Davies Warehouse Co. v. Bowles
Opinion of the Court
delivered the opinion of the Court.
The petitioner, Davies Warehouse Company, is incorporated under the laws of California and conducts a public warehouse in Los Angeles. Its business is declared to be that of a public utility both by the Constitution of
Several public warehouses, including the one before us, made application to the Commission for general rate increases. The Commission gave a public hearing in Feb
In the meantime the United States Price Administrator, acting under the Emergency Price Control Act,
This federal Act provides that “nothing in this Act shall be construed to authorize the regulation of . . . (2) rates charged .by any common carrier or other public utility.”
Congress, in omitting to define “public utility” as used in the Act, left to the Administrator and the courts a task of unexpected difficulty. Use of that term in a context of generality wears an appearance of precision which proves illusory when exact application becomes necessary. Relevant authorities and considerations are numerous and equivocal, and different plausible definitions result from a mere shift of emphasis. It may be contended that the exemption runs in favor of any business generally and traditionally regarded as a utility, irrespective of ae
The Emergency Court of Appeals weighed the conflicting factors in thorough opinions and divided as to result.
In Munn v. Illinois, 94 U. S. 113 (1877), this Court recognized that the business of public warehousing is “affected with a public interest” and that its regulation by the state is appropriate and constitutionally permissible. Cf. Budd v. New York, 143 U. S. 517, 544. Twenty-one states regulate warehouses in some respects.
We cannot, therefore, assume that Congress was unaware that a general statutory reference to “public utilities” might well be taken at least in some states to comprehend public warehouses. But Congress did not see fit to employ that precision of definition which it has used when it desired to make sure that its classification of public utilities for federal purposes would depend upon the nature of their activities uninfluenced by any state policy.
Legislative history is unequivocal in its showing that rates already subject to state regulation as public utility rates were not considered in need of further control. Mr. Leon Henderson, one of the authors of the bill and the first Price Administrator, gave as reasons for exempting utilities that they seemed to be under an adequate system of state regulation;
Under these circumstances the reasonable view appears to be that Congress by the term “public utilities” exempted those whose charges already were regulated as public utilities and hence were not probable sources of inflationary dangers. It may be and probably is the case that in its rate regulation the California Commission will take account of different factors and have different objectives than does the Federal Price .Administrator. That might have appealed to Congress as a reason for not exempting utilities at all, but it hardly helps define the limits of the exemption, for that objection is as cogent against what admittedly is included as against that which is left in doubt.
We think Congress desired to depart from the traditional partitioning of functions between state and federal government only so far as required to erect emergency barriers against inflation. No question as to the power of Congress to reach and regulate this business, should it find it necessary to do so, has been raised here. But as matter of policy Congress may well have desired
1. It is urged that if the status of an industry under state law is to be considered, the Administrator “would have to face the question whether the particular business concerned was sufficiently ‘affected with a public interest’ constitutionally to justify the type of legal obligation
2. It also is objected that if we consider the status of an industry under state law, the Price Administrator “would have to scrutinize and differentiate many kinds of franchises. Thus the Administrator, as incident to the task of price control, would be called upon to determine in any number of particular instances questions of state law which require the most painstaking examination of statutes and decisions.” We are not prepared to deny that in some degree this will be true, for we do not hold that all warehouses, or even that all warehouses regulated in some aspects, come within the exemption. We think the Administrator will have to form judgments and that they will be judgments of some difficulty. Simplicity of administration is a merit that does not inhere in a federal system of government, as it is claimed to do in a unitary
3. It also is contended than an interpretation must prevail as matter of principle which will give the exemption a general and uniform operation in all states irrespective of local law. It is, of course, true that uniform operation of a federal law is a desirable end and, other things being equal, we often have interpreted statutes to achieve it.
