Document: 352 U.S. 158 77 S.Ct. 241 1 L.Ed.2d 211 UNITED STATES of America, Appellant,v.INTERSTATE COMMERCE COMMISSION and United States America. No. 12. Argued Oct. 11, 1956. Decided Dec. 17, [Syllabus from pages 158-159 intentionally omitted] Mr. Ralph S. Spritzer, Washington, D.C., for appellant. Robert W. Ginnane, appellee Interstate Commerce Commission. Windsor F. Cousins, Philadelphia, Pa., railroad appellees. Justice REED delivered the opinion Court. This appeal requires a determination whether railroads serving port Norfolk, Virginia, must grant an allowance Government's performance certain wharfage handling services on its own export freight. For shippers who conform to requirements tariff, assume these charges as part rate. The States, however, found it impractical tariff requirements. 2 present litigation was instituted pursuant 28 U.S.C. § 2325, U.S.C.A. in three-judge District Court Columbia by through Department Army, against Commission set aside Commission's order v. Aberdeen & Rockfish R. Co., 289 I.C.C. 49. That dismissed complaint filed November 20, 1951, several named charging them with violations Act, 49 et seq. Court, one judge dissenting, complaint. 132 F.Supp. 34. We noted probable jurisdiction. 350 930, 76 302. 3 Since May 1, have refused pay Army handling1 performs military traffic passing base piers Virginia. assumed their tariffs obligation furnish accessorial all that comply tariffs. And, accordance tariffs, furnished commercial at public sections same without additional charge. These were performed private company—for under contract carry out orders terminal storage services; act carriers' agent 4 sought railroads' refusal make extent paid company, Stevenson Young, shipments subjected Government unjust discrimination constituted unreasonable practice violation §§ 2, 3, 6 Act.2 also requested cease desist such future.3 5 transfer freight rail carriers outbound water is made or wharves allow unloading cars within reach ships' tackle. Railroads are no statutory unload carlot freight, Pennsylvania Co. Kittaning Iron Steel Mfg. 253 319, 323, 40 532, 533, 64 L.Ed. 928.4 In general taken duty consigned overseas shipment.5 some instances charged use ('wharfage') necessary 'handling' separately charge line-haul transportation. other cases there has been only single factor rate (one inclusive charge) providing limited shipside delivery furnishing extra shipper. latter generally followed North Atlantic ports. Where do not piers, they provided contracting operators. I. Norfolk involved this matter, managed They built after World War I leased whole series operators since then. leases cancelled during II but operator, tne end war. here involved, using described above, contracted agent, perform 25¢ per ton 75¢ both But advent Korean hostilities, again took entire control piers. Apparently require special storage. To assure complete satisfaction, hired Young those pier-operating Army.6 unused portions later released Government, dated December 28, operations Young. By parts 1952 maritime terminal. It over lessee carried warehousing activities 7 A typical arrangement appears note below. basic exhibit case.7 bottomed April 5, 1947, between Railroad wharfinger, agreed 'as directed Railroad' 'export, import, coastwise intercoastal freight' upon facilities acquired base. responsibility care agreed, paragraph 4, that: 8 'The Terminal (Stevenson Young) shall provide adequate subject agreement, access Portsmouth Belt Line Railroad, interference interruption, load promptly delay equipment.' Paragraph 13 said: 9 'This agreement terminate absolutely immediately whenever ceases operate said wharfinger any event be terminable either party thirty days notice writing.' 10 large amount continued absorb cost paying $1.00 11 result Army's insistence operating pier pays rates receiving whom Because provides itself, claims right payment behalf shippers. 12 terms bases argument two grounds: civilian moving identical unjustly discriminatory Section Act.' 14 15 1(6) should attacking form which service rate.8 Consequently, case involves injustice. Cf. Commission, 337 426, 437—438, 69 1410, 1416, 1417, 93 1451. short, seeks excepted requirement calls shipper handling.9 16 controversy similar arose cancellation II, 269 141. Interpreting practices much like now before determined being discriminated against. However, review, Appeals remanded further exposition clarification. 91 U.S.App.D.C. 178, 198 F.2d 958. On remand reaffirmed earlier order. 