Blandin Paper Co. v. Great Northern Railway Co.
Blandin Paper Co. v. Great Northern Railway Co.
Opinion of the Court
MEMORANDUM DECISION
This is a proceeding under 49 U.S.C. § 16(2) to enforce a reparation order issued by the Interstate Commerce Commission (ICC) on January 13, 1966. The case was tried to the Court without a jury. Plaintiff’s case consisted of a number of exhibits and the administrative record before the ICC, and defendants’ case consisted of a number of exhibits and testimony on the routing and operating practices of the railroads involved.
Plaintiff shipped 54 carloads of paper from Grand Rapids, Minnesota to Des Moines, Iowa between July of 1961 and June of 1962. A rate of 48% cents per 100 pounds was charged and collected for these shipments.
The hearing examiner concluded that Route 3 is an unreasonable route from Grand Rapids to Chicago
In order to invoke the intermediate point rule the proposed routes must be reasonable routes. It appears that the rule generally applied by the ICC in cases involving the intermediate point rule is that reparation will be granted if the indirect route is not more than 50 percent circuitous compared to the corresponding short traffic route, but that such relief will be denied in cases involving more than 50 percent circuity. See Armour & Co. v. Baltimore & Ohio Ry. Co., 253 ICC 238 (1942). By this test, Routes 1 and 2 are reasonable routes because they involve only 45 and 37 percent circuity, respectively.
However, the Eighth Circuit has rejected the ICC test and denied reparation on the ground of unreasonableness of route in a case involving 35 percent circuity. See A. E. West Petroleum Co. v. Atchison, T. & S. F. Ry. Co., 8 Cir., 212 F.2d 812 (1954).
Since the degree of circuity involved in Routes 1 and 2 of the instant case is greater than the 35 percent circiiity involved in the A. E. West Petroleum Co. case, the Court must conclude that these routes are unreasonable and, therefore, incapable of invoking the intermediate point rule. While the hearing examiner considered the A. E. West Petroleum Co. case controlling as to Route 3, he did not consider this case controlling as to Routes 1 and 2. The hearing examiner inter
Accordingly, the Court concludes that routing rail traffic from Grand Rapids to Chicago via Des Moines is unreasonable ; that such unreasonable routing cannot invoke the intermediate point rule so as to entitle plaintiff to the rate sought; that the order of the ICC granting reparation herein is, therefore, contrary to law; and that plaintiff’s complaint herein should be and is hereby dismissed.
Let judgment be entered accordingly.
. Charges were collected on all of the shipments at the rate assailed but refunds have been made to the plaintiff, based on the rate sought, on three shipments, one moving on February 8, 1962 and two on May 17, 1962, which weighed 109,940, 111,944, and 112,016 pounds each. The defendants assert that refunds on these shipments were made through error.
. The plaintiff has not challenged in this proceeding the conclusion of the hearing examiner with regard to Route 3.
. In following the A. E. West Petroleum Go. case, one judge has held that a route involving only 22.5 percent circuity is unreasonable. See United States v. Interstate Commerce Commission, 142 F.Supp. 741 (D.C.D.C. 1955).
. In the A. E. West Petroleum Go. case, it was also contended that Kansas City was an intermediate point for traffic moving from Bradford to Cedar Rapids, Iowa. This routing involved considerable directional back-haul and was 62 percent circuitous. The Eighth Circuit held that this routing was unreasonable and, therefore, incapable of invoking the intermediate point rule.
. Cedar Rapids, likewise, was not directionally the next point beyond Kansas City in the A. E. West Petroleum Go. case.
Opinion of the Court
MEMORANDUM DECISION
This is a proceeding under 49 U.S.C. § 16(2) to enforce a reparation order issued by the Interstate Commerce Commission (ICC) on January 13, 1966. The case was tried to the Court without a jury. Plaintiff’s case consisted of a number of exhibits and the administrative record before the ICC, and defendants’ case consisted of a number of exhibits and testimony on the routing and operating practices of the railroads involved.
Plaintiff shipped 54 carloads of paper from Grand Rapids, Minnesota to Des Moines, Iowa between July of 1961 and June of 1962. A rate of 48% cents per 100 pounds was charged and collected for these shipments.
The hearing examiner concluded that Route 3 is an unreasonable route from Grand Rapids to Chicago
In order to invoke the intermediate point rule the proposed routes must be reasonable routes. It appears that the rule generally applied by the ICC in cases involving the intermediate point rule is that reparation will be granted if the indirect route is not more than 50 percent circuitous compared to the corresponding short traffic route, but that such relief will be denied in cases involving more than 50 percent circuity. See Armour & Co. v. Baltimore & Ohio Ry. Co., 253 ICC 238 (1942). By this test, Routes 1 and 2 are reasonable routes because they involve only 45 and 37 percent circuity, respectively.
However, the Eighth Circuit has rejected the ICC test and denied reparation on the ground of unreasonableness of route in a case involving 35 percent circuity. See A. E. West Petroleum Co. v. Atchison, T. & S. F. Ry. Co., 8 Cir., 212 F.2d 812 (1954).
Since the degree of circuity involved in Routes 1 and 2 of the instant case is greater than the 35 percent circiiity involved in the A. E. West Petroleum Co. case, the Court must conclude that these routes are unreasonable and, therefore, incapable of invoking the intermediate point rule. While the hearing examiner considered the A. E. West Petroleum Co. case controlling as to Route 3, he did not consider this case controlling as to Routes 1 and 2. The hearing examiner inter
Accordingly, the Court concludes that routing rail traffic from Grand Rapids to Chicago via Des Moines is unreasonable ; that such unreasonable routing cannot invoke the intermediate point rule so as to entitle plaintiff to the rate sought; that the order of the ICC granting reparation herein is, therefore, contrary to law; and that plaintiff’s complaint herein should be and is hereby dismissed.
Let judgment be entered accordingly.
. Charges were collected on all of the shipments at the rate assailed but refunds have been made to the plaintiff, based on the rate sought, on three shipments, one moving on February 8, 1962 and two on May 17, 1962, which weighed 109,940, 111,944, and 112,016 pounds each. The defendants assert that refunds on these shipments were made through error.
. The plaintiff has not challenged in this proceeding the conclusion of the hearing examiner with regard to Route 3.
. In following the A. E. West Petroleum Go. case, one judge has held that a route involving only 22.5 percent circuity is unreasonable. See United States v. Interstate Commerce Commission, 142 F.Supp. 741 (D.C.D.C. 1955).
. In the A. E. West Petroleum Go. case, it was also contended that Kansas City was an intermediate point for traffic moving from Bradford to Cedar Rapids, Iowa. This routing involved considerable directional back-haul and was 62 percent circuitous. The Eighth Circuit held that this routing was unreasonable and, therefore, incapable of invoking the intermediate point rule.
. Cedar Rapids, likewise, was not directionally the next point beyond Kansas City in the A. E. West Petroleum Go. case.
Reference
- Full Case Name
- BLANDIN PAPER COMPANY, a Minnesota corporation v. GREAT NORTHERN RAILWAY COMPANY, a Minnesota corporation, and Chicago and North Western Railway Company, a Wisconsin corporation
- Cited By
- 1 case
- Status
- Published