Document: 336 U.S. 465 69 S.Ct. 692 93 L.Ed. 817 CHICAGO, MILWAUKEE, ST. PAUL & PAC. R. CO. et al.v.ACME FAST FREIGHT, Inc. No. 65. Argued Dec. 8, 1948. Decided April 4, 1949. Messrs. Joseph Walker and Rowland L. Davis, Jr., both of New York City (Messrs. Willam Zearfaus, Philadelphia, Pa., Bleakley, Platt, Gilchrist Walker, Arthur C. Patterson, Dennis P. Donovan, Thomas Ennis, Rosch, all City, John H. English, Albany, N.Y., Pierce Greer Brua Campbell, counsel), for petitioners. Mr. Paul A. Crouch, respondent. Chief Justice VINSON delivered the opinion Court. 1 In 1942, Congress enacted what is popularly known as Freight Forwarder Act. This legislation, which appears Part IV1 Interstate Commerce Act, was designed to define freight forwarders, prescribe certain regulations governing forwarder operations, bring this essential transportation business within control Commission. The legislative judicial history culminating in Act need not now be detailed. See United States v. Chicago Heights Trucking Co., 1940, 310 344, 60 931, 84 1243; Acme Fast Freight, Inc., States, D.C., 30 F.Supp. 968, affirmed 1939, 309 638, 810, 993. 2 forwarders consolidate less than carload into carloads shipment by rail, truck, or water. Their charges approximate rail rates; their expenses profits are derived from spread between 1. c. rates. Forwarders utilized shippers because speed efficiency with they handle shipments, unity responsibility obtained, services make available.2 3 required § 1013 issue bills lading customers, covering individual package time receipt until delivery ultimate consignee. When consolidated carloads, railroad gives its bill designated consignor contents noted 'one mixed merchandise' usually move under an 'all-commodity' rate. destination set out forwarder's break-bulk point. At that point broken up; some shipments may distributed locally, sent truck off-line destinations, reshipment further points. has no knowledge car, identity shippers, destinations consignments. unqualified right select carrier route freight. 4 thus characteristics shipper. relations a subjected many requirements applicable common carriers Parts I, II, III 49 U.S.C.A. seq., 301 901 seq. these carriers, however, status still It duality character raises question case. 5 Section Act3 provides Carmack Amendment, 34 Stat. 593, amended, U.S.C. 20 (11)4 (12),5 20(11, 12), shall apply 'in case service subject chapter' (Part IV), deemed receiving delivering company purposes such 20(11) (12). Incorporation Amendment requires, been noted, destinations. There can but 20(11), liable shipper loss damage exactly if it were initial III. We asked decide whether right-over given 20(12) against connecting applies who have paid claims seek recompense responsible loss. 6 action, respondent sought declaratory judgment bound nine-month limitation period provided filing claims. If incorporation (12), makes damage, applicable. If, vis-a-vis railroads, must file specified lading.6 District Court held, on agreed statement facts, period. Appeals Second Circuit reversed, holding alone, considered entitled 20(12). granted petition writ certiorari, 335 807, 30, resolve important IV 7 First. railroads contend intended change shipper-carrier relationship had years existed railroad. position while previously prevailing duties responsibilities owed public changed language negative claim status. They read 1013, 'The provisions section (12) title * respect chapter *' mean that, matter whose responsibility, limited losses occurring 'service chapter'—i.e., forwarding Thus limited, would other whom joint loading agreements authorized 1004(d) effect, motor permitted behalf forwarders. not, water line-haul carriers. 8 'Service defined 1002 'any connection interstate commerce any person undertakes perform provide *.' While use word, 'provide,' lends support respondent's thesis definition should broadly include performed House Committee report indicates contrary. defines as: 'the term used throughout when referring operations proposed regulate. broad enough cover everything does, surface facilities, course carrying his undertaking he serves. On hand enough, course, regulation, IV, utilizes performing undertaking.'7 (Italics added.) 9 emphasis supplied phrase activities, upon underlying Since contracts deliver safely destination, obviously part chapter'. But inclusion applicability business, which, we told Report, does undertaking.' 10 importance phrase, chapter,' accentuated contemporaneous amendment II pertains MotorCarrier made, omitted As amended 219 did so without including qualifying phrase. reads simply: 11 'Sec. 219. together (including penalties) necessary enforcement provisions, vehicle like force effect those persons specifically applicable.' 12 Unless assume Congress, enacting included purpose whatsoever, at same approving similar give contended Respondent suggests other. 