Arrow Transportation Co. v. Southern Railway Co.

372 U.S. 658, 83 S. Ct. 984, 10 L. Ed. 2d 52, 1963 U.S. LEXIS 2393, 48 P.U.R.3d 497, 1963 Trade Cas. (CCH) 70,740
Supreme Court of the United States·Decided April 15, 1963·No. 430·Published·Cited by 212 cases

Opinions

Mr. Justice Brennan

delivered the opinion of the Court.

A schedule of reduced rates proposed by the respondent rail carriers was suspended by the Interstate Commerce Commission for the maximum statutory period of seven months pending a determination whether the reduction was lawful. The statute1 expressly provides that “the [660] proposed change of rate . . . shall go into effect,” if the Commission’s proceeding has not been concluded and an order made within the period of suspension. The Commission did not reach a decision within seven months, or within the following five months during which the respondents voluntarily postponed the change, and the respondents announced that the reduced rates would be put in effect. Thereupon the petitioners2 brought this [661] action in the District Court for the Northern District of Alabama to enjoin the respondents from making the change effective pending the Commission’s decision. The District Court concluded after examination of the pleadings and a brief hearing that “there is grave danger that irreparable injury, loss or damage may be inflicted on ... [petitioners] if the proposed rates go into effect... for which . . . [petitioners] will have no adequate remedy at law.” 3 The court held, however, that § 15 (7) vested [662] exclusive power in the Commission to suspend a change of rate for a limited time and thereby precluded District Court jurisdiction to grant injunctive relief extending the statutory period. The Court of Appeals for the Fifth Circuit affirmed, stating, “Congress, in its wisdom, has fixed seven months as the maximum period of suspension. It seems clear to us that if the courts extend that period, they are in effect amending the statute and that is a matter beyond their power.” 308 F. 2d 181, 186. We granted certiorari, 371 U. S. 859.4 We affirm the judgment of the Court of Appeals.

I.

The Interstate Commerce Commission was granted no power to suspend proposed rate changes in the original [663] Act of 1887. That power first appeared among the 1910 amendments introduced by the Mann-Elkins Act.5 The problem as to whether the application of new rates might be stayed pending decision as to their lawfulness first emerged after the Commission was empowered by the Hepburn Act of 1906 to determine the validity of proposed rates. In the absence of any suspension power in the Commission, shippers turned to the courts for injunc-tive relief. The results were not satisfactory. The lower federal courts evinced grave doubt whether they possessed any equity jurisdiction to grant such injunctions, and the availability of relief depended on the view of a particular court on this much controverted issue.6 The Interstate Commerce Commission was more concerned, however, with certain practical consequences of leaving the question with the courts. In its Annual Reports for the three years before 1910 the Commission had directed attention to the fact that such courts as entertained jurisdiction were reaching diverse results, which engendered confusion and produced competitive inequities. The large expense entailed in prosecuting an action and financing a substantial bond proved prohibitive for many small shippers of modest means. Even when a large shipper secured an injunction, the scope of its relief often protected only that particular shipper, leaving his weaker [664] competitors at the mercy of the new rate.7 Therefore, the Commission reported to Congress, . . as a practical matter the small shipper who can not file the bond can not and does not continue in business under the higher rate.” I. C. C. Annual Report, 1908, p. 12. As an equally serious consequence, the regulatory goal of uniformity was jeopardized by the diverse conclusions reached by different District Courts — even, it appears, as to the reasonableness of a particular rate change. This resulted in disparity of treatment as between different shippers, carriers, and sections of the country, causing in turn “discrimination and hardship to the general public.” I. C. C. Annual Report, 1907, p. 10.

It cannot be said that the legislative history of the grant of the suspension power to the Commission includes unambiguous evidence of a design to extinguish whatever judicial power may have existed prior to 1910 to suspend proposed rates. However, we cannot suppose that Congress, by vesting the new suspension power in the Commission, intended to give backhanded approval to the exercise of a judicial power which had brought the whole problem to a head.

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Arrow Transportation Co. v. Southern Railway Co., 372 U.S. 658, 83 S. Ct. 984, 10 L. Ed. 2d 52, 1963 U.S. LEXIS 2393, 48 P.U.R.3d 497, 1963 Trade Cas. (CCH) 70,740 (1963).

372 U.S. 658 (Arrow Transportation Co. v. Southern Railway Co.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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