Illinois Cent. R. v. Brooks-Scanlon Co.
Opinion of the Court
The .plaintiff in error, the.Illinois Cen-. tral Railroad Company (which will be called the plaintiff), made a number of purchases of lumber from the Brooks-Scanlon Company, one of the defendants in error, which was a manufacturer of lumber, having its mill at Kentwood, La. Each of the contracts was made by the Brooks-Scanlon Company accepting a written order of the plaintiff for described lumber at designated prices. Each of these orders bore on its face one of the following notations: “f. o. b.“f. o. b. cars “f. o. b. cars Illinois Central tracks, Kentwood.” The plaintiff brought this suit against the Brooks-Scanlon Company and the other defendant in error, the Kentwood & Eastern Railway Company, the line of railway of which company connects with the plaintiffs line at Kent-wood, to recover the amount paid by the plaintiff to the last-named company pursuant to an agreement between it and the plaintiff (which agreement was shown in the joint traffic tariff rates filed by the plaintiff with the Interstate Commerce Commission), that on all lumber manufactured from logs brought over the rails of the Kentwood & Eastern Railway Company to Kentwood, La., and there manufactured into lumber and shipped, whether to the plaintiff itself or to another consignee, from Kentwood over plaintiff’s rails to points in designated territory, called Central territory, on and north of the Ohio river and east of the Mississippi river, the plaintiff would allow to the Kentwood & Eastern Railway Company a division of the freight rate, amounting to cents per hundred pounds. ' At the conclusion of the plaintiff’s evidence the court directed a verdict in favor of the defendants.- The plaintiff excepted to this ruling, and assigns it as error.
The evidence adduced tends to prove the following facts in addition to those above stated: The lumber sold and delivered to the plaintiff was manufactured by the Brooks-Scanlon Company at its 'mill at Kentwood from logs brought to Kentwood over the Kentwood .& Eastern Company’s line. At the time of the receipt of logs so shipped to it the Brooks-Scanlon Company paid to the Kentwood & Eastern Company the latter’s local freight rates from the points of origin of the logs on its line to Kentwood. When lumber manufactured from logs so carried by the Kentwood & Eastern Company moved over the plaintiff’s line from Kentwood to points in the territory on and north of the Ohio river designated in the above-mentioned agreement for a division of the joint through freight rate the plaintiff paid to the Kent-wood & Eastern Company the part of the joint rate which under that agreement the latter company was entitled to receive. That company in turn paid to the Brooks-Scanlon Company the amounts so paid to the former by the plaintiff. A result was that, unless the local freight rate to Kentwood on the logs amounted to more than the part of the through joint rate which the Kentwood & Eastern Company receiv
This ignorance on the part of those officials was due to the method followed iti that department in ascertaining if the seller of goods, who was obligated to make delivery f. o. b. at a point on the plaintiff’s lines, was chargeable for the amount due to another carrier or carriers for bringing the goods to the stipulated point of delivery on the plaintiff’s line, and also to the circumstance that another department of the plaintiff, its traffic department, conducted by other officials, had charge of the matter of ascertaining and paying what was due to the Kentwood & Eastern Company on a division of the rates on lumber shipped into Central territory. It was the practice oí the officials of the purchasing department to look to the waybill, which accompanied the shipment of goods purchased, to ascertain if anything was due to another carrier for hauling the goods from their place of origin. If the goods had come over the line of another carrier, the plaintiff’s agent at the point of delivery on its line made a notation on the waybill which showed the. fact that the other carrier was entitled to its charge for hauling the goods before their delivery to the plaintiff. No such notation was made by the plaintiff’s agent at Kentwood on waybills showing shipments by the Broolcs-Scanlon Company of lumber sold by it tp the plaintiff, as that lumber was not received from another carrier, but from a shipper at Kentwood. As to lumber so shipped from Kentwood, the matter of the division for hauling to that point the logs used in the manufacture of the lumber was one with which the plaintiff’s local agent at that point had nothing to do. As the waybills accompanying such shipments did not indicate that any other carrier was interested in the shipment, the purchasing department paid for the lumber without
