WESTERN PAPER MAKERS' CHEMICAL COMPANY ET AL.
v.
UNITED STATES ET AL.
AI-generated. These summaries, headnotes, and key points are machine-generated and may contain errors or omissions. Always verify against the full opinion text below. Not legal advice.
Western Paper Makers' Chemical Company challenged Interstate Commerce Commission orders that established new through rates for rosin shipments from Gulf and Atlantic ports to Michigan cities, arguing the rates were unreasonable, unjustly discriminatory, and violated the long-and-short-haul clause of the Interstate Commerce Act. The Supreme Court affirmed the lower court's dismissal, holding that the Commission's rate determinations are conclusive if supported by substantial evidence absent procedural irregularity or legal error, and that the Commission had authority to close existing shipping routes to prevent violations of the long-and-short-haul clause.
© FLexlaw, Inc. — AI-generated enrichments are proprietary. All rights reserved.
Mr. Justice Brandeis delivered the opinion of the Court.
This suit against the United States and the Interstate Commerce Commission was brought in the federal court, for western Michigan to enjoin-in part, and to modify, certain orders of the Commission, which established through rates on rosin from Atlantic and Gulf ports to Kalamazoo and Grand Rapids, Michigan. The proceed-, .ings before the Commission originated in tariffs filed during 1923 by carriers operating in Southeast and Mississippi Valley territory. By these tariffs a comprehensive revision of rates on naval stores, including rosin, from all such points of production was proposed. Shippers, including these plaintiffs, protested. The proposed rates were suspended; and extensive hearings in which the plaintiffs participated were held. An order was entered requiring cancellation of the filed tariffs. A new schedule of rates, including those complained of by plaintiffs, was finally authorized. Naval Stores from Southern Producing Points to Various Destinations, 87 I. C. C. 740 ; 89 I. C. C. 634. Upon specific exceptions filed by the plaintiffs to the Kalamazoo and Grand Rap ids rates as proposed in the report of the .Examiner, the Commission found that these rates were neither unreasonable nor unjustly discriminatory. Western Paper Makers’ Chemical Co. v. Director General, 91 I. C. C. 223. The new rates to those cities are higher than the rates previously in effect. The Kalamazoo rates from Gulf ports are higher than those to Chicago; the Grand Rapids rates from Gulf ports are higher than those to Milwaukee.
The case was heard in the District Court before three judges upon application for an interlocutory injunction. The plaintiffs claimed that the order was void in part, because the evidence introduced before the Commission-did not justify the increased rates from Atlantic and Gulf ports to Kalamazoo and Grand Rapids; because the establishment of rates from Gulf. ports to these cities higher than those enjoyed by competing manufacturers at Chicago and Milwaukee was unjust discrimination against Kalamazoo and Grand Rapids; and because the new rates involved a violation of the long-and-short-haul clause of § 4 of the Interstate Commerce Act. The court found against the plaintiffs on each of their contentions and denied the' injunction. 7 Fed. (2d) 164. Upon submission of the case for final hearing a decree dismissing the bill was entered on January 3, 1925. A direct appeal to this Court was taken under the Act of October 22, 1913, c. 32, 38 Stát. 208, 220. The record included all the evidence introduced before the Commission. Pursuant to-an order of this Court, made on a motion of the plaintiffs for diminution of the record, counsel agreed upon -a short statement of. the whole evidence sufficient to enable this Court to consider whether there was any evidence to support the findings of the Commission;
The objections as presented here in brief and argument-were addressed mainly to the soundness of the reasoning by which the Commission reached its conclusions, ;It was urged that these are inconsistent with .conclusions reached by it in similar cases; that the findings are inconsistent with some views expressed in its reports in this proceeding; that some evidence was improperly considered; and that inferences drawn from some of the evidence were unwarranted. These objections we have ño occasion to discuss. The detérmination whether a rate is unreasonable or discriminatory is a question on which the finding of the Commission is.conclusive if supported by substantial evidence, unless there was some irregularity in the proceeding or some error in the application of the rules of law. Skinner & Eddy Corporation v. United States, 249 U. S. 557, 562; New England Divisions Case, 261 U. S. 184, 204. No such irregularity of error is shown. In making its determinations the Commission is not hampered by mechanical rules governing the weight or effect of evidence. The mere. admission of matter which under the rules of evidence applicable to judicial proceedings would be deemed incompetent does not invalidate its order. United States v. Abilene & Southern Ry. Co., 265 U. S. 274, 288. There was ample evidence to support the finding that the joint through rates regarded as entireties were reasonable and' justified. Prior existing rates, whether locals or such proportionate rates from a key point to points Of destination as were made applicable to this particular class of traffic, or through rates upon other commodities moving from similar points of origin, are proper matters for consideration in establishing new through rates. To consider the weight of the evidence is beyond our province.
