Long Island Rail Road Company v. United States
Long Island Rail Road Company v. United States
Dissenting Opinion
(dissenting).
The principal issue herein is whether the Commission possessed the power to suspend the routing restriction, imposed by the plaintiff. Unquestionably it was authorized under 49 U.S.C.A. § 15(7) to suspend the $1.37 rate, thus preserving the status quo. By suspending the routing restriction and allowing the rate to stand, the Commission thus required the plaintiff to participate in joint rates and routes. In so acting, without conducting a full hearing the Commission exceeded its power. The establishment of through routes and joint rates is governed by Section 15(3) of the said Act which provides that “the Commission may * * * after full hearing * * * establish through routes.” The suspension order resulted in effecting or establishing through routes in conjunction with joint rates.
The contention that the routing restriction is “a practice”, a term used in Section 15(7) does not withstand examination. The terms “routing” and “practice” are referred to separately in Sections 15(3) and 15(7).
It is urged that the Long Island failed to avail itself of various remedies such as requesting the Commission to suspend both the routing restriction and rate or cancelling the tariff under Section 3. Assuming that the Long Island had these choices, it was not obliged to take advantage of them or either of them and should not suffer defeat because it claimed its rights under Section 15(3).
The suspension order should be vacated.
Opinion of the Court
The Long Island Rail Road Company seeks to enjoin an order of the Interstate Commerce Commission, dated October 7, 1960, which intiated an investigation of a routing restriction in a tariff and suspended the restriction in the meanwhile, and also various procedural orders entered thereafter. The Commission and The New York, Chicago and St. Louis Railroad Company, better known as the Nickel Plate, have intervened as defendants. The action has been submitted on the prayers for both temporary and final relief. We hold that we lack jurisdiction to review the procedural orders and that the Long Island has not met the exceedingly stringent standards required to warrant judicial interference with a suspension order.
The controversy concerns rates for the transportation of “partitions, other than rolling” from Cleveland, Ohio, to New York, N. Y. Until the summer of 1960 these moved under a class rate of $1.40 per cwt. This was available to New York, N. Y. stations on the Long Island by a variety of routings including one over the Nickel Plate and the Lackawanna. On July 14, 1960, the Chairman of the General Freight Committee-Eastern Railroads submitted to the carriers a proposal for a reduced commodity rate of $1.37 per cwt. from Cleveland to New York in order to meet truck competition. The suggested routing was “Class rate routes”. The proposal stated that in the absence of objection within 20 days “the views of all members will be recorded in the affirmative and an announcement will be made accordingly.” The Long Island advised the Committee that, as applied to its stations, routing would be subject to individual concurrence. Only the Pennsylvania having requested and received such a concurrence, the Traffic Executive Association-Eastern Railroads as agent published Supplement 127 to Tariff I.C.C. C-17, effective Oct. 10, 1960, Item 8536 of which provided for the $1.37 rate, with a restriction reading as follows:
“When for account of the L. I., will only apply when routed via PRR, Greenville Piers, N. J. or Jersey City, N. J. Float — Long Island City (New York), N. Y., L. I.”
But for this exception, the $1.37 commodity rate would have been subject to the general provision, in Item 19,000 of Tariff C-17, that all rates “apply by all
The Nickel Plate petitioned the Commission to suspend the quoted restriction ; the Commission’s Board of Suspension voted against this". The Nickel Plate then appealed to Division 2 and formally requested the Long Island for a concurrence. The concurrence was refused but the appeal succeeded. On Oct. 7, 1960, the Commission issued an order instituting an investigation into the lawfulness of the routing restriction and suspending this until May 9,1961, the maximum period permitted by 49 U.S.C.A. § 15(7); the portion of this order relating to suspension is here sought to be annulled. There followed a barrage of letters, memoranda, petitions, and replies, of which it is unnecessary to say anything save that they resulted in two other orders, also here sought to be reviewed, one setting the case for expedited hearing “under modified procedure”, with the Long Island directed to file an opening statement of facts and argument, and the other denying a petition for reconsideration both as the petition sought a vacating of the suspension order and as it requested that the burden of proof be cast upon the protestant, the Nickel Plate, rather than on the Long Island.
The complaint was filed in this court on Feb. 23, 1961, and Judge Rayfiel issued an order temporarily restraining the Commission from proceeding or requiring the Long Island to proceed in the investigation and suspension proceeding. The parties later agreed that the restraint should continue until determination of this action. A court of three judges was convened, 28 U.S.C. §§ 2321-2325; although the court has been ready to hear the parties at any time, argument was presented only on April 7, 1961.
