Document: 371 U.S. 296 83 S.Ct. 476 9 L.Ed.2d 325 PAN AMERICAN WORLD AIRWAYS, INC., Appellant,v.UNITED STATES. UNITED STATES, Appellant, v. et al. Nos. 23 and 47. Argued Nov. 8, 1962. Decided Jan. 14, 1963. [Syllabus from pages 296-297 intentionally omitted] Archibald Cox, Sol. Gen., for appellee appellant United states. David W. Peck, New York City, Pan American World Airways, Inc. Lawrence J. McKay, R. Grace & Co. Mr. Justice DOUGLAS delivered the opinion of Court. 1 This is a civil suit brought by States charging violations American, Co., Panagra §§ 1, 2, 3 Sherman Act, 15 U.S.C. 3. suit, which Civil Aeronautics Board requested Attorney General to institute, charged two major restraints trade. First, it that Grace, each whom owns 50% stock Panagra, formed latter under an agreement would have exclusive right traffic along west coast South America free competition was be in other areas between Canal Zone States. Second, conspired monopolize did air commerce eastern coastal western Buenos Aires. also with using its control over prevent securing authority C.A.B. extend route States.1 2 In 1928, when entered into form Panagra,2 transportation infancy; this first entry carrier on America's coast. 1930 acquired assets airline competing country north east coasts received Post Office mail subsidy contract.3 The District Court found there no violation § Act through division territory Panagra.4 It held, however, violated suppressing Panagra's efforts country—in particular, blocking application certificate operation Zone.5 indicated should divest itself stock. But directed dismissal complaint against holding none their respective practices Act. 193 F.Supp. 18. Both come here direct appeals (15 29); we postponed question jurisdiction merits. 368 964, 966, 82 438, 440, 7 395. 4 When transactions, now challenged as trade monopoly, were consummated, carriers not subject pervasive regulation. 1938 (52 Stat. 973 (49 401 seq., 1952 Ed.)) passed superseded 1958 Federal Aviation 72 731, 49 1301 making changes relevant our present problem. Since 1938, industry has been regulated regime designed change prior competitive system. As stated S.Rep. No. 1661, 75th Cong., 3d Sess., p. 'Competition among being carried extreme, tends jeopardize financial status render unsafe service appropriate needs required public interest, interests Postal Service, national defense.' 5 Some provisions deal only future, past. Such, example, are dealing abandonment routes (§ 401(k)), loans or aid 410), criminal penalties. 902. freeze quo nor attempt legalize all existing practices. Thus requires every 'air carrier' acquire Board, procedure provided whereby some could obtain 'grandfather' rights. By 401(h) alter, amend, modify, suspend certificates whenever finds such action interest. 6 Section 409, regulating interlocking relations common those 'engaged any phase aeronautics,' looks future but past well. For prohibition may 'have retain' officers directors described classes. 408, at consolidations, mergers, acquisition carrier,' makes unlawful, unless approved 'common 'purchase, lease, contract operate properties' 'acquire manner whatsoever' 'continue maintain relationship established foregoing' 408(a). 408(b) taken purposes 408; transactions link carriers' shall 'the transaction proposed will promote interest enabling than use aircraft advantage restrain competition.' We do suggest carrier, need get Board's approval continue had became effective.6 clear, 411 'unfair practices' methods competition' even though they originated 1938. 8 That section provides. 'The may, upon own initiative foreign ticket agent, if considers public, investigate determine whether agent engaged unfair deceptive sale thereof. If find, after notice hearing, competition, order cease desist (Italics added.) 1381. 10 words 'has * plainly include started before continued thereafter7 well instituted effective date 11 parentage established. Airlines North Airlines, 351 79, 82, 76 600, 604, 100 L.Ed. 953 patterned Trade Commission Act,8 '(w)e profitably look judicial interpretation resolution questions raised 411.' respects 'public interest' 411, said: 12 '* conduct business system limited competition. so conducted especial essential concern true utilities. Finally, Congress committed regulation administrative agency special competence deals problems industry.' Id., 84, 604. 