Document: 336 U.S. 577 69 S.Ct. 775 93 L.Ed. 895 FEDERAL POWER COMMISSION et al.v.INTERSTATE NATURAL GAS CO., Inc., al. PUBLIC SERVICE OF STATE MISSOURI v. INTERSTATE MEMPHIS LIGHT, & WATER DIVISION CO. ILLINOIS COMMERCE Nos. 109, 188, 209, and 212. Argued Submitted Jan. 11, 1949. Decided April 18, [Syllabus from pages 577-579 intentionally omitted] Mr. Bradford Ross, of Washington, D.C., for Federal Power commission. John P. Randolph, St. Joseph, Mo., Public Service Commission Missouri. William C. Wines, Chicago, Ill., Illinois Commerce Commission. T. Cahill, New York City, Memphis Natural Gas Company. Forney Johnston, Birmingham, Ala., Southern A. Dougherty, Interstate Company Mississippi River Fuel Corporation. Charles Crabtree, Memphis, Tenn., Light, Water Division. Justice DOUGLAS delivered the opinion Court. 1 This case, here on certiorari, involves proper disposition a fund accumulated under stay order issued by Court Appeals pending review rate petitioner. That reduced rates natural gas sales Co. to Corp , Co., United Pipe Line resale Memphis. The sustained order, 5 Cir., 156 F.2d 949, we affirmed its judgment, 331 682, 67 1482, 91 1742. 2 deposited in registry court monthly difference between payments existing those required has now moved distribution fund. pipe-line companies—Mississippi, Southern, United,1 Memphis—claimed asked that it be distributed them. Petitioner certain state municipal agencies also intervened, opposing companies claiming should made ultimate consumers or such others as may equitably entitled it. Appeals, relying Central States Electric Muscatine, 324 138, 65 565, 89 801, ordered paid whom wrongfully exacted payments, viz., companies, without prejudice rights have hold accountable amounts involved. 166 796. 3 First. Here, unlike supra, distributing seek return created their excessive are subject jurisdiction Commission, since they engaged transportation sale at wholesale interstate commerce. See 314 498, 62 384, 86 371. claims these pipeline therefore determinable solely with reference federal law, Act, 52 Stat. 821, 15 U.S.C. § 717, U.S.C.A. is designed regulate segment industry occupied distributors. 689—690, 1486, 1487, 1742; Hope 320 591, 610, 64 281, 291, 88 333. We not sustain action unless clear matter law 4 basis claim stated petitions intervention right, was payments. But would unmindful purpose Act responsibility courts it, if so ruled. aim protect charges. 612, 292. They were intended beneficiaries reductions commission, though machinery might invoked obtain lower consumer level. charged wholesaler part costs, reflected base. Reduction costs normally will lead due course reduction rates, assume passage an exercise futility. It conceivable warranted keeping all standards reasonableness prescribed Act. assuming which been low unreasonable. No presumption attends fixed pursuant orders Nor can make any respects utilities themselves compulsion order. For experience does indicate wont charge out business. no refunds law. Were issue tendered need resolve could call upon information relevant Moreover, passed customers date Commission's (as alleges did), into then done power effectuate policy this regard. apart exceptions, duty look beyond rightful claimants funds. distributes 'to correct virtue process.' Morgan, 307 183, 197, 59 795, 802, 83 1211. plainly cannot discharged payment who show loss reason court's action. 6 said bypass undertaking pass charged—a competence except remaking determine equity court, through 19 accumulated. When grants relief way injunction interests affect. Inland Steel States, 306 153, 415, 557. assumes accord equitable principles. page 191, 799. If particular case reaches question only purposes whose creation alone responsible. fix prescribe past future. wholly ancillary problem determining what share Atlantic Coast R. Florida, 295 301, 55 713, 79 1451; supra. 7 Second. somewhat more complicated other than companies. latter sell least two types customers—industrial users over jurisdiction2 regulatory bodies not, depending local law; numerous selling eight states. had reached consumers. likewise do know whether industrial either terms contracts assertion authority. 8 situation rpovides standard benefits reduction, apply speedy remedies available, until having final say questions spoken. Cf. Thompson Magnolia Petroleum 309 478, 483, 60 628, 630, 84 L.Ed 876; Spector Motor McLaughlin, 323 101, 152, 101. absence uch showing interest dispatch proceed questions, sources including agencies. discretion disburse funds directly work administrative scheme whereby directives 9 In conclusion, task undo wrong process caused. basic problem, therefore, but suffered result granting stay. What fact happened consequence issued, one certainty. must prognostication, excursion entailed. Distribution involve prolonged litigation. involving informed judgment flexibility characterize process. 