Document: 387 U.S. 397 87 S.Ct. 1608 18 L.Ed.2d 847 AMERICAN TRUCKING ASSOCIATIONS, Inc., et al., Appellants,v.The ATCHISON, TOPEKA, AND SANTA FE RAILWAY COMPANY al. NATIONAL AUTOMOBILE TRANSPORTERS ASSOCIATION OF DETROIT, MICHIGAN, Appellant, v. The UNITED STATES Appellants, Nos. 57, 59, and 60. Argued April 13 17, 1967. Decided May 29, Rehearings Denied Oct. 9, See 88 11. [Syllabus from pages 397-399 intentionally omitted] Robert W. Ginnane Richard R. Sigmon, Washington, D.C., for appellants. Thormund A. Miller, Francis M. Shea, Paul Duke, Philadelphia, Pa., D. Thomas, Chicago, Ill., appellees. Mr. Justice FORTAS delivered the opinion of Court. 1 These three cases present following question: Does Interstate Commerce Commission have authority to promulgate rules providing (1) that railroads which offer trailer-on-flatcar (TOFC or 'piggyback') service public under open-tariff publications must make such available on same terms motor water common contract carriers, (2) carriers may, subject certain conditions, utilize TOFC facilities in performance their authorized service? Ex parte 230, Substituted Service Charges Practices For-Hire Carriers Freight Forwarders (Piggyback Service), 322 I.C.C. 301 (1964). 2 A three-judge district court, convened 28 U.S.C. §§ 1336, 2284, 2321—2325, at request various freight forwarders, set aside ICC had promulgated a rulemaking proceeding initiated its own motion. 244 F.Supp. 955 (D.C.N.D.Ill.1965). case is here direct appeal. 1253 2101(b). 384 902, 86 1337, 16 356 (1966). 3 appellees are forwarders who District Court proceeding. appellants United States (No. 60), together with American Trucking Associations, 57), National Automobile Transporters Association 59), intervened below as defendants. 4 More specifically, issue presented validity Rules 3, by supra. 49 CFR 500.2 500.3 (Supp.1967). Rule provides 'TOFC service, if offered rail carrier through publications, shall be made available' charge all other persons. In substance, it paraphrase § Act, 24 Stat. 379, amended, (hereinafter cited only U.S.C.). that, qualifications 'motor may any portion use rates published carrier.' held has no compel opentariff not except railroad consents. 5 background controversy briefly described. growth been 'explosive' since latter half 1950's.1 From time passage 1935 Part II Act regulating until institution proceeding, appears regarded bimodal, but an adjunct transportation railroad—as facility essentially of, railroads. This attitude summed up ICC's definition 1954 Movement Highway Trailers Rail, 293 93 (the so-called New Haven case), provided basic legal framework upon development traffic based. case, described piggyback 'a freight-laden trailer secured flatcar, turn coupled train being drawn locomotive over steel rails laid railroad's right-of-way * *.' Id., 100—101.2 6 Even prior beginning 1939, Service, 232 683, was Commission's position could grant deny motor.3 generally public, withhold for-hire carriers. Except limited uses open tariffs permitted railroads,4 participated agreement, including route-joint rate arrangements between trucker (see Plan V, infra), acceptance trailers containers truckers, shipment moving compensation based division charges arrived negotiations (Plan I, infra). voluntary prevailing view railroads, duty truckers tariffs, and, although 216(c), 316(c), authorizes establish routes joint power arrangements. 7 According Commission, five forms evolved (322 I.C.C., 304—305, 309—312). They are: I (Joint Intermodal): 8 Railroad movement one bill lading billing done trucker. Traffic moves regular negotiation two (All-Rail): 9 Door-to-door performed railroad, flatcars usually similar those truckers. III 10 Ramp-to-ramp private shippers flat charge, regardless contents containers, owned leased shippers. No pick-up delivery railroad. IV 11 Flat loaded- empty-car movement, furnishing rails. Shipper forwarder furnishes container-loaded either leased. V 12 Joint railroad-truck combination coordinated rates. Either mdoe solicit originating carrier's lading. While data precisely define plans, evidence indicates major primarily all-rail, plans—that is, plans billings.Th e summary responses questionnaires, contained Record, shows virtually reporting participate Plans about three-fourths IV. However, 'somewhat more than half' truckerrail (joint rates-through routes) 'generally extremely limited.' number largest do move bills I,),5 types automobiles subsidiaries. Over 80% carrier-rail I. Bur. Econ., Piggyback Characteristics 21 14 Faced explosive basis principles infancy piggyback, notice dated June 1962, commenced this 'first general investigation what probably most significant recent transportation—trailer-on-flatcar piggybank service.' 