Document: 356 U.S. 309 78 S.Ct. 752 2 L.Ed.2d 788 PANAMA CANAL COMPANY, Petitioner,v.GRACE LINE, Inc., et al. GRACE Isbrandtsen Company, Luckenbach Steamship al., Petitioners, v. COMPANY. Nos. 251, 252. Argued April and 3, 1958. Decided 28, Sol. Gen. J. Lee Rankin, Washington, D.C., for Panama Canal co. Mr. Charles Dickerman Williams, New York City, Grace Line others. Justice DOUGLAS, delivered the opinion of Court. 1 Respondents, American shipping companies using Canal, brought this suit in District Court to compel petitioner, Co., prescribe new tolls use refund which it was alleged had been illegally collected past. The dismissed complaint lack jurisdiction subject matter, 143 F.Supp. 539. Appeals refused relief a but on other phases entered summary judgment respondent. 243 F.2d 844. cases are here petitions certiorari we granted because importance questions presented. 355 810, 37, 29.1 Petitioner created by Congress 1950. 64 Stat. 1041. It holds assets has duty operating maintaining it. may sue be sued its corporate name. Zone Code, Tit. 2, § 248, 62 1078, as amended, 1038. Prior 1950 operated President through Governor Zone. 37 561. Business activities incident that operation were conducted Railroad federal corporation, 1076, an agency instrumentality United States, ibid. Those auxiliary business 'designed used aid' management Canal. See People State ex rel. Rogers Graves, 299 401, 406, 57 269, 271, 81 L.Ed. 306. Since all those have carried whose stock is held or his designee, 246(a), present designee being Secretary Army. 3 Hay-Pauncefote Treaty, proclaimed February 22, 1902, 32 1903, provided Article III 'charges traffic shall just equitable.' Under original legislation, 562, authorized fix six months' notice proclamation. Act not less than 75¢ nor more $1.25 per net registered ton. In 1937 ceiling lowered $1 vessel ton, minimum retained. 50 750. When Truman 1948 sought increase toll rate statutory maximum, 1494, asked withhold action until entire problem could studied. H.R.Rep. No. 1304, 81st Cong., 1st Sess. 7. agreed revoking proclamation, A433, agreeing study. 4 On basis study separated governmental functions from transit functions, latter petitioner. H.R.Doc. 460, 2d Sess.; 2935, learned if at cost, would raised prohibitive level. therefore undertook reduce financial burden imposed upon users interest capital investment States reduced accrued during construction period disregarded purposes computing investment. Free transits government-owned vessels eliminated accounting purposes. supporting previously Co. bear proportionate share cost Government they exempted. And 'net costs Government' declared 'to form integral part enterprise whole.' 246(e), 5 carry out these provisions merged with formerly At same time, Congress, September 26, 1950, 1038, §§ 411, 412, made changes fixing tolls. Section 411 provides: 6 'The Company time change (1) rules measurement (2), section next following, levied Canal: Provided, however, That measurement, rates tolls, prevailing effective date amended continue effect changed section: Provided further, said corporation give notice, publication Federal Register, any proposed basic public hearing conducted: to, take upon, approval such matter final conclusive.' 7 412(b) provides formula petitioner must employ tolls: 8 'Tolls prescribed calculated cover, nearly practicable, together facilities appurtenances related thereto, including depreciation, appropriate known Government. determination share, substantial weight given ratio estimated gross revenues total exclusive commodities resold, arising transactions within Government.' 9 By 412(c) naval ships, 'in discretion President' required pay event do not, nevertheless computed amounts thereof 'shall treated purpose prescribing tolls.' 10 A Committee 1953 directed determine adequacy canal 889, 83d 10. reply stated no indicated that, should decline, decline appear likely appreciable length 'the will promptly steps available tolls.'2 11 Petitioner, wholly owned government annual audit General Accounting Office. 59 599, 31 U.S.C. 850, U.S.C.A. 850. Comptroller report 'such comments information deemed necessart keep informed operations condition' 'together recommendations' deem advisable. 851, 851. 12 1955 expressed view allocated too high Government, overhead, payments little activities. 160, 84th According method allocation, showed large surplus, deficit. Ibid. He also claimed prices charged inadequate. went exclusively without reference losses operations. thought result unsound recommended provide specifically included 13 vigorously opposes 412(b), Comptroller's methods allocation conclusions violate both sound practices Act. particular objects General's requires computation regard deficit concludes downward revision harmony congressional program needed. 