Story Case

The Western Live Stock Company owned the only live stock yards operating in the town of Lockport, Nebraska, prior to the year 1915. Early in 1915, the Consumers' Stock Yards Company was organized, and included in its board of directors two officers of the Chicago and Western Railroad Company, which owned the only railroad going through the town. Thereafter, the railroad company posted rules and regulations, notifying shippers that it would receive and deliver live stock at such yards, only as provided for standard yard facilities. These were enumerated by the poster, and the regulation practically excluded shipments to and from the yards of the Western Live Stock Company. Thereupon, Walter Anderson, a heavy shipper, demanded that cars be placed for his use at the Western Company's yards, and upon refusal by the railroad company, he brought this action to compel it to serve him. Will he succeed in the action!

Ruling Court Case. Frazier Vs. Kansas City Railway Company, Volume 48 Iowa Reports, Page 571

Frazier wished to ship hogs to market on cars of the company. The cars were placed on the siding for his use on a day previous to shipping. When the train arrived the following day, Frazier had not only failed to load his stock in the cars, but had not even delivered them to the yards of the company. Nevertheless, he insisted that the train should be delayed until the stock could be loaded. The conductor of the train refused to wait. Frazier sued for damages, contending that, as a common carrier, the company had no right to refuse to wait until the stock was loaded.

The company contended that it could make reasonable regulations in regard to shipping, and that a refusal to wait for loading of the stock was not unreasonable.

Mr. Justice Day said: "The hogs to be shipped were not in the yards or on the depot grounds of the company when the train arrived, but were in a private yard in no way conducted or used by the company. Under such circumstances, Frazier had no right to demand or expect that the defendant's train should delay at the station until the hogs should be driven in to the defendant's stock yards, loaded, waybills made out, contract of shipment signed, and the cars placed in the train." Judgment was given for the company.

Ruling Law. Story Case Answer

Although a common carrier is under a legal obligation to render services to all who apply therefore, it, nevertheless, has the right to make reasonable regulations governing the rendition of such services. The end sought by such regulations must be legitimate; and the regulations must be fair and non-discriminatory. A carrier may provide that certain kinds of freight shall be packed and prepared for shipment in a certain way. If there is reason for such packing, and the regulation does not operate harshly upon any particular class of persons, it will be valid. It may regulate the schedule of running its trains, the time of loading cars, and the time of unloading. It may also make reasonable rules and regulations concerning the location of freight depots and switches; for example, if the small amount of shipments or the lack of passengers justify the abandonment of a station, it may remove the station. Also, if public health, as in the case where a stock yard is infected with disease, justify the refusal to serve certain shippers, it will be upheld. The regulations in the Story Case, seem, however, to be unreasonable, and a mere attempt to monopolize the stock yards industry. If this is true, Anderson will win in his suit.