Legal Document

376 U.S. 375 84 Supreme Court Reporter 874 11 United States Reports Lawyer’s Edition 2d Series KF101.8 U54 788 Atlantic L. MECHLING BARGE LINES, INC., et al., Appellants,v.UNITED STATES al. BOARD OF TRADE the CITY CHICAGO, Appellant, versus UNITED Nos. 58 and 59. Argued Feb. 18, 1964. Decided March 23, Rehearing Denied June 1, See 377 960, 1625. Edward baron Hayes, Harold E. Spencer, Chicago, Ill., Frank I. Goodman, Beverly Hills, Cal., for appellants. or Haw. Hawai‘i KFH45 A2 Neil Garson, Washington, D.C., Richard Judge Murphy, appellees. Mr. Justice CLARK delivered opinion of Court. 1 This direct appeal from a final judgment three-judge District is but another episode in long continued struggle between railroads competing barge lines. In 1960 Interstate Commerce Commission issued an order permitting departure long-and short-haul provision § 4 Act.1 310 I.C.C. 437. permitted New York Central connecting carriers to inaugurate rate structure on its Belt Line west Kankakee, Illinois, eastern destinations under which lower rates were charged some hauls than shorter ones same route. The approved this action by dismissing complaint set aside order. D.C.Ill., 209 F.Supp. 744. We noted probable jurisdiction, 374 823, 83 1865, 10 1049, now reverse with directions that vacate remand further consideration light opinion. 2 operates Kankakee Line, extends South Bend, Indiana, through westward Zearing, Illinois. That portion line Moronts, roughly parallels Illinois River Northern used, large part, transport corn toward markets. mid-1930's, was developed movement almost all traffic drawn away rails river, being moved Chicago then shipped East rail.2 Prior 1957, ports along averaged 4.625¢ per hundred pounds corn.3 From destinations, rail 49¢ 49.5¢ products, so total shipping cost 53.625¢ 54.125¢ products. At time, via all-rail routes origins markets 72¢ 72.5¢ computed either as combination 23¢ East. 3 chose meet competition establishing new December 15, 1956, proportional rate4 shipments competitive Chicago. regular transportation points allowed credit reshipment resulted net 6¢5 Kankakee. 6 applies only if milled transit it reshipped Because credit, resulting system favors eastbound over similar route starting at For reason violates prohibition Act had apply authority fourth-section departures. 1957 temporary entered authorizing filing immediate application not approving them, 'all such subject complaint, investigation correction conflict any Act.' down hearing, did exercise i power enter into general lawfulness 15(1) 15(7) Act, 41 Statutes-at-Large 484—487, amended, 49 Code KF62 §§ 15(1), 15(7). Nor appellants file formal 13 24 383—384, 13, assailing rates. Subsequently Examiner denied relief because less out-of-pocket 'lower necessary competition.'6 reversed, holding 'has no independent existence, integral part origin'7 found compensatory since barges attracted grown adjacent river constitute destructive competition. 5 Board Trade, intervened proceeding, violated 3(1) Act8 (as well 4) they discriminated against grain merchants processors. refused pass upon question relevant proceeding. consider Mechling's contention 3(4) Act9 carriers. Other objections 1(5) Act10 just reasonable likewise consideration. While railroad's competitively practice, made finding violate National Transportation Policy,11 despite appellants' insistence did. Commission's respects dismissed 'that within statutory Commission, supported findings conclusions based substantial evidence prejudicial error occurred hearings before Commission.' F.Supp., 749. 7 have concluded there two respects: (1) should passed questions raised offered other sections Act; (2) erred failing specifically whether Policy. II. 8 Contentions proof Trade discriminatory violations especially discrimination whole milling-in-transit limitation. Under conclusion be denied, contention. However, when took opposite view application, claim ripe decision. '(a)lthough intends remove limitation, these issues do directly deal fourthsection principles here involved, are properly matters may proceedings.' 437, 451. 9 Likewise, appellant Mechling claims lines violation prohibits practicing lines, including common water. gist grievance assertion results reshipping ex-rail ex-barge corn. urges full inquiry determined violated. defense position says does grant proposed result Act. believe policy requires decide, every allegation unlawfulness, matter how remote. Continuin , argues attack factor, 6¢, charge, unlawfulness beyond issues. cannot agree mechanism permits easy dismemberment. Indeed, definite tie-in prevents compartmentalization elements going combination. 6¢ separate charge rate. shipper milling-in-transit, 17¢ East, has real impact freight originating Line. Further, 'remote,' shown undisputed statement counsel argument lost 53% their carriage effective 1957. If proceeding splintered, contestants will obliged await proceedings raising Not would poor administration manifest inequities allow potential windfalls 12 Moreover, splintering appears contrary consistent proceedings. Over 50 years ago said: '(T)he proviso permit exceptions * (Section arbitrary absolute power, must limited conditioned presence special cases conditions circumstances make legal proper wise antagonistic provisions act.' Railroad commission Nevada Southern Pac. Co., 21 329, 341 (1911). 14 least subsequent cases,12 annual reports, re-emphasized principle. 