Case: MISSOURI PACIFIC RAILROAD COMPANY v. THE UNITED STATES
Abbreviation: Missouri Pacific Railroad v. United States
Decision Date: 1921-06-13
Docket Number: No. 34581
Citation: 56 Ct. Cl. 341
Volume: 56
Reporter: United States Court of Claims Reports
Court: United States Court of Claims
Jurisdiction: United States
Parties: MISSOURI PACIFIC RAILROAD COMPANY v. THE UNITED STATES.
Judges: Hat, Judge; Downet, Judge; and Booth, Judge, concur in this opinion.
Pages: 341–362

Head Matter:
MISSOURI PACIFIC RAILROAD COMPANY v. THE UNITED STATES.
[No. 34581.
Decided June 13, 1921.]
On the Proofs.
Contract; special advantages; effect on contract. — Where the government enters into a contract with a railroad company by which it secures special rates and other benefits not applicable to the general public, it is bound by its contract, notwithstanding there are published tariffs of said railroad in effect covering similar service.
Same; jurisdiction; classification. — The court has jurisdiction to construe the tariffs published by railroad companies and to determine under what classification, if any, articles transported by railroads should properly be placed.
Geaham, Judge, specially concurring.
The Reporter's statement of the case:
Mr. F. Garter Pope for the plaintiff.
Mr. Horace 8. Whitman, with whom was Mr. Assistant Attorney General Robert H. Lovett, for the defendant.
The following are the facts of the case as found by the court:
I. The plaintiff is a corporation duly incorporated under the laws of the State of Missouri. At the times of the different transactions hereinafter set forth in these findings of fact, the plaintiff operated, and still continues to operate, a system of railways in the State of Missouri and other States, doing business as a carrier of passengers and freights for hire and reward, under tariffs duly filed with the Interstate Commerce Commission by it and its connecting lines, with its concurrence, and published as provided by law.
II. At the times of the various acts complained of in the petition and supplemental petition filed herein there were in force a number of different tariffs upon the several lines which were parties thereto, and which are described or set out in paragraphs II, III, and IV of the original petition and in the supplemental petition, and all'of which are hereby made part of this finding by reference thereto.
Among the tariffs above referred to was Wabash Circular No. 118-1918, I. C. C. No. 4602, section 17 of which, under “ Special car charges,” among other things, provided:
“Equipment — Special baggage cars on regular trains— Basis of charge. (2) Without additional charge to party-traveling together in regular cars presenting the equivalent of 25 or more adult tickets purchased at current fares, aggregating not less than $25.00, as shown in lawfully filed tariffs and via routes via which such tariffs apply.”
There is also on file among the records of the Interstate Commerce Commission, Wabash Bailroad I. C. C. No. 4116, in force from August 15,1915, to December 31, 1918, section 2 of which, under the heading “ Special train rates,” among other things provides:
“ One way special trains for the exclusive use of any individual or party will be furnished to 100 or more adults (or the equivalent) presenting first-class individual or party tickets sold at fares shown in current I. C. C. or P. S. C. Mo. tariffs, and via routes via which such tariffs apply. Each passenger must be provided with tickets (party or individual) irrespective of number.
“Minimum charge for each movement $75.00, including the amount paid for tickets.
“ Equipment limited in the judgment of this company to actual requirements of the party. One baggage car, if necessary, for each 25 passengers.”
Missouri Pacific Circular 1915, 326 I. O. C., No. 4977, section 18 of which is set out in the original petition, paragraph III, and provides:
“SectioN 18. Circuses, dog and pony shows, carnivals, street fairs, or like amusement companies. — Circuses, dog and pony shows, carnivals, street fair companies, and other like organizations carrying paraphernalia, including live stock, actually used in giving performance and exhibiting under canvas or in the open, when limited to three baggage cars and not to exceed four box cars (where the latter are furnished) will be handled on same basis as theatrical companies, as outlined herein, except that no article weighing over two hundred and fifty pounds will be accepted for transportation as baggage. Tent poles or seats exceeding fifteen feet in length, merry-go-rounds, Ferris wheels, and similar wheels, balloons will not be transported as baggage. If loaded in same car with other property these articles will be charged for at prevailing freight rates.
