Legal Document

336 U.S. 641 69 Supreme Court Reporter 787 93 L.Ed. 938 UNITED STATESv.JONES. JONES versus STATES. Nos. 135, 198. Argued Feb. 2—3, 1949. Decided April 18, Rehearing Denied May 31, See 337 920, 1150. Mr. Moultrie Hitt, of Washington, D.C., for Jones. Philip baron Perlman, Sol. Gen., United States. [Argument Counsel from page 642 intentionally omitted] Justice RUTLEDGE delivered the opinion Court. 1 This controversy began in 1931, when respondent's predecessors as receivers Georgia & Florida Railroad filed an application with Interstate Commerce Commission a reexamination rates then applicable to it transporting mails. Since then, one form or another, dispute has found its way back and forth through courts, finally come here now second time. States Griffin, 303 226, 58 601, 82 764. 2 Through all these years carrier have been at odds over whether railroad is entitled increase prescribed service period beginning 1, ending, covered by present suit, February 28, 1938.1 The case on certiorari Claims, 335 883, 231, which had rendered judgment awarding respondent $186,707.06 increased compensation due 1931 1938, Griffin States, 77 F.Supp. 197, 110 Ct.Cl. 330, contrary findings orders denying any beyond amounts already paid that under fixed it. Railway Mail Pay, R. Co., 192 I.C.C. 779; id., 214 66. I. 3 A statement background course litigation will aid understanding rather complicated problems presented, both merits affecting jurisdiction. 4 In 1916 Congress enacted Pay Act. 39 Code KF62 §§ 523—568, Annotated KF65 U5 523—568. embodied comprehensive scheme regulating transportation mails common carriers. Such carriers were required transport pursuant Act's provisions. These included should be compensated 'fair reasonable rates' determined Commission. established only after notice hearing. But six months entry rate order Postmaster General was authorized apply order. 541, 542, 544—554, 553, 553. 5 prescribe 'the method methods weight, space, both, otherwise, ascertaining such rate,' § same purpose 'to make classification may just and, where equitable, fix general classification.' 549, 549. Other sections specify define four classes service, namely, full railway post-office car apartment orage-car closed-pouch service. 525—530, 525—530.2 Only are involved this case. 6 On December 23, 1919, extended investigation hearings, entered first mail Railway-Mail 56 1. adopted space basis determining rates.' July 10, 1928, proceedings granted 15% preexisting rates. 144 675. accepted until 1931. 7 At time applied itself. heard Division 5. 1933, denied increase, holding fair carrier. 779. substance, though not technically, involved. 8 After reconsideration, sued District Southern set aside Commission's special three-judge court convened, cf. Urgent Deficiencies Act, former 28 41(28), 47 (1948 Revision, 1336, 2284, 2325); held unlawful; remanded further proceedings. decree January 1935. 9 Thereupon conducted hearings report 4, 1936, again previously their Railroad. therefore increase. 10 Again resorted Court, filing supplemental bill. And court, composed three judges, unlawful 1937. Government appealed directly which, supra, type reviewable Act.3 Accordingly, Court's reversed directions dismiss bill without determination cause merits. 11 nearly renewed suit Claims. amended petition sets some detail history previous stages before courts. carrier's basic claims substantially those They are, effect, (1) confiscatory, continued effect specifically do afford Fifth Amendment ground they provide payment cost plus return upon invested capital allocated service; (2) reasonable' Act.4 Both rest attacks made b ing unsupported evidence conclusions being evidence. 12 To sustain jurisdiction rests 145 Judicial Code, s 250, 1491, statements part Fourth 238, 607, 764.5 II. 13 Although Act contains no explicit provision judicial review fixing pay authorizations thought, decision kind affect decision, however, rule out question conferred latter 14 While 'negative order' ruling longer effective, Rochester Telephone Corporation 307 125, 59 754, 83 1147, alternative grounding remains force. 234, 605, 764.6 very issue case, settled recourse district securing relief sought. 