made out and signed the bill of lading containing the. clause quoted and the rate of freight at $1.50 per hundred, and afterward brought it to the defendant’s agent at Independence, who signed it on behalf of the carrier. The court likewise refused to allow the defendant to prove its allegation about the regulations prescribing one rate for a shipment under the uniform bill of lading with its restricted liability of the carrier and a higher rate im[268]*268posing upon the carrier the common-law responsibility except as stated. Besides this, the defendant was denied the right to prove that the copy of the tariff was on file and open to inspection at its station in Independence, Oregon, at and before the shipment moved.

1, 2. The transaction confessedly involved a movement of freight between the states of Oregon and Pennsylvania, and hence is governed by the interstate commerce law and the construction thereof announced by the Supreme Court of the United States. By the terms of that national statute every common carrier engaged in interstate commerce is required to file with the Interstate Commerce Commission, and print and keep open for public inspection, schedules showing all the rates, fares and charges for transportation, which schedules shall contain the classification of freight in force, and shall also state separately all privileges or facilities granted or allowed, and any rules or regulations which in any wise change, affect or determine any rates, or charges, or the value of service rendered to shipper or consignee. Printed copies of these schedules must be kept posted in two public and conspicuous places in every depot station or office of such carrier where passengers or freight are received for transportation in such form that they shall be accessible to the public and can be conveniently inspected. The Commission has power to change all rates, regulations and practices of common carriers filing such schedules, so far as it shall determine any of them to be unreasonable or unjust, and it is made a criminal offense for either the carrier or shipper to deviate from the scheduled rates or regulations in any of their dealings with each other: 34 Stat. 584 (U. S. Comp. Stats. 1913, § 8563). As said by Mr. Justice Harlan [269]*269in Louisville & Nashville R. R. Co. v. Mottley, 219 U. S. 467 (55 L. Ed. 297, 31 Sup. Ct. Rep. 265, 34 L. R. A. (N. S.) 671):

“The evident purpose of Congress was to establish uniform rates for transportation, to give all the same opportunity to know what the rates were, as well as to have the equal benefit of them. * * The purpose of Congress was to cut up by the roots every form of discrimination, favoritism and inequality. ’ ’

The design and effect of the statute is not only to compel interstate carriers to give fair and equal treatment to all shippers, without distinction or favor, but also to provide for such publicity in the matter that all may know certainly that they are receiving the benefits of the law. As early as 1902, in the case of Normile v. Oregon Nav. Co., 41 Or. 177 (69 Pac. 928), a case on a bill of lading containing a maximum valuation clause, this court held that:

“The plaintiff cannot consistently claim a higher valuation upon the agreed rate of freight, and the contract is not, in any proper sense, one for the exemption of defendant from the consequences of negligence In such a case the shipper is estopped to deny the value which he himself has deliberately fixed and agreed to as the real value of the property when it comes to a loss. Such stipulations and contracts are supported and upheld upon considerations of fairness, as it relates both to the shipper and the carrier. We are led to this conclusion by cases of palpable analogy and high authority. Indeed, there are but few opposed: Hart v. Pennsylvania R. Co., 112 U. S. 331 (28 L. Ed. 717, 5 Sup. Ct. Rep. 151); Alair v. Northern Pac. R. R. Co., 53 Minn. 160 (54 N. W. 1072, 39 Am. St. Rep. 588, 19 L. R. A. 764); Railway Co. v. Sowell, 90 Tenn. 17 (15 S. W. 837); Starnes v. Railroad Co., 91 Tenn. 516 (19 S. W. 675); Richmond & D. R. Co. v. Payne, 86 Va. 481 (10 S. E. 749, 6 L. R. A. 849); Gregg v. Illinois Cent. R. Co., 147 Ill. 550 (35 N. E. 343, 37 [270]*270Am. St. Rep. 238); Hill v. Boston etc. Co., 144 Mass. 284 (10 N. E. 836); Abrams v. Milwaukee etc. Co., 87 Wis. 485 (58 N. W. 780, 41 Am. St. Rep. 55).”

The Normile case, it is true, lays down the rule that the agreement must he fairly and honestly made if the shipper is to be bound; but under that principle, as showing good faith and justice, the carrier in this case ought to have been allowed to prove the schedules, rules and regulations under which it received the shipment, and which had the approval of the Interstate Commerce Commission, that the means of knowing all about the freight tariff were open and within convenient reach of the plaintiff in the manner directed by the statute, and that the plaintiff had itself made out the bill of lading and tendered it with the hops it shipped. All this was proper to consider in any event, if the question were open, in determining whether the transaction was attended with deceit or unfairness, or was carried on in the open.

3, 4. The Interstate Commerce Law, however, does not leave the question open. By its terms interstate commerce cannot be transacted by common carriers without they first file their schedules, rules and regulations, after which neither they nor their patrons can deviate from them. The effect of the offers to prove which have been mentioned would have been to show that the contract was not only lawful, but was the only one permissible in connection with the rate and the regulations sanctioned by the Interstate Commerce Commission. Kansas City So. Ry. Co. v. Carl, 227 U. S. 639 (57 L. Ed. 683, 33 Sup. Ct. Rep. 391), was a case involving a restricted valuation clause in a bill of lading. There the Supreme Court of the United States, speaking by Mr. Justice Lurton, said:

[271]*271“The valuation declared or agreed upon, as evidenced by the contract of shipment upon which the published tariff rate is applied, must be conclusive in an action to recover for loss or damage a greater sum. * * To permit such a declared valuation to be overthrown by evidence aliunde

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Bluebook (online)
143 P. 931, 72 Or. 262, 1914 Ore. LEXIS 28, Counsel Stack Legal Research, https://law.counselstack.com/opinion/zoller-hop-co-v-southern-pac-co-or-1914.