We think that each of these assumptions is unwarranted. The payment of the local rate for hauling logs to Kentwood was not a final settlement of the claim of the carrier which rendered that service, if the logs so hauled, when converted into lumber at Kentwood, were shipped from that point over the plaintiff’s rails into Central territory. The conversion of the logs into lumber at Kentwood, followed by the shipment from that point of such lumber over the plaintiff’s lines into Ceil ■ tral territory, had the effect of keeping alive the Kentwood & Eastern Company’s claim for bringing the logs to Kentwood, and of imposing upon the plaintiff the obligation of paying the Kentwood & Eastern Company the compensation to which it was entitled for rendering that service. The payment by the plaintiff to the initial carrier of the latter’s stipulated share of the through rate for the carriage of the commodity from its place of origin on its line to the place of final destination in Central territory was not made any the less a payment for bringing the logs to Kentwood by the fact that the Brooks-Scanlon Company conditionally paid the local rate on the logs before they were manufactured into lumber and their final destination was determined by the shipment of the lumber into Central territory. The result was that the plaintiff paid a charge for which the Brooks-Scanlon Company was bound to indemnify it under that company’s obligation to deliver f. o. b. The terms of the contract were not such as to make the plaintiff’s right to a delivery of the lumber free of all charges subject to the condition that it refrained from carrying it into Central territory. The contracts cannot properly be given the same meaning they would have had if they had contained the stipulation for deliveries at Kentwood “f. o. b., provided the lumber is not shipped into Central territory.” By its purchases the plaintiff became entitled to the lumber unincumbered by any charge against it for a service rendered to the seller. It was entitled to carry it to any point it chose, and to have the lumber, whatever its destination was when it was delivered for shipment, free of
At the times the plaintiff paid for the lumber it could properly have retained so much of the purchase price as was 'required to pay the initial carrier’s share of the through rate, as that was the compensation due for a service which the seller was obligated to pay for. The seller of the lumber was not entitled to that part of the stipulated price which the buyer was required to pay to another carrier to free the lumber of a charge resting, against it when it was delivered at Kentwood for shipment into Central territory. The payment to the Kentwood & Eastern Company was proper, as, under the agreement above-mentioned, it was entitled to its stipulated share of the through rate. The plaintiff’s right to recover is a result of the fact.that it had to pay the amounts sued for to .free the lumber of claims to which it was subject, but for which the seller was bound' under its agreement to deliver f. o. b. The right to recover is not dependent on the fact that the amounts the plaintiff paid to the initial carrier were by the latter paid to the seller of .the lumber. But in view of that fact it is quite apparent that a denial of the plaintiff’s right, to recover would have the effect of enabling the seller of the lumber, at the expense of the buyer, to escape the payment of what it really cost to get the logs to Kentwood. The failure of the plaintiff’s representatives to deduct from the agreed price of the lumber the amounts so paid to the initial carrier was due to ignorance on the part of those officials of the fact that another carrier had rendered a service which the seller of the lumber was obligated to pay for. It is not material whether what was so paid to such other carrier was the whole or only a part of the compensation due to it for carrying to Kentwood the logs from which the lumber was manufactured. The entire expense of carrying the logs to Kentwood had to'be borne by the seller of the lumber.
The conclusion is that the evidence adduced showed that the plaintiff was entitled to recover from the Broolcs-Scanlon Company the amounts paid by the plaintiff to the Kentwood & Eastern Company for carrying to Kentwood the logs out of which the lumber in question was • manufactured. It follows that the court was in error in directing a verdict in favor of the Brooks-Scanlon Company.
Because of that error the judgment is reversed.
Reference
- Full Case Name
- ILLINOIS CENT. R. CO. v. BROOKS-SCANLON CO.
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- 3 cases
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- Published