15 content merely negative jurisdictional ruling. went say did 'preclude every character review.' suggested possible other methods, two Claims 16 Without doubt suggestions chose bring language assumed importance, view raised receivers' choice following them, seems wise quote what said: 17 'If makes appropriate finding but fails, because alleged error law, th amount believes payable finding, action balance, claim asserted founced law Congress. Missouri Pacific company 271 603, 46 598, 70 1109. Compare New York Central 279 73, 49 260, 73 619, affirming (New States), 65 115, 121. since compulsory, would, provisions Tucker 24 Statutes-at-Large 505, also additional if confiscatory. Great Falls Mfg. 112 645, 306, 846; North American Transportation Trading 253 333, 40 518, 64 935; Jacobs 290 13, 16, 54 26, 78 142, 96 Law Reports Moreover, courts equity 'arising postal laws,' U.S.C., 41(6) 1339), would lie acted excess authority, otherwise illegally. Powell 300 276, 288, 289, 57 470, 81 643.' 18 Respondent fall class cases said insists, complaint brief here, his grounded confiscatory depriving property services Amendment. 19 hand, expressly disclaims exercising constitutional matters. done interest award.7 court's exerting fell within stated Claims' jurisdiction, mamely, finding. 20 Government, insists exercise category. It disputes 'gave effect,' stated,8 ordered balance Rather, urges, flouted order, substituted own concerning entered, wholly new different Commission, together money giving effect. 21 Ordinarily sufficient us take word accept nature exerting. differing views taken itself, respondent, difficulties each raises record disposing cause, compel examine claims. 22 If, asserts, 'giving effect' doing so substituting there little difficulty sustaining jurisdiction;9 is, unless right contention caled notwithstanding disclaimer, fact adjudicate event assumption award proper merits, reversal might allowance interest.10 23 correct give instead disregarded constituted arises intended power either category have. III. gives exclusive determine provided 'cases brought enjoin, aside, annul, suspend' orders. No given reviewing revise them invalid, render thought revision. 25 strange, indeed anomalous extreme, pronouncements confer implication broader, more conclusive final than like purview. hardly tenable result both. instance empowered Commission,11 judgement order's invalidity. infer intention spirit limitations placed wherever provided, whole practice conferring 26 Thus, twice invalid. proceedings; attempt 27 Necessarily restraint reflected themselves another policy, quite apart addition Article III.12 exemplify congressional policy relations ratemaking bodies Not making essentially legislative instance. having regard expertise agencies charged performing rate-making function inherent actual, well legal, disability execute function. doctrines policies primary jurisdiction'13 exhaustion administrative remedies14 root problem. true restricted III, limited.15 Hardly can conceived Claims; that, so, considered produced. 29 equally significant, we think, grounds similar used words, examining factual Indeed, gone much further, covering 1931—1938, particular circumstances IV 30 effects regarding readling comparing reports opinions.16 prevent summarizing substantial detail. gist between indicated. 31 We note, begin with, awarded $186,707.06, 87 per cent allowable itself shows wide discrepancy vew rate.' 32 task gigantic complex. 'just 'where equitable,' 'fix That authority ignored applying requirement 542. entirely separate, prongs fork. 33 proceeding classified nation's carriers, mail-pay purposes, placing Class I.17 decided generally compensation. 34 accounting, does not, concededly cannot, accurately reflect actual operating costs rendered, proportionate employed rendering sought allocations tentatively initial stage required, first, segregating freight passenger train dividing into categories: (including baggage service), express 35 problem arose culminating resulting 1928. separation total expenses rules governing large steam railways. 685—688. But, respect allocation apportionment passenger-train among components, rates,' faced unused space. 36 presents crux action. leading 1928 plans consideration distributing described last cited. id. 681, 689. alike allocating full-car18 performed. differed widely so-called combination cars mixed cars.19 going suffice Plan largest correspondingly smallest 2, approximating proposals, worked inverse proportions; lay two. 37 differences results use various highly difference net deficit, deficits sizes, depending plan used.20 ultimate ratios statistical studies, expense constituent services. apportion investment road equipment assigned passengertrain 38 rejected because, said, departed car-operating unit allocations. 689—691. eliminating purposes comparison, primarily rested tentative preliminary 2. 691. utilizing derived using stated: 'In connection studies borne mind computations direct relatively small great bulk necessarily divided, subdivided, apportioned, reapportioned theories assumptions, accurate ascertainment best, approximations weight obtained underlying assumptions steps computations.' 