303. Proposed were furnished participants, opportunity given them file statements, examiners' report filed. After exceptions oral argument, rendered decision March 16, 1964. stated 'It our purpose hope encourage phenomenon.' 322. prescribed incorporate issue: 'when generally,' should likewise lieu points, 336. also include ancillary implementing provisions issue; example, give tariff publication used, user specify 'that particular instance utilized' (49 500.3(b), (c)(d) (Supp.1967)); these tender receive traffic, TOFC, points they serve. 500.3(e). 15 concluded (and 5, id., 500.5, insofar amplified Rules) exceeded aside. substance did forbid refuse carry competing mode carrier; structure plan well specific absence compulsory indicated liberty require provide modes; impelled conclusions; long history support now repudiate, legislative history, compelled rejection, promulgated. We disagree. first consider 2, raises question whether rule offers ub lic 'any person' without discrimination. begin noting obvious fact codified common-law obligations earliest days, goods transportation. See, e.g., Jersey Steam Nav. Co. Merchants Bank Boston, How. 344, 382—383, L.Ed. 465 (1848). Refusal some unlawful. Rates required reasonable, discrimination form unequal among forbidden. England, legislation proscribe rates, antidiscrimination language derives (ICC Delaware, L. & W.R. Co., 220 235, 253, 31 392, 398 (1911)), enacted 1845. Railway Clauses Consolidation 1845, Vict., c. 20, LXXXVI seq. country, practical monopoly transportation, secret rebates, special favored shippers, discriminations flourished. It situation led enactment 1887. Sharfman, 17—19 (1931); Louisville N.R. States, 282 740, 749—750, 51 297, 300—301, 75 672 (1931). 17 Section 1(4) 1(4), 'upon reasonable therefor' just prohibits discriminatory charges. 3(1), forbids undue preferences advantages, unreasonable prejudices disadvantages person, area description traffic. does contain provision expressly exempting vehicle broad common-carrier On contrary, sections read light historic duties large decisions courts country indicate, presumptively least, transporting carriers.6 Indeed, we observed, practically Act. services, 'to charge. course, consequence command furnish Their obligation comprehensive implied. person tendering competitor permit discriminate against him his favor. 392 (1911) (unlawful less-than-carload carload shipments tendered forwarders); Baltimore O.R. 225 326, 32 742, 56 1107 (1912) (lower coal shipped another fuel unlawful). Cf. Wight 167 512, 822, 42 258 (1897). As said supra: 'The contention carrier, when can mere ownership test carry, or, equivalent, fixing carriage, difference inhearing cost them, circumstance shipper real owner goods, so conflict elementary resting destructive rights demonstrate unsoundness proposition statement.' U.S., 252, S.Ct., 398. 19 faced intermodal problem, comparable Pennsylvania 323 612, 65 471, 89 499 (1945) Seatrain case). refused interchange cars Seatrain, interstate competition ordered desist practice, brought action order. contended Transportation 1940, 54 898, 'specific language' authorize disputed carrier. But rejected contention. said: 20 'There specifically commands connecting lines. cannot agree Congress interchange. True, specified precise assume. dealing problem 1887, indicate scope law. very complexities necessarily caused cast regulatory terms. has, general, left spelled out administrative judicial action, congressional foster efficient fair national system. R.I. P.R. 274 36, 47 486, 71 911; Labor Executives Assn., 315 373, 376—377, 62 717, 904.' 