10 Reversed. 11 FRANKFURTER, Justice, concurring. 12 While agreeing substance DOUGLAS's opinion, because conflict views given rise I deem desirable spell particularity regard controlling considerations. 13 1. controversy concerns impounded Court's suspension sums collected excess After finally three which, Interstate, unlawfully amounts. motion supported purchasers Interstate; resisted consumers; City Jackson commissions Missouri, urged within respective territories. One Interstate's purchasers, Company, although intervening claimant, advised refund resold purchased Interstate. 14 2. below thus before immediate asserted right them, third purchaser merely conduct subpurchaser, public agencies—national, municipal—which entire respondents—Interstate it—basically rely Pacific Darnell-Taenzer Lumber 245 531, 38 186, 451, urging go depositors found exacted. foundation our decision 801. Government hand asks Muscatine overruled 16 rejected notion utility like immediae makes distributors mere conduits exclusive benefit short, rationale M scatine true rate-fixing ought erected principle effect rate-reduction postponed judicial afforded Congress. 17 3. would, appear deal fairly trust held await taken place gone once. 18 task, then, reconstruct, far possibly done, accrued. Reasons produced fund; considerations distribution. governing unjust enrichment. Since parties position there postponement effective rate-reduction, retrospective determination unfounded assumptions rigid legal rules, ascertainment actually contemporaneously obtained rate. 4. A reasonable dealing fiction keep Whether depends ascertainable condition intermediate compensatory commission Brandeis, J., Southwestern Bell Telephone 262 276, 296, 43 544, 549, 981, 31 A.L.R. 807. various reasons charge, well known, less compelled charge. On hand, maximum reasonable. 20 To distribute among give them complete windfall, compelled, rate, reduce none reductions. regulation whole part. take away injustice allowed reduction. As allowable retention distributor turned deny both classes establish just against consumers, moreover, inevitably leave sizeable unclaimed amount, this, course, residuary claimant—it go, is, party 21 These arbitrary alternatives—to consumers—have support logic justice. suggested compromise same time stop short authority—is justified engage regulation. suggestion neither nor arred inquiring, inquiry regulation, consequences affected effect, administered open And let distributee higher retain equally succeeding thing enjoy last jurisdiction. 22 At events, preventing enrichment exercising functions rate-making; awarding reparations fixing future schedule rate-regulating body. Granting follow discharging own barred some aspects believe very minor ones—that proceeding. issues pertinent investigation when arise totally different relation. 23 5. Accordingly, 1949 how '43 '44 suspended injunction. inherent powers bring aid means discharge task. Court, Ex parte Peterson, 253 300, 40 543, 919, showed resources available District Courts even requirements Seventh Amendment. clearly procedures doing justice where called creation. 24 light foregoing, ask advisory report determined original proceeding exercised parties. There nothing novel this. Trade help shape decrees Sherman Law cases. sure, Clayton explicitly provides. invite great agency Government. could, chose, decline render help, inconceivable so. State city similarly resorted commingled interested said, obvious, demonstrated claim. 25 Various obstacles conceived stand fulfillment least, premature conjure up abstract difficulties practical matter, evaporate advice able furnish readily records financial enough makeshift rule thumb concededly intrinsic fairness judicially unenforceable. remand steps consistent foregoing views. 26 By JACKSON. 27 BURTON view brethre joined important instructions carry concurrence majority agree much differ closer expressed here. repeat misunderstanding express record individual appears us this: 28 impounding absolute recover However, money illegally seem prima facie returning possession. minimum chance heard whatever properly weigh 29 Assuming, however, improbable, establishes fund, next receive customers, protection respect customers. exerted reach control customer relations. see, litigation derive greater enter field rate-making. many why function expanded point Congress ended PowerCommission. 