Document: 351 U.S. 56 76 S.Ct. 578 100 L.Ed. 934 DIXIE CARRIERS, Inc., Coyle Lines, Incorporated, American Barge Line Company and Federal Appellants,v.UNITED STATES of America, Interstate Commerce Commission, et al. No. 233. Argued March 27, 1956. Decided April 23, Mr.Nuel D. Belnap, Chicago, Ill., for appellants. Mr. Daniel M. Friedman, Washington, D.C., United States. Samuel R. Howell, I.C.C. John A. Daily, N.Y.C.R.R. Co. Justice DOUGLAS delivered the opinion Court. 1 Sulphur mined near Galveston, Texas, can be shipped to Danville, Illinois, either by rail or barge rail. If sulphur goes rail, it is transported up Mississippi via New Orleans East St. Louis then Danville. The total charge that movement $9.77 per ton.1 various local rates all-rail shipments from mines Danville $11.68. But railroads have established a joint rate2 $9.184 which lower than both combination rate rail-barge rate. 2 Appellants, who are water carriers, requested competing establish $7.67 on Galveston refused. Appellants thereupon filed complaint with Commission alleging existing were excessive unreasonable, through routes reasonable differentials below should established, refusal such discriminated against barges as connecting carriers in violation Act, amended Transportation Act 1940.3 route suggested fixed at $7.67. proposed receive $2.26 division rate, calculated same they Under cost would $9.17 compared $9.184. 3 A Division dismissed complaint, one Commissioner dissenting. 287 403. affirmed Division, three Commissioners 291 422. three-judge District Court sustained Commission. 129 F.Supp. 28. case here appeal, 28 U.S.C. §§ 1253, 2101(b), 2325, U.S.C.A. 2325. 4 Section 3(4) provides 'All subject provisions this part * shall not discriminate their rates, fares, charges between lines *.' defines 'connecting line' including 'any common carrier Part III.' within definition. They maintain unlawful under § railroad refuse join when has already joined line. further power 307(d)4 been exercised here. 5 We had closely related question before us v. Mechling, 330 567, 67 894, 91 1102. In we invalidated an order approved higher transportation grain east Chicago if arrived barge, rather reviewed history 1940 concluded 'unequivocally required fix preserve shippers inherent advantages transportation: equipment, operation, therefore service.' Id., page 575, 898. held discrimination was outlawed applied well ordinary rates. 6 Mechling involved attempt deprive its 'inherent advantages,' phrase used preamble 49 note preceding section 1, increasing service. Commission's present decision achieves result device allowed but denied water. It recognized debates bill became manipulation downward might advantages' violate Act.5 emphasized evils remedied cutthroat competition, whereby strong reduce putting out business.6 There recognition get benefit there frequently rates.7 covers only segment journey market. failure nondiscriminatory might, therefore, seriously impair development service vital component our national system. outlaws all forms. See State York States, 331 284, 296, 1207, 1213, 1492. Where use favor over latter duty end 307(d). That subsection8 makes mandatory 'whenever deemed necessary desirable public interest.' interest, defined guide action. McLean Trucking 321 67, 82, 64 370, 378, 88 544. policy carriers.9 means barge-rail must appears, here, discriminates carriers. Otherwise manipulated structure will take business absence $1.91 ton less points. differential reflects journey. once lost withheld To hold otherwise sanction which, discriminatory denies transportation. 7 Reversed. consists loading $1.50 $5.32 Louis, $2.95 For discussion see Southwestern 245 136, 139, 2, 38 49, 50, 62 199; States Great Northern Ry. Co., 343 562, 72 985, 96 1142. 24 Stat. 379, 54 898, 1. 307(d) provides: 'The may, whenever after full hearing upon own initiative without routes, classifications, charges, applicable passengers property water, railroad, maxima minima, charged, divisions hereinafter provided, terms conditions operated. route, where prescribe may find justified connection *' 907(d). following colloquy during debate Senate Senator Wheeler Norris (84 Cong.Rec. 5874): 'Mr. Norris. Suppose, however, become law, article freight admittedly could carried better suppose undertake down rate: Would anything law prevent doing that? Wheeler. Of course be. Disastrous brought about reducing them just them, matter fact. Exactly. And ought protected railroad. absolutely measure. what I want done. any it. rate-making provision other read, it.' 5877. 5875. 8 Note 4, supra. 9 thought regard did require 'to force depressed meet depress earnings traffic form competition.' I.C.C., 407. critical 'depressed rate'—and most relevant here—is received Louis-Danville carrier. haul, receives Yet haul no competition

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