Opinion · Supreme Court of the United States
News Syndicate Co. v. New York Central Railroad
News Syndicate Co. v. N.Y. Cent. R.R., 275 U.S. 179 (1927)
- Type
- Opinion
- Court
- Supreme Court of the United States
- Jurisdiction
- Federal
- Date
- 1927-11-21
- Topic
- bankruptcy
*184 Mr. Justice Butler delivered the opinion of the Court. Plaintiff in error sued for amounts of reparation awarded by the Interstate Commerce Commission. Defendants in error demurred to the complaint, asserting that it failed to state a cause of action, and that the Commission’s order was void for want of. jurisdiction because it dealt solely with charges for transportation from a point in Canada tó a point in the United States. The district court sustained the demurrer and gave judgment of dismissal.
Citator
UpLaw has not yet analyzed News Syndicate Co. v. New York Central Railroad. The absence of a flag is not a finding that it is good law.
- Cited by
- 32 opinions
Headnotes
- General — Interstate Commerce — Commission Jurisdiction over Through Rates Where a United States railroad and a Canadian railroad unite in publishing a joint through rate covering transportation from a point in Canada to a point in the United States, the Interstate Commerce Commission has jurisdiction, on complaint of a shipper against the United States carrier alone, to determine the reasonableness of the joint through rate for the purpose of ascertaining damages.
- General — Interstate Commerce — Duty to Establish Rates for Domestic Portion The Interstate Commerce Act applies to the United States lines that carried, and to the transportation of, freight from the international boundary to a domestic destination, and those carriers are under a statutory duty to establish just and reasonable rates for that service; their failure to make or publish any rate applicable to that portion of the transportation violates the Act.
- General — Interstate Commerce — Reparation — Causation A carrier's breach of the statutory duty to establish and publish rates covering the domestic portion of an international through shipment is a proximate cause of the shipper's losses, and the shipper's right to reparation does not depend upon the amounts the carrier retained pursuant to agreed divisions of the through rate.
- General — Interstate Commerce — Commission Jurisdiction to Award Damages The Interstate Commerce Commission has jurisdiction to determine whether a shipper is entitled to an award of damages for violation of the Act, and in ascertaining damages it may determine the reasonableness of the charges exacted.
- General — Interstate Commerce — Reparation Against Domestic Carrier Alone Where Canadian connecting carriers were not before the Commission and were not sued, the Commission may nonetheless order the United States carrier, which participated in making the through rate and actually collected the excessive charges, to pay reparation to the shipper based on the unreasonableness of the entire through rate, even absent a specific finding that the charges attributable to transportation within the United States were themselves unjust and unreasonable.
- General — Interstate Commerce — Suit to Enforce Reparation Order A suit under Section 16 of the Interstate Commerce Act to enforce an order of reparation may be maintained solely against the United States carrier that participated in the through rate and collected the excessive charges.
- Federal Courts & Jurisdiction — Certified Questions The statute authorizing a circuit court of appeals to certify questions to the Supreme Court does not permit a transfer of the whole case; an inquiry that calls for decision of the entire case, rather than a specific and distinct question or proposition of law, need not be answered.
delivered the opinion of the Court.
Plaintiff in error sued for amounts of reparation awarded by the Interstate Commerce Commission. Defendants in error demurred to the complaint, asserting that it failed to state a cause of action, and that the Commission’s order was void for want of. jurisdiction because it dealt solely with charges for transportation from a point in Canada tó a point in the United States. The district court sustained the demurrer and gave judgment of dismissal. The case was taken to the Circuit Court of Appeals; and, after hearing the parties, that court certified certain questions concerning which it desires instructions, for the proper decision of the cause. § 239, Judicial Code. U. S. C. Tit. 28, § 346.
The certificate shows that, June 28, 1923, plaintiff in error complained to the Interstate Commerce Commission against defendants in error and others that during the preceding two years it shipped numerous carloads of news *185 print paper from Thorold, Ontario, to New York City, and bdre charges exacted by defendants in error based on through rates, of 37 cents per hundredweight prior to July 1,1922, and 33.5 cents thereafter, and that these rates and the portions thereof applicable to the transportation within the United States. were excessive, unduly discriminatory and unjustly prejudicial in violation' of the Interstate Commerce Act; that the.Commission found the rate in force between August 26, 1920, and July 1, 1922, unreasonable to the extent it exceeded 32 cents and the rate thereafter applied unreasonable to the extent that it exceeded 29.5 cents, and that plaintiff in error suffered damages in respect of its shipments after July 2, 1921, hr the amounts by which the charges were so found to be unreasonable and was entitled to reparation from the carriers that “ engaged in the transportation of thosé shipments within the United States.”
