Cornell Steamboat Co. v. United States
Cornell Steamboat Co. v. United States
Opinion of the Court
delivered the opinion of the Court.
Cornell operates tugboats for hire on the Hudson River and in and about New York harbor. Its tugs carry no cargo but move scows, barges, and similar vessels belonging to others which themselves usually carry cargo. This towing service Cornell offers to perform for the public in general. About ninety-five per cent of the vessels which it serves are moved from points in New York to other points in the same State, but these movements generally traverse New Jersey as well as New York waters. Part III of the Interstate Commerce Act
First. Cornell argues that its towboats are not “water carriers” within the meaning of Part III of the Act. Looking at Part III, we find that, read together, §§ 302 (c), (d) and (e) define a “water carrier” as any person who engages in the “transportation by water . . . of . . . property ... for compensation.” Section 302 (h) defines “transportation” as including “all services in or in connection with transportation,” as well as “the use of any transportation facility.” Any “vessel,” which means any “watercraft,” § 302 (f), is such a facility. § 302 (g). Congress has thus carefully and explicitly set out the conditions which in combination describe the kinds of carriers it intended to subject to regulation. Cornell’s tugboats fall squarely within the description. If further proof of this be needed, §§ 303 (f) (1) and (2) expressly exempt from regulation under Part III certain types of towage service, but not that such as Cornell provides. Congress hardly would have exempted some towers, as it did in these sections, had it intended to exempt all towers.
Nevertheless, Cornell argues that the Act’s language, which appears on its face plainly to include transportation by means of towers, should not be so construed. In support of this contention, it is said that towers do not have that common law or statutory liability to shippers which generally attaches to common carriers, see Sun Oil Co. v. Dalzell Towing Co., 287 U. S. 291; cf. The Murrell, 200 F. 826; and that a “carrier” has been judicially defined as one who undertakes to transport the goods of another, a definition not inclusive of Cornell, since it does not make contracts to carry goods but only to move vessels which have goods on them. See Sacramento Navigation Co. v. Salz, 273 U. S. 326, 328; The Propeller Niagara v. Cordes,
Second. Cornell argues that even if it is covered by Part III of the Act, there was error in holding it to be a “common” rather than a “contract” carrier. Section 302
Third. The five per cent of Cornell’s business which consists of moving vessels between New York and New Jersey ports is unquestionably covered by the Act, because § 302 (i) (1) specifically includes transportation “wholly by water from a place in a State to a place in any other State.”
The pertinent language Congress used in defining what should be interstate commerce in Part III of the Act reg
Parts I, II, and IV of the Interstate Commerce Act, relating respectively to regulation of rail carriers, motor carriers, and freight forwarders, explicitly or by judicial interpretation cover all shipments which pass through the territory of two or more states even though both terminal points are in the same state.
Affirmed..
Transportation Act of 1940, c. 722, 54 Stat. 898, 929.
Compare § 320 (d) of Part III of the Act: “Nothing in this part shall be construed to affect any law of navigation, the admiralty jurisdiction of the courts of the United States, liabilities of vessels and their owners for loss or damage, or laws respecting seamen, or any other maritime law, regulation, or custom not in conflict with the provisions of this part.” 49 U. S. C. § 920 (d); 54 Stat. 950.
This section should be read together with §§303 (j) and (k) of Part III which are as follows:
“(j) Nothing in this part shall be construed to interfere with the exclusive exercise by each State of the power to regulate intrastate commerce by water carriers within the jurisdiction of such State.
“(k) Nothing in this part shall authorize the Commission to prescribe or regulate any rate, fare, or charge for intrastate transportation, or for any service connected therewith, for the purpose of removing discrimination against interstate commerce or for any other purpose.”
The words “intrastate commerce” and “intrastate transportation” as used in these two subsections are not expressly defined in Part III.
Hanley v. Kansas City Southern Ry. Co., 187 U. S. 617. The rule of the Hanley case has not been changed by the cases holding that companies engaged in such transportation movements are subject to taxation by the state where the terminal points are located. See Cornell Steamboat Co. v. Sohmer, 235 U. S. 549; Lehigh Valley R. Co. v. Pennsylvania, 145 U. S. 192; Ewing v. Leavenworth, 226 U. S. 464, 468-469.
