Document: 390 U.S. 238 88 S.Ct. 1005 19 L.Ed.2d 1071 FEDERAL MARITIME COMMISSION et al., Petitioners,v.AKTIEBOLAGET SVENSKA AMERIKA LINIEN (SWEDISH AMERICAN LINE) al. SOCIETY OF TRAVEL AGENTS, INC., Petitioner, v. AKTIEBOLAGET Nos. 257 and 258. Argued Jan. 25, 1968. Decided March 6, [Syllabus from pages 238-239 intentionally omitted] Irwin A. Seibel, Washington, D.C., for Federal Maritime Commission others. Robert J. Sisk, New York City, American Society of Travel Agents, Inc. Edward R. Neaher, Aktiebolaget Svenska Amerika Linien (Swedish Line others). Mr. Justice BLACK delivered the opinion Court. 1 The question presented in these cases is whether properly disapproved two provisions several shipping conference agreements. One under attack, so-called tying rule, prohibits travel agents who book passage on ships participating conferences selling competing, nonconference lines. second provision, known as unanimity requires unanimous action by members before maximum rate commissions payable to may be changed. 2 Commission's authority this area stems Shipping Act, 1916.1 Section 15 amended, common carriers water submit most their cooperative agreements directs it to: 3 'disapprove, cancel or modify any agreement, modification cancellation thereof, not previously approved it, that finds unjustly discriminatory unfair between carriers, shippers, exporters, importers, ports, exporters United States foreign competitors, operate detriment commerce States, contrary public interest, violation chapter * *.' 4 In 1959 proceedings were initiated Board, predecessor agency present Commission, complaint petitioner No. challenged a number practices composed steamship lines furnish passenger service across Atlantic. After extensive investigation hearings Examiner, both rules ordered them eliminated. 7 F.M.C. 737 (1964). Court Appeals, however, set aside order remanded case more detailed findings explanations. 122 U.S.App.D.C. 59, 351 F.2d 756 (1965). On remand again rules. rule was found detrimental interest. —- (1966). appeal, Appeals order, holding new had remedied defects noted prior decision 125 359, 372 932 (1967), we granted certiorari, 389 816, 67, 67 (1967). We hold supported all respects adequate analysis. therefore reverse judgment approve Commission. I. 5 An understanding issues will facilitated very brief discussion purposes federal statutes enacted regulate them. Major which compete traffic along same routes have long joined together fix rates other charges, allocate traffic, ways moderate rigors competition. Despite traditional hostility anticompetitive arrangements kind, Congress after activity some extent House Committee conducted primary inquiry reported promoted: 6 'regularity frequency service, stability uniformity rates, economy cost better distribution sailings, maintenance European markets parity, equal treatment shippers through elimination secret underhanded methods discrimination.' H.R.Doc. 805, 63d Cong., 2d Sess., 416. These advantages, concluded, could probably preserved face unrestricted competition, accordingly recommended industry exemption antitrust laws. hand, stressed an unqualified would undesirable. abused power past might do so future unless they subjected form effective governmental supervision. response 1916. statute only outlawed specific abuses but up with permanent § Act disapprove immunity conferred was, recommended, limited one—only receiving approval Board exempted. Originally agreement three grounds: unjust discrimination, commerce, illegality one Act. 1959, began review regulation Act,2 amendments passed 1961 studies3 included provision granting considerably broader permitting disapproval 'contrary interest.' scheme adopted thus permits continue operation insures laws subject careful control. II. 8 A crucial issue respondents' challenge reliance policy basis disapproving Since contention equally relevant analysis rules, consider at outset. 9 has formulated principle restraints interfere policies if can 'bring forth such facts demonstrate required serious transportation need, necessary secure important benefits furtherance valid regulatory purpose Act.' See F.M.C., —-. cases, partial undoubtedly held illegal laws, respondents failed satisfy further legitimate sufficient reason disagreed. Emphasizing '(t)he statutory language authorizes when fact operates four out section Congress,' court held, 'We read authorizing ground runs counter principles U.S.App.D.C., 64, F.2d., 761 (opinion first appeal). 10 Insofar rests absence explicit test among 'four section,' think excessively formalistic its approach findings. By nature restraint trade interest,' standard, involving assessment necessity terms commercial objectives, simply gives understandable content broad concept 'the Certainly reservations point should been dispelled explanation connection standard interest requirement. -. As indicates standards ultimate disapproval, see no objection casting requirements test. 11 Respondents argue broadly, permissible elaboration standards. They contend whole defeated incompatibility denying Congress, argued, already decided there justification intrusions our system, cannot require justifications must itself way are violated. 12 Respondents' arguments, even superficially persuasive. has, true, confer violate certain standards, indicated, concepts intimately involved chose. does make promise meaningless because still whenever exists.4 Nor test, requiring come forward restraint, improperly shift burden proof. course adduce substantial evidence support finding 15, once established, alone normally constitute record fairly detracts weight factor. It unreasonable adopting particular govern own affairs, reasons best itself, explain what those are. appropriate refinement 'public interest' standard. III. 13 turn then impact rule. embodied basic Atlantic Passenger Steamship Conference, association major serving Europe Canada. Article 6(a) provides commission member pay established addition, 3(d) subcommittee responsibility suggesting recommendations full accord. 