13 least antitrust problems. Apart power given 408 already noted, purchases, leases, operating contracts, relations. Pooling like arrangements reason 412. Any person affected 409 412 'relieved operations 'antitrust laws," including 414. Clayton insofar applicable carriers, enforceable Board. 52 973, 1028, 1107(g); 21. 14 There various indications legislative history broad most facets federal concerned. House Report stated: 'It purpose legislation coordinate single independent functions Government respect aeronautics, and, addition, authorize new perform certain regulatory stabilize airtransportation States.' H.R.Rep.No.2254, 1. 16 No mention made Department role enforcement laws, yet hesitate here, comparable situations,9 hold scheme adopted completely displace laws—absent unequivocally declared congressional do. While empowered numerous aspects what normally thought problems, expressly entrusted encompass fraction total. orders give immunity laws 414, whole law problem remains unaffected Cf. Pacific Artic 228 87, 105, 33 443, 448, 57 742. Moreover, side enumerated might imagined. We, therefore, refuse left enforce. 17 does not, end inquiry. Limitation divisions territories relation basic scheme. acts precise ingredients granting, qualifying, denying modifying, suspending, revoking them, allowing disallowing affiliations carriers.10 case therefore quite unlike Georgia Pennsylvania supra, where conspiracy fixing joint rates held constitute cause view fact Interstate Commerce grant relief combinations.11 And see R.C.A., 358 334, 346, 79 457, 464, 354. anything Capper-Volstead reviewed Maryland Virginia Milk Producers Assn. States, 362 458, 80 847, 880, showed farmer-producers immune class predatory violations. pp. 464—467, 853. 18 used contain 'broader' concept common-law idea 85, 953. They derive, Act; meaning setting much discussed. embrace remedy private wrongs means vindicating Comm'n Klesner, 280 19, 25—30, 50 4, 74 138. scope case-by-case definition. Senate 19 believed term legal significance can enforced commission courts, more difficult reasonable rate unjust discrimination. committee better put general provision condemning define practices, local price cutting, directorates, companies intended substantial S.Rep.No. 597, 63d 2d 13. 20 Raladam 283 643, 649—650, 51 587, 75 1324, concluding practice destroys establishes monopoly.' 650, 591. supplement stopping 'in incipiency fall within word 'unfair.' All three statutes (the Acts 5) seek protect abuses arising course interstate trade.'12 647, 590. See Beech-Nut 257 441, 453 454, 42 150, 154, 66 307; F. Keppel Bro., 291 304, 310—312, 54 423, 426, 78 814; Toulmin's Anti-Trust Laws (1949) 43.6. Joint ventures combinations laws. Timken Roller Bearing 341 593, 598, 71 971, 974, 95 1199. Whatever method employed, (Federal Motion Picture Adv. 344 392, 394—395, 73 361, 363, 97 426), bolster strengthen anti-trust enforcement. 21 said enough indicate readily catalogued. take facts impact particular monopoly. 22 These words, transferred gather context measure type visualizes. Power Light Securities Exchange Comm'n, 329 90, 104—105, 67 133, 142, 91 103. standard defined Congress. standards applied enforcing broadly 2: 'In exercise performance powers duties chapter, consider following, things, accordance convenience necessity— 24 '(a) encouragement development air-transportation properly adapted domestic defense; 25 '(b) recognize preserve inherent advantages of, assure highest degree safety in, foster sound economic conditions transportation, improve between, by, carriers; 26 '(c) promotion adequate, economical, efficient charges, without discriminations, undue preferences advantages, destructive practices; 27 '(d) Competition extent necessary '(e) best safety; 28 '(f) aeronautics.' 980. 1302. 29 'present needs' commerce, regulations 'sound conditions,' practices,' produce proper 'competition'—each these pertinent 411. 