Lead Opinion
The parties are domestic corporations, and, as their respective names imply, the plaintiff was engaged in business as a telegraph company having and maintaining lines of poles and wires throughout the United States for that purpose, and the defendant was a news agency engaged in obtaining and transmitting news items by wires for publication in newspapers owned or represented by its members.
The plaintiff alleged in separate counts seven causes of action based on contracts in writing for rent for the exclusive use of telegraph circuits between points in different States, and three for like rentals under contracts resting in parol, and one for battery service pursuant to an oral agreement. Nine other similar actions brought by plaintiff against defendant were tried with the issues herein and by stipulation are to abide the event hereof. Counts 4, 6, 7, 8, 9 and 11 of the complaint were put in issue by the answer. Four of them, namely, the fourth, sixth, seventh and eighth, were based on contracts for services to be furnished between six a. m. and six p. m., known as day service, and the plaintiff’s right to recover on those causes of action is not questioned. The controversy relates to charges for services between six p. m. and six a. m., known as night service. Defendant alleged in its answer that the plaintiff had for many years prior to the making of the contracts in question uniformly based its rental charges for such service on a specified rate per mile of telegraph line or circuit per annum without regard to geographical location or distance covered by the service,
The issues then came on for trial. Four of the causes of action, namely, the first, second, fifth and tenth, were litigated. The first three of these involved rentals for the months of August, September, and October, 1915, and the tenth involved rent for August and September and the first four days of October, 1615. The first cause of action was on a contract for service from Omaha to San Francisco, consisting of two circuits, covering the period from August 1, 1912, to October 31, 1917, involving both day and night service; the second was for day and night service from Omaha to Chicago under a contract made December 29, 1912, and continuing for five years; the fifth was on a contract for night service between Lincoln and Omaha, Neb., and Sioux City, la., for one year from January 1, 1915, and the tenth was for night service only from Omaha to Sioux City from seven to nine p. m. each day from March 15, 1915, at a yearly rental without a fixed term.
The uncontroverted evidence shows that from the year 1882 to August 1, 1915, the uniform rate charged by the plaintiff and by other telegraph companies throughout the United States for leased line service was twenty-four dollars per mile per annum for twelve hours’ day service and twelve dollars per mile per annum for twelve hours’ night service, and that the charge was the same between all points; that on the 1st day of August, 1915, the plaintiff caused it to be announced in the public press and caused notice to be sent to its division superintendents that it had granted a fifty per cent reduction
The trial court reduced all of the plaintiff’s claims for night service to the basis of six dollars per mile per annum for twelve hours’ service from August 1 to September 15, 1915, and to three dollars per mile per annum thereafter in accordance with the plaintiff’s said announced reduction of rates.
The evidence presents no basis for a recovery other than as allowed by the trial court or as provided in the contracts between the plaintiff and defendant. On the former appeal, involving the sufficiency of the defenses, this court held that these were contracts by a common carrier within the purview of the Interstate Commerce Act; that the plaintiff could not discriminate between its patrons receiving substantially similar service; that consequently the defendant was entitled to any lower rate made by the plaintiff for substantially like service after these contracts were made, and that it was the duty of the plaintiff to afford the service to the defendant for the rate it charged for like contemporaneous service under substantially similar circumstances and conditions without discrimination with respect to the points of such service. (Postal Telegraph-Cable Co. v. Associated Press, No. 1, supra.) The learned trial court found that the service afforded and furnished to others at said reduced rates by the plaintiff during the period for which the recovery of rent is herein sought, was substantially similar to that furnished to defendant and under substantially similar conditions and circumstances and that it placed the defendant at a disadvantage with its competitors, and that the defendant became entitled to such reduced rates.
The learned counsel for the appellant, while reserving the point with respect to whether these contracts were within the provisions of the Interstate Commerce Act which was decided adversely to the plaintiff on the former appeal, contends that the judgment is erroneous in that the service provided for in some of the contracts and particularly those
The defendant showed numerous other contracts for service at the reduced rates made throughout the territory east of the Mississippi river as well as those to which reference has been made. That evidence ..and the general reduction’s of plaintiff’s established ratee as already stated, I think, established
It follows, therefore, that the judgment should be affirmed, with costs.
Clarke, P. J., Dowling and Merrell, JJ., concurred; Shearn, J., dissented.
See Kansas Laws of 1911, chap. 238, § 10; Gen. Stat, Kansas (1915), | 8337.- [Rep.
See 24 U.S. Stat. at Large, 379, chap. 104, as amd.-[Rep.
Dissenting Opinion
The first cause of action is for rent of a telegraph wire between Omaha and San Francisco for the months of August, September and October, 1915, amounting to $16,861.26, pursuant to a written contract made August 1, 1912, under which contract the wire had been continuously operated until defendant’s refusal to pay the rental in suit. The defendant seeks
In this situation the law is well settled. “ The principal objects of the Interstate Commerce Act were to secure just
In so holding there is no conflict with the decision of this, court (175 App. Div. 538) overruling plaintiff’s demurrer to certain of the defenses set up in the answer. The demurrer admitted the allegation of fact that the service rendered at the lower rate was under substantially similar conditions to those prevailing where the higher rate was charged, and in pointing this out Mr. Justice Smith in his opinion said: “ Whether or not the proof adduced upon the trial may show any justification for this discriminatory rate given to the defendant’s competitors, the pleading, we think, is sufficient
As to the remaining causes of action, none of which involves service to the Pacific coast, the plaintiff produced no evidence showing substantial dissimilarity of conditions of service and, therefore, it seems to me that the previous decision of this court, above referred to, requires that the judgment rendered upon those causes of action should be affirmed.
The learned trial justice erred, in my opinion, in refusing to find material facts as requested by the plaintiff, evidence as to which was uncontradicted, namely, the fourth, eighth, ninth, eleventh, twelfth, thirteenth, nineteenth, twentieth, twenty-first, twenty-second, twenty-third, twenty-fourth, twenty-fifth, twenty-seventh, thirtieth, forty-fifth, forty-ninth, fifty-first, fifty-second and fifty-third requests to find. The findings should be modified accordingly, and the judgment modified by increasing the amount thereof so as to include the rental sued for under the first cause of action amounting to $16,861.26, with interest from October 5, 1915, and as modified affirmed, with costs to the appellant.
Judgment affirmed, with costs.
