Kansas City Southern Railway Company v. Carl

Action by the holder of a bill of lading issued by the Chicago, Rock Island, & Pacific Railway for two boxes and one barrel containing 'household goods,' received at Lawton, in what was then the Indian territory, a station on the line of the railway company, for transportation to Gentry, Arkansas, a station on the line of railway of plaintiff in error. One of the boxes was never delivered, and the shipper sued to recover its value.

The defense was that the plaintiff had, in order to obtain the lower of two freight rates, shipped the boxes under an agreement that the goods, in case of a loss, should be valued at $5 per hundredweight, and that it, as a succeeding carrier in the route, was entitled to the benefit of that limitation of value. The total weight of the two boxes and barrel was 400 pounds, and the weight of the box lost was not over 200 pounds. The limitation of liability was in the form of a release signed by the shipper, and was delivered to the primary carrier on receipt of the bill of lading.

The relevant parts of the bill of lading were in these words:

Lawton, 10-8-1907.

Received from J. M. Carl, in apparent good order, by the     Chicago, Rock Island, & Pacific Railway Company, the following described packages marked and numbered as per      margin, subject to the conditions and regulations of the      published tariff of said company, to be transported over the      line of this railroad to _____ and delivered, after payment      of freight, in like good order to the next carrier (if the      same are to be forwarded beyond the line of this company's      road), to be carried to the place of destination; it being      especially agreed that the responsibility of this company      shall cease at this company's depot at which the same are to      be delivered to such carrier; but this company guarantees      that the rates of freight for the transportation of said      packages from the place of shipment to _____ shall not exceed      ___ per ___ and charges advanced by this company, subject to      the following conditions:



It is further especially agreed that for all loss or damage     occurring in the transit of said packages the legal remedy      shall be against the particular carrier or forwarder only in      whose custody may be actually at the happening thereof, it      being understood that the Chicago, Rock Island, & Pacific      Railway Company assumes no other responsibility for their      safe carriage or safety than may be incurred on its own road.



Consignee:     Destination:

J.M. Carl. Gentry, Ark.

Description of Articles.

No. Weights. Stamp.

Subject to correction

2 Bx. H.H. goods. Paid to apply

1 Brl. H.H. goods. 400  $3.85

O.R. Val. 5.00 cwt. 127016

R. F. Prettyman, Agent.

The legend 'O. R. Val. 5.00 cwt.' on the bill of lading  is an abbreviation for 'Owner's released valuation $5   per hundred-weight,' and was intended to connect with   the contract of release, which was in these words:

Lawton Station, 10, 8, 1907.

In consideration of the price (special rates on carloads and     first-class rates on less quantities) at which the Chicago,      Rock Island, & Pacific Railway Company hereby agrees to      transport a quantity of household goods, furniture, or      emigrants' movables-including live stock, if any in the car      from Lawton, O. T. station to Gentry, Arkansas, station, the      same being consigned to J. M. Carl. I, _____ _____, the     consignor, hereby release the said company, and all other      railroad and transportation companies over whose lines the      above property may pass to destination, from all liability      from any loss or damage said property may sustain in excess      of $5 per 100 lbs., and I hereby guarantee all charges for      freight on connection lines to destination.

J. M. Carl, Consignor.

N. B.-When household goods, etc., are shipped at rate based     on valuation of $5 per hundred pounds, agents will require      the owner or consignor to sign this agreement, and when      signed, same must be kept on file at forwarding station. Agent must then note on Way Bill, 'Released to valuation of     $5 per hundred pounds.'

The suit was started before a state justice of the peace, and the pleadings were informal. There was a judgment for $75, which was the uncontradicted full value of the goods lost. The case was taken to the circuit court for Benton county, where there was a verdict and a judgment for the same amount. This judgment was, upon a writ of error, affirmed in the supreme court of the state, the case being reported in 91 Ark. 97, 134 Am. St. Rep. 56, 121 S. W. 932.

The uncontradicted evidence was that two boxes and a barrel containing household goods were delivered to the initial carrier, and that the plaintiff in error received same, but delivered only one of the boxes and the barrel, and that the value of the box lost was $75; that there were two rates in effect upon household goods shipped from Lawton to Gentry, one based upon a released valuation of $5 per hundredweight, and a higher rate upon such articles not so released, and that the latter rate was 78 cents per hundred pounds higher than the released valuation rate, and that these two rates 'were evidenced by tariffs duly filed with the Interstate Commerce Commission and published according to law.'

The defendant in error testified, over objection, that though he could read and write, and had signed the release set out above, and had received the bill of lading, he had neither read them nor asked any questions about them, and had not been given any information as to the contents of either document, and had no knowledge of the existence of the two rates. He was also allowed to testify that if he had known of the difference between the two rates, and the effect of accepting the lower, he would have paid the higher rate. There was no evidence tending to show any misrepresentation made by the company, or of any deceit, or fraud, or concealment, unless it be inferred from the fact that the company made no explanation of the rates or the contents of either the bill of lading or the release. The shipper merely said that the bill of lading was handed to him with the release, which he was asked to sign. Exceptions were taken to the rulings upon evidence and to certain parts of the charge, and for the refusal of the court to grant certain requests.

Messrs. A. B. BROWNE, SAMUEL W. Moore, and James B. McDonough, for plaintiff in error.

[Argument of Counsel from pages 643-646 intentionally omitted]

No appearance for defendant in error.

Statement by Mr. Justice Lurton:

Mr. Justice Lurton, after making the foregoing statement, delivered the opinion of the court: