Document: 335 U.S. 573 69 S.Ct. 278 93 L.Ed. 243 AYRSHIRE COLLIERIES CORPORATION et al.v.UNITED STATES al. No. 25. Argued Nov. 12—15, 1948. Decided Jan. 3, 1949. Appeal from the United States District Court for Southern of Indiana. [Syllabus pages 573-575 intentionally omitted] Mr. Earl B. Wilkinson, Chicago, Ill., appellants, Ayrshire Collieries Corp. Carson L. Taylor, appellant, C.M., St. P. & P.R. Co. Daniel W. Knowlton, Washington, D.C., appellees, The and Interstate Commerce Commission. Erle J. Zoll, Jr., Alton R. Justice DOUGLAS delivered opinion Court. 1 This is an appeal, 38 Stat. 219, 220, 28 U.S.C. §§ 45 47a, 43 938, § 345(4), U.S.C.A. 45, a decree three-judge Court, which dismissed without merit two complaints seeking to set aside rate order Commission.1 2 Bituminous coal produced in great quantities Indiana, Illinois western Kentucky. In each State there are producing areas that have long been grouped rate-making purposes. These groups or districts Brazil-Clinton, Linton-Sullivan, Princeton-Ayrshire, Boonville Indiana; Northern Illinois, Fulton-Peoria, Springfield, Belleville, Illinois; Western Group rates established by carriers so all mines within area accorded same consuming destinations.2 result comparative distances one particular destination commonly disregarded fixing group rate. But Commission has concluded such system making other natural resources encourages competitive production more even development area.3 3 present litigation involves carload lots foregoing Kentucky Rockford, Freeport, Dixon points northern Beloit, Wisconsin. 4 under attack this case resulted proceedings before were heard considered together on record. One was investigation proposed certain increases bituminous some Indiana Wisconsin, designated destinations. Like intrastate destinations also sought. suspended until disposition proceeding. proceeding instituted Commission, complaint, into determine whether they discriminatory, preferential, prejudicial against interstate commerce favor commerce. 5 only recent chapter problem adjustment region. 6 ordered reduction 1930. Rockford points. refused require increase important involved here unless increased.4 Subsequently found main not unreasonable but unduly Beloit preferential if exceeded origins than 25 cents. further hearing extent 15 allowed reduce both, relate cents over Rockford. had prescribed as maximum therefore could be increased. Also similar would disruptive structure built basis. Accordingly reduced.5 7 subsequently and, with exceptions, conformed 15-cent relation between placed (both intrastate) nearly at general level territory. 8 fact must mentioned posture understood. After reduced 1930 after carriers' unsuccessful effort earlier ones re-established, Milwaukee road its single-line Brazil Linton it serves Freeport intermediate amount reduction. cancelled. affirmed permanently enjoined v. M., Co., 294 499, 55 462, 79 1023. 9 Since time line lower contemporaneous serving these respective destinations, exception Central 1936 published lines basis Milwaukee's rates. 10 serve part groups. carry those though their do reach them, since either connecting carriers. They parties many joint reflect reductions made And proposed, proceedings, continued previous relationship. Moreover dual reached extended previously enjoyed 11 As we noted, new respected differential substantial joint-line well increased none Beloit. accord 17 12 cents, respectively, Furthermore establish Princeton well. disapproved It what fair reasonable relations several themselves. unjust discrimination shippers receivers undue preference prejudice findings respects Brazil, nd Beloit; connection privilege hand other. went specify approved. ruled above approved rates.6 263 I.C.C. 179. 13 We agree dismissed. 14 First. contended authority lawfulness suspension 15(7) Act, 44 1447, 49 15(7), 15(7). That section, gives broad upon complaint own initiative investigate any rate,7 provides 'after full hearing, completed * goes effect, commission may make reference thereto proper initiated become effective.' 16 power deal situation effective necessarily comprehensive one. seems too plain argument ample modification existing both. granted 15(1) schedules already supports view.8 For once finds unjustly discriminatory otherwise unlawful, prescribe just bound approve disapprove toto proposed. can modify proposal respect modified wholly different substituted ones. view beginning;9 think correct o e. obtains change republished schedules. among Commission's cited tariff contains Hence sought bring them gave notice entitled. include clear us. Even assume 'new' meaning 'demanded, charged, collected' 15(1). 18 Second. Section 2, makes unlawful carrier receive person greater less compensation transporting property receives another doing 'like service transportation like kind traffic substantially circumstances conditions.'10 pointed out purpose section enforce equality commodities haul distance points.11 requirement, argued, met no finding origin point being charged higher moving conditions. contention taken warranted treating places district point. Whether so, depends primarily legality action gathering various 19 noted12 historic method building structures. followed because necessary afford consumers, operators, opportunity compete purchase, sale question. act challenged here. Yet grouping purposes accepted, clear. protection shipper clearly factory community. 20 granting favorable others districts. Their much latter join. arrangement results getting shipments 21 question remains treatment 2. 22 single group. us permissible inference, single-rate routes played bulk tonnage roads having Thus served 30 31 called representative period, handled 95 per cent 78 maintenance bearing future opportunities market severe competition marketing territory differentially related finely balanced meet needs public, mine For, general, produce quality grade. A difference few ton charge normally sufficient divert contract another. conditions differ materially group; average routes. 