delivered the opinion of the court:
February 8, 1913, the appellant, at Chicago, Illinois, delivered to appellee for transmission from Chicago to Columbus, Ohio, the following telegram:
"Columbus Butter Co., Columbus, Ohio:
“Offer car fresh eggs good stock from good reliable packer now in transit due here Monday at twenty-three f. o. b. Chicago immediate wired acceptance.
^ „ Bowman & Bun, Company.”
This telegram was written on a blank form of appellee, on the face of which were printed the words: “Send the following message, without repeating, subject to the terms and conditions printed on the back hereof, which are hereby agreed to.” On the back of the blank the following printed matter appeared:
“The Postal Telegraph-Cable Company (Incorporated) Transmits and delivers the within message subject to the following terms and conditions:
“To guard against mistakes or delays the sender of a message should order it repeated, — that is, telegraphed back to the originating office for comparison. For this, one-half the regular rate is charged in addition. It is agreed between the sender of the message written on the face hereof and the Postal Telegraph-Cable Company that said company shall not be liable for mistakes or delays in the transmission or delivery, or for non-delivery, of any unrepeated message beyond the amount received for sending the same, nor for mistakes or delays in the transmission or delivery, or for non-delivery, of any repeated message beyond fifty times the sum received for sending the same unless specially insured, nor in any case for delays arising from unavoidable interruption in the working of its lines, or for errors in cipher, or obscure messages. And this company is hereby made the agent of the sender, without liability, to forward any message over the lines of any other company when necessary to reach its destination.
“Correctness in the transmission of messages to any point on the lines of the company can be insured by contract in writing, stating agreed amount of risk and payment of premium thereon, at the following rates in addition to the usual charge for repeated messages, viz.: one per cent for any distance not exceeding 1000 miles and two per cent for any greater distance.
“No responsibility regarding messages attaches to this company until the same are presented and accepted at one of its transmitting offices; and if a message is sent to such office by one of this company’s messengers he acts for that purpose as the agent of the sender.
“Messages will be delivered free within the established free delivery limits of the terminal qffice. For delivery at a greater distance a special charge will be made to cover the cost of such delivery.
“This company shall not be liable for damages or statutory penalties in any case where the claim is not presented in writing within sixty days after the message is filed with the company for transmission.
“This is an unrepeated message and is transmitted and delivered, by request of the sender, under the conditions named above. Errors can be guarded against only by repeating message back to the sending station for comparison.
“The above terms and conditions shall be binding upon the receiver as well as the sender of this message. No employee of this company is authorized to vary the foregoing.
Charles C. Adams, Second Vice-Prest.
Clarence H. Mackay, President.
Edward J. Nally, Vice-Prest. and Gen. Man.
Charles P. Bruch, Third Vice-Prest.”
Appellee’s sending operator at Chicago placed the number “24” in the upper right-hand corner of the blank to indicate the number of words in the text of the telegram. The rate for sending such a message unrepeated was sixty-three cents, which amount was charged to the account of appellant. The message was forwarded over appellee’s lines to its main office at Columbus, Ohio, and from there to a branch office of the company in Columbus. In this latter transmission the telegram was so changed that when it was delivered to the Columbus Butter Company it read:
“30 D jo 23 Fy. Chicago, 111., 8-13.
"Columbus Butter Co., Columbus, O.:
“Offer car fresh eggs good stock from good reliable packer now in transit due here Monday at twenty f. o. b. Chicago immediate wire acceptance.
_ „ „ Bowman Bum, Co.”
Upon receipt of this message the Columbus Butter Company at once wired appellant, over appellee’s lines, accepting the offer, without repeating the price. Appellant shipped the car thus sold, and February 10 drew its draft on the Columbus Butter Company for $2760, being the price for the car-load of eggs at twenty-three cents a dozen. This draft the Columbus Butter Company refused to pay, on the ground that it had in good faith accepted an offer for eggs at twenty cents a dozen. February 12 appellant first learned of this position of the butter company and of the mistakes in the transmission of the telegram, by which time the eggs had been received at Pittsburgh, Pennsylvania, to which place the Columbus Butter Company had ordered them shipped. The Columbus Butter Company subsequently sent the appellant its check for $2400 in full settlement of its obligation under, the contract and the appellant accepted it. The market price of eggs in Chicago. February 8, 1913, was twenty-three cents a dozen. The check number “24” put on the original message by appellee’s sending operator was intended as a check by which the number of words in the message could be checked up by the receiving operator. The figures “30 D jo 23” are a set of symbols showing the office from which the message was sent, the operator receiving same and the number of words in the message. These symbols are the first part of the telegram which is sent and received, and it is the duty of the receiving operator to check up the number of words in each message received by him to see that it corresponds to the check number.
