Spiller v. Atchison, Topeka & Santa Fe Railway Co.Spiller v. Atchison, Topeka & Santa Fe Railway Co.
delivered the opinion of the court.
Plaintiff in error commenced an action against defendants in error jointly in the District Court of the United States for the Western District of Missouri under § 16 of the Act to Regulate Compierce as amended (Act of February 4, 1887, c. 104, 24 Stat. 379, 384;-June 29, 1906, c. 3591, 34 Stat. 584, 590; June 18,-1910, c. 309, 36 Stat. 539, 554), to recover certain amounts awarded to him against them respectively in a reparation order made by the Interstate Commerce Commission January 12, 1914. His petition contained also a count setting up a conspiracy between defendants for the restraint of interstate commerce, and claiming treble damages under § 7 of the Sherman Anti-Trust Act of July 2, 1890, c. 647, 26 Stat. 209,. 210; but this was abandoned at the trial. Defendants having filed separate answers, a jury was waived by stipulation, and a test case tried before the court — all defendants participating — with the result that a ¡decision was rendered in favor of plaintiff, pursuant to which a combined judgment was entered, amounting in effect to as many judgments as there were defendants, each for the amount of the Commission’s award, against the particular defendant with interest and attorneys’ fees. Defendants sued out separate writs of error from the Circuit Court of Appeals, where, by stipulation, the cases were heard together upon a single record. That court reversed the judgments, ordered the cause remanded to the District Court with directions to grant a new trial (246 Fed. Rep. 1), and refused an application for a rehearing (249 Fed. Rep. 677). Writs of error were prayed for and allowed for the review of the judgments of reversal in this court; and afterwards but in due season a petition for the allowance of a writ of certiorari was filed, the consideration of which was postponed to the hearing under the writs of error.
The jurisdiction of the District Court having been in
However, upon consideration of the particular circumstances of the case, we have concluded that a writ- of certiorari ought to-be allowed, without further protracting the litigation to the extent that would be necessary in order to reach final judgments; the transcript of the record and proceedings returned in.obedience to the writs of error to stand as the return to the- writ 'of- certiorari. This writ is allowable by virtue of '§ 240, 'Judicial .Code,- (derived from § 6 of the Act of. March 3, 1891, c. 517, 26 Stat. 826, 828) in the case of the two smaller judgments, because the decision of the Circuit .Court of Appeals is made final by the combined effect of §§ 128 and 241; and in the case of
Coming to the merits: The ground upon which the Circuit Court of Appeals reversed the judgments, and the ground principally relied upon to sustain its decision, was the refusal by the trial court of a motion made by defendants to hold: (a) That upon all the evidence plaintiff was not entitled to recover against any or all of the defendants; and (b) that there was not sufficient evidence before the Commission to sustain its order of reparation. The latter is the substantial question actually presented.
The course of proceedings at the trial, as appears from the bill of exceptions, was as follows: Plaintiff introduced the report of the Interstate Commerce Commission (unreported opinion No. A-583 in case No. 732,
Cattle Raisers’ Association of Texas
v.
Missouri, Kansas & Texas Ry. Co.,
dated January 12, 1914), and the order of reparation made pursuant to it and upon which the action was based. Defendants having admitted the service of the order, and that the money awarded had not been paid, plaintiff rested. The report makes an award in favor of Spiller, plaintiff in error, as assignee of a large number of claims for reparation by reason of excessive rfifes charged by the respective carriers on interstate shipments of cattle from points of origin in Texas, Oklahoma, New Mexico, Colorado, and Kansas, to destinations at Kansas City, St. Louis, Chicago, St. Joseph, and New Orleans, on various dates between August 29, 1906, and November 17, 1908; and a further award to named.shippers in the case of certain unassigned claims pertaining to similar shipments; 'the
Defendants, endeavoring to show the insufficiency of the evidence upon which the findings and order of. the Commission were based, introduced a transcript of the stenographer’s notes of the testimony taken upon the hearing of the reparation claims; following this by introducing a sample page taken from one of the exhibits introduced before the Commission as illustrative of the form of exhibits there introduced. After other evidence not necessary to be mentioned, and a request for' judgment in favor of defendants, and for certain rulings on points of law that would have produced that result, all of which were refused, the case was closed.