We can readily dispose of so much of the complaint as asks us to set aside the Commission’s ruling that the burden of proof was on the Long Island rather than the Nickel Plate — this being the only attack on the two later orders that is pressed. This attack falls within the many decisions that such a procedural direction is not an “order” within 28 U.S.C. §§ 1336 and 1398, the modern embodiment of the Urgent Deficiencies Act, 38 Stat. 208, 219 (1913), 28 U.S.C. §§ 2321-2325, or other statutes of like tenor, but may be considered only upon review of further agency action. It suffices to cite United States v. Illinois Central R. Co., 1917, 244 U.S. 82, 37 S.Ct. 584, 61 L.Ed. 1007; F. P. C. v. Metropolitan Edison Co., 1938, 304 U.S. 375, 58 S.Ct. 963, 82 L.Ed. 1408; Eastern Utilities Associates v. S. E. C., 1 Cir., 1947, 162 F.2d 385; and, particularly, United Gas Pipe Line Co. v. F. P. C., 3 Cir., 1953, 206 F.2d 842.
Defendants contend the same principle deprives us of jurisdiction to review the suspension order. Conceding that a court may not inquire into the wisdom of such an order, the Long Island insists there is jurisdiction where the Commission is alleged to have failed to follow required procedures, or to have exceeded its statutory powers as is claimed here. The threshold issue is whether courts have even this limited power.
Numerous decisions, both before and after the demise of the “negative order” doctrine in Rochester Telephone Corp. v. United States, 1939, 307 U.S. 125, 59 S.Ct. 754, 83 L.Ed. 1147, have held refusals by the Commission or other regulatory agencies to exercise their suspension powers to be unreviewable. A few are M. C. Kiser Co. v. Central of Georgia Ry. Co., D.C.S.D.Ga.1916, 236 F. 573, affirmed 5 Cir., 1917, 239 F. 718; National
On the specific issue of the jurisdiction of the courts to review suspension orders, the authorities are divided. The Government, resisting reviewability, cites Manhattan Transit Co. v. United States, D.C.D.Mass.1938, 24 F.Supp. 174; Ferguson-Steere Motor Co. v. United States, D.C.N.D.Tex.1954, 126 F.Supp. 588; Consolidated Truck Service, Inc. v. United States, D.C.N.J., 193 F.Supp. 773, and dealing with an order of the Federal Power Commission, Humble Oil & Refining Co. v. F. P. C., 5 Cir., 1956, 236 F.2d 819, certiorari denied 1957, 352 U.S. 967, 77 S.Ct. 354, 1 L.Ed.2d 321. The last two decisions support the Government's position; the first does not leave us convinced that the decision went on lack of jurisdiction rather than of merit, — a distinction which, of course, is easily blurred if “abuse of discretion” is the test both of reviewability and of result. In the second, while District Judge Davidson’s concurring opinion went all the way the Government urges, Chief Judge Hutcheson declined to go beyond saying that any power of review for abuse of discretion was exceedingly limited, and District Judge Atwell dissented. Against the Fifth Circuit decision in 'the Humble case, delivered over a strong dissent by Judge Brown, Magnolia Petroleum Co. v. F. P. C., 5 Cir., 1956, 236 F.2d 785, 808-810, stand Atlantic Seaboard Corp. v. F. P. C., 4 Cir., 1953, 201 F.2d 568 and Phillips Petroleum Co. v. F. P. C., 10. Cir., 1955, 227 F 2d 470. And in Hudson and Manhattan R. R. Co. v. United States, Civ. 67-312 (S.D.N.Y. 1951) (unreported), the Court seems to have considered a suit which sought to enjoin a suspension order on the ground that the Commission’s “statement in writing of its reasons for such suspension” required by §
Plainly a suspension order is not “final” in the sense of 28 U.S.C. § 1291, namely, one that ends the proceeding, leaving nothing save ministerial acts for the ordering agency to perform. Catlin v. United States, 1945, 324 U.S. 229, 233, 65 S.Ct. 631, 89 L.Ed. 911. However, unlike 28 U.S.C. § 1291, or certain other acts relating to the review of agency action, see e. g., 29 U.S.C.A. § 160(f), and 5 U.S.C.A. § 1032, the statutes providing for review of orders of the Interstate Commerce Commission, 28 U.S.C. §§ 1336, 2321-2325, do not use the word “final”; any requirement in that sense comes from judicial interpretation. Neither is such a requirement derivable from § 10(c) of the Administrative Procedure Act, 5 U.S.C.A. § 1009(c); finality is there specifically required only for “agency action for which there is no other adequate remedy in any court”, not for “agency action made reviewable by statute.” A suspension order does not fall within the classic characterization of an unreviewable order in Mr. Justice Brandéis’ opinion in United States v. Los Angeles & S. L. R. R., 1927, 273 U.S. 299, 309-310, 47 S.Ct. 413, 71 L.Ed. 651. It would be trifling with reality to say that such an order “does not command the carrier to do, or to refrain from doing, any thing”, simply because the order nominally does this only for seven months, although practically it is likely to do so for much more, AmarilloBorger Express, Inc. v. United States, supra, 138 F.Supp. at page 414 footnote 3; the consequences of a temporary restraint, command or authorization, see Algonquin Gas Transmission Co. v. F. P. C., 1 Cir., 1953, 201 F.2d 334, 337-338, can be very serious. Neither ought review of a suspension order always be deemed forbidden by the “exhaustion” doctrine, admirably treated in 3 Davis, Administrative Law Treatise (1958), c. 20, see particularly § 20.05, cf. F. P. C. v. Arkansas Power & Light Co., 1947, 330 U.S. 802, 67 S.Ct. 963, 91 L.Ed. 1261, reversing 1946, 81 U.S.App.D.C. 178, 156 F.2d 821. To say that the agency may be persuaded at the subsequent hearing to take a different view about what it has suspended is simply to say that the suspension order is a temporary, not a final, order, which is where we began. Whether the Long Island met the exhaustion requirement here is a different matter; this we shall consider below.
