Illinois Commerce Commission v. United States

320 F. Supp. 205, 1970 U.S. Dist. LEXIS 9760
CourtDistrict Court, E.D. Illinois
DecidedOctober 23, 1970
DocketCiv. No. 69-150
StatusPublished
Cited by1 cases

This text of 320 F. Supp. 205 (Illinois Commerce Commission v. United States) is published on Counsel Stack Legal Research, covering District Court, E.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Illinois Commerce Commission v. United States, 320 F. Supp. 205, 1970 U.S. Dist. LEXIS 9760 (illinoised 1970).

Opinion

JUERGENS, District Judge.

Plaintiffs bring this action to set aside an order of the Interstate Commerce Commission, hereinafter referred to as Commission, terminating investigation into the proposed discontinuance by Illinois Central Railroad Company, hereinafter referred to as I. C., of its passenger trains Nos. 105 and 106, operating daily in each direction (105 being southbound and 106 being northbound) between St. Louis, Missouri and Carbondale, Illinois.

The distance between St. Louis and Carbondale is approximately 95 miles. The trains involved are the St. Louis section of the “Panama Limited.” The Panama Limited generally operates between Chicago, Illinois and New Orleans, Louisiana.

The St. Louis section connects with the main Panama Limited at Carbondale, where equipment from the St. Louis section is transferred to a separate St. Louis section. Trains Nos. 105 and 106 are presently the only trains operated by I. C. into or out of St. Louis and are the only trains operated over the line between St. Louis and Carbondale.

After hearing, the Commission entered its order permitting the discontinuance of the St. Louis section.

Pursuant to the provisions of section 13a (1) of the Interstate Commerce Act, 49 U.S.C. 13a(l), I. C., on May 28, 1969, filed a notice, together with a supporting statement, with the Commission that it would, effective July 1, 1969, discontinue the operation of the St. Louis section of the Panama Limited. Bus service was to be provided as a substitute, this being supplied by Gulf Transport Company, which is a wholly owned subsidiary of the Gulf, Mobile & Ohio Railroad Company. Notices were also mailed to the Governors of all states in which the Panama Limited is operated and posted in all of the stations served by the train between St. Louis, Missouri and New Orleans, Louisiana, all as required by statute.

On June 19, 1969, Division 3 of the Commission began investigation into the proposed discontinuance and entered an order requiring continued operations, pending hearing and decision based upon its investigation, but not for more than four months beyond the date when the discontinuance would otherwise become effective. Hearings were held in St. Loüis and Carbondale.

Following completion of the hearings, the Commission on October 28, 1969 filed its report, finding that the operation of the trains in question was not required by the public convenience and necessity and that continuing the operations would constitute an undue burden on interstate commerce. On October 31, 1969, a temporary restraining order was entered, requiring the continued operation of the trains in question pending review. A petition for reconsideration was filed and denied by the Commission.

Previous to the present proceedings, the I. C. had attempted to discontinue its extension of the Panama Limited as a part of its efforts to terminate all passenger operations at St. Louis. At that time four pairs of trains were involved, three of which were local trains between St. Louis and Carbondale, which made connection with the main line trains of I. C. in Carbondale. The main line trains operate between Chicago and Birmingham or between Chicago and New Orleans. The remaining pair of trains was the Chicago-St. Louis train known as the “Green Diamond.” On May 14, 1968, the Commission permitted discontinuance of the Green Diamond between St. Louis and Springfield and permitted discontinuance of two of the three St. Louis-Carbondale trains, retaining, however, the operation of trains Nos. 105 and 106 (106 was previously designated 16) — this train to continue in [208]*208operation for a period of one year. Prior to June 2, 1969, the trains Nos. 105 and 106 also made connection at Carbondale with Nos. 9 and 10, called the “Seminole,” to and from Birmingham, Alabama and Jacksonville, Florida. The Seminole south of Carbondale was discontinued in June 1969, pursuant to Commission orders.

The agency report found that trains Nos. 105 and 106 operated at a deficit of $287,068 in 1967, $249,876 in 1968, and, projecting the first three months of operation in 1969, an estimated $248,-637 for the year 1969. The average daily local patronage on No. 105 in 1968 was 18.95 and for the first three months of 1969 was 12.9, for No. 106 for 1968 6.8 and in 1969 5.4 respectively. Transferred passengers at Carbondale from No. 105 averaged 21.4 in 1968 and 12.8 for the .first three months of 1969. Comparable figures for train No. 106 were 20.6 in 1968 and 15.0 for the first three months of 1969. Based upon the evidence adduced at the hearings, the Commission found that the patronage of the trains had “declined to the point of no return” and there was no hope of a future upward trend; that use of the trains at the intermediate points between Carbondale and St. Louis was “virtually nonexistent”; that mail and express business, once a major part of the passenger train revenues, had virtually disappeared due to the use of other means of transportation by the Post Office Department and the Railway Express Agency and that revenues from these sources appear to be irretrievably lost. The Commission found that the carrier could reduce annual expenses by a net sum of $248,637 if trains Nos. 105 and 106 were discontinued. Of this sum, $139,684 would be saved by withdrawing the I. C. passenger operations from the terminal at St. Louis.. The. St. Louis terminal is operated by the Terminal Railroad Association. The rates are determined by a formula based on usage by the several railroads jointly using the facility on an expense sharing basis.

The Commission considered the agreement between Gulf Transport Company, a bus company, which will provide a coordinating bus service to operate in lieu of trains 105 and 106, which agreement obligates Gulf Transport to meet all I. C. trains in Carbondale for the purpose of establishing a through service between St. Louis and points south of Carbondale. The intermediate points will also be served by buses. Five buses each day each way now operate between St. Louis and Carbondale and additional buses are to be provided upon discontinuance of the trains, which would raise the figure to six buses each way. The Commission further found that “the continued operation of the trains at an uneconomical level would constitute an unnecessary and wasteful service.”

The issue presented is whether the orders of the Commission, authorizing the discontinuance of the two Illinois Central trains between St. Louis and Carbondale are lawful and contain adequate findings based upon substantial evidence.

Under section 13a(1) two statutory findings are required; namely, (1) whether operation of a train is required by public convenience and necessity and (2) whether continued operation would unduly burden interstate or foreign commerce. These two findings are to be considered together rather than separately. And the public need for the train is to be balanced against any burden on interstate commerce in order to determine both the public convenience and necessity as well as the undue burden provision. Or, as stated by the Supreme Court in Southern R. Co. v. North Carolina, 376 U.S. 93, 84 S.Ct. 564, 11 L.Ed.2d 541 (1964):

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320 F. Supp. 205, 1970 U.S. Dist. LEXIS 9760, Counsel Stack Legal Research, https://law.counselstack.com/opinion/illinois-commerce-commission-v-united-states-illinoised-1970.