This action was brought by the defendants in error, subjects of the queen of Great Britain and Ireland, against the Texas & Pacific Railway Company, a corporation existing under an act of congress approved March 3, 1871 (16 Stat. 573, c. 122), and engaged in the business of a common carrier of merchandise for hire. Its object was to recover the value of 467 bales of cotton destroyed by fire.

The complaint alleged that in the month of October, 1894, at Bonham, Tex., the plaintiffs delive ed to the defendant railway company 500 bales of cotton, which it agreed to carry safely and securely, at a through price or rate, from the place of shipment to Liverpool, England, by way of New Orleans, and there deliver the same on the payment of the freight; that the defendant failed to keep its agreement, and to carry safely 467 of the bales of cotton to Liverpool, and there to deliver the same, although the plaintiffs had duly demanded delivery thereof, and had been at all times ready and willing to pay the freight for the carriage; that through its negligence and carelessness, and without the fault of the plaintiffs, those 467 bales, worth $17,314.43, were, on or about November 12, 1894, wholly destroyed by fire at Westwego, La., 'at which time and place the same were in the possession of the defendant, in the course of such carriage, and as a common carrier'; and that the defendant has refused, upon plaintiffs' demand, to pay the value of the cotton so destroyed.

Texas Railway Company v. Clayton/Opinion of the Court

The defendant admitted the destruction of the cotton by fire at the time and place named, but made such denial of the material allegations of the complaint as put the plaintiffs on proof of their case.

Texas Railway Company v. Clayton/Opinion of the Court

The plaintiffs, having read in evidence the bills of lading, and made proof of the value of the cotton, as shown by certain stipulations between the parties, rested their case. Thereupon the defendant moved the court to direct the jury to render a verdict in its behalf. That motion was denied, with exceptions to the defendant. At the close of all the evidence, the jury, by direction of the court, returned a verdict in favor of the plaintiffs for the sum of $14,068, and judgment for that sum, with costs, was entered against the defendant company. Upon writ of error to the circuit court of appeals, that judgment was affirmed. 51 U.S. App. 676, 28 C. C. A. 142, 84 Fed. 305.

Texas Railway Company v. Clayton/Opinion of the Court

The action was based upon four bills of lading issued by the railway company. Two of them were dated October 10th, and the others October 15th and October 23d, respectively. They are alike in form, and identical in respect of the terms and conditions of the contract. Each one showed a receipt by the railway company of a given number of bales, 'in apparent good order, and well conditioned, of Castner & Co., for delivery to shippers' order or their assigns, at Liverpool, England, he or they paying freight and charges as per margin'; also, that the cotten received was to be carried 'from Bonham, Texas, to Liverpool, England; route, via New Orleans and Elder, Dempster & Co. Steamship Line.'

Each bill of lading contained also the following clauses:

'The terms and conditions hereof are understood and accepted by the owner.

'Upon the following terms and conditions, which are fully assented to and accepted by the owner, viz.:

'(1) That the liability of the Texas and Pacific Railway Company, in respect to said cotton, and under this contract, is limited to its own line of railway, and will cease, and its part of this contract be fully performed upon delivery of said cotton to its next connecting carrier; and in case of any loss, detriment, or damage done to or sustained by said cotton before its arrival and delivery at its final destination, whereby any legal liability is incurred by any carrier, that carrier alone shall be held liable therefor in whose actual custody the cotton shall be at the time of such damage, detriment, or loss.

'(2) That the rate of freight for transportation of said cotton, specified in the margin hereof, is quoted and guarantied with the distinct understanding, and only on condition that the weight of said cotton is truly and correctly represented and stated; that said rate only includes the charge for transportation, and the specification of said rate shall not be taken as any guide for construction or evidence to extend this contract in other respects, or to bind the Texas and Pacific Railway Company to transport or to become in any wise responsible for said cotton after delive y thereof to its next connecting carrier, but shall only bind said company to protect said rate.'