Kansas City Southern Ry. Co. v. United States - 252 U.S. 147 (1920)
U.S. Supreme Court
Kansas City Southern Ry. Co. v. United States, 252 U.S. 147 (1920)
Kansas City Southern Railway Company v. United States
Submitted January 19, 1920
Decided March 1, 1920
252 U.S. 147
A railroad company which enters into a contract to carry the mails "upon the conditions prescribed by law," etc., is liable to fines or deductions from its compensation for failures to maintain its mail train schedules (Rev.Stats., §§ 3962, 4002; Act of June 26, 1906, c. 3546, 34 Stat. 472). P. 252 U. S. 149.
The fact that the Post Office Department long abstained from making such deductions under Rev.Stats. § 3962 where delays were less than 24 hours does not amount to construing that section as inapplicable to shorter delays. P. 252 U. S. 150.
And, in any event, the right to such a construction could not be claimed by a company whose contract was made soon after the Postmaster General had issued an order for deductions in future when trains arrived fifteen or more minutes late a designated number of times
per quarter, and soon after the approval of the Act of June 26, 1906, supra, directing him to impose and collect reasonable fines for failure of railroads to comply with their contracts respecting the times of arrival and departure of trains. P. 252 U. S. 150.
53 Ct.Clms. 630 affirmed.
The case is stated in the opinion.