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Houston, East & West Texas Railway Co. v. United States

Court of Claims · 1914 · Constitutional Law

Constitutional LawCriminal ProcedurePropertytroop transportationgovernment bills of ladingbaggage car chargesunauthorized deductionaccounting officers

Facts

The plaintiff transported horses, wagons, tents, rations, and other impedimenta on Government bills of lading and submitted bills for $1,033.32 and $272.52. The War Department Auditor disallowed $968.42 of the first bill on the ground that the Government was entitled to one baggage car free for every 25 men transported because the movement involved troops. As to the second item, the plaintiff's bill was initially paid, but accounting officers later treated $207.62 as an overpayment on the same free-baggage-car theory and deducted that amount from bills owed to the Railroad Administration while the plaintiff's line was under federal control. The plaintiff then paid that amount to the Director General of Railroads.

Issue

Whether the Government was entitled to one baggage car free for every 25 men transported in a troop movement, thereby permitting it to disallow part of the plaintiff's transportation charges or recoup an asserted overpayment. Also, whether the plaintiff could recover amounts later deducted on that erroneous theory after settlement with the Railroad Administration.

Rule

A deduction or recoupment from a carrier's transportation charges is unauthorized when based on the theory that the Government is entitled to one baggage car free for every 25 men transported in a troop movement. When such a deduction is erroneous, the carrier is entitled to recover the amount improperly withheld or recouped.

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One of 10 multiple-choice questions for this case. Pick an answer to see why.

Prairie Gulf Rail Lines transported artillery tools, field tents, and supply crates from San Antonio, Texas, to Fort Sill, Oklahoma, on government bills of lading as part of a troop movement. After the carrier submitted its invoice, a military auditor withheld part of the amount on the ground that the government was entitled to one baggage car free for every 25 soldiers traveling in the same movement.

If Prairie Gulf sues to recover the withheld amount, which is the strongest result under the controlling rule?

Explanation. The majority opinion held that a deduction from a carrier's transportation charges is unauthorized when it rests on the theory that the government is entitled to one baggage car free for every 25 men transported in a troop movement. The carrier may recover the amount improperly withheld. (Derived from Houston, East & West Texas Railway Co. v. United States (1914).)