Document: 351 U.S. 321 76 S.Ct. 982 100 L.Ed. 1220 The DENVER & RIO GRANDE WESTERN RAILROAD CO., Appellant,v.UNION PACIFIC COMPANY et al. UNION al., Appellants, v. UNITED STATES of America, Interstate Commerce Commission, Commission and Secretary Agriculture, WASHINGTON PUB. SERV. COMM'N, Public Utilities Comm'r Oregon, R.G.W.R. CO. R. Chicago N.W.R. Co., Co. Nos. 117, 118, 119, 332, 333, 334. Argued April 23 24, 1956. Decided June 11, [Syllabus from pages 321-322 intentionally omitted] Mr.Frank E. Holman, Seattle, Wash., for Denver Rio Grande co. Mr. Elmer B. Collins, Omaha, Neb., Union Pacific Robert L. Simpson, Olympia, State Washington. Bert Overcash, Lincoln, Nebraska. W. Ginnane, Washington, D.C., I.C.C., Justice BLACK delivered the opinion Court. 1 These cases all involve validity a single order establishing through railroad routes prescribing joint rates carriage certain goods over routes. Commission's was made after lengthy hearings upon complaint Western Railroad Company. Grande's main line runs Ogden, Salt Lake City, Provo, Utah, across much Colorado to Denver, Pueblo, Trinidad. chief controversy involved in this case is between lines which are relevant here run points Washington Oregon Idaho, Wyoming, Colorado, Kansas, Nebraska, going as far east Omaha Kansas City. connect at Colorado. connection Ogden known Gateway, meaning gateway northwestern states served by south Grande. has used its strategic position northwest territory such way that practically traffic Northwest, goes lines. For reason Northwest often referred 'closed door' territory. This situation caused file with Commission. It charged had agreements other connecting railroads named defendants under could be carried rates, but only carry area exacting higher 'combination rates,' sum local rates. high bar carrier shipments Northwest. asked establish maintain future 'just, reasonable non-discriminatory competitive rates' Pacific's failure violated §§ 1(4), 3, 15(1), 15(3) Act.1 Section 15(1) authorizes proscribe individual or practices 'unjust unreasonable unjustly discriminatory unduly preferential prejudicial' prescribe fair, reasonable.' empowers whenever deemed 'to necessary desirable public interest.' 15(4), very important controversy, places restrictive conditions power § when establishment route would require 'without consent, embrace substantially less than entire length any intermediate operated conjunction common management control therewith, lies termini proposed * *.'2 provision generally prohibition against making 'short-haul' itself. Among findings must make 15(4) before requires short-haul itself new 'is needed provide adequate, more efficient economic, transportation *.' 2 petition alleged already existed Gateway. contended they been created Pacific. On basis claimed did not apply need concern those should proceed 15(3). After hearing evidence rejected contention found exist.3 went on find, however, established reference commodities fruits, perishable foods, livestock limited geographical area. found, accordance these were adequate economic also required specified 'necessary 287 I.C.C. 611, 659. 3 ordered same applied own considered aggrieved because some both limitations commodities. challenged three-judge United States District Court Nebraska it See 28 U.S.C. 1336, 2284, 2321—2325, U.S.C.A. 2321—2325. court upset ground. held there no substantial support finding existence. Had routes, reasoned, broader relief might have ordered, since restrictions applicable. Consequently remanded further consideration. 131 F.Supp. 372. accepted then sufficient 'in transportation' shipped initial destination 'in-transit privileges incident reshipment 132 72, 82. declined, sustain action requiring transit services. Both decrees now us direct appeal 1253 2101(b), 1253, 2101(b). They consolidated oral argument we treat them together here. convenient take up first court's holding. 4 In considering question begin our recent holdings opinions Thompson States, 343 549, 72 978, 96 1134; Great Northern 562, 985, 1142. We emphasized purpose compelling resulting trunkline 'short-hauls' without faithful observance imposed section. At time recognized creation pointed out ordinarily voluntary arrangement, express imlied, carriers, existence an arrangement depends circumstances particular cases. said supra, page 557, 983, 'In short, test 'through route' whether participating carriers hold themselves offering service.' Findings can therefore inferences drawn continuous show exist even though provided formal contracts tariffs. each one fact. Cf. Through Routes Rates, 12 163, 166—167. viewed showing beyond dispute tariffs long practices. Whether justified determine. satisfied, compel conclusion supported evidence. 