Document: 330 U.S. 567 67 S.Ct. 894 91 L.Ed. 1102 INTERSTATE COMMERCE COMMISSIONv.MECHLING et al. No. 72. Argued Feb. 12, 13, 1947. Decided March 31, Appeal from the District Court of United States for Northern Illinois. [Syllabus pages 567-569 intentionally omitted] Mr. Daniel H. Kunkel, Washington, D.C., appellant. David O. Mathews, appellees, and Secy. Agriculture. Edward B. Hayes, Chicago, Ill., appellee, A. L. Mechling. Nuel D. Belnap, Inland Waterways Corp. Justice BLACK delivered opinion Court. 1 A three judges enjoined in part an order Interstate Commerce Commission, case is here on appeal under 28 U.S.C. §§ 47, 47a, 345, U.S.C.A. 345. The Commission specifically relates to railroad rate grain transported Illinois, New York other eastern points,1 after that has been Chicago west by connecting rail or water carriers through bills lading. In such shipments a combination distinctly separate rates charged respectively east. charge fixed last leg shipment called, parlance, 'reshipping' 'proportional' rate. It lower east than 'local' which originates Chicago. See Atchison, T. & S.F.R. Co. v. States, 279 768, 771, 49 494, 495, 73 947. 2 For many years railroads have carried at reshipping 8 1/2 cents per hundred pounds local rates. Up 1939 this Chicago-to-the-east had identical grain, whether brought railroad, lake steamer, barge. Although barge lines were much slower railroads, they less expensive operate therefore could afford transport freight more cheaply railroads. result was barge-rail point destinations considerably cheaper all-rail point—the difference being measured relative cheapness shipping over route. Because rates, railroads' business localities be served either shifted barges2 1933 when service western resumed.3 This versus competitive situation existed filed schedules with imposed ex-barge east, but allowed ex-rail exlake benefit cent haul. schedule would b en that, although still could, time reshipped points, carriage shipper carriage. put disadvantage barge-served localities. At hearing test validity higher representative candidly stated purpose proposal 'drive off back onto rails where it belongs.' 248 I.C.C. 307, 321. most probably accomplished high gone into effect. 3 hearing, made left railroad-proposed effect, 'in proper proceeding we might prescribe proportional traffic joint combinations.' 311. set aside Commission's ground fixing ex-lake 'discriminates against competition users barges.' Cargill, Inc., 44 F.Supp. 368, 375. On reversed, saying its decision 'no implication approval any involved.' Corp., 319 671, 691, 63 1296, 1307, 87 1655. reserved future consideration before amount, if any, increase those grain. Id. 687, 688, 1305, 4 now considered decided question proceeding. 262 7. found originally proposed unlawful required roads cancel increased not challenged. But also concluded reasonable lawful even though Consequently, provided cancelling scheduled 'without prejudice filing new conformity findings herein.' Thus, effect whole permit, require, reshipment Under these trifle all transportation between same points.4 cost accurately reflected in-bound resulted justified so long as there remained 'a fair opportunity move lake-rail traffic.' 5 Appellees5 then action cancel, annul, enjoin enforcement order, insofar permitted complaints violation Act, amended Transportation Act 1940, 54 Stat. 898. contended void because approved penalized extent perhundred pounds, solely barges, without evidence adequate represented Department Justice, appearing defendant, admitted allegations. intervened defended order. After allegations sustained. Accordingly, extra charge.6 Court's judgment leave long-existing provide carrying ex-barge, ex-lake, 6 Judicial review fact expert judgments acts within statutory authority extremely limited. And § 307(d) 1940 Act7 authorizes route' 'prescribe differentials may find connection common carrier water.' Cf. Heights Trucking Co., 310 344, 352, 353, 60 931, 935, 936, 84 1243; Board Trade Kansas City 314 534, 546, 62 366, 372, 86 432. congressional debates committee reports provisions emerged legislative background show Congress enunciated positive policies specific limiting standards expected follow including 'differentials' water-rail jurisdiction vigorously opposed who feared raise enable better compete inherently transportation. These opponents repeatedly assured sponsors advocated regulation ransportation questioned legislation unequivocally fix preserve shippers inherent advantages transportation: equipment, operation, service.8 As Senator Wheeler, spokesman Committee he chairman, pointed out floor Senate, contains least provisions, prime protect carrier's natural advantages.9 Act's declaration policy emphasizes must 'so administered recognize advantages' 'all modes subject Act.' 898, 899, notes preceding 1, 301, 901, sections 901. preserved 305(c), 905(c), 'Differences * practices respect shall deemed constitute unjust discrimination unfair destructive practice *.' 307(f), 938, 907(f), requiring consider 'the upon movement are prescribed' emphasized '* need, public interest, efficient lowest consistent furnishing service.' addition 3(4) preexisting forbade 'to discriminate their fares, charges lines,' 41 479, ws include carriers, lines, definition carriers. 903, 904, 3(4), 3(4). Finally pre-existing forbidden authorize one person another like contemporaneous kind substantially similar circumstances conditions.' 24 379, 380, 2, 2. 