616, 473. emphatically analysis regulates rail, motor, separately, Titles II, III, mutual services directed. Recognizing (as distinguished carriers), directs end railroads' limit power. Court, relying Policy preceding 1), designed completely integrated system *' 618—619, 475, therefore powers commensurate goal. connection, 22 1940 divided into parts, relating second vehicles, third That each previous amendment original 1887 expanded regulation field, correlatively broadened powers. interrelationship parts manifest declaration 'national police impartial modes administered recognize preserve inherent advantages each.' declared objective 'developing, coordinating, preserving water, highway, adequate meet needs commerce further admonished 'all enforced carrying above policy.' 899.' 616—617, 474. 23 this, accept arguments arguable inference nonspecific statutory language, limiting adopt which, essentially, reflect judgment current facts proper several respect important new development. For enter joints There so, argued derive intent circumstances. vast leap authorization pervasive prohibition. discussion proviso 3(1) demonstrates intend inhibit discriminating contention, strenuously supported, merit. broadly giving preference' locality type then sets forth proviso: 'Provided, however, paragraph construed apply discrimination, prejudice, disadvantage whatever description.' notable awkwardness clarity; certainly intended, urge, license noted clearly permissible. Moreover, there intelligible meaning ascribed consistent history. means prohibition 'undue preference advantage' practices, otherwise lawful, solely because operate prejudice explained Senator Wheeler, bill's sponsor. taken almost verbatim 216(d) Motor Carrier 1935, 558 (now 316(d)). Explaining it, Wheeler 25 'Paragraph (d) unjust disadvantage. committee added description. 26 'In words, truck bus operators afraid would come complain, doubly protect operators. 27 'This objection interests might unlawful place way founded inasmuch substantially section effect always interpreted covering re atment patrons. said, assurance double sure, added.' 79 Cong.Rec. 5656 (1935). (Italics added.) Accordingly, remitted consideration terms, perform duty, concern ourselves nice evaluation pursued course wisdom ordering others task scrutinize authority, exercise. conclude mandate Policy, derived commoncarrier reflected requiring offering nondiscriminatory come, then, 3. II. 29 forwarders' 'utilize At outset, discussed above, reject despite exception thereto exclude access publicly facilities; argument route implies imposed respect. refuted 30 contended, substitute road franchise agreement saps force, fervor. One assume road, consent neither nor take position. Nor court below. None urges invalidity presently use, utilization concurrence.7 put it: policy explicit Sections 216(c) (authorizing rail-truck routes, above) 402(a)(5) 1002(a)(5), defining below), implicit whole, allow simply concurrence.' F.Supp., 967.8 discussed, 'concurrence' where granted, permits pursuant supra, IV, reasoning carefully concede violating charters, substituted service. But, reason construe deprive tariff. defines 'common vehicle' holds itself engage vehicle.' 303(a)(14). basis, according inconsistent willing. Clearly, too, utilizes ferry transport cargo statute certificate. properly assume, therefore, exclusively road. Appellees argue, factors tariffs: construction application contrary position, consideration, forwarders. true, stated, years insisted concurrence essential services. both Ringsby Truck Lines, Inc. Atchison, T. S.F.R. 263 139, 141 (1945); 93, 104—105 (1954). see earlier holding Trucks Cars Between Chicago Twin Cities, 216 435 (1936). Report argues correctly understood, kind issue, 'in performing using 333. subsequent decisions, incorrect case. And cites Greer Broker Application, M.C.C. 417 (1940), Stone's Exp., Common 525 (1942), reading Service. rest because, event, developments reconsideration relevant mandate, alter past interpretation overturn rulings practice. Compare SEC Chenery Corp., 332 194, 67 1575, 91 1995 (1947); FCC WOKO, 329 223, 213, 204 (1946). fact, aspects flexibility adaptability changing patterns part office agency. Regulatory agencies conduct last forever; supposed, within limits law prudent administration, adapt practices Nation's volatile, chng ing economy. supposed regulate future inflexible yesterday. 33 true attention called need secure relief subsequently granted rules. February Gordon's Transports, Strickland Transp. 