Document: 356 U.S. 421 78 S.Ct. 796 2 L.Ed.2d 886 PUBLIC SERVICE COMMISSION OF UTAH and Utah Citizens Rate Association, Appellants,v.UNITED STATES of America, Interstate Commerce Commission, et al. No. 15. Argued Dec. 9, 1957. Decided May 19, 1958. Messrs. Calvin L. Rampton Keith Sohm, Salt Lake City, Utah, for appellants. Mr. Charles H. Weston, Washington, D.C., appellees, United States Commission. Elmer B. Collins, Omaha, Neb., Railroad appellees. Justice CLARK delivered the opinion Court. 1 This appeal presents another clash between state federal authority in regulation intrastate commerce. The Public Service Commission appellants, seek to set aside an order entered a proceeding under § 13(3) (4) Act1 which increase freight rates general level interstate was granted railroads operating Utah. 297 I.C.C. 87. principal contention here is that evidence before insufficient support its ultimate finding existing caused 'undue, unreasonable, unjust discrimination against commerce.' I.C.C., at 105. A three-judge District Court found appellants on this all subsidiary issues. 146 F.Supp. 803. Upon direct appeal, 28 U.S.C. 1253, U.S.C.A. we noted probable jurisdiction. 1956, 352 888, 77 128, 84. Having concluded certain findings lack sufficient evidence, reverse judgment action limited traffic In Ex Parte 175 had increased national basis by aggregate 15%.2 appellee applied like rates. After full hearing, dismissed application ground not produced concerning their operations as required law. No taken. Instead, pursuant 49 (4), 13(3, 4), filed petition with led attack here. establish any undue or unreasonable advantage, preference, prejudice persons localities commerce, one hand, commerce other. But patterned after those approved King v. States, 1952, 344 254, 73 259, 267, 97 L.Ed. 301, it It sought remove burden generally applying 15% previously 175.3 3 Appellants two being supported substantial evidence. first were abnormally low failed contribute fair share revenue needs railroads. Evidence introduced show some Utah's lower than corresponding distances. showing made, however, comparative costs performing such services. second conditions incident transportation more favorable movements. underlying indicated only goods moving handled precisely transportation, intermingled same trains. 4 Intrastate primarily concern State. Federal power exists area when tariffs are so created hand other, cast commerce.4 Proof must meet 'a high standard certainty,' Illinois Central R. Co. Utilities Comm'n, 1918, 245 493, 510, 38 170, 176, 62 425; rate can be nullified, justification exercise 'clearly appear.' State Florida 1931, 282 194, 211—212, 51 119, 123—124, 75 291. pointed out North Carolina 1945, 325 507, 511, 65 1260, 1263, 89 1760, supporting encompass each elements essential power. Thereafter, supra, stressed necessity findings, although held unnecessary 'to item fully developed case.' page 275, 270. King, insufficiency rather urged upon Those adequate increasing rates, were, inter alia, (1) did railroads' needs; (2) movement commerce; (3) ordered would yield revenues; (5) result pages 267 268, 266—267, footnote 13. We also might give weight deficits passenger prescribing overall needs. our most recent review area, Chicago, M., St. P. & P.R. Illinois, 1958, 355 300, 304, 292, relied principles above cases striking down fares suburban commuter service because take into account 'the carrier's other revenues from traffic, passenger.' 308, 309. 5 do believe met exacting standards prior cases. As prevailing revenue, discover no positive indicate relative cost great shipments. absence important, enough say higher similar shipments distances, 212, 124, especially where, here, there indication moved interstate. annual reports four showed ratios (freight divided revenue) density statistics (ton mils per mile main track) comparable system-wide figures. discredited branch-line inclusion totals. true, case both syste-wide computations, leaving apparent foundation conclusion unreliability. 6 Other seemed larger percentages total within enjoyed return 1953, year just hearings case. Denver Rio Grande, almost half entire 6.06%. Southern Pacific Union Pacific, substantially smaller proportions Showed returns 3.48% 3.56%, respectively. 7 Statistics economic improvement greater percentagewise West particularly sections. emphasis recently has switched agriculture industrial mining activity, resulting traffic—a factor tending suggest railroad conditions. 8 transportation,5 point far substantial. essence, merely crews movement. material factors bearing reasonableness same. have noted, offered convincing operations, permitting wider spread fixed costs, but percentage increased. face proof similarity falls short 'high certainty' required. 9 suggested granting increases, frequently proceeds assumption will raised level. through ticket approach question partiality uniform increase. uniformity necessarily goal regulation, nor Commission's wishful thinking substituted Section 13 terms 'assumption' 'partiality.' case, contemplates inquiry equally exist ticketed assumption. 10 Finally, note concerned itself derived from, to, operations. While sweeping required, light reflect consideration these arriving 'A picture operation, whether unduly discriminates shown * limiting particular disregard contributed service.' issue argued parties, having been announced submission instant mention point, since further proceedings doubt ensue. 