Among the objections urged here was this: The rate from New Orleans to Chicago was fixed at 37 cents; that to Kalamazoo ,at 39. _ The rate from New Orleans to Milwaukee was fixed at 39 cents; that to Grand Rapids at 40. One of the many routes from the southern ports to Chicago theretofore open, was via Cincinnati and Kalamazoo ; one of those to Milwaukee was via Cincinnati and Grand Rapids. These routes had been rarely used. If retained, they would have violated the long-and-short-haul clause of § 4 of the Interstate Commerce Act unless relief therefrom was granted by the Commission. See United States v. Merchants, etc., Association, 242 U. S. 178. That relief it refused; and, to remove this obstacle to the higher Kalamazoo and Grand Rapids rates, it directed that these routes should be abandoned. The plaintiffs insist that the Commission could not lawfully close an existing route in order to avoid a fourth-section violation. The authority exercised was clearly within the broad discretion vested in the Commission. Compare Louisiana &. Pine Bluff Ry. Co. v. United States, 257 U. S. 114.
Affirmed.
Cases With Similar Vibessemantic neighbors from the corpus
Citator
Cited By (30 total)
-
United States v. Allegheny-Ludlum Steel Corp., 406 U.S. 742 (U.S. 1972)…ry penalties, the Commission nonetheless conceded that obtaining complete compliance with them would be impossible. The standard of judicial review for actions of the Interstate Commerce Commission in general, Western Chemical Co. v. United States, 271 U. S. 268 (1926), [*749] and for actions taken by the Commission under the authority of the Esch Act in particular, Assigned Car Cases, 274 U. S. 564 (1927), is well established by prior decisions of this Court. We do not weigh the evidence introduced before…
-
Virginian Ry. Co. v. United States, 272 U.S. 658 (U.S. 1926)…ion on which the finding of the Commission, supported by substantial evidence, is conclusive, unless there was some irregularity in the proceeding or some error in the application of rules of law. Western Paper Makers’ Chemical Co. v. United States, 271 U. S. 268. No irregularity in the proceedings before the Commission is even suggested. Second. The Virginian contends that the specific facts found are, as matter of law, insufficient to support the finding of undue prejudice. The facts material are these. […
-
ST. Joseph Stock Yards Co. v. United States, 298 U.S. 38 (U.S. 1936)…. United States, 280 U. S. 420, 444. This Court has. consistently declared in cases arising under the Interstate Commerce Act, that to “consider the weight of the evidence is beyond our province,” Western Paper Makers’ Chemical Co. v. United States, 271 U. S. 268, 271; Chicago, R. I. & P. Ry. v. United [*76] States, 274 U. S. 29, 33-34; and that courts have no concern with the correctness of the Commission’s reasoning, with the soundness of its conclusions of fact, or with the alleged inconsistency of the fi…
Previewing 3 of 30 citing cases — full citator treatment, depth of discussion, and citing context are member features.
Join FLexlaw to unlock all legal intelligenceAuthorities Cited
- The New England Divisions Case, 261 U.S. 184 (U.S. 1923)
- United States & Interstate Commerce Comm'n v. Abilene & S. Ry. Co., 265 U.S. 274 (U.S. 1924)
- Skinner & Eddy Corp. v. United States, 249 U.S. 557 (U.S. 1919)
- La. & Pine Bluff Ry. Co. v. United States, 257 U.S. 114 (U.S. 1921)
- United States v. Merchs. & Mfrs. Traffic Ass'n of Sacramento, 242 U.S. 178 (U.S. 1916)