The appellant brought suit to recover $360, — the difference between the value of the 12,000 dozen eggs at twenty-three cents and twenty cents. Appellee canceled the charge of sixty-three cents for sending the message, and claimed that was the extent of its liability under the terms and conditions under which it received the message. The case was tried by the court without a jury. The court found the Postal Telegraph-Cable Company not guilty in tort. Motions for a new trial and in arrest of judgment were made and overruled. From a judgment finding the Postal Telegraph-Cable Company not guilty, the Bowman & Bull Company took the case by appeal to the Appellate Court for the First District. That court affirmed the judgment of the municipal court and granted a certificate of importance, and the cause was brought to this court on appeal.
The question whether a telegraph company can limit its liability by requiring a patron to write his message upon a blank bearing a condition exonerating the company from liability for an incorrect transmission of the message unless repeated at an additional cost therefor to the sender was first considered by this court in Tyler, Ullman & Co. v. Western Union Telegraph Co.
The doctrine laid down in the above cases has been approved in Webbe v. Western Union Telegraph Co.
The holding in these cases is the declared policy of this State and will control in the instant case, unless, as contended by appellee, the field of liability for negligence of telegraph companies with respect to interstate messages has been taken over by the Federal government. It contends that its liability in this case is controlled by the Interstate Commerce act and the Federal law, to the exclusion of the State law, by reason of the fact that by the amendment of June 18, 1910, to the Interstate Commerce act the provisions of that act were made to apply to telegraph companies and their contracts for the transmission of interstate messages. The holdings of the State courts of this Union are in hopeless conflict on this point and we make no effort to harmonize the decisions. The United States Supreme Court has not passed on the question since the amendment of 1910 became effective, and so its decisions are not necessarily conclusive here. Appellee relies upon Primrose v. Western Union Telegraph Co.
In Pennsylvania Railroad Co. v. Hughes,
Congress has the unqualified right to legislate concerning interstate commerce. In the exercise of this right Congress passed the first interstate commerce act in 1887. it was confined to interstate carriers of goods and related to rates, regulations, classifications and rules of such carriers but said nothing specifically about liability of such carriers for their negligence. So, while the subjects of rates, regulations, classifications and rules applying to interstate carriers of goods thereby passed out of State control, questions concerning liability of such carriers of goods for their negligence did not but still remained within the purview of State regulation. In 1906 Congress by the passage of the Carmack amendment (act of June 29, 1906, U. S. Comp. Stat. sec. 8604a,) took over the field of liability of interstate carriers of goods. (Adams Express Co. v. Croninger,
In discussing the scope of the Carmack amendment the Federal Supreme Court in Missouri, Kansas and Texas Railway Co. v. Harris,
Interstate common carriers of messages are now in the same situation that interstate common carriers of goods were after the passage of the Interstate Commerce act and prior to the Carmack amendment. Before this amendment the Interstate Commerce act did not take over from the States the field of liability for negligence of interstate carriers of goods. Prior to 1910 Congress had passed no regulatory statutes concerning telegraph companies. In that year it amended section 1 of the Interstate Commerce act, so that, so far as it refers to telegraph companies, it reads as follows: “The provisions of this act shall apply * * * to telegraph, telephone and cable companies engaged in sending messages from one State, Territory or district of the United States to any other State, Territory or district of the United States, or to any foreign country, who shall be considered and held to be common carriers within the meaning and purpose of this act. * * * All charges made for any service rendered or to be rendered * * * for the transmission of messages by telegraph, telephone or cable, as aforesaid, or in connection therewith, shall be just and reasonable, and every unjust and unreasonable charge for such service, or any part thereof, is prohibited and declared to be unlawful: Provided, that messages by telegraph, telephone- or cable, subject to the provisions of this act, may be classified into day, night, repeated, unrepeated, letter, commercial," press, government, and such other classes as are just and reasonable, and different rates may be charged for the different classes of messages.” (U. S. Comp. Stat. 1916, sec. 8563.)
This proviso, which gives the telegraph companies the right to have different classes of messages and to charge different rates for the different classes of service, clearly makes no provision with respect to liability of such carriers for their own negligence. It' deals purely with rate-making. Carriers of goods are likewise permitted by the act to charge different rates for different classes of service. For instance, fresh fruits move in one class and clay in another. So a car-load shipper receives on most commodities a lower rate than does a less than car-load shipper; and, likewise, the rate on perishable products shipped from west to east in refrigerator cars is higher than the rate charged for shipment of non-perishable goods in other cars, partly because such cars must generally be carried back to the west empty. This empty-haul return is taken into consideration in fixing the rates on commodities moving in refrigerator cars, and corresponds, to a degree, with the additional rate for repeating a message. The authority to establish different rates for different classes of service does not affect the liability for negligence of interstate carriers of goods, nor does it affect the liability for negligence of interstate telegraphic carriers of messages.
