Seaboard Air Line Ry Co v. United States, 27

• Decision Date: 08 November 1920
• Docket Number: No. 27,27
• Citation: 254 U.S. 57,41 S.Ct. 24,65 L.Ed. 129
• Parties: SEABOARD AIR LINE RY. CO. et al. v. UNITED STATES et al
• Court: U.S. Supreme Court

254 U.S. 57

41 S.Ct. 24

65 L.Ed. 129

SEABOARD AIR LINE RY. CO. et al.

v UNITED STATES et al.

No. 27.

Argued Oct. 8 and 11, 1920.

Decided Nov. 8, 1920.

Messrs. Claudian B. Northrop, of Chevy Chase, Md., and Frank W. Gwathmey and R. Walton Moore, both of Washington, D. C., for appellants.

Mr. Blackburn Esterline, of Washington, D. C., for the United States.

Mr. Charles W. Needham, of Washington, D. C., for Interst. Com. Com'n.

[Argument of Counsel from page 58 intentionally omitted] Mr. Justice DAY delivered the opinion of the Court.

In this case a petition was filed in the District Court of the United States for the Eastern District of Virginia to enjoin an order of the Interstate Commerce Commission concerning the absorption of switching charges on the lines of the Seaboard Air Line Railway Company, the Seaboard Air Line Railway, Southern Railway Company, and Atlantic Coast Line Railway Company, within the switching limits of these roads as established at Richmond, Va.

The Commission's order was made upon a petition of the Richmond Chamber of Commerce, averring that the practice of the railroads was discriminatory and unlawful, and violative of section 2 of the Act to Regulate Commerce. From the facts found by the Commission it appears that the appellant railroad companies bring freight from the South to Richmond, Va., where the same is delivered to industries in the switching limits of that city. If the freight is received at a point served by any two or more of the carriers, the switching charge is absorbed if the freight be delivered on the line of either; but if the delivery is to an industry served only by a noncompetitive carrier the switching charge is not absorbed. The Commission illustrated the point by an example:

'Oxford, N. C., is a point reached both by the Southern and the Seaboard, but not by the Chesapeake & Ohio. Norlina, N. C., is a local point on the Seaboard. Assume that industries A. B, and C. [referring to a diagram] on the Seaboard, the Southern, and the Chesapeake & Ohio, respectively, are similarly located with regard to the interchange tracks of the three carriers at Richmond. On traffic from Oxford to industry B on the Southern, the Seaboard will absorb the Southern's switching charges. But on traffic from Oxford to industry C, on the Chesapeake & Ohio, the Seaboard refuses to absorb the Chesapeake & Ohio's switching charges. On traffic from and to Norlina, a local point, however, the Seaboard refuses to absorb all switching charges whatsoever to any off-line industry.'

The order complained of directed the three carriers to cease and desist, on or before August 1, 1917, and thereafter to abstain, from absorbing switching charges on certain interstate carload freight at Richmond, Va., while refusing to absorb such charges on like carload shipments for a like and contemporaneous service under substantially similar circumstances and conditions; such practices having been found in a supplemental report to be unjustly discriminatory and unlawful within section 2 of the Act to Regulate Commerce, and——

'to establish, on or before August 1, 1917, * * * and thereafter to maintain and apply uniform regulations and practices for the absorption of charges for the switching of interstate carload freight at Richmond, Va., and to collect no higher rates or charges from shippers and receivers of such carload freight at Richmond, Va., than they contemporaneously collect from any other shipper or receiver of such carload freight at Richmond, Va., for a like and contemporaneous service under substantially similar circumstances and conditions.' 44 Interest. Com. Com'n R. 455.

The District Court denied the application for an injunction, and ordered that the petition be dismissed. 249 Fed. 368.

The contention of the appellants is that the carriage is not a like and contemporaneous service in the transportation of a like kind of traffic under substantially similar circumstances and conditions.

Section 2 of the Act to Regulate Commerce provides:

'That if any common carrier subject to the provisions of this act shall, directly or indirectly, by any special rate, rebate, drawback, or other device, charge, demand, collect, or receive from any person or persons a greater or less compensation for any service rendered, or to be rendered in the transportation of passengers or property, subject to the provisions of this act, than it charges, demands, collects, or receives from any other person or persons for doing for him or them a like and contemporaneous service in the transportation of a like...