Railroad Commission v. Chicago, Burlington & Quincy Railroad

257 U.S. 563, 66 L. Ed. 371, 42 S. Ct. 232, 22 A.L.R. 1086, 1922 U.S. LEXIS 2439
Supreme Court of the United States·Decided February 27, 1922·No. No. 206·Published·Cited by 155 cases

Opinion

Mr. Chief Justice Taft,

after stating the case, delivered the opinion of the court.

The Commission’s order, interference with which was enjoined by the District Court, effects the removal of the unjust discrimination found to exist against persons in interstate commerce, and against interstate commerce, by fixing a minimum for intrastate passenger fares in Wisconsin at 3.6 cents per mile per passenger. This is done under paragraph 4 of § 13 of the Interstate Commerce Act, as amended by the Transportation Act of 1920, which authorizes the Interstate Commerce Commission, after a prescribed investigation, to remove

“ Any undue or unreasonable advantage, preference, or prejudice as between persons or localities in intrastate commerce on the one hand and interstate or foreign commerce on the other hand, or any undue, unreasonable, [579] or unjust discrimination against interstate or foreign commerce. ”

We have two questions to decide.

First. Do the intrastate passenger fares work undue prejudice against persons in interstate commerce, such as to justify a horizontal increase of them all?

Second. Are these intrastate fares an undue discrimination against interstate commerce as a whole which it is the duty of the Commission to remove?

We shall consider these in their order.

First. The report and findings of the Commission undoubtedly show that the intrastate fares work an undue discrimination against travellers in interstate commerce and against localities (Houston, East & West Texas Ry. Co. v. United States, 234 U. S. 342) in typical instances numerous enough tp justify a general finding against a large class of fares. In a general order thus supported, possible injustice can be avoided by a saving clause allowing any one to except himself from the order by proper showing. This practice is fully sustained by precedent in what was done as a sequence of the Shreveport Case (Houston, East & West Texas Ry. Co. v. United States, supra). See 34 I. C. C. 472; 41 I. C. C. 83; Eastern Texas R. R. Co. v. Railroad Commission, 242 Fed. 300; Looney v. Eastern Texas R. R. Co., 247 U. S. 214. In Illinois Central R. R. Co. v. State Public Utilities Commission, 245 U. S. 493, 508, this court indicated its approval of such practice which was adopted ’by the Commission. 49 I. C. C. 713. Any rule which would require specific proof of discrimination as to each fare or rate and its effect would completely block the remedial purpose of the statute.

The order in this case, however, is much wider than the orders made in the proceedings following the Shreveport and Illinois Central Cases. There, as here, the report of the Commission showed discrimination against persons [580] and localities at border ■ points, and the orders were extended to include all rates or fares from all points in the State to border points. But this order is not so restricted. It includes fares between all interior points although' neither may be near the border and the fares between them may not work a discrimination against interstate travellers at all. Nothing in the precedents cited justifies an order affecting all rates of a general description when it is clear that this would include many rates not within the proper class or the reason of the order. . In such a case, the saving clause by which exceptions are permitted, can not give the order validity. As said by this court in the Illinois Central R. R. Case, “ it is obvious that an order of a subordinate agency, such as the Commission, should not be given precedence over a state rate statute otherwise valid, unless, and except so far as, it conforms to a .high standard of certainty.See also American Express Co. v. Caldwell, 244 U. S. 617, 627.

If, in view of the changes, made by federal authority, in a large class of discriminating state-rates, it is necessary from a state point of view to change non-discriminating state rates to harmonize with them, only the state authorities can produce such harmony. We can not sustain the sweep of the order in this case on the showing of discriminations against persons or places alone.

Second. The report of the Commission shows that if the intrastate passenger fares in Wisconsin are to be limited by the statute of that State to 2 cents .per mile, and charges for extra baggage and sleeping car accommodations are to be reduced in a corresponding degree, the net income of the interstate carriers of the State will be cut six millions of dollars below what it would be under intrastate rates on the same level with interstate rates. Under paragraphs 3 and 4 of § 13 and § 15a as enacted in §§416 and 422 respectively of the Transportation Act [581] of 1920 (which are given in part in the margin1), are such reduction and disparity an “ undue, unreasonable, or unjust discrimination against interstate or foreign commerce which the Interstate Commerce Commission may remove by raising the intrastate fares? A short reference to the circumstances inducing the legislation and a summary of its relevant provisions will aid the answer to this question.

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Railroad Commission v. Chicago, Burlington & Quincy Railroad, 257 U.S. 563, 66 L. Ed. 371, 42 S. Ct. 232, 22 A.L.R. 1086, 1922 U.S. LEXIS 2439 (1922).

257 U.S. 563 (Railroad Commission v. Chicago, Burlington & Quincy Railroad) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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