The essential difference between repeated and unrepeated messages is the difference in labor and in the nature of the service obtained. The additional rate for repeated messages is allowed to cover the added cost of repeating the message and added service rendered the patron. Prior to 1910 this distinction between repeated and unrepeated messages was the one made by the telegraph companies in establishing their rates in all those States where there was unlimited liability on both classes of messages. If it had been the intention of Congress to take over the field of liability for negligence by failure to correctly deliver telegraphic messages it would have done so in clear and unmistakable terms and would likely have recognized the rule of liability already established in six-sevenths of the States of the Union. Congress has consistently declined to grant exemption from liability to common carriers for their negligence, and unless it is clear that Congress, by placing telegraph companies under the Interstate Commerce act, meant thereby to set aside the declared policy of the great majority of the States, and so permit telegraph companies to exempt themselves from liability for their own negligence, such a purpose should not be read into the act.
To lay down a rule of law that telegraph companies may limit their liability for failure to correctly deliver a message on account of their own negligence would encourage the employment of incompetent help and the use of imperfect instruments, and thereby render this instrumentality of interstate commerce almost valueless as a safe means of communication. Commercial telegraph messages frequently involve large sums of money, and are intended to, and do, create obligations and induce action. The telegraph has become a necessity in the commercial life of the nation. There is no reason, economic or otherwise, why this great mass of messages should move at the risk of the sender. Assuming the amount in the instant case to be $23,000 instead of twenty-three cents, the error caused by the negligence of the telegraph company would then have amounted to $3000 on one item, and on 12,000 items would have amounted to $36,000,000. The telegraph company by its contract says that the sender can protect himself by having the message repeated. Assuming the patron sends such a message repeated and the error occurs, he can recover, according to its rules, fifty times the amount for sending the same, — in this case $31.50. The utter fallacy of the argument of permitting the telegraph company to relieve itself of liability for its own negligence in failing to correctly deliver such a message is shown by this illustration. The company further states that if the sender is not satisfied with its unrepeated or repeated service he can insure the message. The Interstate Commerce act does not say anything about authorizing the telegraph company to insure its messages and thereby protect itself from liability for failure to deliver. We need only apply the terms of its contract for insurance to see how ridiculous that provision is. The rate charged is two per cent on the agreed amount of risk. For what amount shall the sender insure his message ? How does he know what error the telegraph company is liable to make? In the instant case the patron might by chance have guessed that the telegraph company would commit the error it did commit; then the message could have been insured for $360, and the charge for the insurance would have been $7.20. But how could the sender know that the telegraph company would not omit the word “twenty” instead of the word “three?” In order to protect itself against such a possibility it would have had to insure its message for $2400, and the rate would have been $48. The insured rate is clearly impossible to apply and is prohibitive, and is meant to be. The recovery on a repeated message is wholly inadequate on a transaction of any size. And again, is there any possible reason why a telegraph company should be able to exempt itself from liability for its own negligence? No other person in the land has this privilege. A common carrier of goods does not have it, and why should a common carrier of telegraphic messages? The courts of last resort of all but six States of the United States have declared that public policy opposes any such limitation of liability. Congress put telegraph companies under the act for the purpose of controlling them, and not fd‘r the purpose of relieving them from liability for their own negligence.
Section 8 of the Interstate Commerce act (Act of February 4, 1887, U. S. Comp. Stat. 1916, sec. 8572,) gives a right of action against a common carrier for damages occasioned by its doing an act prohibited by the statute, and section 9 of the act (Ibid. sec. 8573) grants the right of choice between complaint to the Interstate Commerce Commission by persons claiming to be damaged by any common carrier subject to the provisions of the act, and a suit in a Federal court for the recovery of the damages for which such common carrier may be liable under the provisions of the act. Sections 8 and 9, standing alone, might be construed to give the Federal courts exclusive jurisdiction of all suits for damages occasioned by- the carrier’s violating any of the old duties which were preserved and the new obligations which were imposed by the -Commerce act. Evidently for the purpose of preventing such a result the proviso to section 22 of the act (Ibid. sec. 8595) declares that “nothing in this act contained shall in any way abridge or alter the remedies now existing at common law or by statute, but the provisions of this act are in addition to such remedies.” That proviso was added to preserve all existing rights which were not inconsistent with those created by the statute, and to preserve existing remedies, such as those by which a shipper could recover in a State court for damages to property while in the hands of the interstate carrier, damages caused by delay in shipment, damages caused by failure to comply with its common law duties, and the like. But for this proviso to section 22 it might have been claimed that, Congress having entered the field, the whole subject of liability of a carrier to shippers in interstate commerce had been withdrawn from the jurisdiction of the State courts, and this clause was added to indicate that the Interstate Commerce act, in giving rights of action in Eederal courts, was not intended to deprive the State courts of their general and concurrent jurisdiction. Pennsylvania Railroad Co. v. Puritan Coal Mining Co.
