Pittsburgh & Lake Erie Railroad v. Colonial Steel Co.

Citations

• 251 Pa. 460
• 96 A. 1037
• 1916 Pa. LEXIS 486

Syllabus

<p>Railroad companies — Contracts for special rates — Alleged discrimination — Constitution of Pennsylvania, Art. XVII, Sec. 8, Act of June I, 1888, P. L. 72 — Affidavit of defense — Counterclaims.</p> <p>1. A special contract between a railroad company and a manufactory for a special rate for the transportation of fuel to the manufactory, is not undue or unreasonable discrimination in violation of Art. XVII, Sec. 3, of the Constitution of Pennsylvania, or of the Act of June 4, 1883, P. L. 72, prohibiting undue or unreasonable discrimination in charges for transportation of freight or passengers.</p> <p>2. A railroad company agreed with a factory to transport coal from certain districts to tbe factory at 50 cents per ton; the factory in return agreed to give preference to tbe railroad company in shipments of freight to and from its factory, when not contrary to the request of a customer; the 50 cent rate was the published tariff rate of the railroad company and by the terms of the contract was to remain in force for thirty years. The railroad company subsequently raised the rate and sought to recover from the factory the difference between the contract rate and the new rate on certain shipments of coal. The factory in its affidavit of defense counterclaimed for the amount of certain alleged excess payments which it had made under the new tariff-. The lower court decided that the contract was valid and entered judgment for defendant for the amount of the counterclaim. Held, no error.</p>