30 manner amount repayments rebates, exclusively Twenty-one involved operate states, each principles govern rate-making separate authorities solve saying computation Of unto suggests body applicable. Disguise sophistry will, operating generally based all. Some located territorial Fifth Circuit; Sixth, Eighth Circuits. justification requiring Circuit undertake interpretation application laws several funds, present difficult states ways. complex. problems solved evaded shall rather oversimplifies treat class alike. dispose declare 'equitable principles' defined accepted subject. Equity historical sense—equity jurisprudence—has guidance maxims, such, exampl 'equality equity.' here, equality? doubt meant sort popular notions dealing. answer concrete someone face mention few. 32 outset faced 'equitable' domestic Direct amounted 63% total 18% 11% addition served proposal, seems think prevail, calculated dividing proportion feet sold one. basis, exhibit proposes direct million dollars tell prices common knowledge that, variety reasons, industries get price per m.c.f. users. 50%, repay industrials twice large household Is 'equity'? my dissent 333, pointed uneconomic use waste exhaustion irreplaceable causes, differential exists contract participating refund; certainly try, revenues contributed, consumption. measures already derived exhausting Nation's supplies, contributed refused consider equities, did case. Why free issue? intelligent rapid depletion reserves, vis consumption, relation uses. none. 33 furnished tabulation company theory. provided data disclose magnitude complexity asking visit directing company's Moody's Manual, learn approximate number company. Then applying refunds, trivial supervising authority conclude cover current sensible procedure spend expense special proceedings instance, Arkansas-Louisiana serves 142,481 109 communities. allocates $20,911, average 15¢ consumer. 116,000 56 communities allocated $50,065, about Birmingham 61,000 $30, 33, making 49¢. 34 estimate equal Another permissible think, fairer substantial involved, ratio bills gas. consistent, another method Different conditions precipitate nice fair From example, largest Atlanta Gaslight approximately 133,000 communities, graduated scale pay consumed quantity brackets. thousand moderate Equality equality treatment. equalitarian generalities cash consumers' hands. worked distant circuit? 35 end Consumers during period refund? Certainly caused accumulate normal retail sometime after according conditions. individuals refund, adopted, identified settled deceased consumer, becomes removed unknown. Disputes landlord tenant, husband wife, arise; authorities. 36 granted purchase lawfully reduce. legitimate concern. inadequate view, warrant usurpation functions. 37 beginning BLACK, concurring dissenting 39 concur reversal directions first rest erroneous Secondly, precise definition standards, impose almost impossible bound dissipate diverse, protracted, confused Furthermore, see little assurance fund's remnant ever Acting Act,1 Challenging illegal, sought enforcement continue rates. four years court. submitted, half dollars. Court2 consequently asserts ground rate.3 contend provide 41 went further producers wholesalers. retailers, enabling federally Consequently, Act's function, producer fall jurisdictions. Under circumstances relationships cost dealers raise only. valid place. placed insuperable obstacle Thus blocked congressional mechanism produce 149, 570, 801 (dissenting opinion). remedy retroactively effectually frustrated timely opportunity national benefits. new 42 futile effort extent left act acting deprived integrated federal-state conduct, became administer rules nearly possible afford congressionally Nothing governed administering 557; All ga agreement parties.4 event assumed failed seller value. circumstances, high statutes require merchants voluntarily product retailers permit complain unreasonable failure prosecute windfall sight bar retroactive now. voluntary contracts, re-examine naive assumption took unconscionable advantage 44 My belief partially itself tedious, onerous, perhaps expensive burden Such burden, practice orders. small comparison imposed 1950 extensive explorations speculate 1943 1947.5 Neither suggest adopted achieve scientific accuracy followed plan reconstruct hypothetical situations major dissipated costly vain search unattainable goal.6 suggest.7 intrusion following course. 45 responsible tangled p ssibly offend encroach people protect. representatives arguing citizens apparently unable detect invasion courts. 46 appropriate reverse regret holding survive 47 MURPHY RUTLEDGE join opinion. claimed allocable behalf 1(b). 717. proved put entirely category. points out, purchasers' contracts. How determined, value theory, reproduction theory? inquiries conclusions gas? McCart Indianapolis 302 419, 428—439, 58 324, 328 82 interesting note unchallenged brief 'this utilize remedies, any, brought.' illusion somehow persist despite realities situated received dime 'available' remedies. Apprehension producing beneficiary apprehension superior equity.

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