Document: 376 U.S. 93 84 S.Ct. 564 11 L.Ed.2d 541 SOUTHERN RAILWAY COMPANY, Appellant,v.NORTH CAROLINA et al. UNITED STATES al., Appellants, v. NORTH Nos. 74 and 93. Argued Jan. 14 15, 1964. Decided Feb. 17, Robert W. Ginnane, Washington, D.C., William T. Joyner, Raleigh, N.C., for appellants. Gordon Battle, Durham, Charles Barbee, Jr., Asst. Atty. Gen., appellees. Mr. Justice STEWART delivered the opinion of Court. 1 In 1959 appellant Southern Railway Company filed a petition with North Carolina Utilities Commission an order permitting it to discontinue operation two intrastate passenger trains between Greensboro Goldsboro, Carolina, distance about 130 miles. The in question are No. 16, which operates eastbound morning from 13, consisting same equipment, westbound late afternoon. Since 1958 these have provided last remaining railway service communities. State denied petition, its decision was upheld by Supreme ex rel. Co., 254 N.C. 73, 118 S.E.2d 21 (1961). 2 Thereafter company Interstate Commerce pursuant § 13a(2) Act,1 seeking auth rity trains. After hearing at several protestants, including appeared, examiner recommended that be granted. Division 3 agreed ordered discontinuance issued report found, inter alia, trains, 1948 had carried 56,739 passengers, only 14,776 passengers 1960, full year figures were available; direct expenses operating during latter over three times their total revenue; would result savings least $90,589 per year; need shown relatively insubstantial when viewed light density population area served; existing alternate transportation rail, bus, airline, other means reasonably adequate; train not seriously affect industrial growth area. Against background findings, considered, but gave 'little or no weight' overall prosperity carrier. Commission's basic conclusions summed up as follows: 'that public will materially inconvenienced here involved; realized carrier outweigh inconvenience may subjected such discontinuance; enable more efficiently provide remains substantial demand; continued 13 16 constitute wasteful impose undue burden on interstate commerce.' 317 I.C.C. 255, 260. 4 reconsideration entire been denied, protestants instituted action three-judge District Court set aside Commission. court held, first, erroneous matter law under provisions without first determining whether, once profits freight operations line taken into account, 'the particular segment involved is contributing fair share * *.' 210 F.Supp. 675, 688. also proceeded find, 'Taking account this line, there profit loss, benefit, burden,' F.Supp., 688; traffic slightly increased five months 1961; done little promote use trains; existence alternative might considered necessity circumstances airline strikes bad weather; that, Company, '(t)he effect losses Greensboro-Goldsboro financial structure railroad inconsequential.'2 On basis, although explicitly refused any subsidiary findings fact based, 689, 690, held ultimate constitutes commerce present future convenience permits arbitrary capricious because supported evidence,' 689. itself then concluded warranted. It therefore order, perpetually enjoined discontinuing United States, Commission, all appealed. We noted probable jurisdiction consolidated cases argument. 373 907, 83 1296, 10 410. 5 Court's setting based upon court's view applied legal standards reaching those conclusions. did evidentiary foundation. simply disagreed kind evidence required support 13a(2). 6 reached conclusion erred taking along primarily reliance decisions Public Service Comm. Utah 356 421, 78 796, 886, Chicago, Milwaukee, St. P. & P.R. Co. Illinois, 355 300, 304, 292. Both dealt 13(4), requires change rates wherever found discriminate against commerce. This could authorize higher either passe ger revenues derived totality operations. 1958, enacted, 13(4) amended permit act 'without separation property, revenues, expenses, considering results thereof wholly within State.'3 holding data should proceedings premised language similar amendment included 13a(2), provision, given operations, far serious impact than former, provides increase charged. 7 But relied Court, Congress reaffirming what conceived original intent section.4 There reason assume regarded new embodying standard specifically incorporated every statutory provision intended apply. 8 legislative history clearly indicates enacting addressing problem quite distinct reflected unprofitable line. already authority prior §§ 1(18)—(20),5 services where continuance Colorado 271 153, 46 452, 70 L.Ed. 878. However, totally lacked power while leaving operation. precisely gap fill. New Jersey York, S. W.R. 372 1, 5—6, 614, 616, 9 541. As both House Senate Committee Reports legislation became make clear, concerned problems posed significant demand longer existed consistently deficit-producing, thus forcing carriers subsidize out profits.6 Far carrier's discontinuanc balanced conducted bill originally reported discontinuance, even if great service, so long net loss carrier.7 Senator Javits unsuccessfully attempted amend floor delete substitute requirement balance deficit resulting it.8 Such amendment, proposed Chairman Harris Foreign Committee, adopted House,9 accepted