Document: 341 U.S. 290 71 S.Ct. 715 95 L.Ed. 949 UNITED STATES et al.v.CHAMPLIN REFINING CO. No. 433. Argued March 8, 9, 1951. Decided May 7, Mr. Charles H. Weston, Washington, D.C., for appellants. Dan Moody, Austin, Tex., appellee. Justice CLARK delivered the opinion of Court. 1 Section Interstate Commerce Act provides that 'common carriers' engaged in 'transportation' oil or other commodities shall be subject to regulatory requirements specified sections statute.1 In an earlier proceeding, this Court found Champlin, as owner a pipe line, was carrier' within meaning § 1; and on record there presented upheld I.C.C. order under 19a(a)—(e) requiring company submit valuation data, maps, charts documents pertaining its operations.2 Champlin Refining Co. v. United States, 1946, 329 29, 67 1, 91 22. The present proceeding involves subsequent directing (1) file annual, periodic special reports, institute maintain uniform system accounts applicable lines, both 20 Act;3 (2) publish schedules showing rates charges interstate transportation refined petroleum products, pursuant 6.4 2 A specially constituted three-judge District Court, with one member dissenting, refused enforce ground at least purposes §§ 6 20, is not class carriers intended regulated by Act. It held further impose would take property without due process violation Fifth Amendment. F.Supp. 170. Government Commission appealed, 28 U.S.C. 1253, 2101(e), 2325. 3 facts here are substantially same case. owns operates line running from refinery Enid, Oklahoma, terminals Hutchinson, Kansas; Superior, Nebraska; Rock Rapids, Iowa—a distance 516 miles. uses solely carry own such gasoline kerosene. No refiner has connections none ever shipped products through it. does connect any line. storage facilities each three terminals. Jobbers purchasing supply their tanks bulk depots. 4 Since first case, been change Champlin's method quoting prices. At time price computed f.o.b. Enid refinery, plus differential equal rail rate purchaser's destination minus local between nearest pipe-line terminal destination. However, made frequent substantial departures formula meet competitive prices various locations. 1948, began respective terminals, policy which still effect. But before, adjustments so jobbers will those offered refiners. 5 On basis these facts, contends no significant factual differences prior therefore barred collateral estoppel relitigating holding it Act; since definition applies well 19a, Court's per se establishes validity order; (3) even if apply, adequate statute support Commission's (4) alleged constitutional question frivolous. claims changes remove case realm estoppel; specifically reserved statutory issue namely whether may convert private carrier into common hire; lower court correct violates Amendment construed authorize I.C.C.'s order. 7 We agree have operations practice superficially more obvious were being collected, point brought out. page 34, 3. And indicates resulted minor alterations pattern relative transporting, unless launched calculated plan bankruptcy, average necessarily cover costs costs. points out constructed ethyl plants two processing some percent products. makes part 'manufacturing' thus brings Uncle Sam rule, excepted gathering lines coverage Pipe Line Cases (U.S. Ohio Oil Co.), 1914, 234 548, 562, 34 956, 959, 58 1459. officer testified 'always done blending treating' terminals; 80 transported final form. Hence, justification reconsidering refusal 'expand actual holding' (The Pipeline Cases) supra, include ruling defined 8 we disagree Government's contention disposes all issues To sure, literal terms lend weight argument. 1(1) 'The provisions part' apply defined, word 'part' referring 1—27 inclusive. issued, 'every part'. 'carriers', subparagraph (8) carrier(s) chapter'; chapter'. jurisdiction orders determined decision 1. effect argues, however, also settles merits, specific 19a 20. very conclusion rejected I. argued interpretation encompassing public utility require become fact. stated 'our rests affords implication * contention) too premature hypothetical warrant consideration *.' 35, merely could required information Act, plainly indicated application rigorous sanctions treatment independent proper record. 9 reasons approach suggested Valvoline 1939, 308 141, 146, 60 160, 162, 84 151. Collection significance imposition regulations, regulations come forth. Valuation cost data companies making add statistical reliability standards imposed are. 'Publicity alone give effective remedy abuses, be.' 163. Disclosure alter future course otherwise disposed indulge activities condemns. prompt action should circumstances make full-scale regulation appropriate. Finally, reports bring light new abuses provide groundwork amendments. assume Congress passed aware benefits. conclude, did mean eschew them omitting general provision empowering collect pertinent lines. 