In Western Union Telegraph Co. v. Crovo,
In Chicago, Milwaukee and St. Paul Railway Co. v. Solan,
Neither the commerce clause of the United States constitution nor the fact that Congress has power to make provisions regulating interstate common carriers, including telegraph companies, renders invalid a State statute regulating the delivery of interstate telegrams until Congress has acted and by such action covered the specific matters governed by the State statute. Western Union Telegraph Co. v. Boegli, (Ind.) 115 N. E. Rep. 773; Western Union Telegraph Co. v. James,
In Commercial Milling Co. v. Western Union Telegraph Co.
In Western Union Telegraph Co. v. Boegli, supra, the Indiana Supreme Court holds that the Interstate Commerce act relates specifically to and provides a penalty for only such conduct as is the result of deliberation and intention and does not relate to mere neglect in individual cases provided against by statute or the common law. Congress has not prescribed by law that dispatches shall be diligently delivered, nor has it provided a penalty for negligence in delivery. Since Congress has not by the Interstate Commerce act specifically covered this feature of the service there is nothing to prevent the common or statute law of. a State from regulating it. The Interstate Commerce act covers such administrative matters as the fixing of rates, the filing of regulations and. the justness and reasonableness of the same, but does not exclusively cover negligent failure by carriers to cpmply with the regulations filed nor negligent performance of common law or statutory duties. Therefore the act does not render inoperative the common law or State statutory regulations, which are in aid of interstate commerce and not in interference therewith.
In Western Union Telegraph Co. v. Bailey,
In DesArc Oil Mill v. Western Union Telegraph Co.
In Dickerson v. Western Union Telegraph Co.
Counsel for appellee cites many cases holding to the contrary. We have given careful consideration to those cases but cannot adopt the reasoning nor the views expressed therein. No good purpose could be served by discussing them, and so we will not further lengthen this opinion by an attempt to analyze the learned opinions of courts holding the view opposite the one we have adopted. Furthermore, we think the evidence here shows a degree of carelessness that amounts to gross negligence, and it is admitted that appellee would be liable for gross negligence. One who sends a message is entitled to have it transmitted, word for word and letter for letter, exactly as it is written. An operator is not entitled to take liberties with the message and guess that the changes which he consciously puts into it are of no importance. Each word as written may have a significance of which the operator is not informed. This message, as delivered, shows evidence of having been consciously altered. The signature attached to it was “Bowman & Bull Company.” The signature- to the message as delivered was “Bowman Bull Co.” The word “wired” was changed to “wire.” The dropping of the “d” made a difference in the meaning. As sent, the message meant that the car was offered subject to an immediate wired acceptance by the purchaser. As delivered it meant, “This is immediate; wire your acceptance.” It appears that the operator thought he was correcting the sender’s poor- grammar. As it happened, the change made very little difference, because the ideas are nearly the same, but the operator took a chance when he changed this word. Further evidence of willful tampering with the message is shown by the change in the check number. The message as delivered contained twenty-four words, and it was so indicated by the sending operator. In order to enable the receiving operator to know that he received all the words, this check number “24” is the first part of the message sent out. One of two things happened: either the check number was received as “23” and twenty-three words were" sent, or the check number was received as “24,” and when twenty-three words came the receiving operator willfully omitted to call back to get the missing word but changed his check number to “23.” It is hardly probable that such a coincidence could have happened as that the check number was transmitted over the wire incorrectly and then the message was transmitted in such a way as to correspond with the incorrect check number. Gross negligence is a difficult thing to prove, but here the errors in transmission were wholesale. Five changes "were made in the transmission of a short message. Such negligence cannot be excused.
In Redington v. Pacific Postal Telegraph-Cable Co.
We are impressed with the importance to the commercial world of a correct decision in this case, and after a careful review of the authorities we must hold, in accordance with the views herein expressed, that the Appellate Court erred in affirming the judgment of the municipal court. The judgments of the municipal and Appellate Courts are therefore reversed, and judgment is entered here against appellee and in favor of appellant for $360 and costs
• Reversed, with judgment here.
