Martin Bros. Box Co. v. Interstate Commerce Commission

128 F. Supp. 919, 1953 U.S. Dist. LEXIS 2161
CourtDistrict Court, D. Oregon
DecidedMay 15, 1953
DocketCiv. No. 6239
StatusPublished
Cited by2 cases

This text of 128 F. Supp. 919 (Martin Bros. Box Co. v. Interstate Commerce Commission) is published on Counsel Stack Legal Research, covering District Court, D. Oregon primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Martin Bros. Box Co. v. Interstate Commerce Commission, 128 F. Supp. 919, 1953 U.S. Dist. LEXIS 2161 (D. Or. 1953).

Opinion

SOLOMON, District Judge.

Plaintiff, Martin Brothers Box Company, hereinafter sometimes called “complainant,” filed a petition in this court pursuant to 28 U.S.C.A. § 1336 to set aside an order of the Interstate Commerce Commission, hereinafter called the “Commission,” dismissing the complaint of the plaintiff in a proceeding brought before the Commission. The United States of America and the Commission have no financial interest in this case but, because of statutory necessity, 28 U.S.C.A. § 2322, they were made parties defendant. Southern Pacific Company, the defendant in the proceeding before the Commission and the intervenor herein, shall hereafter be referred to either as “Southern Pacific” or “defendant.”

Plaintiff, by complaint filed against Southern Pacific with the Commission on October 14, 1947, alleged that Southern Pacific, during the period from January 1, 1947, to September 30, 1947, failed in its duty to provide and furnish transportation from plaintiff’s plant at Oakland, Oregon, upon reasonable request there[921]*921for, and failed in its duty to furnish safe and adequate car service at that plant in violation of § 1(4) and § 1(11) of the Interstate Commerce Act, hereinafter referred to as the “Act,” 49 U.S.C.A. § 1(4) and § 1(11). By reason thereof, plaintiff alleged that it was caused undue and unreasonable prejudice and disadvantage in violation of § 3(1) of said Act. Plaintiff, under § 9 of the Act, requested an award of reparations in the sum of $2,259,000.

A hearing was had on such complaint before an Examiner in Portland, Oregon, and, on September 1, 1950, the Examiner filed his proposed report in which he found defendant had violated its duty to furnish plaintiff adequate car service and recommended an award of reparations in the amount of $135,220.56 with interest. Exception? were filed by both plaintiff and Southern Pacific to such report and, following a hearing before its Division 3, the Commission, on March 12, 1951, rendered its decision in which it dismissed plaintiff's complaint. Martin Brothers Box Co. v. Southern Pacific, 280 I.C.C. 395.

A petition for reconsideration was denied by the full Commission on June 30, 1951.

Plaintiff, in its petition filed in this court on November 26, 1951, requested a hearing before a 3-judge court and the Southern Pacific, in addition to its general denial, raised the special defense that this court, under § 9 of the Act, lacks jurisdiction to review an order of the Commission denying reparations.

On the authority of United States v. Interstate Commerce Commission, 1949, 337 U.S. 426, 69 S.Ct. 1410, 93 L.Ed. 1451, the request of plaintiff for a 3-judge court was denied and the special defense of the Southern Pacific was overruled.

There is no substantial dispute between the parties as to the scope of review by this court of the Commission’s order. This court, according to United States v. Interstate Commerce Commission, 1951, 91 U.S.App.D.C. 178, 198 F.2d 958, 964, is

“to apply the standards of judicial review which are generally applicable to administrative action — the standards reflected in the Administrative Procedure Act, § 1 et seq. 5 U.S.C.A. § 1001 et seq., and in such decisions as Universal Camera Corp. v. N.L.R.B., 340 U.S. 474, 71 S.Ct. 456, 95 L.Ed. 456; United States v. Carolina Freight Carriers Corp., 315 U.S. 475, 489, 62 S.Ct. 722, 86 L.Ed. 971; Gray v. Powell, 314 U.S. 402, 412, 62 S.Ct. 326, 86 L.Ed. 301; Rochester Telephone Corp. v. United States, 307 U.S. 125, 129, 59 S.Ct. 754, 83 L.Ed. 1147; and Chicago Junction Case, 264 U.S. 258, 265, 44 S.Ct. 317, 68 L.Ed. 667.”

In other words, this court is limited to determining whether there was a rational basis for the final order of the Commission and, unless the order is not supported by substantial evidence or is contrary to law, it may not be disturbed.

With this standard in mind, I desire to examine the findings of the Commission. A summary of the facts found by both the Examiner and the Commission follows:

On February 28, 1946, the plaintiff purchased a lumber mill located at Oakland, Oregon, from the A. K. Wilson Lumber Company, primarily to establish a plant for the manufacture of wirebound boxes as well as to supply lumber for its plant located at Toledo, Ohio.

Plaintiff planned to continue the operation of the lumber mill at Oakland and estimated that 5 or 6 cars would be needed each day for the shipment of lumber. This plant had previously been given an allotment of 5 cars a day by Southern Pacific on the basis of the former owner’s requirements as a lumber mill. Plaintiff also planned to enlarge and improve the facilities and install machinery for the manufacture of wire-bound boxes and to begin production of boxes, with one shift, about the middle of 1946. It was planned to add a second and, later, a third shift when trained personnel was available. For each shift in the wirebound box department, it [922]*922was estimated that from 3 to 4 cars would be needed each day for the shipment of boxes, or a total of approximately 13 cars a day.

Before purchasing the Oakland mill, an option thereon and an option on nearby standing timber were obtained. Before exercising its options, plaintiff discussed its plans with defendant’s officers and made known its requirements. After receiving defendant’s assurances that sufficient freight cars would be furnished to it, plaintiff exercised such options.

By August, 1946, the box-making machinery was installed. However, even earlier, plaintiff established a sales office in Los Angeles and, before any boxes were manufactured, these salesmen booked orders for about 200 carloads of boxes. Because of its inability to obtain sufficient box cars for shipments of lumber to Toledo, the salesmen were instructed to relax their sales efforts. By letters dated July 30 and August 6, 1946, the plaintiff advised the defendant’s manager of perishable freight traffic and a district freight agent, both at San Francisco, of its desperate need for cars; that the immediate minimum requirements of the plant were 36 cars per week or 150 cars per month; and that the needs of the plant would shortly be increased to about 250 cars a month. At various times prior to and during the first 9 months of 1947, the plaintiff complained to the defendant that adequate cars were not being received and that additional cars were urgently needed not only to ship lumber to its Toledo plant but also to fill orders of producers of perishable commodities which, in turn, urgently needed the containers for shipment of their produce.

One of plaintiff’s Los Angeles salesmen, who had been notified to stop taking further orders, came to Oregon, where he spent I1/2 months in Oakland during the fall of 1946, and 3 months during the spring of 1947, during which time he exerted all his efforts to obtain more cars.

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128 F. Supp. 919, 1953 U.S. Dist. LEXIS 2161, Counsel Stack Legal Research, https://law.counselstack.com/opinion/martin-bros-box-co-v-interstate-commerce-commission-ord-1953.