Legal Document

355 U.S. 300 78 Supreme Court Reporter 304 2 United States Reports Lawyer’s Edition 2d Series KF101.8 U54 292 CHICAGO, MILWAUKEE, ST. PAUL & PACIFIC RAILROAD CO., Appellant,v.STATE OF ILLINOIS, Illinois Commerce Commission, and Milwaukee Road Commuters' Association. UNITED STATES of America, Appellant, versus STATE INTERSTATE COMMERCE COMMISSION, Nos. 12, 27, 28. Argued Nov. 1957. Decided Jan. 13, 1958. Mr. Raymond K. Merrill, Chicago, Ill., for appellant M., St. Pacific KF135 P2 Pac. R. company Judge Lee Rankin, Solicitor Gen., the States. Charlie or Haw. Hawai‘i KFH45 A2 Johns, Jr., Washington, D.C., Interstate Commission. Harry Begley, appellees State S. Ashley Guthrie, appellee Ass'n. Justice BRENNAN delivered opinion Court. 1 The Illinois, Association, aggrieved by an order Commission fixing intrastate passenger fares Road's Chicago suburban commuter service higher than authorized brought this action in District Northern Eastern Division, seeking relief under 29 Code KF62 § 1336, 28 Annotated KF65 U5 1336. ICC order, 297 I.C.C. 353, was made 49 13(4), 13(4),1 which authorizes to prescribe if it finds that '* * any such (existing intrastate) fare causes undue, unreasonable, unjust discrimination against interstate commerce.' three-judge set aside enjoined its enforcement,2 remanded case further proceedings. 146 F.Supp. 195. held, inter alia, failed make findings appropriate show existing caused unreasonable commerce. judgment appealed 1253, 1253.3 We noted probable jurisdiction, 352 939, 77 260, 263, 236. found 1954 revenues from fell short $306,038 meeting out-of-pocket cost service. This basis conclusion undue To remove prescribed produce $383,000 additional annual revenue, enough eliminate determined loss allow $77,000 annually as a contribution indirect costs taxes. question our decision is whether properly void lack findigns necessary support 13(4). 3 service, except relatively insignificant exception mentioned below, entirely It provided two directions Chicago's Union Station. One direction, wholly within west some 37 route miles Elgin, Illinois. other direction north Walworth, Wisconsin; however, 62 74 24 26 station stops, are located with Illinois.4 Total were $1,796,231 4,869,064 passengers. Commuters traveling on commutation multiple-ride tickets numbered 3,910,526 total accounted $1,374,261 revenue. 4 Commuter most railroads providing area have been determined, at least since 1950, joint hearings conducted 13(3), 13(3).5 354. On July 24, 1952, Road, instead filing petitions schedules both Commissions, filed petition only requesting 5 'authority discontinue all off-peak trains consolidate certain peak-hour also increase one-way, round-trip extent will after taking into consideration economy effected discontinuances consolidation trains, give respondent sufficient permit operation without loss.' I.C.C., 355. 6 did not act application until 1954. Meanwhile changed steam diesel operation. savings change eliminated and, November 10, 1954, denied application. thereupon, February 1955, petitioned 7 presents once again problem adjusting state federal interests regulation rates. These rates primarily State's concern power dominant 'only so far alter injuriously affect transportation.' North Carolina States, 325 507, 511, 65 1260, 1263, 89 L.Ed. 1760. Thus, whenever exerted what would otherwise be domain power, justification exercise must 'clearly appear.' Florida 282 194, 212, 51 119, 124, 75 291. statute provides practical method minimizing inevitable irritations inherent conflict requiring notify there before imposed authority. In addition, may confer regulatory authority, hold agency, when rate-making authority affected taken ICC. 13(3). 8 occasion asserted 13(4) necessity effecting required traffic proportionate share pay carrier's operating yield fair return.6 When fall producing their revenues, they work commerce, high reasonably protect 474, 479, 54 783, 785, 1371; Railroad Wisconsin baron Q.R. Co., 257 563, 586, 42 232, 236, 66 371; Louisiana, 290 70, 75, 28, 31, 181. determining revenue commerce rates, consider 'among things, need, public interest, adequate efficient railway transportation need sustain service,' standard written 15a(2), 15a(2). King 344 254, 264, 73 259, 265, 97 301. No formal requirements 80, 33, Reasonable determinations suffice. 1, 9, 603, 606, 1077. But exceptional interfere definitely clearly apparent. 