44 Neb. 326 | Neb. | 1895
Lead Opinion
The Call Publishing Company is a corporation publishing a daily newspaper in the city of Lincoln. It brought this suit against the Western Union Telegraph Company,, alleging that since July 1, 1888, it had been receiving from the telegraph company the dispatches of the Associated Press collected by that organization at Chicago and transmitted daily from Chicago to Lincoln as well as to 'other cities; that thei’e existed between the Associated Press and the telegraph company a contract which prevented the Cali Company from procuring its news otherwise than over the
The errors assigned relate to the instructions given and refused, and to the sufficiency of the evidence. The assignments of error in regard to the instructions group themselves in the same manner as in the case of Hiatt v. Kinkaid, 40 Neb., 178. One assignment is directed against the instructions given by the court, en masse. Another is directed against those asked by the telegraph company and refused. Some of those given by the court were manifestly correct, and at least one asked by the telegraph company was substantially covered by the court’s charge. These assignments must, therefore, be overruled, and we are remitted in an examination of the case toa consideration of the sufficiency of the evidence.
' The evidence shows, without substantial conflict, that prior to July, 1888, a newspaper had been published in the city of Lincoln known as the State Democrat. This paper had acquired what is styled a “franchise” in the Northwestern Associated Press, and had been receiving the dispatches of that organization, paying to the Associated Press $20 per mouth therefor, and paying to the telegraph company for transmitting and delivering the dispatches $75 per month for a maximum of 1,400 words per day. The manner in which this contract was brought about was that Mr. Calhoun, the proprietor of the State Democrat, negotiated with the manager of the press association for procuring its
The State Journal Company published a morning paper. It was also a member of the Associated Press and received over the wires of the telegraph company dispatches not to exceed 5,600 words a day, for which it paid, during this period, the sum of $125 per month. It also was a member of the United Press, another association for the collection of news, and received through that association over the wires of the Postal Telegraph Company from 7,500 to 8,000 words per day, for which it paid to the Postal Company $200.
The Associated Press transmits its news in two groups, called “reports.” The day report is transmitted between 11 A. M. and about 2:30 P. M., and is for the especial benefit of evening papers. It is this report which the Call Company received. The night report is usually transmitted at night and generally between 7 P. M. and 3 A. M., and is for the especial benefit of morning papers. The Journal Company’s contract strictly included only the night report, but for many years it has in fact received
There was some question made as to whether or not the Call and the Journal were in any sense competitors in such a way that either could be affected by the relative rates charged. On this point we have no doubt that a state of competition was shown. One was a morning paper, the other an evening paper, and the same persons frequently buy or subscribe to both; but it was shown that the advertising rates of a newspaper depend chiefly upon its circulation, and that its circulation depends largely upon its ability to supply the news to its patrons. That a paper with good facilities for obtaining and publishing the news will, other things being equal, exceed in circulation a paper with poorer facilities; and that these influences operate upon newspapers having the same field of circulation, although one be published in the morning and the other in the evening Indeed it would hardly require evidence to establish such patent facts.
