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Louisville & Nashville R. Co. v. United States, 267 U.S. 395 (1925)

Louisville & Nashville Railroad Company v. United States

No. 29

Argued December 4, 1924

Decided March 2, 1925

267 U.S. 395


1. Contracts for sale and delivery of coal to the United States, construed, with the advertisements, specifications and conduct of the parties, as providing for delivery on cars at the mine, so that title passed then, and the railroad transportation, on government bills of lading, was subject to land grant rates. P. 267 U. S. 397.

2. Provisions in sch contracts for service by the vendor in transferring the coal to barges at railroad destination, compensation therefor to be included in price of coal, and reserving right of United States to test coal after transportation and reject it if

Page 267 U. S. 396

not up to specifications, held not inconsistent with passing of title at time of delivery on cars at the mine. P. 267 U. S. 400.

3. Where the United States contracted for coal to be shipped by rail and delivered at a vessel, use of government bills of lading, and payment of freight by the United States at land grant rates, were not enough to sustain a finding that the coal was the property of the United States when hauled by the railroad. P. 267 U. S. 401.

4. When a railroad company, entitled to charge the United States the full tariff rate, charge and receive the reduced land grant rate with full knowledge of the facts, it is bound by its acquiescence, and cannot recover the difference. Id.

5. Where, under its tariff, the right of a railroad to charge extra for switching and transferring coal at destination depends upon road-haul revenue being equal to as much as a stated rate per ton, land grant deductions from the latter allowed the United States are not to be considered in determining its liability to such extra charges. P. 267 U. S. 402.

57 Ct.Cls. 268 affirmed.

Appeal from a judgment of the Court of Claims rejecting the railroad's claim for transportation, switching, and handling of freight for the United States.

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