9 instant interfered rates—intrastate peculiarly localized impact upon community. substance, because single segment operations meet costs, road's operations, regard freight passenger, concerning record silent. 10 think where cannot sustained altering merely traffic—of traffic, passenger—is remunerative compensatory. Cf. 291; limited over exercised 'scrupulous maintaining (primary) field.' course desirable each particular should nearly own way return profit—but ICC, has responsibility first instance achieve desired end. Passenger deficits become chronic railroad industry up these more services. recognized reality today's railroading ratefixing policy inevitably inescapably bear direct feels compelled general rate take deficit account adjustment charges. 261, An equally broad conceded commission primary adjust 11 view policy, we do can fairly adjudged light passenger. basic objective applied 15a(2) case, prevent result saddling burden A picture operation, unduly discriminates shown, limiting disregard contributed services.7 12 requirement reflect totality departure previous holdings precise situation presented heretofore considered cases involving orders increasing interest (as distinguished persons localities, see Houston, E. W.T.R. 234 342, 34 833, 58 1341) involved statewide raising cases, showing following increases commissions refused same level essentially identical New York 591, 239, 385. held circumstance share. 1760, insufficient. Nonpassenger 181; 1077, sustained, earlier ostensibly based local case. 1371. Basically complained of, persons-and-locality shippers. 13 supra, adverted those very factors among ICC's whose absence present find fatal defect. emphasized finding entire constituted drain traffic. Since viewed whole, constitute remanding affirmed.8 14 erred considering evidence concerned depreciation maintenance-of-way expenses totaling $258,172, took computing costs. said: 15 'If different offered urged commission, given chance fix basis. 16 'Where seeks failing endeavor does contemplate journey commission.' 195, 201, 202. 17 holding effect restricts decisions So restrict might seriously Commission's duty exclusive contrary Court's There had affirmatively increased. granted no rejected contention, saying 'To needed itself 'sat issue lawfulness rates' impose limitation terms repugnant grant authority.' Id., page 210, 123. 18 wisely arranged 13(3) deferred pending opportunity evidence. However, nothing compels either denies determine railroad's petition, whatever See 128 718, affirmed 350 805, 76 45, 100 723; 101 36, 47, 342 930, 72 377, 96 693. 19 Finally, argued setting much points. believe, interwoven closely bound proper disposition requires reconsider them part reconsideration reason why increased conform 20 Paragraph dated June 14, 1956, modified provide remand shall proceedings inconsistent opinion. ordered. 21 Judgment modified. Statutes-at-Large 383, amended, 41 484, 13(4): 'Whenever investigation full hearing, rate, fare, charge, classification, regulation, practice advantage, preference, prejudice between localities one hand foreign hand, forbidden declared unlawful maximum minimum, thereafter charged, observed, manner as, judgment, prejudice, discrimination. Such fares, charges, classifications, regulations, practices observed while carriers parties proceeding thereby, law notwithstanding.' injunction stayed hearing appeal excess being impounded provision stay refund who paid event affirmed. Number 12. 27. Each appeals provisions aggrieved. points raised entered 21, Order 26550, Fares Surcharges, 214 174, effective. affirmative made, March 2, 1956. report allowed 60 days bases report. Failing prescribing 11703, Intrastate Rates Within 59 350, 13(3): chapter, instituted carrier concerned, hereby filed, practice, State, hear dispose issue, cause interested notified proceeding. authorities having jurisdiction class corporations subject chapter title, respect relationship structures bodies commission; end empowered, rules it, time time, regulating matters wherein empowered commission. avail cooperation, services, records, facilities enforcement title. 371. 'The effective (Interstate Commerce) justly require system.' seem particularly here recognition 'that (Milwaukee Road's) greater operations.' 359. earned $37,293,050, suffered $22,824,532, resulting net income $14,568,518. represented approximately 2%. agree portion designed taxes findings. nor infer how derived fair. axiomatic know something else, told else is. just reasonable future. rely solely comparison similar Northwestern, ample reasonableness embrace power.

Classification Label: 7