Document: 393 U.S. 87 89 S.Ct. 280 21 L.Ed.2d 219 The BALTIMORE & OHIO R. CO. et al., Appellants,v.ABERDEEN ROCKFISH al. INTERSTATE COMMERCE COMM'N, Appellant, v. ABERDEEN Nos. 13, 15. Argued Oct. 17, 1968. Decided Nov. 12, Rehearing Denied March 3, 1969. See 1124, 987. Edward A. Kaier, Philadelphia, Pa., and Arthur J. Cerra, Washington, D.C., for appellants. Carl E. Sanders, Augusta, Ga., Howard Trienens, Chicago, Ill., appellees. Mr. Justice DOUGLAS delivered the opinion of Court. 1 In these cases Interstate Commerce Commission undertook to prescribe just, reasonable, equitable divisions joint rates pursuant § 15(6) Act, 24 Stat. 384, as amended.1 found that existing violated because they allocated Northern lines a lesser share revenues from than would be warranted by their expenditures made in providing service. 325 I.C.C. 1, 50. 2 Southern brought suit before three-judge District Court enjoin set aside Commission's order. order remanded case further proceedings. 270 F.Supp. 695. We noted probable jurisdiction. 390 940, 88 1031, 19 1128. 3 Both used Rail Form A basic formula, form being rail freight formula determining service costs which utilizes expenses statistics given year reported carriers supplemented special studies carriers. 4 proposed 12 adjustments, five accepted seven it rejected. 1956 was one both final cost analysis. level year, said Commission, higher North South like services; concluded situation most likely continue immediate future. received 44.64% while incurring 46.35318% fully distributed costs. Accordingly, prescribed new based on divided same proportion those shift resulting approximately $8,000,000 giving an overall increase traffic involved 3.5% reducing about 3%. 5 When sued divisions, intervened defendants. held not supported substantial evidence reasoned findings within meaning §§ 8(b)2 10(e)3 Administrative Procedure Act and, noted, 6 present problem deals only with North-South represents 6% total 21.4% South. are isolated findings. average relate all traffic. Nearly 80% is intra-territorial handled entirely North, therefore argued has dominant influence average. As said, difficult maintain intraterritorial or handling between another case, ruled territorial entitled little weight particular movements. Increased Freight Rates, 1967, 332 280, 303. use 'unsifted averages' does necessarily establish greater either rate (ICC Mechling, 330 567, 583, 67 894, 902, 91 L.Ed. 1102) cases. ruling was, were irrelevant usable useful tool determination, but could consistently statutory requirements precise relevant without any relating While had offered showing South, there always such offer; nor did exercise its undoubted authority gather own. 7 On question whether represent traffic, replies where uses physical facilities employees' services common other 'and been shown have no distinguishing characteristics,' application proper. Yet stated 'its exclusive standard' resolving this 'the specific apply.' F.Supp., at 710. 8 agree comparative incurred If we reverse Court, effect saying expertise so great when says fairly controversy end, even though record reveal what nature is. requirement administrative decisions alone make effective judicial review possible—would become lost haze so-called expertise. then way becoming "a monster rules practical limits discretion." Burlington Truck Lines United States, 371 156, 167, 83 239, 245, 9 207. That impermissible under Act. indeed lax procedure sanctioned whose solution turns solely costs, class discrimination favor against condemned State New York 331 284, 1207, 1492, well flourish form. Chicago N.W.R. Co. Atchison, T. 1585, 18 803, approved 1585 use. Moreover, ever since England Divisions Case, 261 184, 196—197, 43 270, 275, 605, mathematical exactness dividing each carrier necessary, necessities demand otherwise. addition repeat S.F.R. Co., supra, 387 358, 1603, 'mechanical restrictions range remedies may choose' solving making expert judgment scale should allocation. Precision exactitude sense possible. volume must known exposed, if govern division rates. distortion applied over dispute arises, some effort exerted adjustment reflects difference clear fact basic, material difference. states us cannot expected know peculiar characteristics exist respecting needed. true, equal task opposed directed expose various versions conflict informed decision. done aspects (325 I.C.C., 25) reason aparent why controversy. 10 argument 'adjusted' reflect attributable issue, true respects five4 adjustments lines. 11 remand think several items 'adjustment' now turn. One commuter deficits, swell less important yet operations. Passenger deficits generally considered part service, support maintained types There is, however, territories much one-half track company's suburban larger stations, terminals, coach yards, repair shops exclusively 13 include 'common provide intercity passenger service' deficit operations properly included constant costs.' hand 'many individual can related * service.' 78. How two reconciled apparent. rests primarily revenue needs—'Such losses recovered railroad railroads remain solvent.' Section makes plain needs come into focus Revenue problems times resulted putting area's transportation upon sections country. 191—195, 273—275, 605. But issue presented revenue.5 allocation familiar. Thus, very excluded certain platform 56. apparent determined. 14 interchanging cars border points, interchange performed more costly allowed 58% apparently showed interchanges considered. bridge gap blind reliance instance mere assertion means 15 empty car return ratios example deficient result ratios. attempt show latter applicable arises boxcars shuttle Detroit automobile plants, North. These Detroit. major item 800,000 carloads parts move out year. extent returns substantially proportion. boxcar absent divisions. 16 adjustments6 adequate. 17 modified Affirmed. Affirmed modified. 49 U.S.C. provides part: 'Whenever rates, fares, charges, passengers property, will unjust, unreasonable, inequitable, unduly preferential shall thereof *. prescribing give due consideration, among things, efficiency concerned operated, amount required pay respective operating expenses, taxes, fair railway property transportation, importance public carriers; also participating originating, intermediate, delivering line, circumstance ordinarily, regard mileage haul, entitle rate, fare, charge.' 8(b), 60 242, 557(c) (1964 ed., Supp. III), 'The finding, conclusion, exception presented. All decisions, including initial, recommended, tentative statement of— '(A) conclusions, reasons basis therefor, issues fact, law, discretion record; '(B) appropriate rule, order, sanction, relief, denial thereof.' 10(e), 243, 706 reviewing court '(2) hold unlawful agency action, findings, conclusions '(E) unsupported *.' constituted through train separation, switching terminal companies, short (Class II railroads), tonnage discussed Appendix B opinion. 55 seq. said: 'We find affirmative appear warrant above relative grounds otherwise.' 49. Car sought substitute entire country lieu 'use national conceals differences consideration territories.' 64. Cars interchanged water ports. submitted views count warranted. 58—60. Transit commodities. They single published receive kind storage processing transit covers movement raw finished product beyond point. pulpwood wet phosphate rock claim outbound paper products dry rock. transferable interterritorial pertinent case. 80. Switching reviewed length. 71—77. discredit sample rested. took accurate measure saying: 'Territorial particularly large varied body moving coming terminals territories. our opinion, find, depressing effect, any, commodities affect purposes comparison, largely offsetting.' 76. Contrary believe adequate

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