294 203. question following lease never finally passed upon, ruling inconsistent conclusion litigation. II. 17 asserts more Base than substantially circumstances. Such exaction would be, course, discrimination. seems apparent circumstances markedly different receive services. Moreover, equally clear treated identically business reasons 18 routed direct itself consignee. As shown contracts summarized property except included bulkheads, railways warehouses, switches, tracks yards. had 'that ports embarkation operated personnel employees Government.' I.C.C., 53.10 19 Although company portion base, 'absolute.' 20 '(An yardmaster) times give instructions disposition When Virginian delivery, yard clerk notified telephone. If placement warehouse ready cars, carrier told where delivery. confirmed writing handed conductor when he arrives Cars left uptown Virginian, understanding cars.' 54—55. 21 direction necessary. Commanding Officer said, regard switching placing carriers: 22 Witness: you let switch themselves, know what doing, we list it. 23 'Q. Will permit convenience, orderly manner? A. don't how can run, if run convenience someone else. couldn't possibly unless coincided our requirement. 24 And yet operator normal way. No, because management problem. You team settle accounts operator. work nothing, quite well know. Somebody monitor that, manage thing, bringing cargo. over-lay staff ours, enough.' 25 movement authority areas switching, spotting removal according convenience. 64. 26 fact controls handle choose, mere formal differences. factors movement. 27 'It every including concerned, prohibit performing tracks, even though might willing able service. so prohibited shipper, done carrier's discharged, allowances service, part, unlawful, voluntary concession section 22.' 65. problems assumption costs long history. area exception, heretofore indicated. See 168, page 247, supra. 1951 desirable cancel leases, familiar various facets handling.11 III. 29 obvious method government does move wharf properties owned, facility carriers.' Rule 47(b), n. 7, 30 'At period, stored handled exclusive Army.' 60. 31 Any deviation violates 6(7) U.S.C., 6(7), 22.12 IV. 32 actually just decides take advantage offered tariff. preference deliveries control, so-called refuse absorbed facilities. record shows 84 along Coast compensation wharfage. testified: 33 'One principal limitations mention restriction loading distinguished shippers.' 34 There evidence contrary accepted situation fact. 58, 61, 63. difference directly agents, consignee control. 35 objection generally, stated separately. disperse traffic, cause maintenance crews watchmen, thus add 36 contends position meet national emergency. think emergency cannot convert operation into category shippers.13 us immaterial. gave here, excepting given wanted discretion. Merchants' Warehouse 283 501, 51 505, 75 1227; Weyerhaeuser Timber 229 463. 37 accorded privileges others. emergencies may 'preference priority transportation,' 1(15), d granted accept preferences rates.14 otherwise allowances. presented, could used obtained benefits effect uncontradicted.15 60—61, V. 38 drew above conduct unlawful. 39 argues way 'some less required industrial plants.' Smelting, Refining Min. 339 186, 197, 70 537, 544, 94 750. indeed violate Act.16 Smelting apposite. affirmed enjoining intra-plant car termination line haul. terminated 'convenient point' siding consignee's plant. Our decision turned upheld power determine point convenient point, received others 543.17 Thus based unlawful allowed get Furthermore, conditions sufficiently dissimilar justify differences determination.18 41 affirm. 42 Affirmed. 43 BRENNAN consideration case. 44 BLACK, CHIEF JUSTICE concurs, dissenting. 45 From very beginning Act discriminate carrying kind distance. provisions ban evaded contrivance guise accomplishes end. undisputed evidence, findings, convinces me beyond doubt subjecting precisely prohibits. mass verbiage befogged stripped away, issues complex expert guidance needed proper resolution. 46 owns Virginia connected main lines major railroads. Storage space many years hauling respect $1 instead include transportation 47 Shipments exactly shipment. acting railroads, storage; covering anything addition 48 outbreak conflict, facilitate shipment supplies. before. sole acted rather before, shipments. continue refused. net receives although Or manner compelled ship points pier. Nothing below arguments presented justifies plain finding, nor indication, penny transport adjacent agent. embedded legal. 