conference. deletion standard, however, implied offset deficits incurred purposes whether constituted Congressman made clear after his accepted, situation 'we trying get at' (freight) shippers country making service.'10 Report having state regulatory bodies maintenance uneconomic unnecessary facilities.'11 limit trains,12 version similarly limited.13 conference, restored and, except differences procedures prerequisite case train,14 apply justified.15 Contrary suggestion interpretation must avoid 'requir(ing) bear share,' 680, scheme has embodied 13a prescribes substantive govern operations.16 All properly abundantly specific correctly another case: 'The (upon commerce, expressed section 13a(2)) measured injurious indicated history, purpose 'no pay way sufficient justify heavy involved.' (S.Rep. 1647, 85th Cong.). Nowhere elsewhere whole, thereof, individual imposes unjust To hold otherwise contrary apparent Congress.' Pac. Partial Discontinuance, 312 631, 633—634 12 recognized give varying weights differing situations. Thus, 878, burdens 'In many cases, extent whole traffic, degree dependence communities directly affected transportation, attendant conditions, justly continue necessarily entailed some abandonment permitted, subject injury prosperous carrier.' U.S., 168—169, 456, falling category, involving vital commuter large metropolitan areas demands large, course obvious err weight ability absorb services. where, here, slight is, therefore, one category delineated Colorado, equally proper factor prosperity. Whatever room views wisdom policy duty effectuate scheme. cannot agree departed respect here. reverse judgment remand instructions reinstate Reversed. 15 GOLDBERG, whom THE CHIEF JUSTICE joins, dissenting. involves fate 6:10 Carolina. litigation reach concerning criteria Act, 72 Stat. 571, 49 U.S.C. failed allow train, ICC finds (a) (b) sustains interpreting mean shall discontinued, give: (1) carrier, ante, 96, (2) consideration whatsoever profitability thereof,' 104.1 my employed ones. Consequently, intimating merits application, I further appropriate findings. See, e.g., J-T Transport Inc., 368 81, 93, 82 204, 147. 17 '(p)assenger become chronic industry,' M., 307, 309, 292, Nation's railroads virtually service—including most difficult conceive era widespread automobile find less available handle diminished traffic. finding coupled 'net loss' meet approved concludes mandated Congress. If so, basis dissent, since entirely '(w)hatever *, (and Court) scheme.' Ante, 105. do believe, can fairly statute intended, despite ruling authority, discontinued slender showing 18 turns Act. enacted part Transportation Act 1958. true, points out, reflects concern worsening situation.' 101, n. 6. accurate conclude oblivious needs primary responsibility commissions regulation purely service. Under distinguished operation, commission. Only commission opportunity authorized intervene. agency evidence, 'an Smathers, bill's sponsors, explained 13a(2): 19 'protected right agencies regulate final originated ended State, established 104 Cong.Rec. 15528. 20 etween 1951 1956, 44 requests emanating Railway, 42 State. Indeed, operated pairs until September 1954. Southern's pair 1954 question, east-west They interconnecting Goldsboro intermediate north-south main For they furnish convenient overnight pullman York east coast cities conserve working time traveler business north south terminal cities. Trains run tracks leased state-owned Railroad Company. lease contemplates Furthermore, recites opinion, relevant sustained approximately $90,000, $600,000 system excess $36,000,000. While declined recent years, still substantial—14,776 used 500 previous year—and served growing importance. facts, request overruling ICC, stated, view, wrongfully ignored factors errs approving read require take material presented parties bearing issues observed 'not susceptible scientific measurement exact formulae questions involve balancing conflicting interests.' 684. comprehend how achieve fully railroad's data. issues—whether unduly commerce—are interrelated. common-sense statute, amount isolation profits, words 'unjust' 'undue' indicate mere i.e., burden—would train. 'undue,' determined circumstances. determination factors—'the effort being decide fairness demands.' 169, plainly indicate, does prohibited unless together show substantially impaired. supra; Transit 284 360 52 157, 76 342. Rather, merely need.2 controlling but, presented, considered. 22 aspect 886. These construction authorizes whenever discriminatorily Chicago said: 23 '(W)e think single adjudged work discrimination Milwaukee Road's Illinois passenger. objective 15a(2) case, prevent saddling providing A picture discriminates shown, limiting disregard revenue contributed services.' 307—308, 24 major premise today, expressly overruled amending course, true determine discriminated State.' 570, 13(4). agree, deals solely rate disco tinuances, incorporated. Section initially amended. consider easily altered include added amendment. 25 event, understood importing standards, seems me reads too broadly. shows facts When put issue ignore evidence. revenues. permissive 'may,' upset fails before pertinent considered.' 