13 That meaning supported explanation Representative Wolverton, member committee drafted section. However, doubt cast correctness interpretation contrary report. states flatly property transported occurs line utilizes, will subrogation carrie 20(12).'8 14 warned, discounted particulars. Wolverton prefaced section-by-section analysis significant statement: 15 'In respects accompanies complete might be. Due limitations time, submitted members subcommittee, therefore place remarks explanations helpful Members consideration measure. few instances, mentioned later, phrased convey fully sense intended.'9 16 mind clearly shown explaining section: 17 413 (§ 1013), accompanied strictly accurate interpreting legal making I understood far covered published rate forwarder, latter only look recovery damages, 'be company.' being 20(12), since own never action carrier. issued law thereto. reference paragraph 1013) combination directly owner goods, occur two more involved.'10 18 weighing relative report, number additional facts importance. reported unanimously Foreign Commerce.11 Congressman ranking minority committee, spoke presented extended exposition provisions. His challenged contradicted committee. contrary, drafting recognized chairman committee,12 quoted authority Commission.13 19 posture events, little weight. A expressly challenge floor hardly authoritative. Conference, member, adopted appeared amendment. bore, gloss placed House.14 Under circumstances, cannot construe statute Second. Such construction would, moreover, harmony existing regulated unquestionably accepted continued. Prior enactment held cases insofar concerned, discriminate favor nor enter proportional rates them absent authority. Commission Delaware, W.R. 1911, 220 235, 31 392, 55 448; Great Northern Co. O'Connor, 1914, 232 508, 380, 58 703; Lehigh Valley 1917, 243 444, 37 434, 61 839; supra; supra. 21 clear altered IV. Nowhere referred term, 'freight forwarder' 1002(a)(5) 'otherwise title' consolidates goods shipment, etc. one where, inadvertence, passed months later striking 'carrier' substituting forwarder.'15 statements House16 leave intent alter forwarders' highway, 22 fact studiously avoided characterizing subjecting serves emphasize distinction drawn reason already suggested. functions activities essentially different express companies, definition, 1(3) 1(3), 1(3). Nevertheless, occupy dealings utilize.17 For reason, refused sanction established According Wolverton's House, 'it illogical anomalous permit so-called situation. maintenance absurdity. nevertheless permitted, enable receive rebates through medium divisions rate.'18 Carriers 1008 establish 'assembling distribution' rates, benefit lower available savings effected forwarder. thought consistent shipper, could lowered beyond amount reflect savings. significant, too, freight, bringing points concentration final destination.19 argument preserve Parts, 23 Third. Appeals, conceding regarded vehicles, boats goes farther. contends liability uniform disregarded, all. view, Missouri, Kansas Texas Ward, 244 383, 617, 1213, struck down conditions carrier, decisive invalidity imposed here controversy. 24 do agree, believe contention seriously made. carrier's haul involves consideration, origin, consignee involved undertaking. Furthermore, leads conclusion long prescribed I.C.C. filed tariffs, transport possibly bill. e.g., Chain Deliveries Express, 260 I.C.C., 149, 151 (1943). certainly taken IV,20 either courts below 25 real whether, granting lading, null void hauled. think whole scheme history, proposition. remains forbidden undue unreasonable preference specific 1004(c). hand, choo e 1004(b). 26 inapplicable, difficulties presented. adopt submission longer nine months, minimum 20(11). prescribes period, former discriminated 27 Similarly, wish contract common-law paying higher tariff Cincinnati, N.O. T.P.R. Rankin, 1916, 241 319, 36 555, 1022, L.R.A.1917A, 265. pays declared value shipment. lost damaged, undoubtedly recover actual ordinary circumstances confined provides, loss, injury evidenced receipt, judgment, transcript thereof. theory, controlling, full despite contracted reduced result supra, relied present 28 addition, factors felt made original workable totally Richardson, said: 29 reasons inducing us (make damage) secondary occurred, settlement easy matter, shippper heavy expense institution suit. obtained exists pay once. Why? Because arrangement, concert, cooperation, courtesies up prompt payment done Conference.'21 Atlantic Coast Line Riverside Mills, 186, 201, 164, 168, 167, L.R.A.,N.S., 7. Elaborate freight-claim rules investigation, settlement, defense allocation when, frequently case, precisely ascertained. Arbitration boards settle disputes arising rules. practical very indeed definitely considerations applied 'arrangements,' 'concerts,' 'cooperation,' 'through courtesies' railroads. so. always seeking 'connecting' asserted. ordinarily represent existed, depend representation roads. Details are, fact, Claim Rules, subscribed nearly representative, customer, allegedly tendency naturally placate These feel, persuasive meant extend farther actions cooperative arrangements—i.e., bear relation 32 Fourth. Two arguments inequity requiring comply giving rights said insurer prove Secondly, argued must, allow least there necessarily end able refile time. 33 first serious misconception prior based failure distinguish kinds 'forwarders.'22 originally arrange shipper's goods. consignments lots, duties, agent went procuring handling details type charged fees services, addition transportation. Later, offered. picked engaged destination. entire profit consolidating others quantities take advantage itself merely rather seldom ever knew carriage 35 difference function early courts, differing standards imposed. handled agent-forwarder negligence, negligence selecting carrier.23 entrusted second type—i.e., itself—the fault.24 immaterial. Its Common penalty fulfilment encompasses described above. 