Legal Document

336 U.S. 601 69 Supreme Court Reporter 756 93 L.Ed. 911 TRANSCONTINENTAL & WESTERN AIR, Inc.v.CIVIL AERONAUTICS BOARD. Number 387. Argued Feb. 8, 9, 1949. Decided April 18, Mr. Gerald baron Brophy, of New York City, for petitioner. Emory T. Nunneley, Jr., Washington, D.C., respondent. Justice DOUGLAS delivered the opinion Court. 1 The question in this case is whether Civil Aeronautics Board has authority to fix a new mail rate air carriers and make it retroactive period which final previously fixed by was effect unchallenged initiation proceeding. answer turns primarily on meaning § 406(a) Act 1938 as amended, 52 Statutes-at-Large 998, 49 United States Code KF62 486(a), Annotated KF65 U5 empowers determine fair reasonable rates compensation transportation aircraft 'to such effective from date shall be proper * *.'1 2 an order dated October 26, 1945, 45 cents per ton-mile petitioner.2 From that until March 14, 1947, petitioner paid at its carrier services. During time no action taken or government initiate change rate. On filed petition with alleging had not been since January 1, 1946, requesting 'from after 1946.' After hearing divided vote ruled prior dismissed insofar sought relief. 8 C.A.B. 685. Appeals affirmed Board. 169 Federal Reporter, 2nd Series 893. here writ certiorari we granted because importance public alike. 3 language 'fix determine' notice 'the compensation' aircraft3 reads like typical utility rate-making authority. Both subdivisions (a) (b) 406, sure, reflect some characteristics ratemaking are peculiar carriers. That true methods specified ascertaining compensation—'aircraft-mile, pound-mile, weight, space, any combination thereof, otherwise *.' Special standards also prescribed. authorized consider conditions particular class carriers' fixing different classes service. 406(b). And determining directed need each sufficient insure performance service, and, together all other revenue carrier, enable under honest, economical, efficient management, maintain continue development extent character quality required commerce States, Postal Service, national defense.' 4 Considerable reliance placed last provision view 'make effective' clause adjustments 'need' makes appropriate. But standard counterparts legislation dealing rate-making4 does necessarily mark departure customary pattern prospectively. Yet, unless found congressional purpose radical break tradition, would most reluctant give broad urges. For utilities authorities, while usually prospective, sometimes made commencement See versus Central R. Co., 279 73, 260, 73 619. But, so far aware, they have never earlier date. 5 suggest Congress intended these traditions rate-making.5 Moreover, legislative history indicates inserted only clear could application.6 Finally scheme underlying policy seem us preclude more expansive reading urged 6 Petitioner's practical tendency transform into cost-plus system regulation, construction harmonize apparent design Act. Thus 406(b) authorizes 'classes carriers.'7 It plain uniform important regulatory device. 2(d) looks sound through competition.8 A forces within given compete securing reducing controlling costs. If basis carrier's needs point time, there powerful incentive seek relief rate, live it. 7 In sum possible revise retroactively real innovation should solid than our own predilections. We cannot but feel if power were put novel use, clear. too unprecedented conventions rest mere inference. pointed out apparently considers past operating losses rates9 therefore matter great consequence one rather another. recoup distinct before us. 9 Affirmed. 10 REED took part consideration decision case. 11 JACKSON, dissenting. 12 asks hold denied organic carrying mail. convinced me power, whatever wisely do policy. 13 fundamental premise Court's function air-mail analogous railroad utility. two types comparable. 'Rate' applied Government's payments euphemism embrace subsidy well compensation. statute requires Board, 'rate' mail, take 'need These considerations inappropriate applying ordinary principles. apply multitude customers; one—the Government. Utility services must currently; can being lump sums account items long past. 14 Congress, us, set up according separate nature. carriage passengers goods lines, course, experience, know service hat pay collect then never. recognizes necessity respect cargo. Rates transporting them 403, 483, embodied published tariffs, may altered Section 1002 provides institute proceedings modify may, prescribed procedures, thereafter charged. Thus, when shippers, permitted prospective changes, said so. 15 believed that, interest defense commercial aviation, subsidize pioneering lines underwrite revenues above those realized passenger cargo carriage. feasible way payments. Its plan detailed 406. enacted prohibition against retroactivity had, difficult see how go back even petition. contrary, however, directs proper.' N Dec. Immigration Nationality Decisions justification holding means anything less just what says, opposite kinds governed identical rules. 