30 strange, indeed, allocation met requirements odd conclude affiliation muster run afoul Whether character meet monopoly peculiarly review 1486. Maritime Bd. Isbrandtsen 356 481, 851, 926; Schaffer Transportation 355 83, 173, 117. 31 prospective order, 'insofar enable authorized, approved, order.' Alternatively, bring halt competition,' Act.13 courts intrude independently construction regimes collide. Furthermore, many presented case, involves countries, involve military policy considerations construed majority Chicago Southern Air Lines Waterman S.S. Corp., 333 103, 68 431, 92 568, subjects presidential rather review. seems us, leaves injunctive carriers.14 Texas Abilence Cotton Oil 204 350, 553; Keogh N.W.R. 260 156, 43 47, 183. 32 occurring involved conclusion. prologue pre-1938 eloquently demonstrated recent concerning flag pattern set forth part Appendix opinion. Panagra— jointly owned Grace—is central problem,15 clear. What done days disruptive visualized out harmony statutory Act16 undone proceedings reached terms important, process encouraging fields decide part, allowed continue. suggested issue 'cease desist' compel divestiture event runs solely stockholders. read restrictively. award damages prosecutions. Nor it, carriers. lies purview territories, routes, must ample evil hand. 34 ultimate clear exists17 case. Of principal importance think, retained occurred conditioning approval. distinguish date. administered coherent whole, think equivalent pre-enactment events kind case18—although, course, find historic background introduces different formulating suitable involved. 35 narrow dismissed.19 Accordingly reverse judgment remand conformity 36 So ordered. 37 Judgment reversed remanded. 38 CLARK HARLAN took consideration decision cases. 39 (For dissenting BRENNAN, 319, 489.) APPENDIX TO OPINION OF THE COURT. Order E—17289 40 STATES AMERICA CIVIL AERONAUTICS BOARD WASHINGTON, D.C. 41 Adopted office Washington, onthe 8th day August, 1961. matter States-South Route Case Docket 12895 ORDER INSTITUTING INVESTIGATION decided time institute comprehensive America. extensive study structure undertaken 1946, years ago. then considerable developments, hereinafter referred to, place affect services require contemplated. 44 Three presently certificated provide points (Pan American), authorized San Francisco, Los Angeles, Houston, Orleans, Philadelphia York-Newark, one hand, Rio de Janeiro Aires, via Central Caribbean, 136. American-Grace (Panagra) Balboa, Guayaquil, Lima, Santiago intermediate points, primarily America, 146. Braniff (Braniff) Houston Miami, Havana, Bogota, FAM—34.1 45 previously indicated, basis patterns effect ago Additional Service Latin Case, 857 (1946). Matters involving were, further considered York-Balboa Through Proceeding, Reopened, 501 (1954), 493 through-service interchange agreements result E—9481, 1005 (1955). Also, certification Angeles/San Francisco—Guatemala City route, last E—9514, August 3, 1955, permitted 46 original establishment structure, technology service. Thus, 1944, range relatively operational requirements, considerations, multiple stops long-haul Today, available can, do, serve distant nonstop basis. relative attractiveness multi-stop equipment question; consequently, changed operationally feasible warrants careful economics structure. Similarly, picture. Prior operated market. increase Not rendered non-U.S. dilute potential support point-to-point duplication services. connection, cannot unmindful marginal economically. 47 Our current one. long 1954, publicly warrant continuation services.2 Interim Opinion noted competitor served combined Braniff, voiced northeastern traffic. hope concerned voluntarily resolve lines suggested.3 fully cognizant institution Company, which, grounds, sought Panagra. However, principals forward proposal. Instead, proceed trial judgment, currently pending possible Supreme Court.4 48 Assuming Court's ordered sustained,5 will, near called consequences able promptly effectively steps circumstances, carefully overall light litigated record. selection issues remain somewhat clouded until final appears orderly disposition proceeding separately matters. factual matters necessity aspects; similarly, that, while prescribed regard selection, adjustment issues. anticipate, full cooperation facilitate separation intends herein authorization deletion consolidation separate routes.6 Caribbean examine wholly area, Caribbean. pattern, tentatively concluded required. details attached analysis. because modifications compiled hereto data believe hearing decision. materials focal point presentation participants proceeding, otherwise good shown therefor, pointed showing why conclusions derived modified. Such approach restrict material minimize procedural delay. CHIEF JUSTICE concurs, dissenting. 