'Any holds general usual undertaking, (A) assembles assembling property, performs performance distributing (B) assumes (C) 1, title.'25 38 group, pointed out, rule. By things: (1) lading;26 (2) federal uniformly rule damage. change, prevented exercising decision majority limit lines. has, beginning, consignment pick-up origin have, fault. open since, concerned questions ownership, treat 39 leaves substantially hearings, reports debates bare suggestion needed relief requirement shippers. over century. continued See, Merchant Shippers Ass'n Kellogg Express Draying 1946, Cal.2d 594, 170 P.2d 923; J. Kelly Application, 315, 318 (1944); Hugh F. Gannon, 219, (1944). require much clearer showing find intended, increasing liabilities ship lines, 20(12).27 40 true months. turn, during last day proper recourse after having claim. objection insignificant proportion total considers sufficient importance, experience corrective. event, single inconsistency justify interpreted purposes. 41 reversed. 42 Reversed. 43 BLACK, DOUGLAS, RUTLEDGE affirm stated Judge Frank, writing Appeals. 166 F.2d 778. 56 284, 1001 description practices, see Truc ing Forwarding Investigation, 229 201; Bills Lading Forwarders, 259 277. '§ 1013. property. title, penalties, chapter, applicable, named shipping bill, may, consent receipted forwarder.' So pertinent here, provides: 'Liability loss; liability; notice Any railroad, bject therefor, lawful holder thereof caused lines pass adjacent foreign country party thereon, not. Provided further, nothing deprive remedy 'Recovery issuing received transported, sustained, owners thereof'. Petitioners also even assuming 2(b) effective modify right. numerous modifications Claims Rules inter se. And Article I(a) Principles Practices Investigation Disposition Claims. view unnecessary reach question. H.R. Rep. 1172, 77th Cong., 1st Sess., p. 6. Id. 10. 87 Cong.Rec. 8216. 8220. although debate technically Senate (S. 210), following clause, measure actually basis conference, carried intact conference houses debate. Lea. gentleman Jersey (Mr. Wolverton), gave unstinted work problems ability every well aware. appreciate good today fine contributions measures brought recent years.' 8227. Chairman Lea 'I particularly commend Wolverton) experience, fortunate body qualified nation.' 88 4064. Pacific Wholesalers' Association, Status, 269 IC.C. 504, 513. detailed changes Conference S. 210. He comment sections general, balance identical October 23, 1941. explained commented principal and, extent retained measure, 4068. 2642) 1017(b), Senator Reed 'When legislation offered difficulty subject. 210, Commerce. dealing clause substituted bills. finished perfect Later found mistake 2642 introduc d correcting error. desire correct reference.' 6115. Youngdahl: 'Close developed regards properly became recommend form keeping character. Only so, gross discriminations avoided.' 8223. Wolverton: 'Even though incur obligations toward stand role utilize.' 4065. also, 321. 297—304. companies indicated letter Commerce, Hearings before 2764, 79th Sess. 'There vast Agency each oad, profits, any, accrue whereas arrangement accrue, routing Agency, necessity primarily train solicitation by, concessions from, transporting compensation most factor Thus, led adoption laws prohibiting unjust discrimination prejudice large influential smaller other, practically service, highly prominent service.' 8218. 1009, continue operation eighteen date provision order reasonable adjustment pursuant (1008).' 1009 February 20, 21, circumstances. Twin Association 307, 309. 9580. Hutchinson (3d ed.) §§ 71, 80—84; Bunge, Law Draymen, Warehousemen, p, 111. Krender Woolcott, 1856, Hilt., 223; Heath Judson 1920, 47 Cal.App. 426, 190 Mansfield Title Trust Cir., 1912, 199 95. cases, typical: defendants simple engagement forward York, marked particular discharged direct conveyance designated; agreement charge distance agreement, different. carry distance, safe agreement.' 223. Christenson American 1870, Minn. 270, Am.Rep. 122; Bare 1909, 146 Ill.App. 388; Kettenhofen Globe Transfer Storage 70 Wash. 645, 127 295, 902, Ann.Cas.1914B, 776; Highway Public Service Commission, 1933, 108 Pa.Super. 178, 164 835. discussion problem assumption Judson-Sheldon Corp. 473; Universal Transcontinental 521; Nelson Kagarise 745. Cf. Union Transport, 1945, 327 437, 66 644. 90 772. includes Cummins Amendments, 1196 441, relate adds new liability, borne orwarder. rejected erroneous premise court rationale withdrawal consequently placing analysis. Of sue occasioned latter. Steam Navigation Merchants' Bank Boston, 1848, How. 465; 509, 703. theory undisclosed agent, latter's principal, could, contract. Drayage 923. 117. Restatement 322, 364. sued disclosed principal. acted Bichlmeir Minneapolis, St. S.S.M.R. 1915, 159 Wis. 404, 150 N.W. 508; Roberts, Federal Liabilities 386. 320. passed, agents Wall, 87, 493, 905; unlike (i.e. shipper), insure burden fall rights, indicated. thereto.' remains.

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