16 same rules retrospective 'applicable equally property Act.' urges provisions 'convert Board's primary future duty award amounts past' sets low redress save adequate future.' contends application decisions 'has refused require capitalization base rates' allow 'current reimbursement deficiencies arising failure earn return years, costs maintaining excess capacity during early periods operation.' argued adhered advances reasons why without otherwise. 17 able reconcile position argument February appears almost contemporaneous action. 21. 1949, handed down allowed very petitioner, sum, $2,748,000 July December 31, 1948, $33,333 month thereafter. said, 'The addition to, exclusive of, provided previous temporary orders, respective stated.' (Emphasis supplied.) TWA whole year 1948 their 'grounding losses' filing petition, limit backward operation rates. said: 18 'In incurred substantial grounding Constellation aircraft. Similar American 1947 DC—6 grounded. merely another form developmental attributable introduction craft type. are, cases, severity obstruct current development. Under statutory mandate develop appropriate manner.' 19 At issued state ent As reimburse retroactively, originally felt high enough special mail-pay allowance 'reimbursement.' continued: 'Experience supported view' 'desirable established character.' announced among others, losses. addition, obligation Act, discussed above, concluded increased meet remainder approximate break-even 1948. With entire future, will formal proceedings, full requirements carriers.' 20 What get orders statements acting spirit completely contrary opinion, technical consistency, doubt. amortization afterward. find authorization device forward forthright proper. imperative met evasion, arguments construing permit fail. matters influence event, do, my predilections, unlike Court's, favor experience prophecy. light practice, reason carry conveys regarded always tentative subject revision either unforeseen contingencies recapture excessive Commission bound extravagant management improvident outlay occurred advance. fact, expense probably easier detect actual operations estimates. 21 accepting argument, least reargument candid explanation material discrepancy between led premises seems actually 22 FRANKFURTER joins opinion. 406 provides: '(a) Authority empowered directed, upon initiative Postmaster General (1) hearing, aircraft, facilities used useful therefor, connected therewith (including whenever incidental necessary emergency operation), holder certificate authorizing proper; (2) prescribe method methods, aircraft-mile, otherwise, carriers; (3) publish same; determined appropriations '(b) section, Authority, considering carriers, case, consideration, factors, condition operate certificates providing mail; respecting rendered pursuant law; transportatio place June 30, 1940. 54 1235. 595. note supra. Title Transportation 1940, tat. 899, U.S.C., preceding 1: 'It hereby declared provide impartial regulation modes foster economic several end developing, coordinating, preserving water, highway, rail, means, defense. All administered enforced declaration policy.' likewise follow conventional pattern. 1002(d) (e), 642(d, e). Interstate Commerce administration Air Mail 1934 48 933, 935, 614, 616, 39 469 et seq., asserted sharp divergence views over Compensation, 216 I.C.C. 166, 222 602. committees seemed concerned problem bills preceded ones resulting S. Hearings, Committee Commerce, 1760, 75th Cong., 1st Sess. 179, 180, 239, 291, 343, 483—485, 523. H.R. Foreign 5234 4652, 325—327. adhering suggested Rep. 911, Senator Truman who charge bill Senate. 81 Cong.Rec. 9202, 9204. This relevant problem, though relates 1937 passed, crystallized appeared enacted. Conference Report latter silent clause, following passage it, 2635, 3d 71—72, brief exposition conferred suggests did depart measure: 'This section (§ 406) forth guide enables adjust properly carried case.' supra 1. exercise powers duties (Board) following, things, interest, accordance convenience necessity— '(d) Competition assure air-transportation adapted foreign domestic 402(d). present Court, 21, awarded increase compensate sustained thereto result Airlines, Inc., al., Rate Increases, Docket 2849, Serial 3-2484 (Feb. 1949). render moot, covers here. Nor concerning temporary, distinguished final, Essair, Temporary Rate, 687, 690—691; Matter National Airlines 3037, E1271, 5,

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