The reports of the Commission set out in the certificate (95 I. C. C. 66; 102 I. C. C. 365) show that Thorold is a place in Ontario on the Canadian National Railways 30 miles from Black Rock, New York, where connection is made with the New York Central, the Delaware, Lacka-wanna and Western and other lines, and 12 miles from Suspension Bridge, New York, where connection is made with the Néw York Central, Lehigh Valley and other lines, and that Black Rock is 414 miles and Suspension Bridge is 447 miles from New York City. The rates complained of applied over several railroads from each of these junctions. No rates were made or published for the transportation from the international boundary to New. York City. The Commission did not determine what would be just and reasonable rates for this transportation.
The questions certified follow.
“ 1. Where a railroad of the United States and a railroad of the Dominion of Canada unite in the publication *186 of a joint through rate from a point within the Dominion of Canada to á point within- the United States, the rate covering transportation both in Canada and in the United . States, has the Interstate Commerce Commission' of the United States jurisdiction, on complaint of a shipper or consignee made against the United States railroad alone, to detérmine. the’ reasonableness of such joint through rate?- •
“2. Where a shipper or consignee of freight shipped tó it ,at a destination in the United States from such point in the Dominion of Canada has paid at destination to the United States railroad the full published joint through freight rate thereon, has the- Interstate Commerce Commission, upon a finding by it that such joint through rate was unreasonable and unjust, but in the absence of. a finding that the charges for the transportation in so far as it took place within the United States were unjust and unreasonable, jurisdiction to make an order for the payment of damages to such shipper or consignee in the amount that, the entire transportation charges on the basis of the joint through freight rate exceeded the- charges which would have been assessed on the basis of the joint through freight rate found by the Commission to have been reasonable?
■ “3. When.the Interstate Commerce' Commission has made such an order against the United States .carrier alone for the payment of damages arising from its finding of the unreasonableness of such published joint through rate, can a suit thereon, under Section 16 of the Interstate Commerce Act; be maintained solely against the United States carrier?
“ 4. Did the District Court-err in'sustaining the demurrer to the said petition? ”
' As to question 1. — The Interstate Commerce Act applies to the lines that carried, and to the transportation of, the paper from the international boundary to New *187 York City. , § 1 (1) and (2). * It was the duty of de fendants in error to establish just and reasonable rates for that service. § 1 (5), § 6 (1) and (7). ■ They failed to make--or publish any rate applicable to that part qf the transportation.' Section 8 makes them liable for damages sustained in consequence of such failure. Had the through rate been just and reasonable, ño damages would have resulted to plaintiff in -error. Its right to reparation does not depend upon the amounts retained by defendants in error pursuant to agreed divisions. Louisville & Nashville R. R. v. Sloss-Sheffield Co., 269 U. S. 217, 231. Their breach of the statutory duty was a proximate cause of the losses complained of. The failure,to establish rates covering the transportation from the international boundary contravened the provisions of the Act and compelled plaintiff in error to pay the through charges complained of. The Commission had jurisdiction to determine whether plaintiff in error was entitled to an “ award of damages under the provisions of this Act for a violation thereof.” §-16 (1). And it was the duty of the Commission to ascertain the damages sustained. It is obvious that, in the ascertainment .of damages, the Commission had jurisdiction to determine the reasonableness of the charges exacted.
As to question 2. — The Commission did not specifically find whether the portions of the charges fairly attributable to transportation within the United States were excessive to the extent that the through rates were found unreasonable. While the findings seem to indicate that the Commission held the entire excess should be charged against the American lines, we shall consider the question on the basis therein stated.. The Canadian lines furnishing the transportation from Thor old to the international boundary were not before the Commission *188 and were not sued. The defendants in error participated in the making of the through rate and actually collected the excessive charges. By their failure to comply with the Act, plaintiff in error was compelled to pay charges based on the through rates. On the facts stated, the Commission was authorized to hear the complaint, §. 13 (1), and had jurisdiction to make the order. § 16 (1). The question should be answei’ed in the affirmative.
As to question 3. — The statement of the casé .and what has been said as to questions 1 and 2 make it plain that this question should be answered in the affirmative.
As to question 4. — Section 239 authorizes the Circuit Court of Appeals to certify to this court “ any questions or propositions of law concerning which instructions are desired for the proper decision of the cause.” It is well-settled that this statute does not authorize the lower court to make, or require this court to accept, a transfer of the case. The inquiry calls for decision of the whole case. It is not specific or confined to any distinct question or proposition of law, and therefore need not be answered. The Folmina, 212 U. S. 354, 363; United States v. Bailey, 9 Pet. 267, 273-274; United States v. Mayer, 235 U. S. 55, 66, and cases cited.
Question 1 is answered “ Yes, for the ascertainment of damages.” ■
Question 2 is answered “Yes.”
Question 8 is answered “ Yes.”
Question 4- is not answered.
United States Code, Title 49, chapter 1, contains the Interstate Commerce Act, preserving the section numbers.