14 time hearings, paid substantially lower than airlines. wrote remand, raised level offered airlines, earned remained ocean booking sea times much agent's air travel. responsible existing disparity delays rectify situation. occasions, lack prevented recommending increase, though majority recorded being favor proposals. also referred occasions take action. Because minutes apparently taken meetings, unable determine certainty frustrated occasions. result relatively advantageous sales travel, definite tendency encourage customers rather sea. This situation injured diverting business undecided traveler, lost opportunity deal agent whose influenced his economic establish served Under circumstances concluded fostering decline sea, sound independent merchant marine. invaded purpose. 16 find conclusions ample. attack initial blocked desires raise rate, argument reduces insistence conclusive true revealing meetings where taken, favored immediate increase.5 But faces rigorous purely factual one, entitled draw inferences wishes whole. showed beyond doubt instances faced proof conference, acted reasonably assuming views diametrically opposed entire membership. undisputed operated prevent presenting conclude delay conference. Although conclusion prevailed different voting procedure rest 'conjecture,' below misconceived reviewing function setting aside. Having correctly positive various aspects available other, fully points incomplete available. 'Conjecture' based reasonable light human experience generally special familiarity industry, within competence administrative respected courts. 17 affected suffers misconception task. testified he ever persuaded customer over customer's preference Agents heavily dependent hardly expected admission, did go far concede circumstances, 'definite tendency' choose 'it easier sell' 'you money.' amply supports conclusion. 18 final problem claim justified none lines, Americanflag minority particular, surrender control financial decisions competitors. bewildering contention, say least. enable single line protect decision, guarantees decisions. Lack leave free decisions,6 freezes 'surrendered' happens oppose change. respect upheld Appeals. IV. imposed cases. Trans-Atlantic Conference. providing America Europe, membership formally considered. authorized 'from tickets steamer connected fleets Lines.' prohibit arranging 20 noted, seriously interferes Sherman group competitors boycott buyer buyers per se. General Motors, 384 127, 146—147, 86 1321, 415 (1966); Klor's Broadway-Hale Stores, 359 207, 79 705, 741 (1959). And conference's specifically injures distinct sets interests. denies passengers advantages able sell means ability serve wish Most important, reach effectively 80% transatlantic conference-appointed agents. 21 Given effects disputed, incumbent upon objective. possible eliminate competition objective Martime Isbrandtsen Co., 356 481, 491—493, 78 851, 926 (1958), quite press it. contend, preserving choosing supervising members, creates incentive remain join. indication, jeopardize actually tends refute theory,7 clear claim. theory insufficient justify undeniable injury interests ordinarily protected 22 Equally insubstantial respondents, bear expense selecting qualified advantage efforts fair share joining expenses incurred reimbursed themselves annual fees. Many promotional activities individual addition often matching contributions factors although entitle exercise agents' activities, completely prohibiting dealing 23 provide findings—that injuring passengers, agents, unnecessarily invading V. 24 For indicated commenced eight years ago, controversy appealed appeal took extraordinary reversing, without remanding evidence, since meritorious contentions disposition proceedings. reversed, directions affirm 25 ordered. 26 Reversed directions. 27 MARSHALL part consideration 28 HARLAN, concurring result. 29 I concur reached Court, stated Court's opinion. However, join general statements, ante, 244—246, concerning relationship seems plain intended comprehend unique well Hence, believe place justifying until determined explanation. 39 Stat. 728, amended 46 U.S.C. 801 seq. Hearings Antitrust Subcommittee Judiciary, Monopoly Problems Reguulated Industries: Ocean Freight Industry, 86th 1st ser. 14, Pt. 1, Vols. I—V, 2, I—II (1959—1960), 87th 10, 3, (1961); Special Conferences Merchant Marine Fisheries, Conference Study, Pts. 1—3 (1959); H.R.Rep. 1419, Sess. (1962). 75 762. entirely consistent congressional recognition added 1961, 'our applied aspect international commerce.' S.Rep. 860, (1961) Code Congressional Administrative News, p. 3109 (emphasis added). Seaboard Air Co. 382 154, 277, 223 (1965), Minneapolis & St. Louis 361 173, 80 229, 365 (1959), misplaced. here accord kind accommodation objectives Indeed authorize ignore E.g., McLean Trucking 321 79—80, 64 370, L.Ed. 544 (1944). act meeting February-March 1956 veto exercised line. appear May 1960, memorandum disclosing indicate clearly preferred put increase into effect immediately, actual defer consideration. Compare IATA Traffic Resolution, C.A.B. 639. 645 (1946). airline initiate reached. reference Caribbean cruise seem meet contention. Carbbean all, strengthen conferences.

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