53 holds 'narrow (Civil Aeronautics) dismissed.' ground reenacted 1958, displaced 'all With respect, I conclusion contrary precedent. I. root error, works extraordinary unwarranted departure settled principles accommodated other. today's decision, placed court actions enforce effect, pro tanto repeal contemplated, since based 'competition necessary' mandate. decisions review, presumably ensuring adheres criteria Inc., 605, 55 instruments accommodation available, implication statute surely very ought resorted to. justified construction. 414 immunizes issued (consolidations cooperative working arrangements). existence express specific exemption seem presuppose applicability industry, limit exempting orders, 411; concedes approve instant predicated. indeed 7, (see 21, U.S.C.A. 21) wide comprised rule laid down today. reinforce prohibitions self-sufficient today, crazy quilt controls hardly 56 Two cut interpretation. presence saving clause: 'Nothing contained chapter way abridge alter remedies statute, addition remedies.' 1506. second total absence reparations. lacuna leads Court, unusually decisions,1 intimate survives barred—an impractical solution, try demonstrate, infra, 326—327. absolutely all-inclusive oust afforded law. function, save regards exemptions equitable relief. am satisfied refutes inference intended. furnish position. cites sentence: aeronautics *.' H.R.Rep. 2254, enactment aviation divided Commission, Commerce, Department; plain quoted sentence, especially debates preceded passage centralized agency, CAB. Hearings H.R. 9738 Committee Foreign 3d. 37. 58 still conclusive refutation reading unbroken chain rejecting, situations, claimed repeals Perhaps leading Borden 308 188, 197—206, 60 182, 191, 84 181, emphatically deemed work repugnancy (which suggest, except vaguest conclusional terms, here), implied repugnancy. anticipated earlier Trans-Missouri Freight Assn., 166 290, 315, 540, 549, 1007; 161—162, 49, 183; Transfer Terminal Railroad 288 469, 475—476, 444, 446, 77 899; Warehouse 297 500, 515, 546, 552, 827. Traffic 171 505, 25, 259; Arctic Ry. Nav. 107—108, 449, canon favored longer jurisprudence. See, e.g., Tynen, Wall. 88, 92, 153; Henderson's Tobacco, 652, 235. 59 324 439, 456—457, strongly reaffirmed principle scheme, less governs industry. accurate say never today deviated Alkali Export 196, 205—206, 65 1120, 1126, 89 1554; Allen Bradley Local Union 797, 805, 1533, 1538, 1939; Radio Corp. 354; Va. 464—465, 852, 880; California 369 482, 901, 54. Socony-Vacuum 310 226—227, 811, 846, 1129; 926. Only Term, wrote: 'Immunity lightly implied. assume Congress, having granted nonetheless inclusive 198—202, 190, 181.' U.S., 485, S.Ct., 903. although repealed lower uniformly not. S.S.W., Transport U.S.App.D.C. 273, 191 F.2d 658 (1951), cert. denied, 343 955, 1049, 96 1355; Apgar Travel Agency, International 107 706 (D.C.S.D.N.Y.1952); Slick 199 (D.C.N.J.1951), petition dismissed sub nom. Forman, 230 (C.A.3d Cir.), denied 346 806, 54, 98 336. 61 modeled 45, precedents 603, duly agency. 205—211, 1128, Comm. Cement Institute, 683, 692—695, 793, 800, 1010; Charles Pfizer 205 94 (D.C.S.D.N.Y.1962); 85 (D.C.D.Colo.1949). 