7 foregoing flatly forbid approve do intact transportation, goods transport. Concretely, mean Chicago-to-the cannot lawfully grains localities, unless haul costs does authorizing neutralize effective prohibitions strengthened expressly prevent basic error seemed act assumption discriminations applicable permit destruction curtailment cheap whenever beyond end line. proves that. while great center, consume barge-transported That coming marketing processing, distant destinations. To penalize barges charging discriminatory final destination precisely consequence raising inbound Recognizing require accepted reasonable,10 bring about prohibited this. 9 did increases receiving return grounds rested support approved. Most argument conclusions treated matters no relation what should be. length total however significant circumstances, relevance here. distances hauls. Nor supported conclusion 'inequitable' can haul, resulting localities.11 reason all. If need relief com etition wholly unrelated roads. Furthermore, equitable barges. declared unmistakable terms 'inherent advantage' compared passed ship province adjust equalize access competition. discretionary power type reduce part. Mitchell 313 80, 97, 61 873, 878, 85 1201. 10 Related just discussed, contention permitting remain equal will cause 'incurable chaos' disrupt national structure reflects interrelated conditions governing markets. how possible disruption arises giving full advantage competing lost lines. out, knew line wanted get them, take away adjusting rail-barge note incidentally prior apparent structure. possibility remotely justify actually deprive companies guaranteed them Congress. M. St. P.R. 294 499, 506 510, 55 462, 465—467, 79 1023. certain places e st, increasing east-of-Chicago initiation disparity would, course, absence approval.12 But, route produces said preserve, eliminate disparity. 11 Carriage conceivably entail greater involved so, may, wherever rendered. fit lump sum cut intended guarantee shippers. Here broad general terms, limitation compete, 'on average' requires terminal transit moving relatively few terminals.13 service, noted some going stopping receives all, whereas unloaded reloaded cars. unspecified amount stopped processing exactly rendered grain.14 Yet service. formula used lumps irrespective services rendered, give rail-carried preferred barge-carried indistinguishable directly raises relieve event, showing much, attributable average 12 (which assume record performed) stops charge. Thus unlike already processed ever reaches reducing likelihood further tra sit east.15 enjoys apparently arriving consequently Similar amounts finding Probably make usually Central R. Jersey 257 247, 42 66 217; supra, 777, 780, 497, 498, shows makes why, existing each individual operation insufficient cover operation's costs, adjusted alike ex-rail, partial compensation additional manner singles treatment Act.16 13 State Florida 282 194, 212, 51 119, 124, 75 291; North Carolina 325 507, 520, 65 1260, 1267, 89 1760. unsifted averages forward measure allegedly nor indeed exist. 14 Affirmed. 15 FRANKFURTER sustain deems amply differentiating surrounding affecting 27—28, evidence. 16 JACKSON, dissenting. 17 appears me only ignores contrary our own oft-repeated pronouncements finality administrative findings, legislates two departs laid down section Whether Congressional law amendments country complicated problem which, my conception judicial function, I am privileged decide. 18 937 seq., authorized establish said, 'In route, water, 307(d), 907(d). reads statute holds differential created themselves; say, permissible journey. 19 says exercise making due consideration, among factors, prescribed.' 307(f). done finds prescribed create diversions traffic. orders structures producing regions users. simply writes 'shall consider' consider.' 20 seems powers dissent. 21 joins opinion. points adjacent states England. around territory controversy chiefly revolves. related so-called central territory. reasons supporting reach apply equally increases, treat separately. 246 361, 364, 383; 7, 41. There city 1886 1907 discontinued. Such resumed 1933. 20. proportionals uniformly 5.5 exbarge proportionals. Appellees (1) Mechling, Missouri, Iowa; (2) corporation transports between, Chicago; (3) Secretary Agriculture, seek farm products. Two procedural raised discussed length. first preliminary injunction too controversial become effective. moot, see Steel 306 153, 159, 160, 59 415, 418, 419, 83 557. second urged serve notice States. We this, were, prejudicial rights appeal. Since necessarily party Court, 46, Lambert Run Coal Baltimore O.R. 258 377, 382, 349, 351, think held 937, 907(d), original proceedings heard closed became law. Waterway 678, 1300, present fully governed Act. Illustrative attitude exchange Lucas Chairman Committee: 'Mr. Lucas. town live focal wheat corn price elevator always elevators 25 30 miles farther inland water. 'Under bill, understand it, power, duty, Illinois River corn. Would Louis? Wheeler. Not bill provides carrier. Everyone agrees shipped rail.' Cong.Rec. 5879 (1940). Lea House debate t at: 'The very plainly, plainly language written, protection contrasted means property.' 9862 5883, 6126—6128, 6131, 6149 (1940), Conference Report, 10172 5873—5876, 6131 yield returns proceeding, reasonable.' 19. expressed concern far below origins. inequitable rise requests reductions origins difficult see, extreme disparities, properly denied. (T)here substantial production While farmers therein appear hurt situation, adduced others position. meant statement jeopardize structure.' 509, 466, 1023, earlier basis preserving over-all disruption: 'We warned change once tenancy spread. acceptance Milwaukee lead, proportionate Indiana Keutucky, outcome characterized counsel, report, war sound, maintained, unsound, fear spread control. danger illusory. commission, keep changes bounds.' 6, 4, 4. average, gateway intermediate official territory, southern points.' 'Like traffic, transfer lading origin interchange port *. (I)t never moves continuous transportation.' 21. precise reference assumed throughout discussion, however, shown reliance averages, large receive 3.25—4.5 lbs. switch riverside plants. 24. noteworthy previous satisfied physical same' shipments,

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