11 reversed cause remanded court instructions remand conformity opinion. 12 ordered. Reversed instructions. 14 FRANKFURTER, whom BURTON, HARLAN, WHITTAKER join, dissenting. 15 involves raising discriminate discrimination, and, petitioners call them question, themselves inadequate. Our holding extended require, even this, comprehensive 16 There comes time development law, concerns complex important subject present survey made cumulative effect episodic instances appraised determine they reveal harmonious whole. Case-by-case adjudication, without scrutiny generalizations presuppositions, culminate effort whither going, direction cut specific should pursued represents deviation path demanded purpose regulatory legislation. These considerations, fact sufficiency judged intelligently make necessary consider length justify removing discrimination. 17 originated involving engaged Shreveport Houston, E. W.T.R. 234 342, 34 833, 58 1341, arose shippers pay disparity justified difference conditions, usually considered setting removed protect prejudiced, reason prohibiting 3(1) Act, 24 Stat. 379, 380, amended, 3(1), 'undue preference advantage person locality description *' where forms involved. often said form arises simply relation true if understood circumstances enter differences taken consideration. Even persons-localities but, clear "substantially *." 347, 834. 18 thus given express statutory 416 Transportation Act 1920, 41 456, 484, 13(4), amending Act. amendment added, part much Nation's system, broad prohibition 'any undue, foreign *.' provision, conjunction 15a(2), 488, construed Wisconsin Q.R. Co., 257 563, 42 232, 66 371, authorize 'revenue discrimination' unjustifiably constitutionality upheld claims unwarranted intrusion reserved control over 'Revenue consists, localities, failure carrier. Of course ultimately prejudiced up properly due collapse immediate head assure carrier needed revenues. test what amended instructs need 'in public interest, efficient railway lowest consistent furnishing service; enable carriers, honest, economical, management provide National Policy 1940, 54 899, pp. 7107—7108, preceding section 1, turn expanded supplemented 15a(2). 'dovetail relation,' Chief Taft termed 586, 236, 13(4) gave broadened regulation. 'Theretofore, Congress directed mainly prevention abuses; arising excessive discriminatory 1920 ensure, also, Akron, C. Y.R. (New England Divisions Case), 261 184, 189, 43 270, 273, 67 605. 19 sustained affected state-wide basis. expressly rejected order, kind. may itself. However, limitation imposed later effective scope stringent evidentiary requirements, seems origin kind situation presented restrictions inherent scheme contemplated statute. Whether directly practical considerations require typical goes beyond shown. deemed Likewise rely indicative throughout shippers, 'interstate commerce' resort 20 For appeared removal Georgia 283 765, 619, 1397, example, confined yet attention does seem carriers. spoke *,' 773, 622 brief indicates conceived Pp. 40. (See significance Court's reliance, 774, 622, Nashville, L.R. Tennessee, 262 318, 583, 999.) Louisiana Serv. Texas N.O.R. 284 125, 52 74, 76 201, affecting spite fact, out, 126—128, 75, regard revenue. Ohio 292 498, 792, L.D. 1388, sanctioned unusually wide sustaining coal northeastern Ohio. 21 Nevertheless, carried forward. 208, 122, 291, strongly reaffirmed rejection requirement predicated theory restricted 'competitive territory.' See American Express South Dakota ex rel. Caldwell, 244 617, 626, 37 656, 661, 61 1352. perhaps inevitable view doctrine evolved remedy situation—prejudice relatively evidence—so evil rise legal growth. Furthermore, carriers' revenues, appear expand effectively that, years, come resulted significant developments exclusively 22 Findings 13(4).—In forth, precision matter permits, Such be, partcular words, automatic recitation talismanic formula, ample assurance process Only know decided reviewed. 23 Since contribution If business unable bear either production curtailed diverted cheaper modes transport, actually decrease informed, expert about probabilities. rest mechanical proposed volume past uncertainty actual outcome insufficient. Louisiana, 290 70, 80, 28, 33, 181. principally contributing 'fair share' achieve ends forth 15a(2) Policy. What share? pays when, balance, go traffic. already indicated, applicable localities. alone forbidden said, nor, clear, surrounding favorable, identity 25 obvious relevant rendering service. rate, include range ability condition industry. Costs, furthermore, indirectly generate quality rendered, physical characteristics moves, average loading, haul, forth. terminal fixed, longer haul realize unless graduated account. hauls probably whole hauls. Where concerned, wholly different become deciding fare differentials justified. instance, coaches used cleaning fewer miles day coaches. See, e.g., re Rates Within 102 479, 483. reasonably inexhaustible number too changing permit definitive catalogue drawn up. Least task undertaken courts cannot assumed familiarity with, let specialized knowledge of, practicalities industry, whose contact matters episodic. Understanding feel successful administration, saturation problem constantly concerned. inconsiderable appraising next, new experience, highly relevant. 