Document: 343 U.S. 562 72 S.Ct. 985 96 L.Ed. 1142 UNITED STATES et al.v.GREAT NORTHERN RY. CO. No. 151. Argued Jan. 8, 9, 1952. Decided June 2, Rehearing Denied Oct. 13, See 73 4. Mr. Ralph S. Spritzer, Washington, D.C., for appellants, United States, and Interstate Commerce Commission. Arnold H. Olsen, Butte, Mont., Vaier Community Club Board of R.R. Com'rs Montana. Art Jardine, Great Falls, appellant, Montana Western Ry. Co. Louis E. Torinus, Jr., St. Paul, Minn., appellee. Chief Justice VINSON delivered the opinion Court. 1 This is a suit to enjoin enforcement an order Commission establishing joint rates over through routes. In this case, unlike Thompson v. 549, 978, routes in question already exist since carriers concerned have continuously provided service same at combination separately established rates. The did not change any route or alter total amount charged shipment but establishment place also ordered division revenues between provide additional revenue one financially weak carrier. presented whether has power establish purpose assisting carrier meet its financial needs. 2 Railway Company, incorporated 1909, furnishes only rail twenty miles Valier, montana, Conrad, Montana, where connection made with interstate lines appellee Northern Railway. Appellee land irrigation company, new called Valier furnished money build railroad. Western's stock owned by Company bonds sum $165,000 are held 3 Operation been unprofitable. An average annual deficit $18,000 experienced during fifteen years preceding case. general manager estimated that deficiency under existing would $33,825. addition anticipated operating losses, continued operation require construction bridge roundhouse replacement large number cross ties. able satisfy either bonded indebtedness interest thereon. Moreover, advanced pay losses extent debt amounted $737,604 beginning these proceedings. Apparently because value as feeder line providing profitable traffic, offered funds rehabilitation extend maturity date mortgage bonds. However, officers refused on ground there was no hope ever paying off indebtedness. Thereafter, announced that: 'In view attitude * cannot be expected (to make further cash advances).' 4 applied permission abandon entire required 49 U.S.C. § 1(18—22), U.S.C.A. 1(18—22) that, without assistance from appellee, economically feasible. After hearings abandonment proceeding had demonstrated plight Western, Club, representing shippers area, instituted another action before Commission.1 shippers' preserve originating securing needed operation. Since ninety percent derived grain necessarily obtained adjustment rate structure. 5 Grain now moves Conrad continues market. Under structure, shipper pays 71 1/2 cents per hundred pounds Minneapolis. it proportional 9 plus appellee's 62 Minneapolis.2 Complainant propose Rather, complainant asked increase substituting 'joint rates' present determining effect increasing compensation segment shipments. 6 hearing evidence complaint, Examiner recommended application denied public need railroad area. He all points level comparing similar other receive 10 cents, cent rate. agreed area denial application. Commission, stating needs were justification relatively high divisions, example, 16.3 share 275 I.C.C. 512. It conceded Court means end obvious 7 brought District part Commission's divisions revenues. A three-judge court rejected contention Section 15, paragraphs (3) (6), Act authorized order; instead, enjoined prohibited provision 15(4).3 F.Supp. 298. relevant statutes set forth margin.4 case here direct appeal Railroad, Railroad Commissioners State appellants. 28 (Supp. IV) 1253, 1253. 8 First. 15(3), empowered 'establish routes, classifications, rates, fares, charges'. pertinent limitation their found 15(3) itself deem such 'necessary desirable interest'. Once lawfully established, 15(6) prescribe 'just, reasonable, equitable divisions' participating determine giving due consideration various listed factors, including 'the required' carriers. Akron, C. & Y.R. (The New England Divisions Case), 1923, 261 184, 189 195, 43 270, 273, 275, 67 605, designed affirmative use relieving carriers.5 15(4) conditions powers granted 15(3). Prior Transportation 1940, contained two provisions, being restriction short haul itself, considered granting emergencies. 1940 revision retained emergency provision, increased which added following provision: 11 'No applicable thereto shall participate therein needs.' 12 route, admitted As stated above, abovequoted 15(4). 13 Second. Much appellants' argument against holding misses mark. Appellants construe prohibition limited cases hauling problem. read merely first existence short-hauling problem presupposes alternate connections, arise serving Valier. 14 ignore fact stands separate sentence Certainly grammatically capable independent significance. And may noted directed specific arose administration (4) routes—a quite restrictionagainst hauling. different arises when asks primarily serve shipping seeks obtain diverting own traffic served 'in interest' extends resulting rearrangement movement meeting litigation led 15(4)6 repeatedly raised legislative amendments 15(4).7 15 revised deals length short-haul and, addition, contains prohibiting dealing problem, we accept suggestion can ignored unless involved 16 Third. Although situations, follows orders 17 contemplates absence rates.8 expressly approved consistent recognition combinations rates.9 result, act distinct statute Minneapolis order, cars move racks destinations before. matter little concern charged, so long available.10 Whatever theories passes see questioned existence. These 18 lieu proper form regulation.11 crucial financial-needs does limit generally, 'through thereto', i.e., those affect And, published more definition always carriers, reading affecting render words 'applicable thereto' surplusage, attributing Congress useless misleading words. 