“ Aeroplanes, air ships, automobiles, motorcycles, or other motor-driven vehicles, with or without motors, or engines will not be accepted for transportation in special baggage-car service. In cases where box cars are furnished instead of baggage cars, these , articles may be loaded in the same car with .other property and charged for at prevailing freight rates.
“ The right is reserved to substitute the equivalent in freight cars when baggage cars are not available, such freight cars to be moved only in mixed or freight train service.
“Should any movement of the character referred to in this section require more than three baggage cars, or four box cars, same will be considered a freight movement, and must be waybilled as freight as provided below.
“ General instructions.
“ SectioN 23. (a) Charges for special passenger and special baggage cars shown in this tariff are named subject to the ability of this company £ to furnish the necessary equipment at the time wanted.’ Therefore no promises should be made that the equipment will be furnished until matter is first referred to proper officer of this company and advice received from him that the equipment reserved can be arranged for.
* * ❖ ❖ * % ❖
“ Liability. — Baggage and property carried in special baggage cars will be accepted only at owner’s risk for transportation in bulk by the companies mentioned in section 1, as a special carrier or carriers, not as a common carrier or carriers, and the companies named in section 1 will not be responsible for any damage resulting thereto.”
III. For many years the Quartermaster General of the United States Army has issued periodically a publication entitled “ Manual for the Quartermaster Corps.” An edition of said publication was issued and made effective iii December, 1916, and was in full force and effect at the time of the movements described in the petition and supplemental petition, and the extracts therefrom, quoted in paragraph VI of the petition, are true copies of certain provisions contained in said manual, which are made part of this finding.
The first claim made by the Government that one special car, or its equivalent, should be furnished free of charge for every 25 officers and enlisted men traveling with camp equipment and company property, was after June 18, 1918, when the Comptroller of the Treasury rendered a decision to that effect in the appeal of the Louisville and Nashville Railroad Company from the ruling of the auditor (24 Comp. Dec. 774). Prior to the comptroller’s decision the Government paid for camp equipment and company property as freight.
IV. Since the decision of the comptroller of June 18, 1918, all disbursing and accounting officers of the Government have made settlements with all carriers upon the basis that the United States was entitled to one baggage care free for the transportation of its camp equipment and company property for every 25 officers and enlisted men traveling.
V. Prior to January 1, 1917, the plaintiff and all the other lines, parties to the interterritorial military arrangement which became effective on that date, were parties to agreements, known as military agreements, between authorized representatives of the carriers and authorized officers of the War and Navy Departments which were for the most part similar to and were superseded by the said interterritorial military arrangement.
The said Interterritorial Military Arrangement or contract was entered into between the United States Army, Navy, and Marine Corps, and the carriers in the territories of the Central Passenger Association, New England Passenger Association, Southeastern Passenger Association, Southwestern Passenger Association, Trans-Continental Passenger Association, Trunk Line Association, and Western Passenger Association, to become effective January 1, 1917, and to supersede and cancel all previous interterritorial arrangements between the same parties, the relevant and material parts of which are as follows:
“ nr.
“ Traffic covered by this agreement.
“ The net fares, allowances, and routes in connection therewith authorized hereunder are applicable exclusively for the transportation of officers and enlisted men and others con nected with the United States Army, United States Navy, and United States Marine Corps for whom the United States Government .is lawfully entitled thereto and when traveling on transportation requests of the issue of the United States Army, United States Navy, and United States Marine Corps and at United States Government expense only.
“ Net fares and allowances.
“(1) (a) The fares applicable under this arrangement will be the lawful commercial fares as on file with the Interstate Commerce Commission from starting point to destination at time of movement (see exceptions, section V), less lawful land-grant deductions properly established, less five per cent (5%), the five per cent allowance not to exceed the maximum allowances or exceptions as specified in section VI. Government fares so established will apply to all military traffic as described in section III, including special train and special car movements as well as individual and'party movements (see section XI).