It appears that in February, 1904, the Cattle Raisers’ Association of Texas, in behalf of its members and of others . interested, petitioned the Interstate Commerce Commission under § 13 of the Commerce Act, alleging the rates in force in the territory in question to be unjust and unreasonable, they having been advanced some time before to the extent (in most cases) of 3 cents per hundred pounds. •On August 16,-1905, the Commission held
(Cattle Raisers’ Association of Texas
v.
Missouri, Kansas & Texas Ry. Co.,
11 I. C. C. 296, 352) that the then existing rates were unjust and unreasonable by the amount of the advance. At this time the Commission was not empowered to fix rates for the future. This power having been conferred by the Hepburn Act of June 29,1906, c. 3591, 34 Stat. 584, 589, ■which, by Joint Resolution of June 30, 1906, 34 Stat. 838,
The reparation claims in controversy appear to have been filed in due season by the Cattle Raisers’ Association in behalf of its members and other shippers interested, and in the names of the alleged owners of the cattle shipped.
The transcript of the testimony taken by the Commission, as introduced in evidence in the District Court, forms the basis of the decision of the Circuit Court of Appeals that the reparation order was unsupported by evidence. But the transcript shows that important documentary evidence was introduced, and furnished the principal foundation for the findings made. This documentary evidence (except the single sheet offered for purposes of illustration) was not introduced in the District Court, in order,' as stated by counsel, to “avoid introducing■ a number of papers that would almost fill a farm wagon. ” But obviously we hardly could sustain a decision rejecting the reparation order upon the ground that there was not sufficient evidence before the Commission to support it when the whole of the evidence that was before the Commission was not produced.
That this is a matter of substance will appear from a review of the course of the proceeding as disclosed by the stenographer’s transcript. The evidence was taken by Mr. Commissioner Prouty at Chicago; there being three sessions, the firgt on September 19 and 20,1912, the second on January 24 and the third on October 17 in the following year. They were held in the presence of counsel for the
These provisions allow a large degree of latitude in the investigation of claims for reparation, and the resulting findings and order of the Commission may not be rejected as evidence because of any errors in its procedure not amounting to a denial of the right to a fair heading, so long . as the essential facts found are based upon substantial 'evidence.
The opinion of the Circuit Court of Appeals severely criticizes the evidence on which these conclusions were based, characterizing it as hearsay. It is not to be dis-. puted that much of the evidence — including essential parts of it — is properly so characterized. The only witness sworn was Mr. Williams, assistant secretary of the Cattle Raisers’ Association, who had gathered the data upon which the claims were based, mostly from commission merchants, in some instances from the cattle shippers. He had prepared the claims, had spent much
The evidence was not objected. to as hearsay when introduced, nor, indeed, at any time during the hearing before the Commission. Counsel did in some instances assert that there was a failure of proof and suggest that the proceeding ought to be dismissed. But the objections came too late, and were too general in character, to be equivalent to an objection to the reception of the evidence because hearsay. Even in a court of law, if evidence of this kind is admitted without objection, it is to be considered, and accorded its natural probative effect, as if it were in law admissible;
Diaz
v.
United States,
We are not here called upon to consider whether the Commission may receive and act upon hearsay evidence seasonably objected to as hearsay,-'but we do hold that in this case, where such evidence was introduced without objection and was substantially corroborated by original evidence clearly admissible against the parties to be affected, the Commission is not to be regarded as having acted arbitrarily, nor may its findings and order be rejected as wanting in support, simply because the hearsay evidence was considered with the rest.
In
Interstate Commerce Commission
v.
Baird,
In this case the Commission did not act upon evidence of which the carriers were not cognizant and to which they had no opportunity to reply, as in the case supposed-in
Interstate Commerce Commission
v.
