United States v. Atchison, T. & S.F. Ry. Co.

• Decision Date: 11 October 1907
• Docket Number: 2,520.
• Citation: 163 F. 111
• Parties: UNITED STATES v. ATCHISON, T. & S.F. RY. CO.
• Court: U.S. Court of Appeals — Ninth Circuit

163 F. 111

UNITED STATES v. ATCHISON, T. & S.F. RY. CO.

No. 2,520.

United States District Court, S.D. California, Southern Division.

October 11, 1907

Oscar Lawler, U.S. Atty., and A. I. McCormick, Asst. U.S. Atty.

T. J Norton, A. C. Van Cott, E. W. Camp, and U. T. Clatfeller, for defendant.

WELLBORN District Judge.

The Supreme Court of the United States has said 'It cannot be challenged that the great purpose of the act to regulate commerce, whilst seeking to prevent unjust and unreasonable rates, was to secure equality of rates as to all and to destroy favoritism; these last being accomplished by requiring the publication of tariffs and by prohibiting secret departures from such tariffs, and forbidding rebates preferences, and all other forms of undue discrimination. To this extent and for these purposes the statute was remedial and is therefore entitled to receive that interpretation which reasonably accomplishes the great public purpose which it was enacted to subserve. ' New Haven R.R. Co. v Interstate Commerce Commission, 200 U.S. 391, 26 Sup.Ct. 277 (50 L.Ed. 515).

In an earlier case, involving the construction of an act of the Legislature of Colorado of the same nature as the interstate commerce act, the same high authority spoke as follows:

'This act was intended to apply to intrastate traffic the same wholesome rules and regulations which Congress two years thereafter applied to commerce between the states, and to cut up by the roots the entire system of rebates and discriminations in favor of particular localities, special enterprises, or favored corporations, and to put all shippers on an absolute equality, saving only a power, not in the railroad company itself, but in the Railroad Commissioner, to except 'special cases designed to promote the development of the resources of this state,' and not to prevent the commissioner 'from making a lower rate per ton per mile, in car load lots, than shall govern shipments in less quantities than car load lots, and from making lower rates for lots of less than five car loads than for single car load lots.' The statute recognizes the fact that it is no proper business of a common carrier to foster particular enterprises or to build up new industries, but, deriving its franchise from the Legislature, and depending upon the will of the people for its very existence, it is bound to deal fairly with the public, to extend them reasonable facilities for the transportation of their persons and property, and to put all its patrons upon an absolute equality. * * * So opposed is the policy of the act to secret rebates of this description that it requires a printed copy of the classification and schedules of rates to be posted conspicuously in each passenger station for the use of the patrons of the road, that every one may be apprised, not only of what the company will exact of him for a particular service, but what it exacts of every one else for the same service, so that in fixing his own prices he may know precisely with what he has to compete. To hold a defense thus pleaded to be valid would open the door to the grossest frauds upon the law, and practically enable the railroad company to avail itself of any consideration for a rebate which it considers sufficient, and to agree with the favored customer upon some fabricated claim for damages, which it would be difficult, if not impossible, to disprove. For

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