19 regulation redistribute connecting received economic ramifications if establishes divert Such serves assist also, time, cause important changes geographic expense areas. amended prohibit tinkering But 15(4)—the restrictions hauling, provision—all deal 20 could well considering issuing proposed bill congressional committee.12 Or, ordering existence, proposed.13 Instead, adopted reliance respect our judicial function apply basis what written, might written. Where, here, application.14 21 Beginning 1920, regulated railroads abuses excessive discriminatory assuring adequate transportation service. Case, supra. relationship policy described States Abilene Southern R. Co., 1924, 265 274, 284—285, 44 565, 568, 68 1016: 22 'It settled should be, may, interest, take into weaker road, given larger than justice parties suggest maintain effective system,' left connections 'adequate avoid confiscatory result.' Dayton-Goose Creek 263 456, 477, 169, (171), (388); 194, (274, 275), 605.' 23 similarly essential service, supra, 194—195, pages 270—275, 605. reenacted provisions implementing administered develop, coordinate, 'national system.'15 15(4), restricted remains unimpaired. 24 empowered, redistribution traffic. immaterial, viewpoint public, charging agreement carrers national system, immaterial independently saved branch main reallocation revenue. Just examine 'feeding' single carrier, producing disregarded Commission.16 Indeed, shown willing continue even support while chose seek abandonment. 25 We hold erred enjoining Apart attacked want findings lack substantial justifying particular practice review administrative record instance after finding lower incorrect principle law,17 remanded proceedings inconsistent opinion. 26 Reversed remanded. 27 BLACK, JACKSON BURTON concur result. party until complaint filed. prior nto afforded opportunity cross-examine witnesses who previously testified. local 65 cents. When consists intermediate distances, sipment referred where, segment. Atchison, T. S.F.R. 1929, 279 768, 771, 494, 495, 947; Berry, Study Proportional Rates, I.C.C.Pract.J. 545 (1943). discuss report. advised bar petition reconsideration appellants q uestion having properly treat us. Compare Unemployment Compensation Aragon, 1946, 329 143, 155, 245, 251, 91 136; Hancock Truck Lines, 1945, 324 774, 1003, 89 1357; General Transp. D.C.Mass.1946, 981, affirmed, 668, 75, 590, (waiver issue appeal). '(3) whenever deemed necessary full upon initiative charges, passengers property subject part, *.' 54 Stat. 911, '(4) (except section 3, except water line) railroad, consent, embrace substantially less operated conjunction common management control therewith, lies termini route,(a) inclusion unreasonably compared practicable otherwise (b) finds adequate, efficient economic, transportation: Provided, however, That prescribing shall, far foregoing limitations clauses (a) (b), give reasonable preference originates No time shortage equipment, congestion declared (either once, orders, answer formal pleadings interested notice, hearing, making filing report, according determine) temporarily interest.' 911—912, '(6) Whenever, initiative, property, will unjust, unreasonable, inequitable, unduly preferential prejudicial (whether them, established), just, thereof several *. fares consideration, among things, efficiency operated, respective expenses, taxes, fair return railway used transportation, importance services carriers; originating, intermediate, delivering line, circumstance ordinarily, regard mileage haul, entile greater proportion rate, fare charge.' 41 486, 15(6), 15(6). many commodities, coal, lumber livestock. If happened (or bulk commodities rates), diverted resort Subiaco litigation, included line. report questions (1) applicability (2) benefit business dissent Commissioner second question. Ft. Smith, R.I.R. Alabama Vicksburg 107 523 (1926). Reaching question, invalid Missouri Pacific 278 269, 133, 322. Efforts amend began final decision litigation. 978. Hearings Subcommittee House Committee Foreign H.R. 5364, 74th Cong., 2d Sess. 70—71 (1936); S.1261, 75th 3d 104—106, 159—160 (1937, 1938); Senate S.1085, 76th 1st 88—89 (1939); 3400, Sess., 232—234 (1939). 1261, Sess.; S.Rep.No.404, (1937). duty every corresponding 1(4), 1(4). Joint 6(4), 6(1) requires file post charges 'when established. (and post) transportation.' 6(1), 6(1). W. P. Brown Lumber Louisville N.R. 1937, 299 393, 395, 57 265, 266, 81 301. Southwestern 1917, 245 136, 139, 38 49, 50, 199, quoted Virginian 1926, 272 658, 666, 47 222, 225, 463. Sloss-Sheffield Steel Iron 1925, 269 217, 234, 46 73, 79, 70 242. Regulation compelling substitution note page 142, 51, 199. 106 234 recognized respecting applicable. Beaman Elevator Chicago N.W.R. 148 444, 451 (1928), 155 313 (1929). 899 (1940). passing applications 1(18—20), showing 'feeder value' crediting gross system cost moving rest system. E.g., Chicago, R.I. P.R. Trustees Abandonment, 254 187, 190 Cherington, Abandonments (1948), 159—166. Universal Camera Corp. National Labor Relations Board, 1951, 340 474, 95 O'Leary Brown-Pacific-Maxon, Inc., 504, 508, 470, 472, 483.

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