Searching over 5,500,000 cases.


searching
Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.

Baltimore and Ohio Chicago Terminal Railroad Co. v. United States

decided: September 6, 1978.

BALTIMORE AND OHIO CHICAGO TERMINAL RAILROAD COMPANY; BALTIMORE AND OHIO RAILROAD COMPANY; BELT RAILWAY COMPANY OF CHICAGO; BESSEMER & LAKE ERIE RAILROAD COMPANY; BOSTON & MAINE CORPORATION; CHESAPEAKE & OHIO RAILWAY COMPANY; CHICAGO AND NORTH WESTERN TRANSPORTATION COMPANY; CHICAGO, MILWAUKEE, ST. PAUL & PACIFIC RAILROAD; CHICAGO, ROCK ISLAND & PACIFIC RAILROAD COMPANY; CHICAGO, SOUTH SHORE AND SOUTH BEND RAILROAD; CONSOLIDATED RAIL CORPORATION; DELAWARE & HUDSON RAILWAY COMPANY; DETROIT TERMINAL RAILROAD COMPANY; DETROIT, TOLEDO & IRONTON RAILROAD COMPANY, DULUTH, MISSABE AND IRON RANGE RAILWAY COMPANY; ELGIN, JOLIET AND EASTERN RAILWAY COMPANY; FLORIDA EAST COAST RAILWAY COMPANY; GRAND TRUNK WESTERN RAILROAD COMPANY; ILLINOIS CENTRAL GULF RAILROAD; INDIANA HARBOR BELT RAILROAD COMPANY; KENTUCKY & INDIANA TERMINAL RAILROAD COMPANY; LOUISVILLE AND NASHVILLE RAILROAD COMPANY; MISSOURI PACIFIC RAILROAD COMPANY; NORFOLK & WESTERN RAILWAY COMPANY; ST. LOUIS-SAN FRANCISCO RAILWAY COMPANY; ST. LOUIS SOUTHWESTERN RAILWAY COMPANY; SEABOARD COAST LINE RAILROAD; SOO LINE RAILROAD COMPANY; SOUTHERN PACIFIC TRANSPORTATION COMPANY; SOUTHERN RAILWAY COMPANY; STATEN ISLAND RAILROAD CORPORATION; TERMINAL RAILROAD ASSOCIATION OF ST. LOUIS; WESTERN MARYLAND RAILWAY, PETITIONERS
v.
UNITED STATES OF AMERICA AND INTERSTATE COMMERCE COMMISSION, RESPONDENTS CENTRAL VERMONT RAILWAY, INC.; DULUTH, WINNIPEG AND PACIFIC RAILWAY; AND THE DETROIT AND TOLEDO SHORE LINE RAILROAD COMPANY, INTERVENORS. BURLINGTON NORTHERN INC. AND UNION PACIFIC RAILROAD COMPANY, INTERVENORS. DUVAL SALES CORPORATION, INTERNATIONAL MINERALS & CHEMICAL CORPORATION, EVANS PRODUCTS COMPANY AND PULLMAN LEASING COMPANY, INTERVENORS. THE TEXAS MEXICAN RAILWAY COMPANY, INTERVENOR. ALIQUIPPA AND SOUTHERN RAILROAD COMPANY; CHESTNUT RIDGE RAILWAY COMPANY; EAST ERIE COMMERCIAL RAILROAD; EAST JERSEY RAILROAD AND TERMINAL COMPANY; GETTYSBURG RAILROAD COMPANY; LAKE ERIE, FRANKLIN & CLARION RAILROAD COMPANY; MCKEESPORT CONNECTING RAILROAD COMPANY; MONONGAHELA CONNECTING RAILROAD COMPANY (THE); MORRISTOWN AND ERIE RAILROAD COMPANY; NORTHAMPTON AND BATH RAILROAD COMPANY; PHILADELPHIA, BETHLEHEM AND NEW ENGLAND RAILROAD COMPANY; PITTSBURGH AND OHIO VALLEY RAILWAY COMPANY; PORT JERSEY RAILROAD; RAHWAY VALLEY RAILROAD; UNION RAILROAD COMPANY; UPPER MERION AND PLYMOUTH RAILROAD COMPANY; AMERICAN SHORT LINE RAILROAD ASSOCIATION; ABERDEEN AND ROCKFISH RAILROAD COMPANY; ALEXANDER RAILROAD COMPANY; APACHE RAILWAY COMPANY (THE); ARCATA AND MAD RIVER RAILROAD COMPANY (THE); ARKANSAS & LOUISIANA MISSOURI RAILWAY COMPANY; ASHLEY, DREW & NORTHERN RAILWAY COMPANY; BELFAST & MOOSEHEAD LAKE RAILROAD COMPANY; BELTON RAILROAD COMPANY; BERLIN MILLS RAILWAY COMPANY; BIRMINGHAM SOUTHERN RAILROAD COMPANY; BROOKLYN EASTERN DISTRICT TERMINAL RAILROAD; BUTTE, ANACONDA & PACIFIC RAILWAY COMPANY; CANTON RAILROAD COMPANY; CARBON COUNTY RAILWAY COMPANY; CEDAR RAPIDS AND IOWA CITY RAILWAY COMPANY; CENTRAL NEW YORK RAILROAD CORPORATION; CHATTAHOOCHEE INDUSTRIAL