26 mind compares States. comparing factors, therefore, move moves borders embrace several Western country; chosen 27 dictated administration demands abstract logic. attributable specifically negativing existence affect costs. Although share, unwillingness render nugatory provisions imposing obligations impossible fulfillment precluded requirement. 474, 783, 1371, Chicago Switching District, clearly laid implicit earlier orders. reply separating property, expenses, stated: 'Where respect classes intimately bound together, occasion deal specifically, separate revenues.' 483—484, 787. statement quoted approval 269, 301. respecting peninsula somewhat less southern territory points.' 278 41, 72. 11, 603, 607, 1077. 29 More elaborate impossibility, least mingled accurately segregating Moreover, height imprudence negative touch nature industry endless variety situations giving precise, equal importance. solution hammered intractable difficulty regulating systems integrated system all, approximation compromise. 30 cases.—In 'The adjoining States.' Petitioners them, reasons these, elaborate, appraised. Thus paradoxical, impossibility accurate allocation, record. Likewise, individual authoritative compiled, inconsistent, criteria governing record contain factor. 31 Since, proceed estimate, possible large determining permissible, examine satisfied problem. 32 itself, stipulation founded New York 591, 239, 385, fares, affirmed dismissal bill brought annul substantiality squarely issue. contained testimony service, type equipment, running time, accommodations similar, addition sort York. 33 Alabama 776, 623, 1406, involved fertilizer materials. presented. Instead witnesses knew tonnage interstate, ton-miles loaded car competition wagons short, Yet show, testimony, 'thoroughly canvassed,' 779 4, 624. sand, gravel, materials western facts stated adequately warrant embracing comparison State, commodities sought. considered, combined, according 155 247, 253, ninety cent movements intrastate. considerable bore commodities: States; producers territory, Louisiana; consumers; estimates, based highway program population statistics, future consumption. usual references question. is, extensive Court, little refused apply 35 Another 1077, logs. transporting logs Florida, indicating cover general, gross ton-mile lines excluding Florida. comparisons could commodity. furnished best probability period 36 referred connection rule study not, separation service: manner On shorter hauls, single haul. favored order. Mississippi Rice 307 610, 59 822, 83 1493, fertilizer, curiam, citing orders witness testified neighboring such, conclusions inferred. intrastate, total, during selected periods, points Mississippi. carriers rendered Against bulk single-line, extra switching inspection cars points, keeping interchange records, joint-line expensive single-line. Dispute centered intensive truck competition, facilitated wayside gravel pits possible. minimized seriousness competition. parts South, extent investigation 342 882, 72 152, 96 662, affirming, 98 855, curiam affirmance, fares. apportioned trains studied passenger-mile ratios. results contrast heavier passengers miles, went offset advantages. Wear tear equipment increased, concentrated rush hours, additional handle idle day. stops older, crowded, air-conditioned. fare. 39 parties observed, investigations proceedings. 272, 269. expenses allocated admitted allocation ascertain expenses. carrier, special bookkeeping, system. net income 40 density, inated three serving mostly local branch lines, systems. Because overtime wages, switching, making breaking trains, operate left weigh competing years has, disposed challenges Tennessee 346 891, 74 222, 394, 113 634, wood, report, Charges, 286 study, separately listing terminations involved, density. proportion costly waybills load, charged provided movements; information unreliable. 348 885, 206, 99 695, 125 180, Freight 291 279, stating, various terminated period. 349 908, 599, 1244, affirming 124 809, Among deficit country unsubstantial, 44 From others Courts emerge decisive disposing now us. place, many slightest devoid together. records character investigation, passed silence another. Reliance universal appears principal, exclusive, finding. 45 varies proceeding. Thus, involve commodity traffic; State; extend Obviously single, comprehensive, easily formula testing devised closing one's eyes rich shifting confining responsibility 46 importance distinguish proceedings, accompany follow cases, proportionately foregoing customarily strong practically difficult respected guidance. When follows will, extent, assume, persuasive contrary, 'In nationwide becomes natural order.' 47 case.—The concerns, exceptions relevant, seeks 48 validity impaired exceptionally profitable. Factors vary route preclude implies able see Comm'n provision re-examination claimed fall findings. 