62 decisional history, supposed enacted displacement beyond specifically cited rest mechanical law's canons However questionable contexts, entirely embodies perhaps society, continuing: adhorrence proscribed simply silence interpreted Where, neither supports me inescapable reject solution. seriously contended disrupt, slightly, aviation. Part III, 327, infra. carriage involved, danger interference President's discretion 1461. II. 63 is, me, unsound law, impractical. purports lay governing responsibilities CAB; questions, bar, withdrawn others line demarcation unsupportable. withdraw allocation, territorial division, cognizance, leave (as intend do) fixing, simpliciter, serious anticompetitive arcane logic fix go heart rates? True, therein; prohibits forms discrimination, rate-fixing 1374(b); 478, 480, 716, 736, 1051 (dissenting opinion). justification combination party probably outside jurisdiction, 330—331, both parties clearly jurisdiction? explanation conceive dubious distinctions want far flatly overrule well-established Court.2 64 equally understand apparently limiting deter either sanctions. difference effectiveness degree. An likely persist heavy penalties awards treble visited it. just possibility allow. hard follow attempted mutilating avoiding clashes judicial, when, mutilation achieved, acutely present. artificial distinction again prompted desire skirt, however disingenuously, holdings.3 conjure CAB's nowhere provides remedy, reparations, misconduct. III. unreality circumstances brings naught nine litigation. Yet actually represent continuing ago.4 Airways staved off reckoning tactics Judge Murphy below, Today's vindicates American's fondest expectations, back CAB outset protested inability urging CAB, filed amicus curiae brief Government's repeatedly period years, adverted felt helplessness face powerful corporations, dominant company field transportation.5 To sure, obliged honor disinclination jurisdiction. Trans-Pacific Ltd., Hawaiian 174 (C.A.9th Cir., 1949). entitled weight, Davis, Administrative Law (1958), position consistently adhered great weight. n. 18, 466, search practical advanced ignoring agency's sense self-limitation. hesitancy move disclosed record considerations. concede breadth sometimes unsuitableness thing, respecting lopsided Grace; sure done. proscribes agents. neither, fits language defines anyone 'who undertakes, directly indirectly lease arrangement, engage transportation.' 1301(3). owner purport regulate stockholders does, notably explicitly.6 sees fit jurisdictional difficulty. fear solid added step intolerably prolonged A experience unfairly virtue Hale Hale, Control IV: Carriers, 109 U. Pa.L.Rev. 311, 346—347 (1961).7 Most arisen litigation—the his negative anti-competitive fashion, substantiality restrained defendants' conduct, geographical markets, appropriateness forth—are typical expertness judge skilled adjudication—not tell, dealt 69 remission integrity argues holdings divested, apply terminal continental driven detriment acquiring applying freed applies northward extension open argue unwisdom granting application. obstructive effects monopolistic tactics. Judicial thus remove clog monopolization process—not disrupt process. 1051. reliance Pac. Abilene Tie 553, 183, misplaced. plaintiff antiturst complaining he paid, lawful ICC, lower. excessive vested ICC. theory shipper recover; undo damages, grounds Abilene) plain, raise lie, Government, here. 49. shows) injunction disturbance 70 creditable 'tactic characteristic litigious nature' raising post-trial six complaint. F.Supp., 46. sua sponte. Western 352 59, 63, 161, 164, 126; Note, Regulated Industries Antitrust Laws: Substantive Procedural Co-ordination, Col.L.Rev. 673, 690 114 (1958). wry commentary factor fairness practicality abdicating IV. seeking accommodate tell us departed usual preferring flexible technique accommodation: doctrine primary generally 1—55. abstain remitting instance rights requirement resort preclude later ensures premises. wise repealed. 498—499, 862, mode resolving conflicts avoids conceptual difficulties implication. Until failed invoke preference accommodating laws; deviation salutary approach. Certainly suggests none. candor add bar jealously guarded obligation tendency cases overlapping same 'there subsequent questioned activities,' Schwartz, Legal Restriction Industries: Abdication Responsibility, Harv.L.Rev. 436, 464 (1954). Compare Cunard 284 474, 247, Far East Conference 342 570, 492, 576, 742; 1051; Jaffe, Primary Jurisdiction Reconsidered: Laws, 102 577 straining framework graver heretofore guideposts law.8 Another charge relates alleged summarized follows: 'To large evidence categories offices, communications, equipment, publicity sales initially awaiting granted.' 