23 especially respecting similarity conditions, severely support evidence. findings, when judged classic examples shippers, leave desired. adequate case. intimate acquaintance See I.C.C., p. 196. themselves designed equalize opportunities. location mines, territory, group—these factors bear determination shall pulled draw experience groupings variables warrant common destination. Or state otherwise, succeed course, claim right initiate zone reasonableness. supra. holds used mining region, defeats discriminating conclusion establishment avoided informed judgment based complex factors. cannot successfully record whole undermined. major project undertaken. 24 What said disposes creates violation 3(1) 3(1).13 Third. differentials maintained Wilwaukee constituted Act.14 26 differential, should standard effect generally northwest. Linton, former cents; appellants phase differences distances. Facts adduced show fairly 27 considering presented did rely strictly distance. Distance factor controlling. deemed task creation propriety determinative heart appellants' objections 29 twelve averaged $1.95 $2.05 $2.12 Princeton-Boonville. rates, found, compared favorably groups,15 apart exceptions now material. chief provide both There historically fixed latter. appearance greatly distorted picture. supra, page 510, 467, 1023, done there, viz., adjudged fairness subsisting Appellants however contend holly arbitrary. instances where shorter. say adjust compensate rendered give illustration inconsistencies specific assuming, same. From seek points—(1) eliminate (2) that, do, individual arbitrary principle entitled 32 deny use averages measure relationship indication closeness alignment. comparison regional differentials. faithful practice giving diminishing weight increasing length said, 204, 33 'In approving relations, kept mind importance railroads relating differentially-related distance, concerned sale, fields never primary regard eventually eliminating practically most highly undesirable consumer, whose interests disregard.'16 34 doubt, therefore, C mmission believed relationships. may, contend, markets. seem follow, example, elimination low does indicate unlawful. might showing, factor. attempt discrepancies enough provided justified element competition. 35 was. Rate structures merely revenues producers consumer interest safeguard well.17 undertakes rationalize three, complexities often encountered. economics industry baffled experts. depart our competence limited function field undertook accommodate differently peculiarly it. fashioning coal, place dogma rigid formulae. calls expert, multitude facts. administrative rate-maker left discretion statutory requirement overlooked. is, precisely nature process field. Board Trade States, 314 534, 548, 62 366, 372, 373, 86 432; New York 331 284, 347—349, 67 1207, 1240, 1241, 91 1492. 36 Fourth. argue acted beyond alternative methods removing exist. Texas Pacific 289 627, 53 768, 77 1410. argues direct cease exist control 37 issues so-called directing remove found. leaves choice raising rate, lowering other, altering recently held 342, 1237, 1238, 1492, rule applicable itself prescribing noted above, finds, inter alia, prejudicial. exercised power. will structure. effectively controlled irrelevant Finally suggested invalid find noncompensatory. forbidden 344, 39 Affirmed. prior sustaining reversed member participated decision. 132, 1168, 1391. Another characteristic base Wisconsin invo ved litigation. expressed ton, stated terms Hitchman Coal Coke Baltimore O.R. 512, 520; Waukesha Lime Stone M. 515, 518; Arkansas Lbr. Louis, I.M. S.R. 33, 37, 38; Public Utilities Oregon Short Line 103, 106; Southwestern W.R. 89 73, 84, 85. see Harbor Case, 47 643, 712; 292 474, 486, 54 783, 788, 1371. Intrastate Rates Coal, 182 537, 549, 550. history briefly summarized report aspects 537; Fairbanks-Morse S.R., 195 365, 251 181; Traffic Bureau Ahnapee 204 225; 232 151. fr m 197 245, 200 609, which, discuss hereafter opinion, entered required desist practices maintain 'Whenever filed schedule stating fare, charge, classification, regulation affecting have, hereby given, authority, once, orders answer formal pleading interested carriers, notice, enter concerning regulation, practice; pending decision thereon commission, filing delivering affected thereby statement writing reasons suspension, suspend operation defer practice, longer period seven months go effect; 'That whenever, part, initiative, extension whatever, whatsoever demanded, collected subject persons property, defined first provisions prejudicial, authorized empowered fares, charges, thereafter observed case, minimum, just, fair, reasonable, followed, exist, publish, demand, collect prescribed, excess minimum be, adopt classification conform observe prescribed.' Advances Rates—Western 307, 314; Lignite N. Dakota, 126 243, 244. th shall, directly indirectly, special rebate, drawback, device, collect, rendered, passengers demands, collects, him guilty discrimination, prohibited declared unlawful.' 145 263, 280, 844, 849, 699; Alabama Midland 168 144, 166, 48, 49, 42 414; Barringer 319 1, 6, 729, 63 967, 970, 87 1171. note 'It make, give, cause advantage person, company, firm, corporation, association, locality, port, port district, gateway, transit point, description traffic, whatsoever; disadvantage *.' 'The join hand, respondents t distance.' determining Fulton-Peoria Iowa developed scale. Electric 5. Indiana-Illinois scale eastern-central designations. Assn. 190 743. adjustments scales, 186, Those combined 86.1 70.7 While 85.4 70.3 scales. $2.22 $2.32 $2.39 Princeton-Boonville, Taken whole, 94.3 77.1 scale, while 92.9 76.6 additional observation 'And according seemed record, report, frequently seeming close proximity Amboy located south about miles across country distant Dixon, shortest-tariff route Springfield southern mile By short Dixon. variations due applies larger number Thus, 61 originating railroads, railroads. So also, 75 65 Amboy. thus brought plain, comparisons accepted controlling, evaluated facts mind.' traditionally prominent consideration type Andy's Ridge 405, 410; C.M. 518, 519; Lumber L., Operators' A.W.R. 85; 167, 169.

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