The objection to judicial review of suspension orders even on the most limited basis stems rather from another set of considerations, namely, that the mere possibility of resort to the courts-may seriously interfere with the administrative agency’s effective performance of functions where speed is of the essence. The danger would be most acute if courts were to review for alleged abuse of discretion, or to insist on a hearing or elaborate findings with which Congress, for the soundest of reasons, has-dispensed. But even if all this be excluded and review confined to departure from statutory norms, there remains the risk, limned in another area by Mr. Justice Brennan’s dissent in Leedom v. Kyne, 1958, 358 U.S. 184, 195-196, 79 S.Ct. 180, 3 L.Ed.2d 210, that unmeritorious attacks, at least if accompanied by relief pendente lite, may accomplish the very objective of effectively blocking the suspension which is meant to be reserved for meritorious ones. In this very case, although the suspension itself has remained in effect, the restraining order, to whose continuation the parties agreed, has prevented any progress with the investigation during the seven months permitted for suspension, so that unless the Long Island consents to an extension, the suspended practice, which the Commission might otherwise have cancelled during the period, will become effective a few weeks hence. Still we are not willing to say that under no circumstances may a court have jurisdiction of a suit to enjoin a suspension order. Following the lead of the majority in Leedom v.
Section 15(7) authorizes the Commission, inter alia, to investigate and suspend “any new individual or joint regulation or practice affecting any rate, fare, or charge.” It can hardly be doubted that limiting the effectiveness of a rate to one of a number of routes is a “regulation or practice affecting any rate.” Hence we do not understand it to be disputed that, if the $1.37 rate had once been published as a joint rate with the Nickel Plate and other carriers and had become effective, and the Long Island thereafter filed a “schedule” imposing a restriction that the rate was thenceforth to be effective only via the Pennsylvania, the Commission might “suspend the operation of such schedule and defer the use of such * * * regulation, or practice”, § 15(7), as it did in Routing Restriction, Atlantic Coast Line R. Co., 309 I.C.C. 365 (1960) and Routing, Furniture, Carolina & N. W. Ry. to St. Louis, 310 I.C.C. 134 (1960), cf. Cotton from the Southwest to Southern Territory, 302 I.C.C. 637 (1958), injunction denied Southern Ry. Co. v. United States, D.C.E.D.La.1958, 166 F.Supp. 78. The Long Island’s case hinges on the fact that it never proposed a $1.37 joint rate generally applicable, its agreement to that rate having been subject to individual concurrence and this having been arranged only with the Pennsylvania. Even so, it concedes the Commission could lawfully have suspended the restriction if the Commission also had suspended the $1.37 rate. But, it argues with considerable plausibility, the suspension of the routing restriction alone, pursuant to § 15 (7), in effect established a through route and a joint rate between it and other carriers to which it had never agreed, without the hearing or the findings required to that end by § 15(3), and was therefore beyond the Commission’s statutory power.
Defendants answer that the participation with the Nickel Plate-Lackawanna in the $1.37 rate, into which suspension of the routing restriction precipitated the Long Island, did not have the same legal effect as action under § 15(3) would have had. The salient difference is that if the Commission had established a through route and joint rate under § 15(3), the Long Island could not have published a tariff cancelling this without Commission approval, whereas here nothing prevented the Long Island from doing precisely that. The Long Island replies that § 15 of the Act cannot be read as authorizing the Commission to force a carrier into any kind of joint rate by a suspension order under § 15(7) rather than by the procedure set out in § 15(3).
The Long Island’s argument might have considerable force if the Commission had manifested any intention to take advantage of the particular form of tariff publication here used so as to hold the
The complaint is dismissed, thereby vacating the temporary restraining order forthwith.
Reference
- Full Case Name
- LONG ISLAND RAIL ROAD COMPANY, Plaintiff, v. UNITED STATES of America, Defendant, Interstate Commerce Commission and the New York, Chicago and St. Louis Railroad Company, Intervening Defendants
- Cited By
- 19 cases
- Status
- Published