Compare Wilmington Transportation Co. v. Railroad Comm’n, 236 U. S. 151, 155-156, which held that transportation on the high seas between two points within the state of California, Santa Catalina Island and San Pedro, being “local” and not involving “passage through the territory of another state,” was subject to rate regulation by California in the absence of controlling federal legislation.
For a general survey of state and federal legislation pertaining to regulation of water carriers, see Regulation of Transportation Agencies, Senate Document No. 152, 73d Cong., 2d Sess., pp. 5-13, 98-170.
See Note 7, infra.
See also Wells-Higman Co. v. St. Louis, I. M. & S. Ry. Co., 181. C. C. 175, 176; Willman & Co. v. St. Louis, I. M. & S. Ry. Co., 221. C. C. 405; Security Cement & Lime Co. v. Baltimore & Ohio R. Co., 113 I. C. C. 579; United States v. Delaware, L. & W. R. Co., 152 F. 269, 271-272 (C. C. S. D. N. Y.).
Part I, § 1 (1) of the Act confers jurisdiction over “transportation . . . wholly by railroad . . . from one State ... to any other State.” 49 U. S. C. § 1 (1); 24 Stat. 379 as amended. As previously stated this has been construed to include transportation starting in one
Part II, § 203 (a) (10) of the Act defines the “interstate commerce” by motor vehicle over which the Commission has jurisdiction as including “commerce . . . between places in the same State through another State. . . 49 U. S. C. § 303 (10); 49 Stat. 543, 544, as amended.
And Part IV, § 402 (a) (6) defines that transportation which shall be deemed “interstate commerce” for the purpose of regulation of freight forwarders as including “transportation . . . between points within the same State but through any place outside thereof.” 49 ü. S. C. § 1002 (a) (6); 56 Stat. 284, 285.
As reported in the Senate, the original omnibus transportation bill (S. 2009) contained a single definition of “interstate commerce” applicable alike to rail, motor, and water carriers. This definition embodied the holding of the Stroud case (267 U. S. 404) cited in our opinion by expressly including “transportation . . . between places in the same State by a route . . . passing beyond the borders of said State.” § 3 (25), Bill S. 2009, reported to the Senate May 16,1939. It has been suggested that the failure of the House Committee’s revision of Bill S. 2009 to retain this part of the definition contained in the original bill indicates an intention that the rule of the Stroud case should not apply to water transportation. In reaching our conclusion in the present case,
In the first place, the House Committee’s failure to retain in Part III the particular language of the definition of “interstate commerce” in original S. 2009 is sufficiently explained by the fact, noted in the body of our opinion, that the Committee modeled Part III, not upon the provisions of original S. 2009, but upon the existing Part I of the Act. And from the report of the House Committee, a body experienced in matters of transportation legislation, we may fairly infer that, in thus using the language of Part I, it had in mind the same objective as the Senate Committee which drafted the original S. 2009, namely to save “so far as possible the existing language so that full advantage may be taken of the many interpretations, both judicial and administrative, which have been put upon the respective sections.” See S. R. No. 433, 76th Cong., 1st Sess., p. 4; and H. R. No. 1217, 76th Cong., 1st Sess., pp. 18-19. Cf. McLean Trucking Co. v. United States, 321 U. S. 67, 77-80.
Furthermore, had the experienced House Committee intended to place in Part III a definition of “interstate commerce” different in scope from that in Part I, it hardly would have expressed such an intention by adopting substantially the identical language of Part I. But neither the House nor the Senate Committee appears to have had any such intention. As shown by their reports and the language of the bills which they drafted, the intention of both Committees, and of Congress, was to provide for regulation of the same sort of interstate water shipments as already were being regulated in the case of interstate rail shipments. See H. R. No. 1217, supra; S. R. No. 433, supra.