RAILROAD; CHATTAHOOCHEE VALLEY RAILWAY COMPANY; CHICAGO SHORT LINE RAILWAY COMPANY; CHICAGO, WEST PULLMAN AND SOUTHERN RAILROAD COMPANY; CITY OF PRINEVILLE RAILWAY; CLAREMONT AND CONCORD RAILWAY COMPANY; COLORADO & WYOMING RAILWAY COMPANY; COOPERSTOWN & CHARLOTTE VALLEY RAILWAY CORPORATION; CUYAHOGA VALLEY RAILWAY COMPANY (THE); DANSVILLE AND MOUNT MORRIS RAILROAD COMPANY; DARDANELLE & RUSSELLVILLE RAILROAD COMPANY DELRAY CONNECTING RAILROAD COMPANY; DEQUEEN AND EASTERN RAILROAD COMPANY; DULUTH & NORTHEASTERN RAILROAD COMPANY; EAST CAMDEN & HIGHLAND RAILROAD COMPANY; ESCANABA AND LAKE SUPERIOR RAILROAD COMPANY; FAIRPORT, PAINESVILLE AND EASTERN RAILWAY COMPANY; FONDA, JOHNSTOWN AND GLOVERSVILLE RAILROAD COMPANY; FORE RIVER RAILROAD CORPORATION; FRANKFORT AND CINCINNATI RAILROAD COMPANY; GREAT SOUTHWEST RAILROAD INCORPORATED; GREEN MOUNTAIN RAILROAD CORPORATION; GREENVILLE AND NORTHERN RAILWAY COMPANY; IOWA TERMINAL RAILROAD COMPANY; JOHNSTOWN AND STONY CREEK RAILROAD COMPANY; KENTUCKY AND TENNESSEE RAILWAY; LACKAWAXEN AND STOURBRIDGE RAILROAD CORPORATION; LAKE SUPERIOR & ISHPEMING RAILROAD COMPANY; LAKE TERMINAL RAILROAD COMPANY (THE); LAONA & NORTHERN RAILWAY COMPANY; LASALLE AND BUREAU COUNTY RAILROAD COMPANY (THE); LAURINBURG AND SOUTHERN RAILROAD COMPANY; LONG ISLAND RAIL ROAD COMPANY (THE); LONGVIEW PORTLAND & NORTHERN RAILWAY COMPANY; MANUFACTURERS' JUNCTION RAILWAY COMPANY; MARINETTE, TOMAHAWK AND WESTERN RAILROAD COMPANY; MERIDIAN & BIGBEE RAILROAD COMPANY; MICHIGAN NORTHERN RAILWAY COMPANY, INC.; MIDDLETOWN AND NEW JERSEY RAILWAY COMPANY INCORPORATED; MINNEAPOLIS, NORTHFIELD AND SOUTHERN RAILWAY; MINNESOTA TRANSFER RAILWAY COMPANY; MISSISSIPPI EXPORT RAILROAD COMPANY; MODESTO AND EMPIRE TRANCTION COMPANY; MONTPELIER & BARRE RAILROAD COMPANY; NEVADA NORTHERN RAILWAY COMPANY; NEWBURGH AND SOUTH SHORE RAILWAY COMPANY (THE); NORTH LOUISIANA & GULF RAILROAD COMPANY; OREGON & NORTHWESTERN RAILROAD COMPANY; PEARL RIVER VALLEY RAILROAD COMPANY; PECOS VALLEY SOUTHERN RAILWAY COMPANY (THE); PORT HURON AND DETROIT RAILROAD COMPANY; PRESCOTT AND NORTHWESTERN RAILROAD COMPANY (THE); PROVIDENCE AND WORCESTER COMPANY; RIVER TERMINAL RAILWAY COMPANY (THE); SABINE RIVER & NORTHERN RAILROAD COMPANY; SALT LAKE, GARFIELD AND WESTERN RAILWAY COMPANY; SAND SPRINGS RAILWAY COMPANY; SANDERSVILLE RAILROAD COM IN NORMAN V. UNITED STATES, 368 F.2D 645, 647 N.8 (3DINAL AND EASTERN RAILROAD; TERMINAL RAILWAY ALABAMA STATE DOCKS; TEXAS & NORTHERN RAILWAY COMPANY; TEXAS, OKLAHOMA & EASTERN RAILROAD COMPANY; TEXAS SOUTH-EASTERN RAILROAD COMPANY; TRONA RAILWAY COMPANY; VALDOSTA SOUTHERN RAILROAD; VENTURA COUNTY RAILWAY COMPANY; WARREN & SALINE RIVER RAILROAD COMPANY; WYANDOTTE SOUTHERN RAILROAD COMPANY; WYANDOTTE TERMINAL RAILROAD COMPANY; YOUNGSTOWN AND NORTHERN RAILROAD COMPANY (THE) PETITIONERS V. UNITED STATES OF AMERICA AND THE INTERSTATE COMMERCE COMMISSION, RESPONDENTS DUVAL SALES CORPORATION, INTERNATIONAL MINERALS & CHEMICAL CORPORATION, EVANS PRODUCTS COMPANY AND PULLMAN LEASING COMPANY, INTERVENORS THE TEXAS MEXICAN RAILWAY COMPANY, INTERVENOR



ON PETITION FOR REVIEW OF AN ORDER OF THE INTERSTATE COMMERCE COMMISSION (Ex Parte No. 289)

Before Adams, Weis and Higginbotham, Circuit Judges.