14 shortly after Report 1954 submitted respondents instituted suit. 15 is, think, impermissible conclude sued, can maintained. We deal penumbra law where generally Executive Legislative supreme. say, called so, justiciable issues arise toll-making procedure All hold controversy one judicial action. 16 Administrative Procedure Act, 60 243, 1009, excludes categories review 'agency action' 'by committed discretion.' think initiation proceeding readjustment left seen, agent spokesman matters. 'authorized' them. 411. But exercise authority far performance ministerial act. As conflict rages over heart involve problems accounting: whether legitimate formula. These matters experts disagree; nice choice, 331 284, 335, 67 1207, 1234, 91 1492, require discretion. Cf. McLennan Wilbur, 283 414, 51 502, 75 1148; Interstate Commerce Commission America Humboldt S.S. 224 474, 484—485, 556, 559, 56 849. case therefore, quite unlike situation statute creates act equity court Virginian R. System Federation, 300 515, 551, 592, 601, 789; Kansas City So. Commission, 252 178, 40 187, 517. put way since principle stake different mandamus sought—a remedy long restricted, Marbury Madison, Cranch 137, 166, 60; Decatur Paulding, Pet. 497, 514—517, main, situations duties nondiscretionary nature involved. Where peradventure clear, clearly derelict failing act, inaction turns mistake law, then often available. Harmon Brucker, 579, 433, 503, recent example. There Army issued 'honorable' discharges soldiers, based their prior induction. 'records,' action, only records military service. doubtful highly debatable inference loose terms, very distinct profound Work Rives, 267 175, 183, 45 252, 254, 69 561; Wilbur Kadrie, 281 206, 219, 320, 324, 74 809; Chicago Great Western 294 50, 63, 55 326, 331, 79 752. infer decision expertise burdened responsibility decision. 17 area. President, requiring close analysis choices. creature Congress. terms committees, reporting airing before them, looking guidance direction. least arguable sided against construing 412 Code. For fully advised views 1954, approved budgets 1956, 1957, 1958, petitioner's interpretation 235—237, 70 322—324, 71 78.3 does necessarily mean pressed us correct one. does, indicate question so wide open stage discretion.4 cloudy, much clear courts intrude. 18 Reversed. 251 Co.'s petition cross-petition filed 251. hereinafter referred necessary discuss separately under cases. letter Speaker House S. Seybold, 100 Cong. Rec. (daily ed.) A1995, stating, inter alia: 'An initial legislation now completed Company. This reveals largely level years corresponding costs, 1938 still sufficient cover statutes. conclusion assumption Director Bureau Budget, who approve valuation transferred concur valuations tentatively established depreciation requirements most based. 'In months, chiefly cessation hostilities Korea, there some drop transiting canal. Company's indicates further volume few expected primarily changing economic factors affecting world movements petroleum products, iron ore, coal. possible sometime fiscal year declined point existing longer adequate charges. Should condition materialize reasonably certain what believes allowance giving due consideration obsolescence potential inadequacy includable base. Estimates service lives principal classes plant equipment independent engineering consultants. percent annum channel, harbors, lock structures, dams, breakwaters similar long-lived facilities. Including accrual presently approximately $9 million. tentative interest-bearing enterprise, defined $274 2.342 currently repayment charter Treasury amount $6.4 somewhat future rising trend term rates. 'No return value 1904—14 legislative history statutes intent exclude item entirely Likewise provision amortization lands treaty rights authority, although 'Using developed recomputing expenses accordingly, aggregate income sources 4-year reorganization June 30, 1955, million providing charges law. appears coupled wage necessitate near future. Current indications July 1, announcement months earlier January law.' repeatedly involved here, indeed litigation. See, e.g., Reports Audit General: Fiscal Year Ending 1—3, 8—9, 12—18; 465, 9—10, 17—24; 210, 85th 2—5, 15—21. also, Hearings Subcommittee Merchant Marine Fisheries H.R. 6917, 7645, 7697, 159—165; Senate Foreign 2167, 23, 68—70, 89—92, 101 102. bill introduced Sess., Senator Magnuson reported favorably Committee, S.Rep. 2375, never came vote. 102 Cong.Rec. 11541, 12791, 13901.

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