Atchison Co v. United States Union Stock Yard Transit Co of Chicago v. Same

Decision Date29 April 1935
Docket NumberNo. 606,607,S.F. RY,606
Citation295 U.S. 193,79 L.Ed. 1382,55 S.Ct. 748
PartiesATCHISON, T. &CO. et al. v. UNITED STATES et al. UNION STOCK YARD & TRANSIT CO. OF CHICAGO v. SAME
CourtU.S. Supreme Court

Mr. Frank H. Towner, of Chicago, Ill., for appellants Atchison, T. & S.F. Ry. Co. and others.

Mr. Charles E. Cotterill, of New York City, for appellant Union Stock Yard & Transit Co.

Mr. J. Stanley Payne, of Washington, D.C., for appellees United States and Interstate Commerce Commission.

Mr. Carl M. Owen, of New York City, for appellee Hygrade Food Products Corporation.

Mr. Justice BUTLER delivered the opinion of the Court.

These are separate appeals from a decree of a three-judge court dismissing a suit to enjoin enforcement of an order of the Interstate Commerce Commission (D.C.) 8 F.Supp. 825. The suit was brought by twenty-four railroads, appellants in No. 606, for convenience called 'carriers,' against the United States and Interstate Commerce Commission. Twenty-one are line carriers; the other three perform only switching service. The Union Stock Yard & Transit Company, appellant in No. 607, and the Hygrade Food Products Corporation, the complainant before the Commission and one of the appellees here, intervened.

By its complaint to the Commission the Hygrade Company attacked as unreasonable in violation of section 1 of the Interstate Commerce Act (title 49, U.S.C. § 1, 49 USCA § 1), the carriers' tariff charges applicable to switching live stock to its packing plant. And it assailed as inapplicable the yardage charge collected by the Yards Company on live stock delivered at the stockyards. It claims that the service covered by the charge is included in transportation, sections 1(3), 15(5) of the act, 49 USCA §§ 1(3), 15(5) that, not being specified in carriers' tariffs, they are unlawful, section 6 of the act, 49 USCA § 6; and that the practice of the carriers and Yards Company in making the stockyards their depot for delivery of live stock pursuant to an arrangement by which the Yards Company imposes a yardage charge is an unjust and unreasonable practice in violation of section. 1.

Subject to regulation by the Secretary of Agriculture under the Packers and Stockyards Act 1921, 42 Stat. 159, 7 U.S.C. c. 9 (7 USCA § 181 et seq.), the Yards Company operates public stockyards in Chicago. The Hygrade Company in 1929 acquired and has since operated a packing plant that many years ago was established on the Chicago Junction Railway a short distance from the unloading pens in the stockyards. Tracks of the Junction Railway extend into, and are used to haul dead freight to and from, the Hygrade plant. The charge for switching live stock into the plant is $12 per car. To avoid that burden, the Hygrade Company elects, as did its predecessors, to have all live stock intended for slaughter at the plant shipped to the stockyards. These yards are live stock terminals of the carriers and are served by trains operated by them over the tracks of the Junction Railway. Each carrier's tariff specifies rates covering transportation of live stock to Chicago including delivery to consignee on the carrier's own line. But, as practically all shipments to Chicago are consigned to the public stockyards, there is little, if any, need or use of individual carrier unloading facilities.

To cover the movement over the Junction Railway to the public stockyards, western carriers add to the Chicago rate $2.70 and eastern carriers $1.35 per car. No additional charge is made for unloading. The carriers employ and pay the Yards Company for unloading the live stock the amount, $1 per car, specified in its tariffs filed with the Interstate Commerce Commission. That work is accomplished by means of platforms and chutes down which the animals are driven from the cars into pens. These pens are not suitable places in which long to hold live stock. At peak periods of stock train arrivals these facilities are so much in use that the Yards Company is able to permit the animals to remain in the unloading pens only a short time; often not more than a few minutes. And, unless promptly taken away by consignee, the Yards Company transfers them to holding pens.

About 85 per cent. of all consignments to the Hygrade Company are so transferred. The others are by it taken from the unloading pens and driven through ways or alleys within the extensive yards properties over scales, where for the purpose of computing freight charges they are weighed, to and along an elevated runway over pens in the yards and the tracks of the Junction Railway, thence to and through a tunnel, under the proposed extension of Pershing road (located along what was formerly a part of the Chicago river) ending at the Hygrade Company's plant which abuts on that highway. The Yards Company, in accordance with its tariffs filed with the Secretary of Agriculture, makes and collects a specified charge per head on all live stock received in the yards; being 35, 25, 12, and 8 cents, respectively, for cattle, calves, hogs, and sheep. These charges apply to animals taken by the consignee immediately from unloading pens to its plant as well as to those transferred by the Yards Company to the holding pens later to be taken by consignee. The tariffs of the Yards Company also specify charges for other services.1 As to each carload, it makes a statement showing separately the carrier's charges and its own. It collects the total, accounts to the carriers for those covered by their tariffs filed with the Interstate Commerce Commission and retains the balance.