Author: Adams

Opinion OF THE COURT

Petitioners in these consolidated cases*fn1 request us to set aside an order of the Interstate Commerce Commission (ICC) entered on April 7, 1977, in Ex Parte No. 289, "Remittance of Demurrage Charges by Common Carriers of Property by Rail."*fn2 By its order, the ICC adopted a regulation requiring the remittance to freight car owners of all demurrage charges collected by the delivering carrier that are in excess of ten dollars per day per car.*fn3 Specifically, petitioners maintain that the order exceeds the statutory power of the agency; that it is arbitrary, capricious, and without rational basis; and that it fails to comply with the Administrative Procedure Act (APA)*fn4 and the Interstate Commerce Act (ICA).*fn5

For the reasons set forth below, we deny petitioners' request.

I.

The regulation at issue is a recent attempt by the ICC to deal with the longstanding shortage in this country of railroad freight cars.*fn6 The car shortage, resulting from both an insufficient supply and an inefficient utilization of freight cars, is an outgrowth of the present national carpool system. Under the system, the freight cars that are owned by Individual Railroads constitute a single, common pool, used by All rail carriers. Thus, the same loaded freight car is transported over the lines of different connecting carriers to the ultimate destination point. While more efficient than the earlier practice of shifting freight from the car of one carrier to the car of another, the pool system has at the same time made it more advantageous economically for railroads to utilize the freight cars of the originating carriers than to purchase and maintain their own. The national freight car shortage is the acknowledged result.*fn7

During the past several years, the ICC has taken a number of major actions in an attempt to ease the car shortage: (1) it has adopted various "car service" rules to regulate the placement and movement of freight cars;*fn8 (2) it has established a uniform schedule of "per diem" charges, which are those incurred daily by one railroad for the use of another's cars;*fn9 (3) it has added an "incentive" element to the basic per diem rate;*fn10 and (4) it has imposed an increase in demurrage charges.*fn11

Ex Parte No. 289, the proceeding in question here, was instituted in October 1972, to determine whether remittance of the penalty portion*fn12 of the demurrage charges to the carriers owning the cars would create an added incentive for such carriers to acquire additional cars. Following notice in the Federal Register*fn13 and submission of written statements by a number of the ninety-seven participating parties, the ICC, on April 25, 1975, issued its Interim Report.*fn14 The Report adopted the principle of the proposed remittance rule and reopened the proceeding for receipt of additional evidence regarding the plan's feasibility and costs. Following notice of the proposed further rulemaking,*fn15 one hundred-eighteen parties submitted additional information to the ICC.

On April 7, 1977, the ICC issued its Report and Order in Ex Parte No. 289.*fn16 It concluded that adoption of the proposed remittance rule would be beneficial to the public and the rail industry, as well as administratively feasible. Consequently, the agency directed that the rule become effective on July 6, 1977. However, the effective date was subsequently stayed by the ICC pending judicial review.

II.

A.

The principal argument made in support of the petition to set aside the order in question is that the ICC lacks a statutory base to promulgate the demurrage remittance rule. The ICC, in turn, contends that it does have the requisite authority under 49 U.S.C.A. § 1(6) (Supp.1978), as amended by the Rail Revitalization and Regulatory Reform Act of 1976 (4R Act).*fn17

The 4R Act added a provision to § 1(6) which states that "demurrage charges shall be computed, and rules and regulations relating to such charges shall be established, in such a manner as to fulfill the national needs with respect to (a) freight car utilization and distribution, and (b) maintenance of an adequate freight car supply available for transportation of property."*fn18 Petitioners assert that the statutory directive that "demurrage charges shall be computed" cannot properly be interpreted to authorize the ICC to "divide" demurrage revenues between the delivering carrier and the owner of the car.

In analyzing a question of statutory construction, the Supreme Court has said that it accords deference to the interpretation given the statute by the officers or agency charged with its administration. Udall v. Tallman.*fn19 While the agency's interpretation is by no means controlling,*fn20 to sustain the ICC it is necessary only that we find its interpretation to be a reasonable one.*fn21 As Tallman recognized, "we need not find that (an agency's) construction is the only reasonable one or even that it is the result we would have reached had the question arisen in the first instance in judicial proceedings."*fn22

Petitioners in the present situation argue that the plain meaning of the phrase "demurrage charges shall be computed" should control, that previous use of the term by the ICC does not indicate an understanding that it confers upon the agency the power to divide demurrage revenues, and that the division of revenues is such a substantial change from prior ...


Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.