From the foregoing statement of the evidence it will be seen that the following propositions were established: First — That the actual rate charged to the Call was much greater than the actual rate charged to the Journal. Second — That the two papers were in such sense competitors, that if one, for a given sum, could not obtain the same news
The action was evidently begun under section 8 of chapter 89a, Compiled Statutes, providing that “it shall be unlawful for any telegraph company, association, or organization engaged in the business of forwarding dispatches by telegraph to demand, collect, or receive from any publisher or proprietor of a newspaper any greater sum for a given service than it demands, charges, or collects from the pub.isher or
An analysis of these provisions discloses that the legislature sought, by the act referred to, to prohibit, first, all partiality or discrimination between patrons in the handling of business; second, all partiality or discrimination in regard to rates for similar services; third, all such partiality or discrimination as to terms of payment or delivery; and fourth, all discrimination in favor of persons transmitting dispatches to the greater distance. Without violence to the language of the act, and without giving it an interpretation beyond the constitutional grant of power, it cannot be construed so as to require a telegraph company to transmit messages to two patrons under different conditions at the same rale. So interpreted we do not think that the act, in so far as it affects civil actions, and disregarding the penalties it imposes, is anything more than declaratory of the common law. In the present state of civilization it would be idle to assert that a telegraph company is not charged
It is argued by the telegraph company that no cause of action can be predicated upon the mere fact that another patron obtained services for a lesser rate, unless it be shown that the rate charged the complainant is in itself unreasonable and excessive. There are cases to this effect, but we cannot lend our assent either to their reasoning or to their conclusion. On the contrary, we believe the true rule to be that rates must not only be reasonable in themselves, but must be relatively reasonable; that is, that a person or corporation engaged in public business, and obligated to render its services to all persons having occasion to avail themselves thereof, is bound, in fixing its rates, to observe two rules: First, its rates must be reasonable, and second, it must not, without a just and reasonable ground for discrimination, render to one patron services at a less rate than it renders to another, where such discrimination operates to the disadvantage of that other. (Board of Trade v. Chicago, M. & St. P. R. Co., 1 Int. Com. Rep., 215; Hays v. Pennsylvania R. Co., 12 Fed. Rep., 309; Scofield v. Lake Shore & M. S. R. Co., 43 O. St., 571; Chicago & A. R.
As we have already stated, a considerable difference in the absolute rate charged the Call Company and the Journal Company was shown, but there were also shown a difference in conditions affecting the expense and difficulty of rendering the services which at common law would justify some difference in rates, and this difference was one which the proviso quoted from the seventh section of our statute expressly recognizes as justifying a discrimination in this, state. There was no evidence to show that the rate charged* the Call Company was unreasonably high. There was no-evidence to show that the rate charged the Journal Company was unreasonably low. There was no evidence to-show what difference in rates was demanded or justified by the exigencies of the differences in conditions of service». We do not think that the enforcement of contracts deliberately entered into should be put to the hazard of a mere-conjecture by a jury without evidence upon which to base-its verdict. How can it be said that a jury acts upon-the evidence and reaches a verdict solely upon consideration thereof when, having established a difference in rates- and a difference in conditions, without anything to sliowhow one difference affects the other, or to what extent, it is-permitted to measure one against the other, and to say that, to the extent of one dollar or to the extent of one thousand-dollars the difference in -rates was disproportionate to the-difference in conditions? It may be said that it would ber difficult to produce evidence to show to what extent such*
The chief justice takes a different view, and thinks there is found in the evidence a basis for the verdict. This conclusion is arrived at by considering the service performed for the Journal so far as the day report is concerned as similar in its conditions to that performed for the Call. We agree with him that it is the fair inference from the evidence of the witness Hathaway that the sum of $125 per month paid by the Journal is intended to include compensation for both day and night reports, but we do hot think that any basis of comparison is thus afforded. The chief justice argues that because the day report is now taken from the wires on manifold paper and one copy given to the Call and the other to the Journal, the conditions of service as to this report are the same. In this we think there is overlooked the fact that it is only on account of the Call’s contract that the telegraph company is required to deliver the report to either paper at the time or in the manner in which it is now delivered. At the risk of some repetition we shall point out what are conceived to be the differences in the conditions affecting the two papers. Before the Call, or rather its predecessor, the Democrat, began to take the report, the day report was delivered to the Journal at the convenience of the telegraph company. The Journal had no contract requiring the delivery of this report at any particular time. This is shown by the testimony both of Mr. Calhoun and Mr. Horton. The Journal makes use of this day report only to assist it in editing the night report, and did not then have, nor. has it now, any use for the day report until evening. Indeed, now that
I put up an additional wire between Omaha and Lincoln over the Missouri Pacific railway. We had to employ an additional operator at Lincoln to take the afternoon report. A portion of his time, of course, was utilized in other business.
Q,. What portion of the time was devoted to this exclusively ?
