Southern Pacific Co. v. United States,
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237 U.S. 202 (1915)
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U.S. Supreme Court
Southern Pacific Co. v. United States, 237 U.S. 202 (1915)
Southern Pacific Co. v. United States
Submitted March 11, 1915
Decided April 12, 1915
237 U.S. 202
Where a railroad company transports property and troops of the United States over a continuous line of railroad, part of which is free-haul and the remaining part is pay line, the character of the shipment fixes the rate, and the government can be charged a proportionate part of the through rate only, and not the local rate on that part of the haul which is over the pay line.
A provision in a railroad land grant statute that the government shall always have the right to ship over the line at fair and reasonable rates not to exceed those paid by private parties entitles the government
to the benefit of the long haul rate and to pay the proportionate part of the rate and not be charged the local rate over the pay line.
48 Ct.Cl. 227 affirmed.
The facts, which involve questions relating to the amount which the United States can be charged for transportation over a land grant railway, are stated in the opinion.