318 395, sustained sub nom. 219 618 (D.C.N.D.Tex.1963), apparently urged allowed tariffs. President Kennedy sent message calling '(a) ssure right ship vehicles branches industry noncarrier placed equality promising fast-growing related techniques.' H.R. Doc. No. 384, 87th Cong., 2d Sess., p. (1962). Secretary Hodges transmitted proposed implement President's message. Hearings S. 3242 3243 before Senate Committee Commerce, pt. 1, 1061 1062 Surface Subcommittee 88th 1st (1963). Bills introduced 1962 1963. 11584, Sess. (1962); 4701, instituted advised intention 'resolve' matter not, recommend appropriate legislation. Hearings, 801; 4700 4701 House Foreign Following requests came pending decision. 213; 991. regard demonstrating statute, find tilt scales correctness conclusions prescribe advocacy agency—and even assertion accomplish desired result—is unsure unreliable, highly desirable, guide construction. possibility prove deter seeking helpful clarification fresh mandate.9 34 final address vigorously forwarding regulated 1001 seq.). 1942 (56 284). defined (otherwise (by water)) property, wic h (A) assembles consolidates (B) assumes responsibility property (C) utilizes, whole shipments, of' 402(a)(5), 1002(a)(5). physical terminal areas. 410(h), 1010(h). ships (usually railroad), receives separates distributes individual consignees. issued water. 410(c), 1010(c). controlled control forwarder. Ibid. 35 good deal overlap work assembly consolidation permitting sort violation Act's licensing 36 111 quote trailerload Eastern Express, 198 256 (D.C.S.D.Ind.), aff'd 369 37, 82 640, 548 areas (§ 202(c), 302(c)), traditionally assembled, consolidated, distributed connection exempts freight-forwarder performs services—which forwarders—as makes clear 'with accordance applicable Act.' H.R.Rep. 1172, 77th (1941). 37 generally, convert activity forwarding, agrees, assemble, consolidate, circumstances, distribute after arrival terminus. enlarges additional truckers' competitive significance, exclusive III. 38 controlling nature, bimodal.10 partakes trucking functions. allocation bimodal functions involves complex considerations. mathematical. Railroads confined trucks. assemble desire, trucks subsidiary companies so. 302(c). Truckers strictly ig hway. direction, denying allocate elements; responsibilities 899 'provide developing, means, Postal defense.'11 obsrved formulated Congress, specifies govern administration enforcement Act,' styled 'the yardstick actions will measured.' Schaffer 355 83, 88, 78 173, 176, 117 (1957). Here found freest play highest degree coordination, encouragement coordination interest.' 330. conclusion, implementation rules, importance 'adequate, economical, service' 'establishment maintenance services,' mandates Policy. sustain Court's ruling lacked issue. 39 reversed. 40 Reversed. 41 BLACK STEWART affirm reasons Judge Hoffman reported 955, 961—964. HARLAN, finding impossible escape impact would, elaborated Hoffman's point, 961—964, 305. little doubt piggybacking decisive factor returning substantial volume previously for-hire.' 307. 1957 total 57 class participating tariffs; mid-1963 100 roads doing 1955, 168,150 carloadings, weekly average 3,234. 1959, 50 reportng showed totals 415,156 annual 7,984 carloadings TOFC. 1963, 63 continued approximately 797,500 loaded cars, 12,700(15,300) loadings.' 309. statement (1936), like unregulated (compare 55 448 entitled imposes 316(c). 396—397, 618, 620 (D.C.N.D.Tex.1963). 'no midwest east tier states Wyoming, Colorado, Mexico, hand, west thereof. Transcontinental operating elected points.' Pacific Intermountain Express Supplemental Statement Pilling (R. 123). Great Western Sutton, L.R. H.L. 226 (1869); London N.W.R. Evershed, App.Cas. 1029 (1878); 822 (1897); 742 (1912); 297 Kansas City S.R. 760, 304, 684 (1911); Heights 310 U.S.34 4, 60 931, 84 1243 (1940). suit attacking pending. Lone Star Package CarCo . Civ. (D.C.N.D.Tex.). respects, differs motor-rail arrangement. Hence consents justified (S. 3510 12362, 676 2088, (1963)) arrangements—which quite different entitling observed: 'What (those object TOFC) overlook inherently characteristic 329. Thus, compartmentalization fails primary varieties fit rigid modal conceptualization. Rock Island 340 419, 433, 382, 390, 95 391 (1951): 'Complete domination (over transportation) envisaged transportation.'

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