Watkins Nat. Bank v. Cleveland, C., C. & St. L. Ry. Co.

• Decision Date: 05 February 1906
• Citation: 117 Mo. App. 248,93 S.W. 846
• Parties: WATKINS NAT. BANK v. CLEVELAND, C., C. & ST. L. RY. CO.
• Court: Missouri Court of Appeals

93 S.W. 846

117 Mo. App. 248

WATKINS NAT. BANK v. CLEVELAND, C., C. & ST. L. RY. CO.

Kansas City Court of Appeals. Missouri.

February 5, 1906.

Rehearing Denied March 3, 1906.

CARRIERS—ISSUING BILLS OF LADING—SUBSEQUENT RECEIPT OF FREIGHT.

A carrier's liability to one to whom bills of lading have been negotiated, for issuing the same before it had received the freight, in violation of Rev. St. 1899, § 5052, is not changed by its subsequent receipt thereof, the goods having been spoiled before their receipt.

Appeal from Circuit Court, Jackson County; John G. Park, Judge.

Action by the Watkins National Bank against the Cleveland, Cincinnati, Chicago & St. Louis Railway Company. Judgment for plaintiff, and defendant appeals. Affirmed.

Marley, Swearingen & Utley, for appellant. Stewart Taylor, for respondent.

ELLISON, J.

The plaintiff brought this action to recover damages charged to have been sustained by reason of defendant's having issued two bills of lading in violation of chapter 79, Rev. St. 1899. It recovered judgment in the trial court.

1. It appears that two cars of flour were shipped from a point in western Kansas to Kansas City, Mo., over the Missouri Pacific Railway Company. That the bills of lading therefor were owned by one Pierson, and were mailed from point of shipment to his agent at Kansas City. After the flour arrived in Kansas City, and was on the track of the Missouri Pacific, and was yet in cars as originally shipped, this agent surrendered the bills of lading to that company's general freight agent at Kansas City and took from him two other bills of lading, one for each car, reciting that the cars were received at Kansas City. These bills showed that the flour was destined for New York City over the Missouri Pacific as far as St. Louis, Mo. Pierson's agent then took the two bills to an agent, which defendant maintained at Kansas City, Mo., and the latter took them up and issued to Pierson the two bills in controversy, reciting that the defendant had received the flour from Pierson in good order and condition and agreeing to carry it to destination over its road, or otherwise, for a through rate named. Pierson then drew his draft for the shipments on H. A. Thissell, New Yory City, attached it to the bills of lading and negotiated the same to the plaintiff's bank. The flour was afterwards so damaged by the unprecedented flood of 1903, while yet on the tracks of the Missouri Pacific Railway at Kansas City, as to be practically worthless. After the flood the flour was taken over the Missouri Pacific to St. Louis, where one car was received by defendant and taken as far as Cleveland, Ohio, where a connecting carrier refused it and it was sold by defendant for a small sum. The other car was refused by defendant, and was sold by the Missouri Pacific for a small sum also. It is stated that the proceeds of these sales did not amount to more than the freight charges. The facts were the defendant had no railway at Kansas City, nor in the state of Missouri, and, of course, had not received the flour as stated in the bills of lading. The statute (chapter 79, Rev. St. 1899, § 5052) prohibits any railroad or other transportation company from issuing a bill of lading for freight unless such freight has been, at the time, actually shipped and put on board of its cars to be carried as expressed in such bill. "The title to this chapter and every section of the act indicates the purpose of its enactment. It was designed to prevent the issue of false bills of lading and warehouse receipts." State v. Kirby, 115 Mo. 440, 22 S. W. 453. The law limiting the power and authority of an agent of a public carrier to bind such carrier is so strict that it requires that before the authority exists in the agent, so far as to bind the carrier, the freight must have been actually received on the carrier's vessel or car. Louisiana Bank v. Laveille, 52 Mo. 380; Schooner Freeman v. Buckingham, 18 How. (U. S.) 182, 15 L. Ed. 341; Pollard v. Vinton, 105 U. S. 7, 26 L. Ed. 998. The frequent frauds thus practiced by agents of carriers issuing bill...