“(5) Proportions will not be used in any case in the construction of fares.
‡ ft * $ $ ‡
“ When special cars or special trains are furnished hereunder, not less than the minimum number of fares for such special cars or special trains will be required.
“ Baggage.
“ (1) One hundred and fifty (150) pounds of personal effects, properly checkable as baggage, under the tariff of the initial carrier, will be transported without charge for each person. Personal baggage in excess of the free allowance stated when provision for the transportation of the excess baggage is specially made in United States Army, Navy, or Marine Corps transportation requests and is paid for by the United States Government will be charged for at. the regular excess baggage rate, based upon the net individual fare. When provision is not made in the transportation requests for the transportation of excess baggage, collection will be made from the traveler at the regular commercial rate for weight in excess of the free allowance stated. Excess baggage charges will not be subject to allowances, applicable m connection with the fares for .tickets under this arrangement. Baggage regulations in other respects than above will be in accordance with the tariff of the initial carrier checking the baggage in each case.
“(2) Company, battalion, regimental, or Government property is not included in the above.
“ Termination of arrangement-.
“ It is understood that this arrangement may be terminated at the pleasure of the United States Army, United States Navy, and United States Marine Corps, independently of each other, and the withdrawal from the arrangement of one of these branches of the Government will in no way affect the operation of the arrangement as to the other branches of the Government electing to continue it, the reservation being made, however, that the carriers may withdraw from the arrangement at their option.”
VI. The said Interterritorial Military Arrangement referred to in Finding V was endorsed by the Comptroller as follows:
“This interterritorial military arrangement'is but an extension of the one which became effective July 1, 1916, the principle of which received the endorsement and approval of the Comptroller of the Treasury, and hence said endorsement, dated May 20,1916, is repeated here for convenience.”
The letter of endorsement, dated May 20, 1916, addressed to the Secretary of War, is made part of this finding by reference, and, among other things, contains this statement:
“ 9. This agreement is considered advantageous to the Government for the following reasons: (a) It will result in a saving of Government funds. (5) It will procure cooperation on the part of the railroads, (e) It will facilitate the settlement of accounts.”
On March 3, 1917, the Quartermaster. General, with the approval of the Secretary of War, ordered copies of the said interterritorial military arrangements to be forwarded to different officers throughout the country concerned with the movement of troops, with the statement that “the new ar rangements are along the same lines as the old ones, some disputed points have been cleared up and are therefore published in the new arrangement.”
On September 15, 1917, all department, depot, and camp quartermasters were notified by the Quartermaster General that:
“1. It is desired that all shipping quartermasters be instructed that camp equipment and impedimenta will not be carried as checkable baggage, and that checkable baggage included only wearing apparel and related articles ordinarily carried in a trunk by a commercial traveler.”
Copies of the said Interterritorial Military Arrangement were distributed to all quartermasters between February 28, 1917, and March 3, 1917.
VII. The said Interterritorial Military Arrangement was in full force and effect as late as May 20, 1920, and its provisions have been observed by the carriers generally. Under the terms of said arrangement the Government has paid for transportation at rates substantially five per centum less than it otherwise would have paid.
VIII. On June 30,1917, at the instance and request of the properly authorized officer of the Army, the Wabash Bail-way Company and plaintiff transported .over their lines from Des Moines, Iowa, to Fort Logan H. Boots, Arkansas, 550 men and 29 cars of impedimenta (including some baggage subject to free transportation as within the usual free allowance of 150 pounds per passenger), and on August 25, 1917, at the instance and request of the properly authorized officer of the Army, said Wabash Bailway Company and plaintiff transported over their lines from Eden to (Camp Clark) Nevada, Missouri, 1,696 men and 16 cars of impedimenta. On May 23, 1917, the International & Great Northern and St. Louis Southwestern Bailway Companies and plaintiff at the instance and request of the properly authorized officer of the Army transported 51 men and one car of impedimenta from San Antonio, Texas, to Fort Logan H. Boots, Arkansas.