22. organized January 1929, March Postmaster 248, 1449) lowest bidder. Op.Atty.Gen. 33. sector assured contractor concerned, invaluable assistance State carrier's countries route.' 31. actively assisted defendants defeating designs concessions routes. contracts awarded international contractor, area expansion contractor. during 1928 subsidize sector. ideal envisaged merged 'Panagra-Braniff,' Braniff's 'Panagra-Braniff' economically impossible, detrimental service, complicated embarrassed rendition diplomatic Department, waste monies. certainly encouraged government. On contrary, emerge definite government approving sort 'zoning' nature spheres ultimately arranged Agreement parallel other's perfectly consistent formative years.' 34. Investigation, 670, remanded C.A.B., 154 271. certiorari, 328 832, 1378, 90 1608, moot, 332 827, 203, 401, dispute note 15, infra), 'unhealthy' (4 678) owners cooperatively access 857, 914. 408(a) retroactive. Northeast 379, 386. National Forwarding 330, 335, 197 384, 389. pre-1890 combinations: 342, 559, Waters-Pierce (No. 1), 212 86, 220, 225—226, 417 (Texas version Act); Cox Hart, 427, 435, 157, 332; P. L. 141 606, 625 (C.A.1st affirmed, recently E. duPont DeNemours 353 586, 607, 872, 884, 1057, test whether, probability condemned restraints.' 1938.' 1107(f). 1051, carrier; 354, Communications TV radio licensees; 195—199, Agricultural Adjustment Natural Gas 880. Pan-American-Matson-Inter-Island Contract, rejected proposal creation similar Hawaii. ventures, opinion, June 17, 1948, 472, gives them S.Rep.No.1511, 79th Sess.; H.R.Rep.No.1212, 1st H.R.Rep.No.1100, 80th Sess. veto. Cong.Rec. 8435, 8633. 11874—11876; 12022 12025; 12026—12032. note, assumed covered authority. 6. 1(2) 'any citizen who transportation: Provided, Authority relieve periods interest.' 'a law' (National Labor Relations Hearst Publications, 322 111, 131, 860, 88 1170) view. foreclose drawn treatment Phases related litigation Note 5, supra. investigation accomplish compulsory (Panagra 670), ruling Appeals consideration. Before controversy resolved, 'through flight agreement' essence charter south schedules agreement, exceptions American-Panagra Agreement, 50. discussion issuing 314—318. analogized agencies fashion decrees. Mandel Bros., 359 385, 392—393, 818, 824, 893. mold decrees frame Express Pub. 312 433, 693, 699, 930; Cheney Lumber 327 739) Dissolution unlawful combinations, findings (Schine Chain Theatres 334 110, 129—130, 947, 958, 1245), field, authorized. Crescent Amusement 323 189, 254, 262, 160. Likewise, explicitly included arsenal authority, Gilbertville Trucking 115, 217. Eastman Kodak 274 619, 688, 1238. 25. reasoning valid originally Harlan: 'All agree constitutional, provisions, fundamental rules procedure.' Northern 197, 344, 459, 679. Hewitt-Robins, Eastern Freight-Ways, determined granted. tribunal desirable (Thomson Magnolia Petroleum 309 628, 876) (General Am. Tank Car El Dorado 422, 325, 361; Thompson Mexican 134, 150—151, 937, 1132) authoritive determination controlling tribunal. Dismissal suits, one, course. 577, 495, 576. Delta Lines, (Delta) Caracas Orleans; Aerovias Sud Americana, (ASA) cargo (on nonsubsidy basis) Florida ASA Quite Ecuador. Reopened 501. predecessor, merger, terminate entire carrier. handed May 1961, 395; 980, 596. appeal 11, American. Pending applications request submitted order. Applications moved lack prosecution. T.I.M.E. 904, 952, therein. At money reparations sounding tort. Fitzgerald 229 499 (C.A.2d 1956). 475, 889; 513—515, handling particularly disingeneous. secure illicit predicate explains preventing predicate. ICC helpless conceded 'authority discriminatory exist here.' 727. such. prohibit such; mandate, holds, facilitating necessary.' December 16, 1941, requesting modification States; April 29, 1942, 271, 1946), mootness, 401. 678 (1944); 913—914 (1946); 50, (1947); 501, 504—506 (1954); 493, 516—517 York-Mexico Nonstop (1957). example: section— '(2) purchase, properties 1378(a)(2). ever so. disposed reach merits issues, deem inappropriate

Category: 7