Dissenting Opinion
dissenting in part:
When in 1940 Congress provided for the regulation of water carriers in interstate and foreign commerce, it defined “transportation in interstate . . . commerce” for
The terms by which Congress conferred jurisdiction upon the Commission successively over rail carriers, motor carriers and water carriers are different. In a field so- wel'1 trodden as this, involving as it does the distribution of authority as between States and Nation over transportation facilities of interest to both governments, one would suppose that only the environment of legislation and the history of its enactment could dislodge the natural assumption that different literary roads taken by Congress had different objectives. For we are here concerned with three different definitions having different genealogies in the general field of regulation incorporated in one piece of legislation, namely the Transportation Act of 1940. There is nothing in the legislative history of the extent of the power over transportation by water carriage committed to the Commission to show that Congress meant that the phrasing which it employed was in purpose to be identic with the different phrasings Congress used as to rail and motor carriers. The legislative history indicates the contrary.
The Cullom Act of 1887, as is well known, was in direct response to Wabash, St. L. & P. Ry. Co. v. Illinois, 118
A totally different situation was presented to Congress by the heavy water traffic on boundry streams through
In 1940 Congress did undertake to regulate water transportation. But in view of the different ways in which rail, motor and water transportation are entangled with state interests and therefore state authority, it becomes vital to heed the exact language in which Congress expressed its purpose of regulation and the manner in which it finally passed the provisions by which it defined the Commission’s authority.
No doubt, as the House Committee said, “Most of the regulatory provisions included in the new part III were modeled on provisions of part I dealing with the same subject.” H. R. No. 1217, 76th Cong., 1st Sess., p. 18. In its context, the idea behind the phrase “regulatory provisions” bears on how to regulate, not what is regulated. And the fact that “most” provisions were the same, not all, indicates that variations from Part I were made in Part III. When therefore we find differences in definition of the “commerce” to be regulated between Part I and Part III, it will not do to disregard them and find identity through variation. Particularly is this true when there are practical differences to account for the variation. We must first define the field of the regulation—what “commerce” between two points in the same State but going through another becomes federally regulated although theretofore free from state regulation as was rail transportation, and what “commerce” is given over to federal regulation although theretofore it was within the province of state regulation as was water transportation in a situation like that under discussion. We thus have the practical differences between water-borne and land traffic, the practical problems in the distribution between state and federal power raised by water-borne traffic on boundary streams, and the actual differences in the definitions of “commerce” in the same Act of Congress responding to
The definition originally proposed in the Senate bill was intended to cover all three types of carrier—rail, water and motor. Particularization in this proposed definition of transportation within one State but through a second is clear proof that the Hanley doctrine applicable to rail carriers did not carry over to water and motor carriage. When Congress finally rejected the all-inclusive definition proposed by the Senate and decided on separate definitions of the commerce to be regulated, it did so precisely because it realized that the legal situation as to the three types was not the same. This careful process of distinctive definition by Congress is now in effect held to have been a futile legislative endeavor. The all-inclusive definition in the original Senate bill which the Congress rejected this Court restores.
A final word. We must not be unmindful that the Committees on Interstate Commerce out of which issued this legislation have a continuity of membership which makes them well versed in the problem before us: namely, how much of the constitutional power possessed by Congress for the control of utility services should in fact be committed to the Interstate Commerce Commission. (The Chairmen of the Senate and House Committees on Interstate Commerce, who had charge of the bills that became the Transportation Act of 1940, have been members of these Committees for twenty and twenty-three years respectively.) Particularly therefore when dealing with legislation coming from these Committees and in matters involving displacement of state by federal authority, we ought not to assume that Congress did not attach significance to what it said and meant to convey that which skilled language withheld. It is more respectful of Congress to attribute to it care instead of oasualness. It is
I am therefore compelled to conclude that the Commission was not given power to regulate transportation by Cornell from one port in New York to another port in the same State.
“It has never been supposed that because of the absence of Federal action the public interest was unprotected from extortion and that in order to secure reasonable charges in a myriad of such different local instances, exhibiting an endless variety of circumstance, it would be necessary for Congress to act directly or to establish for that purpose a Federal agency . . . The practical advantages of having the matter dealt with by the States are obvious and are illustrated by the practice of one hundred and twenty-five years. And in view of the character of the subject, we find no sound objection to its continuance. If Congress at any time undertakes to regulate such rates, its action will of course control.” 234 U. S. at 332.
Reference
- Full Case Name
- CORNELL STEAMBOAT CO. v. UNITED STATES Et Al.
- Cited By
- 43 cases
- Status
- Published