682. affirmance threejudge Citizens Rate Ass'n. 192 12, aff'd curiam, 365 649, 81 834, 857. 26 'We believe procedure rather involved. conceptual constitutional, practical difficulties, invited. why clarify procedural render formula theretofore established, was, appropriately majority (Public 886). our obviate previously affirmative lower profitableness of, surrounding, segments immediately concerned. bolsters view. nothing therein inconsistent recognition rebut prima facie presumption who claim discriminating favorable aspects dissenting referred pending couched later legislation, cited approval.'3 18—20. 27 28 'Of contend come forward show, claimed dissimilarity conditions surrounding account. absence showing, able exist proceedin speculates different supra, 462—463, 818, 29 follows amendatory language, actually offered disregarded proceeding lacks language. 30 Finally, demonstrates mistaken that: 31 therefrom foreign 3778, Cong., 2d Sess. (Emphasis added.) 32 notes opposed standard. 102. misses import Javits' which, ultimately prevailed, highly significant. objected ground criterion itself, showed loss. He proposal, follow regardless burdened analyzed manner 33 'It now written, (as meaning therefrom') decided terms sought road part.' 10847. 34 insure 'balanced deal situation, wasy necessity.' Id., 10848. sponsor bill, deny accuracy interpretation. Smathers responded: construe rendering.' 10849. Although unsuccessful efforts defeat passage arguments notes, bill. 35 House, Representative Harris, deleting clause. argued would: 36 mercy establishing go afield say item 12547—12548. 37 prevailed Conference abandoned favor proposal. Congress, acting recommendations rejected appears adopt measure standard.4 If, holds, whatever seem governing train.5 certainly 'a 38 achieved allowing application burden.6 authority' surely overriding authorizing consistent character territory lack it; facilities; operatio compared well whole.7 39 precluded remainder profitable.8 factors. One combination prove determination. isolated insufficient, absent sustain conclusion. 40 reasons am nevertheless misconstrued reviewing role record remanded correct part: 'Where change, part, chapter, ferry boundaries constitution statutes duly said acted finally hundred twenty days presentation change. grant ferry, paragraph notify Governor thirty advance paragraph, operated; avail cooperation, services, records facilities authorities performance functions paragraph.' noted, connection 1961 largely due group movements school children; failure seek 'prospective patrons coaxed urgent it'; broad study investigation 1959, 'public necessity' standby travelers customarily travel highway air. Passenger Train Deficit, 306 417, 482. amended, 'Whenever hearing, rate, fare, charge, classification, regulation, practice causes unreasonable advantage, preference, prejudice persons localities hand hand, undue, unreasonable, against, on, (which groups State), hereby forbidden declared unlawful, prescribe maximum minimum, thereafter charged, observed, as, judgment, remove prejudice, discrimination, '(I)t possible create H.R.Rep. 2274, Sess., 12; U.S.Code Congressional Administrative News, p. 3485. 1(18) 'No chapter undertake extension railroad, acquire operate engage additional extended obtained certificate construction, abandon portion abandonment.' 1(19) issuance rules regulations hearings matters prescribe, proceedings.' 1(20), prayed for, refuse it, portions described partial exercise privilege, attach require.' 'A cause unsatisfactory situation. Not end money—it losing produced very attributable expect subsidized throughout country. 'There losses, occurring beyond Where own patronage reasonable called for.' 1922, 11—12. difficulty delay often encounter entailed. subcommittee believes outmoded S.Rep. 21. See remarks Surface Subcommittee, refer 10846—10849. pp. 10838—10839. 12551. 22. 10862, 10864. H.R. 12832, 10. applies discontinuance. 4, 615, 13a(1), (2). discontinuances vitiates appellees' argument discontinued. neither fortuitously nor bears relationship public's statement forth note infra. 878 (Brandeis, J.): volume small, process conflict precise nature needs, respective interests—the demands. balancing, demonstrated earnings adequate afford compensation are, controlling. dependent effect.' Report, examiner, utilized: 'At emphasized petitioner's income 1960 $36,107,599, alone averages $630,000, contending petitioner, opera- tions, disposition herein. With contentions, disagrees. involved' supplied). somewhat contention, Pacific Discontinuance Trains, Los Angeles, etc. (312 631), following statement: "Nowhere connection, constantly increasing untenable. rejecting argument, stated 'theory consonant national policy, fraught disastrous possibilities.' Great Northern Ry. Service, 307 59, 61. Similarly, profitable entitled weight. *' imply acknowledge requested indicated, 107, relates issue, availability suffice sanction cases. 168, benefit weighed *. Conversely, benefits thereby imposed weighing reinforced approach 1(18), 41 477, 478, 1(20). provisions, 1920, empower lines trains), 360, never branch trains) profitable. 7, supra.

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