Source: https://supreme.justia.com/cases/federal/us/266/191/
Timestamp: 2019-04-19 04:44:13+00:00

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Justia › US Law › US Case Law › US Supreme Court › Volume 266 › United States v. Pennsylvania R. Co.
1. There is nothing in the Act to Regulate Commerce, as originally enacted, or in the Transportation Act, 1920, or in any earlier amendment, which indicates a purpose either to allow a carrier to create undue prejudice by the use of facilities possessed or to narrow the power of the Interstate Commerce Commission to prevent unjust discrimination. P. 266 U. S. 199.
2. Two railroad companies, by agreement, extended, each to the other, the use of their tracks to effect terminal receipt and delivery of carload freight within a zone, in a city, so that plants within the zone having spur connections with either main line could ship or receive shipment over the other without paying an additional transportation charge for the movement over the line connected with their spurs, whereas other industries, outside the zone, but in the same city and dependent on these railroads and another, were denied the like advantage. The Interstate Commerce Commission, upon finding that the situations of the industries were "substantially similar" from the standpoint of carriage, and that the practice subjected those without the zone to undue prejudice and disadvantage, ordered the two railroads to remove the discrimination. Held, that the discrimination was unlawful, and the order valid. P. 266 U. S. 197.
Appeal from a decree of the district court enjoining enforcement of an order of the Interstate Commerce Commission.
between its road and the plant. Where the connection is not direct -- that is, where, in order to reach the plant, the car must move for a short distance over the line of another carrier -- all of the plants except 17 must pay an additional transportation charge. The more favored treatment accorded by the Pennsylvania Railroad and the Western Maryland Railway to these 17 was held by the Interstate Commerce Commission to constitute unjust discrimination, [Footnote 1] and the customary order to remove the discrimination was made. Manufacturers' Assn. of York v. Pennsylvania R. Co., 73 I.C.C. 40. The Western Maryland acquiesced in the order. The Pennsylvania brought this suit against the United States to enjoin its enforcement. The Commission intervened as defendant. The case was heard before three judges on motions to dismiss. The court, Judge Witmer dissenting, entered a final decree granting the relief prayed for. 295 F. 523. The case is here on direct appeal under the Act of October 22, 1913, c. 32, 38 Stat. 208, 220.
switching charges which was limited to their traffic. The Commission found that, "from the standpoint of carriage, the situation of industries inside and outside the zone is substantially similar," and that the described practice "subjects shippers . . . without the zone to undue prejudice and disadvantage." [Footnote 2] The only substantial question [Footnote 3] for decision is whether the advantage enjoyed by these 17 plants, although found as a fact to result in undue prejudice, must be held as a matter of law to be a lawful preference because of the means by which the advantage is effected.
"But this shall not be construed as requiring any such common carrier to give the use of its tracks or terminal facilities to another carrier engaged in like business. "
The argument is, in our opinion, unsound. There is nothing in the Act to Regulate Commerce, as originally enacted, or in Transportation Act 1920, or in any earlier amendment, which indicates a purpose on the part of Congress either to allow a carrier to create undue prejudice by the use of facilities possessed, or to narrow the Commission's powers to prevent unjust discrimination. The clause quoted was doubtless inserted in § 3 to make clear that the mere grant to one carrier of the use of tracks or terminal facilities for the purpose of interchanging traffic and the refusal of such facilities to another, does not make the preference given illegal. The clause had no other effect. In this respect, it resembles the provision contained in § 22, concerning free service or reduced rates to the federal, state, and municipal governments. Nashville, Chattanooga & St. Louis Ry. v. Tennessee, 262 U. S. 318.
which was sought, [Footnote 5] and which the Commission found was not shown to be in the public interest. Compare Pennsylvania Co. v. United States, 236 U. S. 351, 236 U. S. 368; Louisville & Nashville R. Co. v. United States, 238 U. S. 1, 238 U. S. 20. The situation in this case is unlike that which was presented in Louisville & Nashville R. Co. v. United States, 242 U. S. 60.
The fact that two of the 17 plants hereinafter referred to are connected by spurs with both roads may be ignored in this discussion.
"Commission having found in said report that the practice of the Pennsylvania Railroad Company and the Western Maryland Railway Company of extending the use of their tracks to each other for the purpose of terminal receipt and delivery of freight at industries in York within a zone described in the report, while refusing to extend the use of their tracks for the purpose of delivering or receiving freight at other industries similarly located but without the zone under substantially similar circumstances and conditions, is subjecting various shippers and industries to undue prejudice, it is ordered that said defendants be . . . required to cease and desist . . . from practicing the undue prejudice. . . ."
There is a faint contention that the order is invalid also because it is not in terms limited to interstate commerce. That it should be construed as not applying to intrastate commerce is clear. Compare Texas v. Eastern Texas R. Co., 258 U. S. 204.
The clause was stricken out by the amendment of the section made in Transportation Act, 1920, 41 Stat. 479.
The proceeding before the Commission, which was instituted by the Manufacturers' Association of York, sought an order requiring the three railroads (a) to interchange at York all traffic originating in or destined to that city; (b) to permit common use by all the carriers of all terminal facilities at York, including the main line tracks for a reasonable distance outside the terminals, and (c) to establish reciprocal switching throughout the city.

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