Central R. Co. of New Jersey v. United States

99 F. Supp. 564, 1951 U.S. Dist. LEXIS 1879
CourtDistrict Court, D. New Jersey
DecidedAugust 28, 1951
DocketCiv. 97
StatusPublished

This text of 99 F. Supp. 564 (Central R. Co. of New Jersey v. United States) is published on Counsel Stack Legal Research, covering District Court, D. New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Central R. Co. of New Jersey v. United States, 99 F. Supp. 564, 1951 U.S. Dist. LEXIS 1879 (D.N.J. 1951).

Opinion

McLAUGHLIN, Circuit Judge.

Plaintiff seeks to set aside an order of the Interstate Commerce Commission dated December 29, 1949 which in turn had set aside a prior order of the Commission dated October 11, 1948 and dismissed the complaint in the cause. Plaintiff also asks that the Commission’s order of May 18, 1950 dismissing its petition for reconsideration be set aside. As the . Code requires, the suit is brought against the United States. The Interstate Commerce Commission and 20 of the 245 railroad companies that were named as defendants below have intervened.

The litigation revolves around allowances for car-float and lighterage service in New York Harbor. In the proceedings before the Commission, the complaint named as defendants the 12 other New York Harbor roads, as well as all of the connecting railroad carriers operating in Official Territory 1 and participating in joint rates between New York Harbor and other points in and beyond said territory. The complaint alleged that the allowances which accrued to the plaintiff and other New York Harbor lines, for the performance of car-float and lighter-age service within the free lighterage limits' of New York Harbor out of joint class and commodity rates were inadequate, unjust, and unduly prejudicial to the plain *567 tiff, and unduly preferential of defendant lines, in violation of Sections 1(4) and 3(4) of the Interstate Commerce Act, 49 U.S.C.A. §§ 1(4), 3(4). It was further alleged that the defendants’ practice of maintaining said allowances at a non-compensatory level was an unjust and unreasonable practice in violation of Section 1(6) of the Act. Plaintiff prayed that the Commission prescribe the minimum division of the joint rates to be received by the plaintiff and the other New York Harbor roads as compensation for the lighter-age and floatage service. After hearing, the Commission raised the allowance from 4.40 a 100 pounds for float shipments to 60 per' 100 pounds and increased the 4.40 allowance per 100 pounds on lighterage shipments on a sliding scale to from 6 to 110 per 100 pounds depending upon the amount of the joint rate. These new allowances were to be further increased by the same percentages as the joint rates had been increased in certain other Commission proceedings.

Following the entry of its report 2 and order to the above effect, upon petition of certain of the defendants, the proceeding was reopened by the Commission for re-argument and reconsideration. Thereafter 3 the Commission, in reversing its prior decision, found that “ * * * the great bulk of the New York rates, the divisions of which are here in issue, do not include the full cost of the lighterage and floatage services in New York Harbor which are performed under such rates.” Therefore, the Commission held that it was precluded “ * * * from prescribing allowances for lighterage or floatage services as divisions of joint rates based primarily upon the cost of the harbor service alone, and without careful consideration of the cost •of the line-haul and other services per•formed under such rates.” The Commission affirmed its finding made in the previous report and for the reasons given therein, that the plaintiff’s data purporting to show the costs of the non-harbor services performed under the joint rates was unacceptable. The Commission specifically found that there was no reliable cost data in the record of the case “ * * * for measuring the justness and reasonableness of the harbor allowances by the divisions of the joint rates received by the connecting carriers.” The Commission then concluded upon the record, “ * * * that the allowances assailed have not been shown to have been or to be unjust, unreasonable, inequitable, or unduly prejudicial as alleged, * * Regarding the charge that the acquiescence of the other New York Harbor lines and their connecting carriers in non-compensatory harbor allowances constituted an unlawful practice under Section 1(6) of the Interstate Commerce Act, the Commission held “ * * * that the allegation of unlawfulness under section 1(6) of the act has not been sustained.”

Objections to the Findings of Fact.

Plaintiff first argues that the Commission’s report and order “ * * * is unsupported by any valid findings of fact, * * In attempted substantiation of this five propositions are presented. The first of these calls the Commission’s finding that “ * * * the great bulk of the New York rates, * * *, do not include the full cost of the lighterage and floatage services in New York Harbor which are performed under such rates.”, a “fallacious assumption”.

The above finding, rather than being fallacious, is amply supported by decisions of the Commission in other proceedings and by the evidence below. The undisputed reason for the level of the basic rates into New York from points west and south thereof was the competition between the rail lines and the boat lines operating on the Erie Canal, and those rates, first established by the New York Central which performed no lighterage service, were later met by the other rail lines. New York Harbor Case, 47 I.C.C. 643, 707-708. In that decision the Commission found that “There is no evidence whatever to show that the basic rates from Chicago to New York include any allowance for terminal services”. Later the Commission, in Eastern Class Rate In *568 vestigation, 164 I.C.C. 314, 447, approved the addition of ten miles on the New York end “ * * * not as a measure of the cost of water-borne traffic in New York Harbor but merely a device for securing representative group distances.” Neither plaintiff’s attempted distinction of the Eastern Class Rate case nor its effort to eliminate the fundamental reason for the New York Harbor allowance situation as ancient and long ago discarded, are at all persuasive. It is noteworthy that the plaintiff neither before the Commission nor to this Court, has called attention to any decision standing for the doctrine that the New York joint rates take into consideration the full cost of unusual harbor terminal services. Nor has the plaintiff been able to explain away the fact that in the more recent general revenue proceedings since the New York Harbor case and the Eastern Class Rate case, as the Commission stated in its second report, 276 I.C.C. 655, 657, “ * * * no special consideration was sought of, or given to unusual terminal services, at New York or elsewhere, and the general increases therein authorized did not, and were not intended to, make any change in the relative transportation burden to be borne by the rates to and from New York as compared with the rates to and from any other points.” Moreover, there was in the record below strong testimony by defendants’ witness Butler which fully justifies the .Commission finding. And this Court cannot ignore the frank assertion made by the plaintiff in its motion before the Commission to dismiss the petition of certain defendants for reargument and reconsideration, where on pages 13 and 14 of the plaintiff’s motion it was said: “Although it may be quite true that the rates to and from New York Harbor do not include specific extra allowances for the excess costs of harbor service, no one has complained that the rates themselves are not reasonable rates for the entire service rendered.”

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Bluebook (online)
99 F. Supp. 564, 1951 U.S. Dist. LEXIS 1879, Counsel Stack Legal Research, https://law.counselstack.com/opinion/central-r-co-of-new-jersey-v-united-states-njd-1951.