10 holding, therefore, supports involving requirement annual cannot differentiated request data. somewhat burdensome, but think value measuring rod fully clearly sufficient justify requesting much pertinent. 11 time, find hard despite generality used, 6—imposing duty serving rates—on because they cross state divorced existing passed, evil sought prevent. well-known. few number heavily concentrated control company, Standard Oil. That ownership subsidiaries affiliates, had 'made itself master only practicable fields east California Atlantic Ocean carried greater points. Availing monopoly means (it) subordinates sold less dictated itself.' Cases, 559, 958. Small producers—who lacked resources construct whose output small built economically unfeasible—were desperate position. There little doubt, legislative history, eliminate advantage integrated might possess exclusive 12 This reached bringing who hire common-law sense. Attempts limit Act's scope during congressional debates. Senator Lodge, sponsor principal amendment, rendered answer alteration 'absolutely destroy (the proposal) far effectiveness concerned.' 40 Cong.Rec. 7000 (1906). Hence bill finally enacted 'to although technically yet carrying offered, offerers sell price.' 334 560, see supra. argument—no having before Court—that term 'all pipe-lines' meant full producer exploit simply refusing deal producers comparably cheap reaching consuming markets. strange suppose Congress, adopting broad enough imbalances arise, services unused, unsought after, unneeded producers, presence fosters competition markets blanketed large 'majors.' Such step best pointless; subvert chief purpose 13 Yet us, precisely what attempting do. Unlike crude-oil Valvoline, over 3,800 owners operators, refined-products carries own.5 concedes necessary now forced devote partially, use. Nevertheless, failed disclose correct, either assumed findings contrary. addition previously referred to, follows: 14 'Only about 1.98 total consumed (Champlin's marketing) area moved respondent's facilities. capacity common-carrier Nebraska market times latter Iowa market. available refineries Oklahoma Kansas aggregates 172,800 barrels day (in contrast 9,800 barrels), pipeline smallest operating territory. Apparently, desiring transportation. 15 'So appears, threatened force connection (with Champlin's), ample available, revealed respondent, likely interest connection.' 274 412—413, 415 (1949). (Emphasis supplied.) 16 below, Findings Fact, concluded 'Champlin power establish trade territory sale therein.' D.C. 1950, comparison competes acts create competition.' Ibid. See Chairman Splawn, dissenting report. 416.6 seeks rebuild pointing refiners closer than other, stressing expense building long connecting evidence wish outside immediate area. event, function rescue de novo unable unwilling make. hold order, insofar concerns 6, goes beyond contemplated when 17 judgment below modified striking portions setting aside Cause 29912, Company Accounts Reports, modified, affirmed. 18 So ordered. 19 Modified FRANKFURTER, while joining opinion, overrule decision, 22, set forth dissent 21 DOUGLAS, whom REED BURTON concur, concurring part. 22 Act—the given sufficiently involved here. difference; can concerned. like reach appellee section other. As several decisions consistent applied I feel free follow precedent Pipe-Line 561 1459, view expressed owners' marketing Consequently, Commission. Therefore, neither nor applies. 23 BLACK (dissenting). 24 From whatever angle approached, seems me wrong. rides roughshod clear language Hepburn Act1 oil-carrying impossible enforcement intended. undercuts overrules cases mentioning appellant, second trial victorious relitigation against suggests accepts deem frivolous challenge serve hire. 25 must comply need reconciled our previous construing language. authorizes Act'2 file, among things, certain reports; commands 'Every Act'3 do understand why labor obvious—this requires (if Act') 6. holds to' accordingly sustains Paradoxically, then proceeds though 'subject How gives identical different meanings left mystery.4 26 saying something sui generis, Act'.5 While 'something more' clear, overturning suggest passing possibly sustain upon exploited 'a markets' enjoyed 'monopoly' position Certainly nothing encourage judicial creativeness Act' logically admit limiting section's producers' achieved status. restricted hinted 1459 (where involved), 151,6 Rfg. 22.7 noted justices thought additional 'something' applicable; believed substance.' anyone else, know, pick choose imported. possibility remained today's majority discover, 46 years after passage Act.8 II. 27 Far important exemption filing papers act already voluntarily basic turns Act: '(T)his corporation person persons commodity considered *.'9 shown unchallenged fact I.C.C.: produces, refines, transports Through wholly owned subsidiary buys, gathers produced wells others.10 Its trunk extends miles across five states Iowa. Although depend company's size, company; rather, occupies serves.11 admitted obviously others. 