Dixie Carriers, Inc. v. United States

143 F. Supp. 844, 1956 U.S. Dist. LEXIS 3047
CourtDistrict Court, S.D. Texas
DecidedJuly 31, 1956
DocketCiv. A. 9544
StatusPublished
Cited by23 cases

This text of 143 F. Supp. 844 (Dixie Carriers, Inc. v. United States) is published on Counsel Stack Legal Research, covering District Court, S.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dixie Carriers, Inc. v. United States, 143 F. Supp. 844, 1956 U.S. Dist. LEXIS 3047 (S.D. Tex. 1956).

Opinion

JOHN R. BROWN, Circuit Judge.

Involving the vacating of an Order suspending proposed rates, this case 1 is a parallel of Amarillo-Borger Express v. United States, D.C.N.D.Tex., 138 F. Supp. 411 (three-Judge), and the variation in Long Island Railroad Co. v. United States, D.C.E.D.N.Y., 140 F. Supp. 823 (three-Judge), expressly approving it. We too, without the necessity of restating the matter so fully developed there, adopt the opinion, conclusion and reasoning of that case. The only substantial factual difference is that here the proposed rates required express Section Four approval by the Commission under the Long and Short Haul provision, 49 U.S.C.A. § 4(1) of the National Transportation Act, 49 U.S.C.A. § 1 et seq.

The Railroads, to regain a competitive position lost to interstate Water and Motor Carriers largely as the result, they claimed, of voluntary ex parte increases (Ex Parte 162, 166, 168, 175) in railroad rates, on September 19, 1955, published (to become effective October 26, 1955) drastic reductions in their rates for the movement of steel and’ wrought-iron pipe, in carloads, moving from the mills in the industrial areas East of the Mississippi River to destinations in the States of Arkansas, Louisiana, Oklahoma and Texas. Concealed in the lexicography of .the complex tariff papers is the battle for transportation revenues running annually, it is asserted, from $6,000,000 to $9,000,000 and consti *848 tu ting about 15% of water carrier revenues for the movement of fabricated steel pipe for current and immediate use in- the oil fields and for pipeline transmission facilities in the great Southwest.

This case does not involve the question of the extent of the right, so often asserted by the Railroads, as a part of management responsibility, to publish reduced rates to meet competition, see Atlanta & St. Andrews Bay Ry. Co. v. United States, D.C.M.D.Ala., 104 F.Supp. 193, 198, and which would, subject only to the possibility of suspension for a seven months period under 49 U.S.C.A. § 15(7), make them effective until determined by hearing to be unlawful. For here, by the choice of the Railroads, the proposed rates were less for the longer distance from the steel mill areas to rail-head delivery points in the Southwest than rates for the movement of the same commodity for shorter distances within both origin and destination territories. They were thus confessedly in violation of the Act 2 unless, upon application and after investigation by the Commission, finding it to be a special case, and the rates reasonably compensatory for the services performed, express approval were given.

Consequently, as permitted by the Act, the Railroads simultaneously filed (September 19, 1955) Fourth Section Application No. 31120 for approval of the rates. But until the Fourth Section Application was granted, the rates could not go into effect. Conversely, so long as they were suspended, they could not be effective and approval under Fourth Section would be a sterile, useless academic decision.

Water and Motor Carriers then filed Protests against Fourth Section approval and Petitions for Suspension, each of which normally are administratively handled by separate Boards 3 of Commission employees. On October 20, 1955, the Suspension Board, on positive findings 4 identical with Amarillo-Borger, *849 supra, ordered an investigation into the lawfulness of the rates and suspended them for the full seven months to May 25, 1956. With the rates suspended, there was nothing which the I & S Board could do on FSA 31120.

The Railroads, presumably accepting the findings, note 4, supra, as an adequate, árticulate “statement' in writing of [the Commission’s] reasons for such suspension” 5 since no complaint by them has yet been made, filed on October 26, 1955, a Petition in I & S 649.1 for reconsideration of the suspension order and, omthe same day, filed in FSA 31120 a “Petition of Railroad Applicants for Immediate Issuance of the Authority Sought by Application herein, dated September 16, 1955.” This was not 6 a Petition for reconsideration and those preparing and proposing it treated it as a Petition for initial action on the original Fourth Section Application.

Through Commission administrative channels the Petition for Reconsideration of the Suspension Order came before Division 2 acting as an appellate division. On December 7, 1955, by aii Order 7 in all respects identical with that roundly condemned in Amarillo-Borger, supra, the Suspension Order was vacated; and on December 9, 1955, an order of ambiguous 8 origin was entered grant *850 ing temporary Fourth Section relief effective December 17, 1955.

The Water and Motor Carriers then filed separate Petitions for Reconsideration of the Orders of December 7 and 9 requesting in those Petitions the Stay granted by the Act 9 where the initial Order is handed down by a Board or Division. By notice dated December 15, 1955, the full Commission declined to act and on the following day, December 16, notice and order were issued 10 denying the Petitions in I & S 6491.

Thus the matter stood when, on February 16, 1956, this verified complaint was filed. And on that record, we are of the clear opinion that the Order of December 7, vacating the prior suspension, is invalid. The simple phrase “and good cause appearing therefor” is inadequate to upset prior positive findings, and for the reasons 11 set forth in *851 Amarillo-Borger cannot, on judicial review, 12 stand.

Nor, do we think, does the matter stand differently because of sub *852 sequent efforts 13 of the Commission to indicate that it had in fact met the teachings of that case. This was not a permissible nunc pro tunc order correcting clerical, ministerial errors or omissions. It was an attempt to substitute reasons where none had appeared 14 or been recorded. Moreover, we agree with Long Island Railroad Co., supra, 140 F.Supp. 823, at page 828 (in which, at the very-same time, March 1, 1956, a similar “corrected order” was entered), applying Amarillo-Borger, that in the face of positive, strong findings of probable illegality merely to restate the conclusion in negative form is inadequate. We do not regard this in a technical light at all. If administrative agencies, no matter how highly motivated their particular action may be, can, under the form of nunc pro tunc

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143 F. Supp. 844, 1956 U.S. Dist. LEXIS 3047, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dixie-carriers-inc-v-united-states-txsd-1956.