'4. Lastly, it is contended that we should accept the Administrator’s view in deference to administrative construction. The administrative ruling in this case was no sooner made than challenged. We cannot be certain how far it was determined by the considerations advanced, mistakenly as we think, in its defense in this case. It has hardly seasoned or broadened into a settled administrative practice. If Congress had deemed it necessary or even appropriate that the Administrator’s order should in effect be final in construing the scope of the national price-fixing policy, it would not have been at a loss for words to say so. We do not think it should overweigh the considerations we have set forth as to the proper construction of the statute.
We hold that the petitioner’s business is that of a public utility within the exemption of the Act, and the judgment below is accordingly
Reversed.
“The Legislature shall pass laws for the regulation and limitation of the charges for services performed and commodities furnished by telegraph and gas corporations, and the charges by corporations or individuals for storage and wharfage, in which there is a public use . . California Constitution, Art. IV, § 33.
“Every private corporation, and every individual or association of individuals, owning, operating, managing, or controlling any commercial railroad, interurban railroad, street railroad, canal, pipe line, plant, or equipment, or any part of such railroad, canal, pipe line, plant or equipment within this State, for the transportation or conveyance of passengers, or express matter, or freight of any kind, including crude oil, or for the transmission of telephone or telegraph messages, or for the production, generation, transmission, delivery or furnishing of heat, light, water or power or for the furnishing of storage or wharfage facilities, either directly or indirectly, to or for the public, and every common carrier, is hereby declared to be a public utility subject to such control and regulation by the Railroad Commission as may be provided by the Legislature . . California Constitution, Art. XII, § 23.
California Gen. Laws (Deering, 1937) Act 6386, § 2 (dd).
56 Stat. 23, 50 U. S. C. (Supp. II, 1942) § 901 et seq.
§302 (e), 50 U. S. C. (Supp. II, 1942) § 942 (c), reads: “The term 'commodity’ means commodities, articles, products, and materials (except materials furnished for publication by any press association or feature service, books, magazines, motion pictures, periodicals and newspapers, other than as waste or scrap), and it also includes services rendered otherwise than as an employee in connection with the processing, distribution, storage, installation, repair, or negotiation or purchases or sales of a commodity, or in connection with the operation of
§ 204 (d), 50 U. S. C. (Supp. II, 1942) §924 (d), provides: “. . . The Emergency Court of Appeals, and the Supreme Court upon review of judgments and orders of the Emergency Court of Appeals, shall have exclusive jurisdiction to determine the validity of any regulation or order issued under section 2, of any price schedule effective in accordance with the provisions of section 206, and of any provision of any such regulation, order, or price schedule. . . .”
137 F. 2d 201.
Arizona Code (1939) § 52-901; Arkansas Acts 1935, Act 83; California Gen. Laws (Deering, 1937) Act 6386, § 2 et seq.; Idaho Code Ann. (1932) § 59-128; Illinois Rev. Stat. (Bar Assn. ed. 1943) c. 111⅔, § 10 et seq., c. 114, § 189 et seq.; Indiana Stat. Ann. (Burns, 1933) § 54-105 et seq.; Kansas Gen. Stat. (1935) § 34-224 et seq.; Maine
California, Indiana, South Dakota, loc. cit. supra note 7.
Arizona, Idaho, Illinois, Maine, Nevada, North Dakota, Utah, Washington, loc. cit. supra note 7.
3 Uniform Laws Ann. (Supp. 1942) 6.
E. g., Public Utility Holding Company Act of 1935, §2 (a), 49 Stat. 804, 15 U. S. C. §79b (a); Federal Power Act, §201 (e), 49 Stat. 848, 16 U. S. C. § 824 (e).
Amendment proposed by Senator Norris to S. J. Res. 161. H. R. 7665, as amended by Senate, § 1,77th Cong., 2d Sess.
56 Stat. 765, 50 U. S. C. (Supp. II, 1942), § 961.
“. . . and public utilities were under what for the time being at least seemed to be an adequate system of State regulation, and therefore did not need to be brought into review.” Hearings before House Committee on Banking and Currency on H. R. 5479, 77th Cong., 1st Sess., Pt. I, Revised, p. 444.