34 I.C.C.Ann.Rep. 47. Furthermore, Act's prohibitions 'as whole' furthers purpose Congress enactment. Senate Committee once stated way: 15 'The (Interstate Act) theory paramount evil chargeable operation conducted unjust persons, places, commodities, particular descriptions traffic. underlying aim measure prevention discriminations, both declaring them unlawful adding remedies available securing redress enforcing punishment *.' S.Rep.No. 46, 49th Cong., 1st Sess., 215—216 (1886). 16 accordance policy, declared States, 331 284, 296, 67 1207, 1213, 91 L.Ed. 1492 (1947), '(t) he principal aimed various manifestations.' Intermountain Rate Cases, 234 476, 485—486, 986, 991, 1408 (19 4), held relieve requirements depends 17 'the facts established body, sound discretion, request granted compatibly due private public interest concerned, preference clauses 3d sections.' (Emphasis added.) 18 fact particularized require different interpretation. might practice pernicious required specific condemnation.13 19 Finally, hearing determining, single charges bearing legislative It directed 'shall administered enforced carrying out' 'to encourage establishment maintenance services, without undue preferences advantages, unfair practices 54 899, U.S.C., note preceding 1. 20 say rule consolidation absolute. Many applications filed each year summarily disposes majority them. Certainly where brought adversary need consolidate. inordinately delay good denial. instant case, we see practical why merits several contentions been reached.14 To parties begin anew thus spawn cases, easily disposed needlessly subjects rigors circumlocution deadly administrative judicial processes. seventh year—during period force—and, still, basic validity considered Commission. III. finding, uncontested, cover costs railroad. spite gave little, any, There economic analysis, expert testimony, supporting data. Instead, rate, thought compensatory, rather controlling. Viewed manner, destructively practice. passing references first-year experience elevators ports. One experienced adverse effects while closer about 23% larger shipment proportion increase shown. N vertheless, rails, remained barges. Thus, evident competition.' 452. contradiction undenied argument, quoting statistics much diverted went effect, carried 1963 answer effect below-cost wholly odds enjoyed practically appreciable apparent profit indicated additional haul York. We, therefore, sufficient approve simply n reasonably present here, Policy, insisted stages proceedings, considered. 22 is, reversed remanded 23 ordered. Judgment directions. 380, 71 292, 4(1): '(1) shall carrier III receive greater compensation aggregate passengers, like kind property, longer distance direction, included distance, intermediate III, construed terms great distance: Provided, applicagation, after investigation, carrier, authorized distances passengers time prescribe extent designated relieved foreg ing section, exercising conferred proviso, more distant point service performed; authorization account merely water actually existence: Provided further, operating circuitous may, standards forth authorization, type route, points, provided issue character involved proceedings: And tariffs proposing paragraph requiring hereof, event approved, become one day's notice.' Reshipment commodity previously termed 'ex-barge.' When prior rail, 'ex-rail.' Raised 4.825¢ A covers therefore charge. 5¢ plan established, later 1/2¢, 6¢. Proposed report, sheet 26. 450. 902, 3(1): 'It make, give, cause unreasonable advantage person, company, firm, corporation, association, locality, port, port district, gateway, point, region, territory, description traffic, respect whatsoever; prejudice disadvantage whatsoever: however, discrimination, prejudice, whatever description.' 903—904, 3(4). 'All shall, according respective powers, afford reasonable, proper, equal facilities interchange receiving, forwarding, delivering property lines; discriminate rates, fares, unduly distribution routed shipper. As used term 'connecting line' means III.' 379, 475, 1(5): rendered aforesaid, connection therewith, thereof prohibited unlawful.' 1: hereby national provide fair impartial regulation modes act (chapters 8, 12, title), recognize preserve inherent advantages each; promote safe, adequate, economical, efficient foster among carriers; practices; cooperate duly officials thereof; wages equitable working conditions—all end developing, coordinating, preserving water, highway, means, adequate needs commerce Postal Service, defense. All title) out above declaration policy.' Transcontinental Cases 1922, 74 48, 71; Commodity Rates Lumber Forest Products, Carloads, Pacific Coast Territory Points Freight Association Territory, 165 561, 569; Differential Routes 211 403, 421; Bituminous Coal Buffalo, N.Y., 219 554, 560; Pig Iron Butler, Pa., 222 2; Steel Minnesota, 231 425, 428; Minnequa Kansas, Nebraska, Dakota, 278 163, 168—169; Briquests South, 289 341, 376—377; Passenger Fares, Hell Gate Bridge Route, York, 296 147, 153; Nepheline Syenite Ontario, Canada, 308 564—565. Friendly, Federal Administrative Agencies: Need Better Definition Standards, 75 Harv.L.Rev. 863, 884. On claimed 3(4), cross-examination 'division case.' report silent point. record 'made fairly plain' which, true, proceed it; not, supplemented stipulation Examiner, necessary.

Classification Label: 7