Pittsburgh & Lake Erie Railroad v. Colonial Steel Co.
Pittsburgh & Lake Erie Railroad v. Colonial Steel Co.
Opinion of the Court
Opinion by
In May, 1901, the Colonial Steel Company, then in process of organization, contemplated the erection of a plant for the manufacture of steel, on the line of the Pittsburgh & Lake Erie Eailroad, and one James W. Brown, acting on its behalf, entered into negotiations with the railroad company for an agreement covering rates to and from the proposed site of the plant at South Monaca, this State. The negotiations resulted in the making of a contract on May 15,1901, between the railroad company and Brown, which, on the 13th of the following month, was assigned to the Colonial Steel Company, in pursuance of an agreement by the railroad company that it should be so assigned. The contract covers freight rates to and from Monaca, Pa., where the steel plant is located, and points on the Pittsburgh & Lake Erie Eailroad and its connections, among them being a rate of fifty cents per ton on coal from mines in the Pittsburgh district to Monaca. In return, the steel company
Reference
- Full Case Name
- Pittsburgh & Lake Erie Railroad Company v. Colonial Steel Company
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- 2 cases
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- Syllabus
- Railroad companies — Contracts for special rates — Alleged discrimination — Constitution of Pennsylvania, Art. XVII, Sec. 8, Act of June I, 1888, P. L. 72 — Affidavit of defense — Counterclaims. 1. A special contract between a railroad company and a manufactory for a special rate for the transportation of fuel to the manufactory, is not undue or unreasonable discrimination in violation of Art. XVII, Sec. 3, of the Constitution of Pennsylvania, or of the Act of June 4, 1883, P. L. 72, prohibiting undue or unreasonable discrimination in charges for transportation of freight or passengers. 2. A railroad company agreed with a factory to transport coal from certain districts to tbe factory at 50 cents per ton; the factory in return agreed to give preference to tbe railroad company in shipments of freight to and from its factory, when not contrary to the request of a customer; the 50 cent rate was the published tariff rate of the railroad company and by the terms of the contract was to remain in force for thirty years. The railroad company subsequently raised the rate and sought to recover from the factory the difference between the contract rate and the new rate on certain shipments of coal. The factory in its affidavit of defense counterclaimed for the amount of certain alleged excess payments which it had made under the new tariff-. The lower court decided that the contract was valid and entered judgment for defendant for the amount of the counterclaim. Held, no error.