5 There early 1897 controlled 'closed' But canceled amended published 1906 1912. Apparently language expressly formally declaring Gateway closed. tariffs, resulted combination transported effect greatly handicap if actually close artery east. Of course enough standing alone abandonment Virginia 272 658, 666, 47 222, 225, 71 463; 556—558, 982, 983. cannot declare abandoned (when rates) automatically left purposes 1949 litigation started. Cancellation cancellation circumstance along determining exist. relied which, abandon turn that. 6 best continued showed following. Despite small number continue trickle closed 1948, representative year, carload moved bills lading none coming few various total fractional part percent undisputed eastbound sheep goats. During World War II Army troop supply trains lading. addition foregoing snow storms blocked Wyoming. movements service orders exercise authority emergency 7 produced tending quite plainly appears record long-standing struggle efforts keep think supports that: 8 'There indication ever solicited areas concerned routing rate applied, except where called do so shipper prior carrier. words, shows, 'the carriers' business' use force shippers' routing. whole conduct Pacific, revealed, many years guard jealously haul open commercially traffic.' 618. 9 ahhere 'holding out' case. find error set aside remand brings consideration Court's action. 10 including livestock, fresh fruits vegetables, frozen butter, eggs.4 rested interest, based vast amount written. pertinent allows 'needed transportation.' relates principally adequacy existing efficiency services dispute. 11 consider interests shippers kind get well additional 'adequate' 'more economic' service. look mere carrier's physical operations interest embraces pay.' Pennsylvania 323 588, 591—593, 65 543, 544, 89 478. duty stated, try strike fair balance satisfying needs shippers, railroads, public. calls informed judgment, having mind statutory obligation develop, coordinate preserve national system.5 did. Relying interpretation case, 'Because their nature, food articles market expedition care, possible. unnecessary interruptions free flow may avoided flexibility possible distribution process permitted. A services, origin destination, en route, usually movement ordinary traffic, semiperishable commodities.' 656. facilities feeding grazing transit, partial unloading, storing processing transit. As result 'debarred effective participation widespread system developed marketing commodities' processors, dealers disadvantage competing 'inadequate economical routes.'6 sustained agree portion say acted excess concluding, mass it, interest. scope cut down insofar mentioned. disagree respect. products general practice among allow diversion carloads markets sales made. successful operation existance final market, reconsignment often, practical matter, unavailable who compelled reconsign his 'If shipment reaches point applies sale lost, frequently dispose forced distress price. Such pocket markets.' 642. To illustrate inadequate situations reconsign, noted 'Idaho producers competition producing difficult compete routed via One Idaho potatoes Southwest last several there.' 643. Pocket markets, course, see why shipper's privilege reconsigned economy transportation. narrow excluding urgently advantage 13 Many arguments order. out, example, road curves Its grades steeper. sometimes slower. insufficient justify holding esablishment will great unmindful intervened side. entirely contrary make. unable contentions made, full.7 Since occasion raised 3(1) 3(4). 14 judgment reversed directions dismiss bill. affirmed refused enforce 15 ordered. 16 FRANKFURTER, dissenting. 17 I empowered Act, unqualified 15(4). 54 Stat. 898, 911—912, 49 15(3), (4), 15(3, 4). thus turns enforcement congressional policy expressed follows 15(4): 18 shall (except section water line) railroad, (a) unless inclusion unreasonably compared another practicable otherwise established, (b) finds transportation: Provided, That shall, consistent subject clauses (b), give preference originates traffic. *' 19 true applying regulatory legislation, approach—that is, starting point—may determinative result. makes vital difference restriction closely confined sharply construed legislative command ought heeded slightingly enforced. fact matter dealing law undesirable view whose repeal consistently urged Congress. history forth 554—556, 981, 1134. Although Congress has, especially years, expert adviser policy, legislation largely reflected recommendations, latter's persistence recommending matched overborne retaining it. emphatically clear protection being short-hauled. Encouragement given disregard occurs attributable unconscious desire restrict statute. brought judicial scrutiny, challenge safeguards observed, If requisite conclusions ambiguous unclear, slighted, demands dispel ambiguity secure clarity obedience policy. 