691—692. (Emphasis added.) 41 proceeded consider formula light considerations deemed relevant, including comparison equated 60-foot-car miles (see 692), incentive limit utilized passenger, existed 693, factors. concluded: 42 'Giving figures based respective studies; none except carriers' exhibits, includes charge against proportion handling nonrevenue freight; division followed original subsequent reexaminations; weaknesses revenues group justified.' 695. 43 smaller unqualified produced, resulted 14.5 cents mile '15-foot car' 4.5 '3-foot space.' Those became Railroad, question. 44 prior attack validity N Dec. Immigration Nationality Decisions challenged bone throughout phases controversy. 45 When filed, study railroad's individual operations, along lines hearings. test days September October 25, selected obtaining data. Space data secured, expenses, investment, adjustments year's operations show deficit $4,945, 5.75 year $31,227. 779, 781. meet this, 87.40 necessary. As investigations reasons, unwilling exclusively factors relevant fairness reasonableness component best showing revenue.'21 pointed 1929 stable services, decreased 67 cent, cent. Consideration facts shown relating Pointing 'because low traffic density earnings road, comparable many roads receive pay,' reiterated 'The approximation circumstances. supra.' 783. 48 revenue received relation bearing share operation contributing furnished. Applicant receives Many applicant points out, larger greater lower costs. hand situation operations. submitted fail justify higher 'We find mail, 675, railroads 100 length, reasonable. denied.' Ibid. 50 returned 1935, reopened hearing received. remanding stressed computed distribution ratio 102.79'22 or, added, 'that dollar applicants expended 2.79 cents.' account 'do refute impair allowed equal doing.' 51 'an adjudication' 'totally inadequate.' apparent erence abandonment save money: 'Considering clear saving could made. importance operating-ratio figure overemphasized. Relative series expenditures number cannot converted obsolute single-figure studies.' 69. 52 repeated insistence 'is hypothetical cost,' ibid.; factors;23 taking account, concluded augmented 70-76. 53 disclaimed entertaining 'necessarily conclusive." 'It fairest devised.' inapplicable qualify formula, 'comparisons cars'; car-mile car-foot corresponding units whole.' accordingly obvious, foregoing mathematical alone determinative thus rates24 rightly estimates approximations, determination, subject qualification stage, pertinent judgment. 55 exactly crucial opinion, 'Under herein, plaintiff require 87.4% secure 5.75% theretofore investments engaged traffic. * has, Number adjudged basis. ascertained, formulae plaintiffs' carriage ending close 1938. Fair found. conclude, latter.' 203, pages 366—367, 369. quoted concluding 783, above text, 'approximation' (Plan 2) affords it, admits, thing certainty cost. Approximate, called, 'computed' must relied upon, matter decisive. There alternative, least satisfying alternative. Of computing cost, put choice, 2.' 205, 370. Then rejection qualifying 'not convincing even persuasive.' 206, 372. According court: demonstrate gave plaintiffs return. failed do. More findings, circumstances, proved underpaid question.' 60 groundings, tied process. assertion, carrier, (or plan) seemed likewise persuasive' numerous proper, important 61 relevance rate; facts, check them; burden proof 62 determinations matters presumptive weight,25 statute noted classify preclude examination gene al rate's prima facie classification. effects, account. clearly unfair unreasonable held, 63 arbitrarily unreasonably checking plan's them. Contrary conclusion, never furnishing Certainly arbitrary plan, step 'various assumptions,' process rate-making; produced employed; took conclusive, informed committed competence. guise 'finding,' disregarding else 'error law.' 'finding' all, figure. thrown law' expert judgment, legal questions. think sustained conclude made, end important. disposition. V. 66 'As recovery constitute unpaid failure thereof.' 366. face fully accord pronouncement. recalled, was: founded Congress.' authorize revision prescribes finding,' reason law. intimation reexamine substitute d rate. True, wording reads 'appropriate' construe single mean reopen entire appropriateness independent evidence, 68 construction cited support statement26 decisions reference Commission.27 conceive sanctioning broad be, reasons stated, conferred. contemplated narrower was, our indicate whenever run teeth seek consistent rate, asserting underpayment authorities reside meant taken. contrary, 'given findings; 'findings' own; follows, statement, involves contemplated, relates questions unlike 1109; opinion. 