50 claimed establish rule will undoubtedly true, follow perform. Under realistic appraisal, sense 'free service.' goods transported. But, expressly found, wartime wholly shipping entitled recover 'line-haul' use. claims. reason why exacts enjoy others, situation, cannot. Union Pacific Updike Grain 222 215, 220, 39, 42, 56 171, 'A apparently fair face reasonable may, fact, unfair operates another, similarly situated, avail himself.' reverse judgment 'Wharfage refers provision docks pending cargo vessels; ship's tackle * *.' 182, 958, 962. Wharfage Charges Gulf Ports, 157 663, 672. common chapter establish, observe, enforce classifications transportation, reference rates, regulations, prescribed, regulations affecting classifications, secure safe prompt receipt, handling, terms, classification, regulation, declared unlawful.' 1(6), 1(6). 'If shall, indirectly, rate, rebate, drawback, device, charge, demand, collect, person persons greater rendered rendered, passengers property, chapter, charges, demands, collects, doing him contemporaneous conditions, deemed guilty discrimination, 2. make, give, undue particular person, firm, corporation, association, locality, port, district, gateway, transit region, territory, description whatsoever; prejudice disadvantage whatsoever 3(1), 3(1). 3(1) material appeal, alone quoted pertinent part. No reparations proceeding. indicates, held deduct prior 'overpayments' future sums due 66, 66. 61. approved fair. Baltimore Ohio 305 507, 524, 59 284, 290, 83 318. unfairness correction. 194—197, 542, 543, determinations case-by-case basis. See, e.g., Wabash 321 403, 752, 88 827. called 'all intransit excluding physical plant (piers, etc.); checking clerking connection therewith; policing (sweeping cleaning) (excluding vessel stevedoring; watchmen guard service; utilities premises service) designated herein, and, therewith, (the of) duties about Hampton Roads harbor Contracting 'Statement Excerpts Penna. R.R. Tariff ICC 3007, Setting Forth Regulations Compensation Which Pay Terminals Division Inc., Facilities Furnished Handling Services Performed Va. 'Rule '* published Company 6—J. 105, Va., Export, Import, Intercoastal Coastwise quantity, conditions: '(b) receipt owned carriers. (On January 1952, (b) changed. change strengthened favor quoted. 59.) 'Compensation hanling conforming specified compensating amounts cents 100 pounds, provided. 1/4 3/4 '(Generally) (There exceptions.) '(1) (a) open lumber, *. stowing required, 1/2 cent pounds 2000 kinds '(2) and/or literage, inbound milled, mixed, malted (or numerous warehouses terminals). respects wharfage, applicable terminals) Portsmouth, lawfully file Commission.' attack justified re-examination. attacked 1921 overruled 1929 thorough investigation 6—5 vote. 678 686. Separation largely force increase competitive municipal non-railroad wharfingers expand develop better reached separation inadvisable, injury practice. afford competition each condition exists eliminated segregation uniform charges. still shrinking rates. having larger shrink offset real substance ship-side exist, reestablished.' Id., 684. sensitivity foreign importers domestic led conclusion. highly railway network, important Costs vary widely, 673. variations quoting exception 6(8) precedence emergencies. amply supported testimony witness, Officer, Roads, Port Embarkation: 'Only requisite training intricate nomenclature pertaining items documentation dispatching vessels. vast pre-stowage planning vessels precede labor actual loading. Precise knowledge available. Therefore, exercised absolute. begin ordered shipped origin until commodities final destination overseas.' request war Materials Reparation Cases, 5. substantial 22, allowing concessions States. spotted yards Other 55. American Sheet Tin Plate 301 402, 57 804, 81 1186. relaxation possible decide claim handling. did consideration, fairness ton, illustrated $2.87 61 reliance Atchison, T. S.F.R. 232 199, 291, 58 568, misplaced. sustained granting fruit precool contents, refrigerate, properly, deny consignor right. 'Nothing prevent free reduced 22. water-borne differently shippers, his today rates.' 63: 'Evidence defendants supports extend wish defendants. available ample least 1951.' reads: "Delivery carload destined smelter Leadville, Colo., track scales, thaw-house, sampler combination concentrator indicated sampling company." 196, 543. 266 476, 478. L. Barringer 319 6—7, 729, 63 967, 970, 87 1171: 'Whether whether, hand, constitutes primarily considerations relating identity attending determination. Hence view relevant facts meaning disturbed say finding unsupported rational basis, rests erroneous construction statute.' reasons, 526, 318, dealing transit, 407—408, 807, 1186, post-line-haul practices, vis-a -vis prohibitory orders. Seaboard Air 254 57, 24, 65 129; 410, 755,

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