Opinion ID: 286422
Heading Depth: 1
Heading Rank: 2

Heading: Suspension Period

Text: 16 Transit filed its proposed schedule of fares on October 17, 1966, and on November 15 the Commission suspended Transit's schedule until February 13, 1967, a period of 120 days from the date of filing. In its Interim Order, the Commission extended the suspension period to March 15, 1967, a period of 150 days from the date of filing. Following this court's stay of the Interim Order, the Commission, on February 1, 1967, reaffirmed the suspension of Transit's proposed schedule of fares until March 15, 1967. 17 Transit contends that the Commission erred in extending the suspension period from 120 to 150 days from the date of filing. It argues that the 120-day suspension period was fixed in 1956 by Section 5 of Transit's Franchise 25 which provided that the 'suspension shall be for a period not to exceed one hundred twenty days from the date (the) new schedule is filed.'The Commission responds that the Franchise suspension period was superseded by a 150-day suspension period in the Compact, 26 which was approved by Congress in 1960. Section 5(e) of the Compact provides that a new fare 'shall take effect    at least thirty (30) days after the date on which the tariff is filed, unless the Commission by order authorizes its taking effect on an earlier date.' And Section 6(a)(2) provides that 'the suspension period shall terminate, no later than one hundred and twenty (120) days after the date the fare    was suspended.' Thus, under the Compact the fare cannot take effect for 30 days without Commission approval, and the Commission can thereafter suspend the fare for an additional 120 days. 18 The parties agree that the suspension provisions of the Franchise and the Compact are inconsistent. The only question is whether Congress intended that the Compact suspension period supersede the Franchise period. 19 To overcome the usual presumption that a later act supersedes an earlier one, Transit cites the language of Section 3 of the Joint Resolution of Congress approving the Compact: 20 '   Nothing in this Act or in the compact consented to and approved hereby shall impair or affect the rights, duties and obligations created by the Act of July 24, 1956 (ch. 699, 70 Stat. 598), granting a franchise to D.C. Transit System, Inc.' 27 21 It contends that the suspension period is one of 'the rights, duties and obligations created by' the Franchise. 22 In rebuttal, the Commission cites identical language in both the House 28 and Senate 29 committee reports on the Compact stating that 'an examination of the compact will disclose that care has been used to avoid any impairment or infringement of (the Franchise) provisions' dealing with competitive service, rate of return and procedure for changing rates. 30 And, after having made a careful comparison of similar provisions in the two documents for the purpose of demonstrating that there were no substantive differences between the two, both Committees concluded that they were 'compatible.' 31 In short, it appears to us from these statements that, in approving the Compact, Congress made a considered determination that the change in the suspension period from 120 to 150 days was not one of the 'rights, duties and obligations' created under the Franchise. 23 Nor do we believe that, through oversight, Congress failed to take note of the differences in the two documents. It is clear from the committee reports that Transit had called various differences to the attention of the House and Senate committees and, indeed, that Transit had opposed the Compact because of these differences. The reports note: 32 24 'Argument is made that the legislation would be an impairment of the D.C. Transit System, Inc., franchise and, therefore, unconstitutional. The position of D.C. Transit System, Inc., as the committee understands it, is that under its franchise it has a vested interest in the general regulatory law and the method of its administration existing at the date of the granting of the franchise and that any change in either the laws or the method of administration constitutes a breach of the franchise. Although the company has filed two legal memorandums, the committee feels that the cases and authorities submitted do not support this position. On the contrary, it is well established that the granting of a franchise does not operate as a freeze of all existing law and a prohibition against any change in such laws. The cases and authorities clearly establish that the granting of a franchise does not place the franchised company beyond the continuing regulatory power of the legisalture.' 33 25 This language would hardly have been necessary had Congress mistakenly believed that the provisions of the Franchise and the Compact were identical. 26 The consistent structure of the Compact also compels the conclusion that Congress intended that the maximum suspension period be set at 150 days. Section 5(e) of the Compact provides that a new tariff filed 'shall state a date on which the new tariff shall take effect, and such date shall be at least thirty (30) days after the date on which the tariff is filed' unless the Commission authorizes an earlier effective date. Section 6(a)(1) states that 'the period of suspension shall terminate ninety (90) days after the date on which the fare    would otherwise go into effect, unless the Commission extends such period as provided in paragraph (2).' Finally, Section 6(a)(2) provides that 'the Commission may from time to time extend (the suspension) period, but in any event the suspension period shall terminate, no later than one hundred and twenty (120) days after the date the fare    was suspended.' Thus, it is clear that under Section 5(e) a fare normally takes effect 30 days after the tariff is filed; that under Section 6(a)(1) the regular suspension period terminates 90 days after the fares would go into effect, or 120 days from the date of filing, unless the period is extended as provided by Section 6(a)(2); and that Section 6(a)(2) provides for an extension beyond the 120 day period permitted under Section 6(a)(1). Thus, not only the language of Section 6(a)(2) but the structure of the entire Compact sustains the view that a maximum suspension period of 150 days was intended by Congress. And the committee reports of both Houses of Congress support our view of these sections. 34 27 Moreover, a consequence of adopting Transit's construction would be to single out Transit for a 120 day suspension period while all other carriers in the area were bound by the 150-day period provided in the Compact. We are loath to reach such an inequitable result without a clear statement that Congress so intended it. 35 28 We conclude that the action of the Commission in suspending Transit's proposed tariffs for a total period of 150 days from the date of filing was lawful, the issue being governed by the suspension provisions of the Compact and not those contained in Transit's Franchise. 36