Woodruff v. United States

40 F. Supp. 949, 1941 U.S. Dist. LEXIS 2816
CourtDistrict Court, D. Connecticut
DecidedAugust 29, 1941
DocketNo. 625
StatusPublished
Cited by6 cases

This text of 40 F. Supp. 949 (Woodruff v. United States) is published on Counsel Stack Legal Research, covering District Court, D. Connecticut primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Woodruff v. United States, 40 F. Supp. 949, 1941 U.S. Dist. LEXIS 2816 (D. Conn. 1941).

Opinion

PER CURIAM.

Prior to 1938 it appears that the line of railroad in question barely paid the out of pocket cost of its operation, and that for the years 1938 to 1940 inclusive, the earnings have been somewhat greater, due in large part to the presence of one additional patron of the line. However, the Interstate Commerce Commission has found that by far the greater part of the business on the line has been contributed by a very few shippers, that the largest shipper, Wood-ruff Fertilizer Co., has made arrangements to move his location, and that the next largest shipper, the Lee Company, has made an arrangement to receive its freight elsewhere.

The plaintiff has criticised this finding as based on hearsay. It is true that at the hearing at Hartford at which the evidence was taken, the plaintiff objected to certain evidence on this point and the evidence was received over his objection and included in the record of fact which was transmitted for the consideration of the Commission. But the opinion of the Commission makes it plain that it recognized as hearsay the evidence objected to. Its finding, apparently, was based on other evidence not open to such criticism. For.the railroad in its return to the official questionnaire of the Commission in connection with its application for authority to abandon, had recited that the principal users of the segment, representing 86% of its tonnage, had indicated a willingness to receive their freight at another station. Consequently, the subsequent and continued absence of opposition to the abandonment by the two largest shippers was in itself ground for a fair inference that they had indeed agreed to receive their freight elsewhere. And further there was direct testimony from a representative of the Highway Commissioner of the State of an agreement between the State and the Fertilizer Company, the largest shipper on the segment, for the removal of its plant to another location. Thus taking into account the whole record, we cannot say that the finding of the Com[952]*952mission on this point, or indeed on any other point, was not supported by legal evidence.

With the business contributed by these two largest shippers gone, it appears that the line will not earn the bare out of pocket cost of operation and will contribute nothing toward the fixed charges and overhead essential to the continued operation of the system. Consequently the solicitude of the respondent trustees, charged with the operation of the line, to accomplish an abandonment is readily understandable; there was a substantial danger that the line, unless abandoned, would constitute a positive drain upon the resources of the system with its interstate ramifications.

On the other hand, it appears that the plaintiff, as a property owner having a warehouse located on the line, as indeed all other abutting property owners and shippers, will suffer in varying degrees some inconvenience from an abandonment of the line. Indeed, the abandonment may adversely affect the value of the plaintiff’s property, which heretofore has been served by the line. Assume that this is so; yet it does not follow that abandonment cannot lawfully be accomplished, or that the order here challenged was contrary to law.

Prior to the Transportation Act of 1920, in circumstances such as these, a railroad, at least in the absence of charter provisions to the contrary, could abandon at will. But by section 402 of that Act, 41 Stat. 477, 49 U.S.C.A. § 1(18), the right of abandonment was subjected to the supervision of the Interstate Commerce Commission. And now an abandonment can only be accomplished upon a finding of convenience and necessity by that authority. In reaching its determination on this issue it is not necessary that the Commission “determine with mathematical exactness the extent of the burden imposed upon interstate commerce by the operation of a branch line.” Transit Commission v. United States, 284 U.S. 360, at page 370, 52 S.Ct. 157, at page 159, 76 L.Ed. 342. Rather the Act contemplates that the Commission shall make a considered balance of the respective conflicting interests, its “effort being to decide what fairness to all concerned demands.” Colorado v. United States, 271 U.S. 153, 46 S.Ct. 452, 456, 70 L.Ed. 878.

This is just what is shown to have been done here. The Commission appears to have determined in the light of all available evidence, including information furnished in response to a searching questionnaire which it required of the respondent trustees showing the performance of the segment in the past, and evidence bearing on the contemplated results of prospective operation, that continued operation would indeed constitute a drain on the resources of the railroad. On the other hand, its opinion shows that the Commission appears to have considered fully the effect of abandonment on the plaintiff and the shippers and the public in the territory affected. It has noticed that the injurious effects were somewhat mitigated by the existence of several other nearby freight stations on the railroad and the existence of a highway system which would enable the public to get service in all cases without unduly increasing the haul by highway generally present to some extent at least even with the rail segment in operation.

For after all, when this line of railroad was built, carriage by highway was a far less satisfactory substitute for the delivery of local freight than is now the case. But now, with local communities so well provided with networks of improved highways in competition with the rails it has' become increasingly essential for the preservation of sound and efficient railroad systems that their existing freight traffic should be consolidated. Thus by the elimination of a multiplicity of branch'line stations the resources of railroads can be concentrated on their larger arteries. These in conjunction with the local highways furnish in the aggregate a system of transportation which gives the public as a whole a service much faster and more efficient that it enjoyed from the combination of the local station and the horse-drawn wagon.

To be sure, abutting owners and shippers accustomed to local service may find the process of transition the occasion of inconvenience ; it may even depress property values. But the law contemplates that these incidents must yield to the broader public interests. And here on a record which includes all the relevant factors, the Commission to which Congress confided the responsibility of decision has decided that the abandonment should be authorized. It does not lie within the province of this court to interfere with a conclusion which we find was fully supported by the underlying record.

We hold, therefore, that the complaint before us should be dismissed for want of equity.

[953]*953The plaintiff has further contended that the order of the Commission is void for procedural reasons. It seems that the Commission instead of requiring the parties and all others interested to come to Washington for a hearing, assigned the trustees' application for authority to abandon for hearing at Hartford in this District “before the Public Utilities Commission of Connecticut.” And the hearing was indeed conducted by Mr. Edwy L. Taylor, a member of that Commission. The proceedings of the hearing were reported throughout by the official reporters for the Interstate Commerce Commission and their transcript of the evidence was submitted not to Mr.

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Bluebook (online)
40 F. Supp. 949, 1941 U.S. Dist. LEXIS 2816, Counsel Stack Legal Research, https://law.counselstack.com/opinion/woodruff-v-united-states-ctd-1941.