29 clearer history. sponsored 1906 Henry Cabot Lodge Massachusetts amend pending railroad manner I.C.C.12 reflected dissatisfaction conditions industry. conditions, thought, main (especially Company) using exclude facility.13 ensuing debate room doubt Amendment, showed, deprive Standard,14 utilize crush competition. end, Appendix following designed every transporting commerce. Senators opposed charged exactly 'private' carriers. proponents freely it, explaining anything ineffective. All efforts narrow acting defeated. Therefore say, does, applying 'subvert Act.' Stranger unexplained apprehension somehow 'foster' monopoly. III. 30 converted 'engaged commodity' law offer public.15 appellant 'engaged.'16 allowing refrain tariffs I, both. If overruled, say so. either. 31 Nor how where (308 161) exceptions: Valvoline's crude gasoline. difference immaterial; assuming 'gasoline' 'oil' 'other commodity.' chose operate purchase corporate name chooses subsidiary. difficulty treating single unit partly subsidiaries.17 32 nevertheless distinguish 'carried operators'. quoted correctly understood purchases independents purchased fact, certainly cases. Like 'oil others' way area: half originally field begins.19 above, subsidiary, rather name, unimportant.20 33 legal arguments cases, conclude that, verbalisms aside, undermine holding. situation expressly overruled. Why, fairness, others similarly situated conduct chooses? IV. I.C.C., 49 Val.Rep.(I.C.C.) 463, 470, transportation' of' questions 'distinctly put directly determined,' dispute parties departure principles most recently announced States Munsingwear, 340 36, 38, 104, 106. today appear transportation,' emphatically believe majority's unjustified Munsingwear principle (as distinguished language) considered. V. 35 Why interpret nullifies purpose? am elimination consider reflects hostility unarticulated belief unconstitutional, enforced written. Neither strangle disagreement policy. destruction results feeling Constitution forbids servants, here, below. Pipe-line companies, administrators law, bench, bar, entitled less. Of course, 1914 supra: which, Holmes, speaking dismissed brusquely sentence, stating 'there provision) valid.' 561, Again, 1922, relying similar agrument 'futile almost frivolous.' Pierce Corp. Phoenix Co., 259 125, 128, 42 440, 441, 66 855. Surely deemed 'almost frivolous' twenty-nine ago reinvigorated implication. VI. 36 sure rewritten succeed forcing company—even complying Act—to carrier. Even newly engrafted, Court-created hurdles, provisions, reason another, never effectively desired.21 Perhaps, great harm result polite frustration purpose. Some people familiar industry, strengthened, weakened.22 Be may, my vote 37 reverse. APPENDIX Opinion 38 4, 1906, President Theodore Roosevelt transmitted report describing condemning monopolistic practices 6358. introduced amendment carriers: '(That to) Any commodity, except natural gas water municipal purposes, railroad, water, Id. 6361. 39 Foraker immediately objected proposal: 'I want opposition Senator's occurs ought amended, operated public. you compel man his *. limitation public, individual laid down operation benefit.' Nelson reply Foraker's suggestion 'practically nullify provision, cay 'we refuse business public.' Practically (Lodge) use all.' 6365. added: '(T)he (Senator Foraker) will, Nelson) says, absolutely amendment.' 41 During attempt 'for public' 'transportation hire' compensation,' unsuccessful. 7000. again destroy' proposal 'so knew declared: interstate-commerce law. greatest articles commerce country, whatsoever.' Later he 'All carriers.' 7001. Clay, observed: 'This transmission Every transmitting 7009. Culberson said: 'Nothing courts construction, declares corporation, lines—of commerce—are carriers, declared authority 7005. Bailey, measure, described "pipe-line amendment' 9647. 43 'commodities clause' prevent railroads owning businesses shipments carried. When clause Senate, senators realized clause'—read together divorcement refineries. avoid this, amended 'What (original Lodge) bill. thinks injustice, place 5, clause), amendment).' Accordingly, railroads. Stat. 585. U.S.C.A. 1: '(1) Carriers requlation. chapter in— '(b) artificial gas, '(3) (a) used companies; 19a: '(a) Physical carriers; classification inventory. investigate, ascertain, '(e) furnish commission agents profiles, contracts, engineers, 20: Reports lessors. authorized periodical, Uniform accounts. discretion, enabling better chapter, prescribe thereto '(4) Depreciation charges. classes depreciation properly included expenses, '(8) 'carrier' 6: Schedule rates, fares, charges; posting. print keep open inspection 1(5) 'shall just reasonable'. 