Story Case

The Wisconsin and Northern Railroad Company made a ruling to the effect that it would deliver wheat in Milwaukee at the elevators of the Western Grain Company, and none other. The Whiting Grain Company purchased ten cars of wheat, and demanded that it be placed on the switch tracks of the Michigan Elevator Company. The railroad company refused to deliver the wheat here, and an action was brought for damages. What will the court do?

Ruling Court Case. Eagle Vs. White, Volume 6 Wharton Pennsylvania Reports, Page 434

White was a common carrier who agreed to transport goods for Eagle, to Columbia, Pennsylvania. The cars containing the goods arrived at Columbia late one Saturday afternoon. Eagle was aware of their arrival, but refused to accept them that afternoon, on the ground that it was too late to unload and convey them to his store. White, thereupon, caused the cars to be placed on the siding. The cars were locked, and the keys retained by White. On Monday morning, when Eagle went to unload the cars, it was found that they had been opened, and the contents stolen. Eagle brings this action against White, as a common carrier, for damages.

White contended that the arrival of the goods and notice thereof to Eagle terminated his relation to the goods as a common carrier, and that from that moment, they were held at the risk of Eagle.

Mr. Justice Rogers said: "Common carriers are ordinarily bound to carry goods intrusted to their conveyance, to the residence or place of business of the consignee; but whether this rule can be conveniently applied to the business usually transacted by canal or railroad, may admit of doubt. But in this case, it cannot be pretended that there was an actual delivery."

The goods still remained in White's care, as a carrier; since Eagle had not had a reasonable time in which to take possession of them, White is liable for the loss of the goods. Judgment was given for Eagle.

Ruling Law. Story Case Answer

A carrier is under a legal obligation to deliver the goods shipped to the consignee, that is, to the person to whom they are directed. This is but a continuation of the duty of the carrier to receive the goods for shipment. Formerly, it was the rule that the carrier was under an obligation to make a personal delivery of the goods to the consignee; and such seems to be the rule, in reference to all carriers by wagons. A railroad is presumed to deliver by placing the goods in a warehouse, and notifying the consignee of their arrival. A carrier by water has done his duty when the goods have been placed on the wharf, after notice to the consignee. Of course, the carrier, in any case, must adopt a reasonable hour of delivery. No carrier would be relieved of its liability, by depositing the goods on a platform, or wharf, and notifying the consignee, if the time was at night, unless such was customary in a given place.

A railroad company is bound to deliver freight to sidetracks and switches, where such are provided for that purpose. It cannot, for instance, designate one elevator for delivery of grain; otherwise, through its own subsidiary or controlled companies, it could monopolize this particular business. This is the law in the Story Case. It has been held, however, that a railroad company may compel all shippers to use one designated stockyards, if consignees and shippers are permitted to use them without extra charge. The use would be similar to that of a general freight station.