Algoma Coal & Coke Co. v. United States

11 F. Supp. 487, 1935 U.S. Dist. LEXIS 1620
CourtDistrict Court, E.D. Virginia
DecidedJuly 6, 1935
Docket337
StatusPublished
Cited by52 cases

This text of 11 F. Supp. 487 (Algoma Coal & Coke Co. v. United States) is published on Counsel Stack Legal Research, covering District Court, E.D. Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Algoma Coal & Coke Co. v. United States, 11 F. Supp. 487, 1935 U.S. Dist. LEXIS 1620 (E.D. Va. 1935).

Opinion

CHESNUT, District Judge.

This is a proceeding in equity under the authority of the Act of Congress of October 22, 1913, known as the Urgent Deficiencies Appropriation Act (U. S. C., title 28, § 41 (28), 43-48, 28 USCA §§ 41 (28), 43-48), to enjoin, suspend, set aside, and annul orders of the Interstate Commerce Commission made and entered on March 26, 1935, in a proceeding described as “Emergency Freight Charges, 1935, Ex parte No. 115” (208 I. C. C. 4). The plaintiffs are 179 *489 corporations engaged in the business of mining coal in the states of Virginia, West Virginia, Kentucky, and Tennessee, which is shipped in interstate commerce. As required by the statute, a tfiree-judge court was constituted by order dated April 12, 1935, and the plaintiffs’ application for an interlocutory injunction was set for hearing at Richmond, Va., on April 17, 1935. After the hearing on that day an order was entered denying the application for a preliminary injunction. Thereupon by stipulation of counsel the case was also submitted for final decree on the petition of the plaintiffs and the answers of the respective defendants, together with certain affidavits submitted by the parties.

The original defendants in the case, in addition to the United States and the Interstate Commerce Commission, were four railroad corporations on which shipments from the plaintiffs’ coal mines originate for carriage in interstate commerce. Other railroad companies have been made parties defendant to the case as intervenors. Extended briefs have been submitted by counsel for the respective parties.

Upon further consideration of the case presented, we are of the opinion that the bill of complaint must be dismissed. The reasons for this conclusion follow.

In the Commission Case referred to (Emergency Freight Charges, 1935, Ex parte No. 115) the Commission dealt with a petition filed with it on August 27, 1934, on behalf of substantially all the Class I railroad carriers in the continental United States which sought authority to make certain increases of a general nature in their freight rates and charges, to meet in part increased expenses of operation, caused by an increased wage scale and rising cost of materials and supplies, estimated to be $293,000,000 annually, which, it was represented, would so affect net railway operating income as to jeopardize the solvency of a large portion of the railway systems. The railroads disclaimed any attempt to increase rates to an amount necessary to yield a fair return. Their objective was stated as follows: “They are seeking in this proceeding only such reasonable increase in their freight rates and charges as will, taking into consideration the effect of such increase on the movement of traffic, increase their revenues and thus enable them to meet, in part, the increases in their operating expenses chargeable to the increases in the level of wages of railroad labor and in the unit price of materials and supplies, which increases in operation expenses but reflect the economic policies of the government.”

In their petition the railroads did not ask for a general horizontal change in the rate level by applying a uniform percentage increase, but did ask for increases on a selective basis. In general, an increase of 10 per cent, in existing rates was proposed, subject to certain maxima and exceptions, and the subjecting of certain commodities to increases of flat amounts instead of percentages, with exception of others from any increases. To avoid the most acute truck competition, increases were proposed in certain cases only for the longer hauls. It was estimated that the rate changes proposed would increase revenues by approximately $170,000,000 a year, assuming that intrastate rates would be similarly increased. The prayer of the petition was that the Commission find the proposed rates to be just and reasonable and permit tariffs based thereon to become effective without suspension, together with other necessary relief of a technical nature under sections 4 and 6 of the Interstate Commerce Act (49 USCA §§ 4, 6), including the modification of all outstanding orders prescribing rates or relation of rates, so far as necessary to permit the increases to be made effective.

Extensive hearings were held by the Commission at various times and at various places beginning October 1, 1934, and continuing until the testimony was closed early in December, 1934. A committee representing state commissions sat with the Interstate Commerce Commission at the hearings and during oral arguments and conferred with the federal body. The testimony taken exceeded 8,000 pages. The evidence offered by the carriers was principally devoted to statistical data dealing with the financial results of their operations in recent years. The great majority of the testimony was offered on behalf of the shippers, and was said by the Commission in its report (Emergency Freight Charges, 1935, 208 I. C. C. 4, page 23) to be strikingly similar to that presented in the Fifteen Per Cent. Case, 1931, 178 I. C. C. 539; Id., 179 I. C. C. 215; Id., 191 I. C. C. 361 (sometimes referred to as Ex parte No. 103). While some shippers supported the petition of the railroads and some were neutral, the great majority were opposed to the increase. A considerable *490 amount of testimony related particularly to the production, marketing, and consumption of bituminous and anthracite coal. In its report the Commission reviewed, in relation to the proposed increases, the general agricultural situation and commercial and economic conditions affecting forest products, coal and coke, petroleum, iron ores, and other commodities.