71 follow if, regarded Amendment, was. For effects. jurisdictionally speaking, category28 All related takings private public use, value coupled award.29 contends deprive justifies basis, 72 remand foreclose short-circuit process, involve fixed. Consequently, falls indicated possibly available third remedy 41(6), 1339, Strictly necessary followed. 74 However, obvious this,30 posesses outstanding advantage confined, Under power, complying statute, afforded approximate terms. 75 decided, Administrative Procedure Act,31 'Judicial agency action,' provides: 76 'Except far statutes discretion— '(a) Any person suffering wrong action, adversely affected aggrieved meaning shall thereof. '(b) statutory specified absence inadequacy thereof, actions declaratory judgments writs prohibitory mandatory injunction habeas corpus) competent *.' 1009, 1009. 79 provision, adds force suggestion seem consonant expediting features. afforded, limited setting enjoining consideration, Consistently confined Commission32 compiled presented 80 suggestions, strictly disposition recurrence future long chiefly profit one. reversed, instructions Reversed remanded. REED JACKSON receiver, Alfred W. Jones, 135 dated 6, 1948. 231. Full post-office-car length authorized. Apartment-car thirty- fifteen-foot apartments partitioned off remaining portion car. Closedpouch employees seven feet unenclosed, sides note 6. assign grounds. Nevertheless, strongly insist point challenging amount, disallowance interest, he 198, solely footing establishing accrued interest. infra. accepting $186,707.06. Its cited, although commissioner He extensive 330. petitions granted. 4. extraordinary involved, 'There speedy determination'; 'no danger temporarily interrupting improvident judge'; 'only payments currently affected.' quoting earlier 128—129, affirmed stated): "We deferred payments. forbids Sec. 177, 2516)." 373. Cf. notes 7. Which, things, forbid non-District Columbia created functions making. Keller Potomac Electric Power 261 428, 445, 731; Postum Cereal California Fig Nut 272 284, 478; Prentis Atlantic Coast Line 211 210, 67, 69, 150. Texas Abilene Cotton Oil 204 426, 350, Ann.Cas. 1075; 139, 761, 762, 1147; Myers Bethlehem Shipbuilding Corporation, 41, 459, 638. Harv.L.Rev. 1251. Illinois 291 457, 463—464, 471, 473—474, 909; (and concurring 465, 474, 909); 52, 463—465, Berger, Exhaustion Remedies, Yale L.J. 981; Mich.L.Rev. 1035. opinions reported. length. represented representatives contended treated member class. begun afterward. Combination include separated partitions 'apartments,' devoted use. Mixed contain several e.g., baggage, mailpouch 2; 679. 688—689. 3, proceeding, 'net income $18,759,056 $1,104,744 $12,844,643 1,' 689, 5.94 requiring 26.48 7.43 5.7 mail. continued: $35,728 12.96 $594 less miscellaneous 80.35 *. 102.79 compared 630.41 etc., 249.67 express.' 781—782. 21. proceedings, well, reported operated, 85 157, 170, 123 33, 39; occupied distinguished load, carried, count bags packages outside bags, instances, 95 493, 500, 511, 120 439, 446; comparisons cars, 706; rates, 705, 151 734, 742; whole, 699; performed 8, 455, 464, 98 737, 755.' 69—70. recalled up See, Shields Utah Idaho Cent. 305 184—185, 160, 164—165, 111. Norton Warner 321 565, 568—569, 747, 749—750, 88 430. Cited 764, 1109, upholding demurrer Congress, enacting 536, land-grant 80% whatever mere (e.g., space) sorted mail-cars), conclusion revisions date request raising footnote, n. 764: Chicago E.I.R. 585; Nevada County Narrow Gauge 327; 407; Macon, D. S.R. 251, Id., 298. claimant recovered General, centered around enter made; challenge itself: had, accordance 535, departure storage cars. 'closed-pouch space' 'lesser unit' 'storage lesser unit.' companion affirmed, effective Similarly, retroactively reclassify bracket reclassification impose liability reclassification. With prefatory admonition, 'Compare,' 238 decisions, Pere Marquette 538, Jersey N.Y.R. Unit 243: powerless classifications, purview furnished neither Post Office Department nor transportation, compensation; 545, dismissing petition: act 1916, companies carrying commission scope entitled, undertake arrived commission. If compensation, plaintiff's court.' 243, dismissed Commission; dismissal proposition 'This mails.' 248. allowing discussed observed carried say, compensation.' Denver Rio Grande 382, 391. 'And 1.' compare 28. Our attention called grant jurisdiction; suits enjoin General's fraud commonplace. Williams Fanning, 332 490, 492, 188, 189. 1001—1011, 1001—1011. Tagg Bros. Moorhead 280 420, 444, 220, 524. National Broadcasting 319 190, 227, 997, 1014, 1344; Utah, 185, 164, 165,

Classification Label: 7