The report of the Commission (195 I.C.C. 553) states: The stockyards are live stock terminals of the carriers. Consignees are entitled to delivery at suitable pens without charge for the mere placement therein of the live stock. The unloading pens are suitable for the accomplishment of proper delivery to consignee. The method of handling is efficient and satisfactory. The fact that the carriers have at Chicago destinations other places of delivery where no charge is made is not a legally sufficient reason for an extra charge at the stockyards. As to about 15 per cent. of all shipments consigned to complainant 'it has taken delivery before the animals were placed in holding pens.' There is no occasion for putting them in holding pens if prompt delivery is desired. The fact that other freight is subject to storage or demurrage charges only after the lapse of considerable time is not a sufficient reason why similar rules should apply in respect of yardage charges on live stock. After unloading, live stock requires unusual attention and care such as is not required by other freight.

The Commission concluded: The switching charge is not shown to be unreasonable or otherwise unlawful.

Prompt delivery does not require pens to be so equipped as to provide rest, feed, and water for live stock. If placement into pens that are so equipped is desired, an extra charge therefor is not within the inhibition of section 15.

There are no services performed after unloading for which defendants may assess charges in instances where delivery is taken at the unloading pens. The live stock in carloads consigned to complainant at the yards is not subject to yardage charges in instances where delivery is so taken. Complainant is entitled to reparation.

The Commission ordered that the carriers and Yards Company cease and desist from practices which subject complainant to payment of yardage charges on live stock, in instances where delivery is taken at the unloading pens, and that the proceeding may be reopened to ascertain the amount of reparation.

Appellants contend that transportation ends with unloading of live stock into suitable pens, and that, for lack of essential findings of fact, the order is void.

Transportation of ordinary live stock in carload lots from and to points other than public stockyards has always been deemed to include furnishing of facilities at the place of shipment for loading and at destination for unloading and suitable ways for convenient ingress and egress. Covington Stock-Yards Co. v. Keith, 139 U.S. 128, 134, 135, 11 S.Ct. 461, 35 L.Ed. 73; Erie R.R. Co. v. Shuart, 250 U.S. 465, 468, 39 S.Ct. 519, 63 L.Ed. 1088; 2 Hutchinson, Carriers (3d Ed.) § 510. Cf. Norfolk & W. Ry. v. Public Serv. Comm., 265 U.S. 70, 74, 44 S.Ct. 439, 68 L.Ed. 904. And, in the absence of understanding or agreement to the contrary, transportation includes loading and unloading. 4 Elliott, Railroads (3d Ed.) § 2346; Indiana Union Traction Co. v. Benadum, 42 Ind.App. 121, 123, 83 N.E. 261; Davis v. Simmons (Tex. Civ. App.) 240 S.W. 970, 976; Massey v. Texas & P. Ry. Co. (Tex. Civ. App.) 200 S.W. 409, 410; Benson v. Gray, 154 Mass. 391, 394, 28 N.E. 275, 13 L.R.A. 262.

But for many years, in virtue of custom and as well by the terms of shipping contracts in general use, that burden has been laid upon shippers. 2 Hutchinson, Carriers (3d Ed.) § 711; L. & L.F. Ins. Co. v. R., W. & O.R.R. Co., 144 N.Y. 200, 205, 39 N.E. 79, 43 Am.St.Rep. 752. Indeed, October 21, 1921, the Interstate Commerce Commission, acting under authority of section 15(1) of the act, 49 USCA § 15(1), and following a form of clause submitted by shippers and carriers, prescribed a uniform live stock contract containing section 4(a): 'The shipper at his own risk and expense shall load and unload the live stock into and out of cars, except in those instances where this duty is made obligatory upon the carrier by statute or is assumed by a lawful tariff provision.' In re Domestic Bill of Lading and Live Stock Contract, 64 I.C.C. 357, 363, App. F. But the practice has long been otherwise at the Chicago Union Stockyards. For more than 50 years prior to 1917 the carriers without any additional charge to shipper or consignee unloaded live stock into pens provided by the Yards Company. Adams v. Mills, 286 U.S. 397, 410, 52 S.Ct. 589, 76 L.Ed. 1184. Paragraph (5) of section 15 enacted...

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