238, 371; Akron 196—199, 27, 275—276, included following: property investment, income, ton-mile, ratio, efficiency, 50 qualified crews, accounted manner, better so-called 'piggyback' heavily weighted favor mine products cheap gondola insofar investment five Class I declined steadily 1950. figures broken instead embraced systems, decline probative value source entering wages risen 45.89% 1948 east, unit prices supplies 24.7% 1949 1954. none segregated compared. numerous ton-mile. Revenue 1939 1952 waybill But, report tends longer. event, reflection 53 finds, contrary establishes overruling Commissioner's preponderates above, accept decisive. population, automobile registrations, payments individuals improved compared remote compels way 55 suggests Grande Western, Pacific. draw inference presupposes law railroading gain ready access. nothing D&RGW factors: efficiently operated UP SP; routes favorably situated profitable; SP anywhere farflung empires. 56 finds indeed puzzling. 57 Exhibit 64 compares, (ton-miles main-line 'intrastate' understand exhibit. petitioners, exhibit 1(2)(a) 1(2)(a), 'wholly State.' ascertained instance includes portion lies originate terminate bridge exhibit, means probatively ton journey journey. region purposes consideration, affects including some, less, reliable, 64, considerably comparisons. value, course, since, over-all generating That speculation, regional still Pub. Atlantic C.L.R. 186 157, 164, combined balance tell region-wide permissible hardly impose it. 60 distinctions unlike factors. road fuel likely passes region, discounts track excluded. excluded figures, omission right if, line low-density lower. possibility mentioned (R. 294), supply deficiency good rejecting 64,1 best, surely compelled conclusive. Density multitude gained lost High 662 (see 279 161), always unmitigated blessing, 63 relies ratio 1950—1953 described statistics. fundamental criticism method segregate train long attacked artificial reflecting overriding matter. upshot dissimilar open serious severely restricting effect. remained adjust recognized applicable. never overturned sustain occasions. interpretation respects difficulties facing enough. objects 'no evidence' finding, record, Should train, grade size crews? necessitate paralyzing Once introduced, who contend forward favorable. Statements opinions law.2 workable solution. Brandeis 197, 605, 'Obviously, intended task, performed.' operations.—This bears far-reaching consequences, adverted opinion, decision Milwaukee, applies profitableness Milwaukee settled Left open, kinds significantly differed, deficit. compensate deficit, profitable loss issues affirmance 1244. precise problem, 'which totality 309, strictly speaking, answered though doubtless arise disposition remand. 68 why circumstance contributes standpoint, segment isolation? Raising compelling share. 69 surrounding, immediately Indeed, consequences demonstrate exalts formal consistency sound policy. 70 consequence every radical, likelihood unworkable, change administered years. Reports group commodities, tested reference picture. intastate segments Indiana disruptive requiring giant, strides, steps designed relieve wisdom close it.3 71 totally previous mingled. determined reasonable; instead, decided, considering alone, context determination reasonableness, empowered By broader found. because, situation, narrow possible.4 very reasonable. suggestion look gives degree unreasonableness remedy. discriminating dissimilarity aspect showing, assume speculates remotest made. accommodates imponderables demand approximations. responsive problems posed 13(4). Embedded advantages simplicity expanded, well done, protecting At remains opportunity commission satisfaction favoring wisely ignored. interposing insurmountable obstacles rests, predominantly Sec. '(3) Whenever part, instituted hereby authorized filed, shall fare, charge, classification, practice, initiated President control, hear dispose issue, interested notified confer authorities jurisdiction class corporations III relationship structures practices bodies Commission; end empowered, rules prescribed it, modified hold joint wherein act rate-making avail cooperation, services, facilities enforcement III. '(4) practice causes declared unlawful, prescribe maximum minimum, thereafter charged, as, judgment, prejudice, charges, classifications, regulations, observed while thereby, notwithstanding.' 543, 911, 4). accomplished 280 179; 281 557; 589. challenge increases permitted 175. proceeding; moreover, requires phase supra. 1934, 787, 1371; contains 1953 Colorado comparison, completely Colorado, explained efficiency D&RGW—tons loaded, tons locomotive, etc.—is Colorado. bills, four-month 1953—1954, admittedly included, provides reliable coal, ores, concentrates, therefore assistance raise only, decide significant, region. Indianapolis Chamber Cleveland, C., 67, 74. 264—265, 265, 301: differs generally.' 79, 181: 'It sufficed lead reasonable level, 'Problems Railroads' Subcommittee Surface Senate Committee Foreign Commerce, issued depressed expresses deep implications decision, proposes legislation forestall decision: 'From Supreme (in case) places intolerable accounting practices, obstacle rail operation. Further subcommittee thinks stand own feet, compensatory. 'Fear expressed against, on, stipulated overall, statewide deriving body precluding To issue.' Report S.Rep. —-, 85th Cong., 2d Sess. (April 30, 1958). legislative proposals embodied 8, S. 3778, Are sub silentio, overruled 930, 377, 693, 101 36, distinct carriers's operations?

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