A. From 11 o’clock to 3:30.
Q. How much was his salary per month?
A. Sixty dollars.
On cross-examination the same witness was asked whether it was not the growth of commercial business that made it necessary to put in a new wire for this report. His answer was, “That was partly it, certainly. We would not have built a wire on purpose to accommodate one newspaper at $75 a month.” From this we think it ap
Reversed and remanded.
Dissenting Opinion
dissenting,
I do not concur in the conclusion reached by Commissioner Irvine, that there is no evidence in the bill of exceptions to sustain the verdict and judgment. The record shows without controversy that for nearly three years prior to the bringing "of this action the Call Company paid the telegraph company the sum of $75 per month for transmitting in the day-time the dispatches or reports of the Associated Press containing not exceeding 1,500 words each day, and during this period manifold copies of the dispatches were likewise delivered by the telegraph company to the State Journal Company, and the last named ■company also, in addition to said day reports, received each
Mr. C. B. Horton, the assistant superintendent of the telegraph company, in his testimony says no compensation was received for transmitting the day messages, but the •sum of $125 was paid for the night dispatches alone; that no charge was made for the day reports, but the same were furnished the State Journal Company without compensation, as a mere gratuity.
Mr. J. H. Calhoun testified that the State Journal Company paid $125 for the transmission of both the day and night reports received by it.
Mr. H. D. Hathaway, the manager of the State Journal Company, being interrogated while upon the witness stand whether anything was paid for the day reports, answered: ■“No, sir; except as we paid — it might be included in the whole arrangement.”
The fair inference to be drawn from the testimony of the last named witness is that no specified amount was collected for the day reports alone, but that the sum collected —$125 per month — was for both reports. The record discloses that the usual rate charged for night reports or messages is four times less than that paid for sending the -day reports of the same number of words. This being true, it is not reasonable to suppose that the State Journal Company would pay $125 per month for the night dispatches merely, when the Call Company was paying $75 per month for the day reports received by it.- According to the customary difference between the day and night rates, the State Journal Company, if we adoptas a basis the sum the Call Company was charged for its dispatches, should
It also appears by the testimony of Mr. Cox, one of the proprietors of the Call, and Mr. Calhoun, formerly managing editor of the Journal, that the day dispatches appear regularly and in full in the last named paper. It is said, however, that the Journal Company, without any extra cost to it, might have taken the dispatches from the Call instead of depending upon the telegraph company. This could have been done only to the extent the Call uses them. Mr. Cox testifies, and it is undisputed, that the Call did not always contain the full report, or even half of it. Sometimes it is received too late for use in the evening paper. AYe have not overlooked the fact that the Call contract contains a clause to the effect that the telegraph company should not deliver the day report to any other paper in Lincoln until after the Call goes to press. This provision is of no validity. A telegraph company is a common carrier and must treat all persons alike. It cannot discriminate against its patrons, or give one paper a monopoly of the Associated Press dispatches. It could no more do that than a railroad company could contract with A to carry his stock from Lincoln to South Omaha and
It will be observed that the Call Company was required to pay for the transmission of its dispatches at the rate of $5 per month for each one hundred words, while the State Journal was charged for the messages received by it a little over $1.76 per month per hundred words. There is no room for doubt that this difference in rates would constitute unjust discrimination against the Call Company, for which it would be entitled to recover the difference between the amount paid by it and the more favorable rates granted the State Journal Company were it not for the fact that all the messages to the two companies were not transmitted by the plaintiff in error under like conditions as to service. What were the differences in conditions which affected the
Mr. C. B. Horton, the witness already mentioned, testified upon this branch of the case as follows:
Q,. What, if any, difference is there in the case of operating or handling news at night and during the day — what difference in cost and in the convenience? State wherein it is.
A. In the day-time, as everybody knows, our wires are loaded with important business, board of trade grain messages, and we have wires leased during those hours and they are filled and occupied. At night we have idle wires and we utilize them. A lower rate has always been made in the night service. On press reports it is about one to four, one of day to four at night.
Q. One word at day to four at night?
A. Yes, sir; T believe that is the rule in all of our contracts.
Q,. Whether it is by the word or by the job?
A. Yes, sir.