20 my that, order, but, contrary, considerations collide proceedings returned part. summarize reasons conclusion. 21 agricultural originating (excluded) destined roughly described "East Denver."* 75, note 1. Apparently, Grande, terminating points. Joint Utah (e.g., Springs, Pueblo; Provo) defendants, transcontinental large Denver. (See description footnote*.) westbound points, granite marble monuments origins Vermont Georgia. transportation,' 659, gave justification finding: 22 '* growth population development country constantly expanding diverse Movements proportions instances. complex evolved orderly Adequate proper functioning system. Because (the enumerated) 655—656. debarred 'in-transit' stop-off unloading processing, cattle, available territory, 24 'east Denver' unitary problem saw initially Denver.' Court, nothing furnished inadequate, contested appeal. therefore, narrowed consigned west Trinidad, places. 25 rejecting construction affirms doing so, does rely conclusion, rather different basis. How know whether, what extent, influenced influence decision? report certainly indicates thought reasoning Once wanting, necessarily impaired. While lower ground below, Langnes Green, 282 531, 534—539, 51 243, 244, 246, 75 520; Helvering Gowran, 302 238, 245 247, 58 154, 157, 158, 82 224, legal relation courts reviewing court. defined delegated findings. When regard complicated technical nature problems voluminousness records come discharge functions precludes casting task quarrying permit effectuation 26 precise function scrutiny determine kept within bounds legislatively defined. sure, binding sense attack lack Louisville Nashville 227 88, 91—94, 33 185, 186, 188, 57 431. purported here—pass unanalyzed summary proceeding call formulated enumerated sequence, helpful be, least appear decision unambiguous clarity, logically related satisfy requirement foundation review. Securities Exchange Chenery Corp., 318 80, 92—95, 63 454, 461, 462, 87 626. all, field. 27 treated alike, shipment. justification, inability former situation, elimination 'pocket markets,' latter situation. principal, only, necessity able move 'over possible.' Indeed, viewpoint directly theory possible' short-hauling consent unless, things, inadequate. resolutely rejected. inadequacy short-hauled virtually nullify somewhat misleadingly stopped privileges, similar thereafter concerning fiction speak go into effect. involves two separate normal practice, charged. neither capable performing neither. sense, 'adequate'; non-existent. analysis, confidently surmise determination 29 respect contest want relies paragraphs heading 'Proponents' Testimony' testimony markets' forth. 'General Discussion Ultimate Fact Findings' market' supporting discussion seems refusal (because off back hauls out-of-line required), Moreover, prescribes maintained like embracing Company Wyoming.' From us, affect complained understand how 30 upshot disagreed about majority saved narrowing reinstates major believe nor speculate done views disregarded them. full summon support. striking instance clarification reconsideration decision. Chicago, M., St. P. P.R. 294 499, 510—511, 55 467, 79 1023. 31 HARLAN, 32 present Accordingly, affirm inconsistent opinion. 379, 380, 384, amended, 15(1, 3). 1(4) just And 3(4) enjoins 'afford reasonable, proper, equal interchange traffic' discrimination undue prejudice. Five Commissioners existence; five not. Under meant failed prove allegation existed. railroads: complainant, interstate transportation, carloads, Georgia destinations excluded area, report, dried beans, poultry, eggs, southern boundary thence eastern immediately Missouri River Kans., Nebr., north North Railway Ill., peninsula Michigan Oklahoma Texas; 899. New England Divisions Case, Akron, C. Y.R. 261 184, 43 270, 67 605; 575—576, 992, 993, most monument retailers purchase lots 'an urgent Grande.' 638. reaching overlooked attacks breadth marble, granite, shipments, challenges correcting favor Bamberger Railroad. phrase designate included as: 'destinations Texas

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