Louisville & Nashville R. R. Co.,
It is objected that the evidence failed to show who owned the cattle shipped or who paid the freight. This cannot be sustained. True, it appeared that the cattle were not in all instances billed in the name of the owner, but sometimes in the name of a caretaker; his name being inserted in the bill as evidence of his right to free transportation. But it is probable that in the latter cases there was a want of correspondence between the claims as presented and the carriers’ books, and that for want of checking by the carriers they were omitted from the award. The evidence upon the whole was sufficient to sustain a finding, so far as the claims were allowed, that the parties in whose behalf they were allowed were consignors of the shipments and presumably owners of the cattle shipped.
If there be doubt whether it was sufficient to sustain each and every claim that was allowed, we are not now concerned with this; the ruling in question being the refusal of the trial court to treat the award as void in toto. This was not erroneous if to any substantial extent the award was legally valid. If a part only of the claims was unsupported by evidence, the request for an adverse ruling should have been directed to these.
The principal defense before the Commission was that the payment of a published rate afterwards decided to have been excessive was not evidence that the party who paid
That court held, further, that upon the undisputed evidence the legal title to the claims for reparation never vested in Spiller, and hence that the Commission was wholly without authority to order reparation to be made to him. The minutes show that of the claims in favor of Spiller a number had been assigned to Crowley when he was secretary of the Cattle Raisers’ Association, and afterwards assigned by him to Spiller when Crowley retired and Spiller succeeded him; that other claims were assigned by the consignors to Spiller direct; and that still others had not been assigned. The assignments were produced before Commissioner Prouty, and an offer made to file them, but as we interpret the minutes this was waived, a copy of one of the assignments (they were said to be alike in form) being inserted in the stenographer’s notes instead. There was evidence that the assignments were made for nominal considerations because the Cattle Raisers’ Association was prosecuting the claims for the benefit of the owners thereof. In the schedule of the claims as submitted to the Commission those assigned were suitably identified, and the Commission awarded reparation to Spiller upon these, and in other cases made the order in favor of the parties named as owners. There was substantial evidence to support the finding that the claims had been assigned. Formal proof of the handwriting of the assignors by subscribing witnesses or otherwise was not necessary in so summary a hearing, in the absence of objection or contradiction. What was shown as
The Circuit Court of Appeals held further, however, that, supposing there was sufficient evidence to support the finding that the claims had been legally assigned to Spiller; it showed that the purpose of the assignment was not such as to vest the legal title to the claims in him so as authorize the Commission to make the award of damages in his name. To this we cannot assent. The assignments were absolute in form, and plainly their effect — supposing the claims to be assignable — -was to vest the legal title in Spiller. What they did not pass to him was the beneficial or equitable title. But this was not necessary to support the right of the assignee to claim an award of reparation and enable him to recover it by action, at law brought in his own name but for the benefit of the equitable owners of the claims; especially since it appeared that such ’CVas the real purpose-of the assignments.
We have, said enough to show that the reversal of the judgments of the District Court cannot be sustained on the grounds upon which the Circuit Court of Appeals based ft. It is insisted, however, that, failing this, the same result ought to have been reached upon the ground that the provisions of the Commerce Act do not permit an. assignment of a claim for reparation to a third party and hence the Interstate Commerce Commission was without’ .jurisdiction to award reparation to Spiller. This is based upon the language of §§ 8-tand 9, which remain in their original form, of § 13, as amended June 18,1910, c. 309,. 36 Stat. 650, and of § 16 as amended June 29, 1906, 34 Stat. 584. Section-8 (24 Stat. 382) makes the common carrier, for anything done contrary to the prohibition of the act, '“liable to the person cr
The Interstate Commerce Commission, by Conference Ruling No. 362 (June 4, 1912), declared: “In awarding reparation the Commission will recognize an assignment
Other points discussed in the argument require no special comment.
It results that the judgments of the Circuit Court of Appeals must be reversed, and those of the District Court affirmed.
Writs of error dismissed.
Writ's of certiorari allowed.
Judgments of Circuit Court of Appeals reversed, and judgments of District Court affirmed.