IX. This camp impedimenta accompanying the movement of troops mentioned in the eighth finding of fact were moved under bills of lading as follows:
Des Moines to Ft. Logan H. Boots: Bills of lading 153, 8 cars; 154, 2 cars; 155, 8 cars; 157, 7 cars; 158, 4 cars.
Eden to Nevada, Missouri: Bills of lading 28, 6 cars; 29, 5 cars; 30, 5 cars.
San Antonio to Ft. Logan PI. Boots: Bill of lading 10790, 1 car.
Bills of lading Nos: 28, 29, and 30 bore the notation, “ Free checkable baggage for - officers and - enlisted men, weighing-pounds, not listed in this B/L.”
After the transportation of said camp impedimenta, the same was receipted for on the several bills of lading bj the proper officers of the Government.
X. Plaintiff was the last carrier of all of such shipments, and as such last carrier it rendered its bills on the bills of lading to the disbursing quartermaster, United States Army, at Washington, D. C., said bills being based upon the current classification of freight, which plaintiff claims are applicable rather than the baggage rates applied by the Government.
Said bills were paid as rendered by the disbursing quartermaster, the camp impedimenta being paid for as freight (see orders, Findings III and VI), but when said quartermaster’s accounts were reached by the Auditor for the War Department in the course of auditing, they were suspended under the ruling of the Comptroller, of June 18, 1918, and thereafter demand was made by the said quartermaster upon plaintiff for a refund in each instance to allow for the free transportation of impedimenta on one car with each 25 men. Plaintiff declined to comply with said demand, and the Auditor for the War Department made deductions from plaintiff’s later bills to cover alleged overpayments as follows: On bill 101, $1,938.86; on bill 992, $1,024.85; and on bill No. 538, $201, an aggregate of $3,164.71.

Opinion:
Campbell, Chief Justice,
delivered the opinion of the court:
The plaintiff having performed certain transportation service for the Government, rendered bills therefor, which were audited and allowed. The auditors claimed, however, that the plaintiff was indebted to the United States on account of certain prior bills which had been.rendered to and paid by the disbursing officer. These were claimed to be .excessive or subject to certain deductions before their allow- anee or payment. The deductions were accordingly made from the plaintiff's later bills, above referred to, over plaintiff's protest. As stated by plaintiff's counsel, this suit is to recover these' deductions from plaintiff's account " made by the Auditor for the War Department because of alleged overpayments to plaintiff by disbursing quartermasters for the transportation of military impedimenta accompanying movements of bodies of troops."
The findings of fact show that plaintiff and its connecting carriers performed the service in question under contracts •with the Government which afforded it special benefits not -applicable to the general public. This court has several -times, held that where the Government contracts for railroad transportation at special rates, although there may have been published tariff rates, it is bound by its contract. Bush, Receiver, v. United States, 52 C. Cls., 199; Southern Pacific R. R. Co. v. United States, 53 C. Cls., 332; Yazoo & Mississippi Valley R. R. Co. v. United States, 54 C. Cls., 165; Los Angeles & Salt Lake R. R. Co. v. United States, 55 C. Cls., 305. The court has also been called upon to decide whether certain articles of Government property came within one or another classification. Atchison, Topeka & Santa Fe Ry. Co., No. 33681, decided December 1, 1919; No. 34219, decided January 31, 1921; and No. 34088, decided February 24, 1920; Galveston, Harrisburg & San Antonio Ry. Co., No. 34116, decided October 18, 1920; Yazoo & Mississippi Ry. Co., No. 33834, decided June 28, 1919; Baker, Receiver, Nos. 34688 and 34756, decided June 13, 1921.
The principle announced in the cases mentioned above is controlling here. The deductions from the plaintiff's bills should not have been made, and the plaintiff is accordingly entitled to recover. Judgment will be rendered in its favor for the sum of $3,164.71.
Hat, Judge; Downet, Judge; and Booth, Judge, concur in this opinion.