With regard to the legal questions presented, the Commission in its report, Emergency Freight Charges, 1935, 208 I. C. C. 4, on page 24, said:

“The applicants stress their conception of this proceeding as a ‘revenue case as distinguished from a rate case,’ meaning thereby, as they further state, that—-the ‘railroads, in this case, depend upon their revenue necessities as establishing in large part the reasonableness of the rates as proposed, rather than upon features to which appeal is ordinarily made when it is asserted that a particular rate should be increased because it is out of line with other rates and, therefore, not bearing its reasonable proportion of the burden.’

“The applicants concede that ‘the duty devolves upon them to show affirmatively that the rates proposed are reasonable in and of themselves.’ They urge, however, that they should not be expected to deal separately with each rate involved in order to prove its reasonableness, since so long a time would be required as to defeat the end of the proceeding. To establish the reasonableness of the rates which would result from their proposals the applicants rely almost wholly on the fact that the $170,000,000 of added revenue, which their estimate leads them to expect, would still fall short of earning a fair return on what they consider half the value of their property. They base this argument largely on Dayton-Goose Creek Ry. Co. v. United States, 263 U. S. 456, in which the Supreme Court (page 480) [44 S. Ct. 169, 172, 68 L. Ed. 388, 33 A. L. R. 472] said:

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Thea Broadus1 v. Infor, Inc.
2019 DNH 077 (D. New Hampshire, 2019)
Union Electric Co. v. United States
626 F.2d 1348 (Eighth Circuit, 1980)
Asphalt Roofing Manufacturers Association v. Interstate Commerce Commission and United States of America, Atchison, Topeka and Santa Fe Railroad Co., Eastern Railroads of the U. S., Fertilizer Institute, Intervenors. Southern Forest Products Association v. United States of America and Interstate Commerce Commission, Atchison, Topeka and Santa Fe Railroad Co., Eastern Railroads of the U. S., Fertilizer Institute, Intervenors. Sunkist Growers, Inc. v. Interstate Commerce Commission and United States of America, Atchison, Topeka and Santa Fe Railway Co., Fertilizer Institute, Intervenors. United States Beet Sugar Association v. United States of America and Interstate Commerce Commission, Eastern Railroads, Atchison, Topeka and Santa Fe Railway Co., Fertilizer Institute, Intervenors. American Frozen Food Institute v. United States of America and Interstate Commerce Commission, Eastern Railroads, Certain-Teed Products Corporation, Atchison, Topeka and Santa Fe Railway Co., Fertilizer Institute, Intervenors. Volkswagen of America, Inc. v. The United States of America and the Interstate Commerce Commission, Atchison, Topeka and Santa Fe Railway Co., Eastern Railroads, Fertilizer Institute, Intervenors. Ford Motor Company v. United States of America and Interstate Commerce Commission, Atchison, Topeka and Santa Fe Railway Co., Fertilizer Institute, Intervenors. General Motors Corporation v. United States of America and Interstate Commerce Commission, Atchison, Topeka and Santa Fe Railroad Co., Fertilizer Institute, Intervenors. American Motors Corporation v. United States of America and Interstate Commerce Commission, Fertilizer Institute, Intervenors. Western Growers Association v. United States of America and Interstate Commerce Commission, Eastern Railroads Atchison, Topeka and Santa Fe Railway Co., Fertilizer Institute, Intervenors
567 F.2d 994 (D.C. Circuit, 1978)
Niagara Mohawk Power Corp. v. United States
405 F. Supp. 845 (S.D. New York, 1975)
Nader v. Federal Communications Commission
520 F.2d 182 (D.C. Circuit, 1975)
Chesapeake and Ohio Railway Co. v. United States
392 F. Supp. 358 (E.D. Virginia, 1975)
Oklahoma Corp. Commission v. United States
388 F. Supp. 4 (N.D. Oklahoma, 1974)
Students Challenging Regulatory Agency Procedures v. United States
346 F. Supp. 189 (District of Columbia, 1972)
Alabama Power Company v. United States
316 F. Supp. 337 (District of Columbia, 1970)

Cite This Page — Counsel Stack

Bluebook (online)
11 F. Supp. 487, 1935 U.S. Dist. LEXIS 1620, Counsel Stack Legal Research, https://law.counselstack.com/opinion/algoma-coal-coke-co-v-united-states-vaed-1935.