“Now, as to the utilities. There is, as the members are aware, an adequate set of regulations as to the charges which utility companies can make. These, again, are based upon a long series of judicial
“. . . I have found that every one of the agencies charged with these particular items of cost are just as earnest as we are about keeping those costs down.” Id., p. 445; see the dissenting opinion of Chief Judge Vinson in the Emergency Court of Appeals, 137 F. 2d 201, 209.
The National Association of Railroad and Utilities Commissioners has filed a brief amicus curiae in opposition to what they consider an invasion by the Price Administrator of their field of public regulation.
Terminal Railroad Assn. v. Brotherhood of Trainmen, 318 U. S. 1.
The Administrator cites Chicago Board of Trade v. Johnson, 264 U. S. 1; Lyeth v. Hoey, 305 U. S. 188; Morgan v. Commissioner, 309 U. S. 78; Jerome v. United States, 318 U. S. 101, 104. See also Deitrick v. Greaney, 309 U. S. 190; D’Oench, Duhme & Co. v. Federal Deposit Ins. Corp., 315 U. S. 447, 470; Sola Electric Co. v. Jefferson Electric Co., 317 U. S. 173, 176; Clearfield Trust Co. v. United States, 318 U. S. 363.
See Mangus v. Miller, 317 U. S. 178, Corn Exchange Bank v. Klauder, 318 U. S. 434, Myers v. Matley, 318 U. S. 622 (bankruptcy); Uterhart v. United States, 240 U. S. 598, 603, Crooks v. Harrelson, 282 U. S. 55, Blair v. Commissioner, 300 U. S. 5, Helvering v. Fuller, 310 U. S. 69, 74, Helvering v. Stuart, 317 U. S. 154 (taxation); McClaine v. Rankin, 197 U. S. 154, Rawlings v. Ray, 312 U. S. 96 (statute of limitations); Brown v. United States, 263 U. S. 78 (condemnation); New York, C. & St. L. R. Co. v. Frank, 314 U. S. 360, 364-66 (railroad consolidation); United States v. Oklahoma Gas & Electric Co., 318 U. S. 206; Board of Commissioners v. United States, 308 U. S. 343.
Dissenting Opinion
with whom Mr. Justice Black and Mr. Justice Murphy concur, dissenting:
I think the present decision places an unwarranted burden on those who are waging the present war against in
The purpose of the Act is to provide an instrument for national control of the inflationary forces set loose by the war. The need for uniformity in the enforcement of the Act is acute—to avoid inequality in burden and sacrifice; to weigh the odds for success as heavily as possible on the side of the public interest. The other exemptions in the Act apply uniformly throughout the country—wages, insurance rates, theatre admissions, fees for professional services, and the like. If the “public utility” exemption is confined to the traditional classes of utilities, substantial uniformity will be obtained as they are almost universally subject to rate regulation in the States. But under the view taken by the Court warehouses will be exempt in some States but not in others. The same will be true of wharves and docks, slaughter houses, public markets, cotton gins and what not. And even in the same State there will be exemptions for some warehouses but not for others. This dependence of exemptions on the vagaries of state law would be quite understandable if the federal act were designed to mesh with state control—federal control being interposed to take up where state regulation was impossible or ineffective, as in various types of public utility regulation. Then there would be a great need in view of our federal system to preserve as much local autonomy as possible. The same would also be true where only a partial overriding of state controls was necessary to reach the
Every exception read into the Act creates another point of leakage, multiplies the task of enforcement, and creates a favored class of businesses. I would not read the Act with such a hostile eye. Where two interpretations are possible I would take the one which avoids those results. The choice between the “letter” and the “spirit” is an ancient one even in the law. See Radin, A Short Way With Statutes, 56 Harv. L. Rev. 388. In this case I think the wrong choice has been made.
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