1(5), 1(5). sole stock Cimarron Valley Company, intrastate supplies refinery. gave consideration, hearings orders, seem concern assumptions true: shut enter; (b) reduced refineries; (c) decreased demand oil, reducing crude, depressing get. first, crucial, assumption, text, infra. '* (T)he been, is, service indirectly. None interest. Moreover, shows constitutes inconsequential volume moves served 'Requiring thing, thereby obligate transport service, exclusion own, entirely different. protect power. construes completely utilized relatively dependent facility refining business. ultra construction regardless differing destroying instead affording protection 584. 1887, 379, 1—27, 1—27. quotations text original twice modifications changed 145—146, 151; 32, note 2, 593, 'from 586, mystery lessened concept 'Commission's jurisdiction' tariffs. For 'jurisdiction' unequivocally file.' 3, interesting theory history source. Commissioner, 416; compare Commissioners Aitchison, Splawn Alldredge Val.Rep. (I.C.C.) 463. Part III, last cited 19a(a) (e), 19a(a, e). 'as record' (emphasis added) converting treated 'separable' raised. intimated matter 'separable.' assumption separable, exempting pointed exclusionary language; none. infra, 317, 318, 730, shows, 'the bill' excluded particular provision. 584, in—* (t)he compenies; A. G. E. Leverton, Comptroller testified: 'We approximately 45 hence always compelled market, appurtenant December 31, 1940, $3,189,028.66. according owns: Approximately 149 53 leases Kansas, 52 Texas; 75,000 acres undeveloped leases; processes 1/2 million annually; 450 Oklahoma; (5) 723 tank cars; (6) 316 filling stations 248 plants; (7) case; trucks equipment promote producing, thereof. 463—464; 410. 'pipe provision' added accompanying Immediately petroleum. possessed H.R.Doc. 100, 59th Cong., 1st Sess. 36—37, 60—62, 398—400. background industry generally Beard, Regulation Lines Common (1941), 10—27; Sharfman, (1931), 59, 96; Whitesel, Recent Federal Petroleum Carrier, Cornell L.Q. 337, 341. practices, New Jersey 221 502, 55 619; Jersey, C.C., 173 F. 177; Tarbell, History (1925). Control today. See, e.g., statement Alfred M. Landon: 'Very amount shipments. finds himself mercy competitor producing controls practically hundred cent facilities, becomes bookkeeping end big profit. pay profit choked means—the facilities.' Hearings House Committee Foreign H.R. 16695, 71st 3d 59. danger interpreting aimed McFarland American Sugar 241 79, 498, 899. Holmes wrote Court: words 'who act' cut declaration technical sense, injunction dealt such.' pages 559—560, Both interstate, (1912); Prairie & Gas U.S., Com.Ct.1913, 204 798. true unconstitutional taking judge dissenting. appeal, reversed, constitutional: existence assigned substance. V, similarity domination (or lack domination) served, 413 ('(a)pparently, (Champlin's) transportation') 47 534, 535 ('(a)t pieline serves Valvoline'). border 'engaged' 'simply drawing use, (was) 959. problem reaffirms former transportation.' cf. Elgin, J. E.R. 298 492, 56 841, 1300; South Buffalo R. 333 771, 68 868, 92 1077. DP noted, moreover, unsuccessfully relieve duties. Thus, attempted becoming claiming enjoying area, adequately bought oil.18 accept proposed affirming 10, Whether buys exact 147, 163, transported, major insure regulating refiner, jobber consumer exorbitant companies. 6365, 6366; Note, Public Lines, 51 Yale L.J. 1338, 1347 1348. noteworthy 1/8¢ gallon higher (a line), market); Rapids 260 Superior. 77, 523, 619, 'As product inevitable absolute existed product, monopolization oil. majors appears many respects complete Trust.' Report Temporary National Economic Committee, 76th Sess., Monograph p. 28. contains excellent discussion problems 19—28. Kemnitzer, Rebirth Monopoly (1938), 78—95; 355 369. crushing strength old lay thirty-odd only, transporters marketers only. 'But minds controlled coordinated thirty odd vast company—a single, integrated, 'unit' entity, things (producing, refining, marketing)—and inclusiveness 'one' company. 'Therein rested terrific, overpowering 'To-day, standpoint, 'equivalent,' over, 'It escape industry—and rapidly accomplished mergers integration—is clearly, definitely, segregate, entire rest segregation substitution practical monopoly.' 60, 61. views strengthening 72d 2d (1933), especially Special Counsel Splawn's conclusions, lxxviii. 87—90; Black, Divorcement Litigation Legislation, 510.

Category: 7