Assigned Car Cases United States v. Coal Mining Co Same v. Bethlehem Steel Co Same v. Cock Co Same v. Public Service Electric Gas Pocahontas Operators Ass v. Coal Mining Co Same v. Bethlehem Steel Co Same v. Cock Co Same v. Public Service Electric Gas Co United States v. Akron Ry Pocahontas Operators Ass v. Same
| Decision Date | 31 May 1927 |
| Docket Number | No. 714,No. 711,No. 709,No. 716,BERWIND-WHITE,No. 712,No. 666,No. 713,RAINEY-WOOD,No. 710,No. 715,No. 638,709,710,711,712,713,714,715,716,666,638 |
| Citation | 47 S.Ct. 727,71 L.Ed. 1204,274 U.S. 564 |
| Parties | ASSIGNED CAR CASES. UNITED STATES et al. v. COAL MINING CO. et al. SAME v. BETHLEHEM STEEL CO. et al. SAME v.COCK CO. et al. SAME v. PUBLIC SERVICE ELECTRIC & GAS Co. POCAHONTAS OPERATORS' ASS'N et al. v.COAL MINING CO. et al. SAME v. BETHLEHEM STEEL CO. et al. SAME v.COCK CO. et al. SAME v. PUBLIC SERVICE ELECTRIC & GAS CO. UNITED STATES et al. v. AKRON, C. & Y. RY. et al. POCAHONTAS OPERATORS' ASS'N et al. v. SAME |
| Court | U.S. Supreme Court |
[Syllabus from pages 564-566 intentionally omitted] Mr. Blackburn Esterline, of Washington, D. C., for the United states.
Messrs. Francis I. Gowen and F. M. Rivinus, both of Philadelphia, Pa., for Akron, Canton & Y. Ry. Co.
Mr. Frederick H. Wood, of New York City, for Bethlehem Steel Co.
Mr. Walker D. Hines, of New York City, for Berwind-White Coal Mining Co.
Mr. R. Granville Curry, of Washington, D. C., for Interstate Commerce Commission.
Mr. Wayne Johnson, of New York City, for Pennsylvania Coal & Coke Co.
Messrs. Ralph J. Baker, of Harrisburg, Pa., and John Lord O'Brien, of New York City, for Rainey-Wood Coke Co.
Messrs. Frank Bergen and William H. Speer, both of Newark, N. J., and August Gutheim, of Washington, D. C., for Public Service Electric & Gas Co.
Mr. E. L. Greever, of Tazewell, Va., for Pocahontas Operators' Ass'n.
These five suits were brought in the federal court for Eastern Pennsylvania under the Urgent Deficiencies Act October 22, 1913, c. 32, 38 Stat. 208, 219 (Comp. St. § 994), to enjoin and annual an order of the Interstate Commerce Commission. The order, which was to become effective March 1, 1925, prescribes for all railroads subject to its jurisdiction a so-called 'assigned car rule' governing the distribution of cars among bituminous coal mines in times of car shortage. Assigned Cars for Bituminous Coal Mines, 80 Interst. Com. Com'n R. 520; Id., 93 Interst. Com. Com'n R. 701. Some of the plaintiffs are operators of coal mines, some distributors of coal, some large private consumers of coal, and some are railroads. All had been parties to the proceeding before the Commission in which the order was entered. The defendants in each case are the United States, the Interstate Commerce Commission, and various intervening mine operators. All the defendants answered. The cases were heard together on the evidence before three judges. A final decree granting the relief prayed for was entered in each case on December 15, 1925. Berwind-White Coal Mining Co. v. United States (D. C.) 9 F. (2d) 429. The cases are here on appeal under section 238 of the Judicial Code as amended (Comp. St. § 1215).1 They were argued together.
The term 'assigned cars' is used in contradistinction to system cars. By assigned cars are meant those placed for use at a specified mine for a particular shipper. By system cars are meant those, from time to time on the line, which are being kept available for use at any mine for any shipper. Assigned cars are of two classes. One class of assigned cars consists of private cars. These are cars owned (or leased) by some shipper (or subject to the control of a particular person not a rail carrier) who delivers them to the railroad for placement at designated mines for loading and transportation as desired by the owner of the cars. Assigned cars of the other class are called railroad fuel cars. These consist wholly of cars owned (or leased) by some carrier, which, instead of being left, like system cars for use indiscriminately in carrying coal from any mine for any consignor to any consignee, are assigned to a particular mine to carry coal to be used as fuel by a particular carrier.
Four of the suits were brought by private car owners. They illustrate different conditions under which, or different purposes for which, private cars are so used. The plaintiffs in No. 709 are coal merchants, who operate mines. The plaintiffs in No. 710 are integrated concerns, which operate mines solely in order to supply coal to their manufacturing plants. The plaintiffs in No. 711 are by-product coke concerns, which do not operate any mine. The plaintiff in No. 712 is a public utility, which does not operate any mine. In each of these four cases, the cars owned were acquired by the shipper, and are used, solely in order to assure transportation of an indispensable supply of coal. The number of coal cars used on the railroads of the United States is estimated as between 900,000, and 950,000. Of these about 29,000 are private cars.
The fifth suit, No. 606, is brought by owners of railroad fuel cars. The plaintiffs in it are 35 railroads, including many of the leading bituminous coal carriers of the United States and representing each of the several classes of railroad fuel car owners. Railroad fuel cars are divided, according to ownership, into foreign fuel cars, that is, those which belong to, and are used for the fuel supply of, a carrier other than the one on whose lines the mine is located, and home line or system fuel cars, that is, those which are owned by, and are used to supply fuel to, the carrier on whose lines the mine is located. Railroad fuel cars are further classified according to the ownership, use, and character of the mine to which they are assigned; that is, whether the cars are used wholly in connection with a mine owned by the carrier which owns the cars, whether they are used in connection with a mine not owned by such carrier, but whose whole output is contracted for by it, or whether the mine at which the cars are to be placed is a 'commercial' one-that is, a mine which supplies coal also to the general public. About 28 per cent. of all bituminous coal mined is consumed by railroads. The number of the railroads to which the prescribed rule applies is 3,073. Of these, all except the 35 plaintiffs in No. 606 have acquiesced in the order.
The subject of discrimination in the distribution of coal cars in times of car shortage has occupied much of the time of the Commission ever since its establishment.2 Some general investigations of the matter were under taken by it pursuant to resolutions of Congress.3 Many specific inquiries were made in passing upon complaints of individual shippers who charged unjust discrimination by individual carriers.4 In two of these cases, Railroad Commission v. Hocking Valley Ry. Co., 12 Interst. Com. Com'n R. 398, and Traer v. Chicago & Alton R. R. Co., 13 Interst. Com. Com'n R. 451, a rule of practice was prescribed for individual carriers, in 1907 and 1908, which was approved by this court upon review in Interstate Commerce Commission v. Illinois Central R. R. Co., 215 U. S. 452, 30 S. Ct. 155, 54 L. Ed. 280. That practice, which became known as the Hocking Valley-Traer rule was later adopted, either voluntarily or pursuant to orders of the Commission, by other carriers.5 So far as concerned private cars, the rule was, in substance, adopted, during federal control, by the Railroad Administration. Car Service Circular 31-effective October 10, 1918; revised December 23, 1919. Upon the termination of federal control, the Commission issued a notice to carriers and shippers (dated March 2, 1920) recommending 'that until experience and careful study demonstrated that other rules would be more effective and beneficial,' the uniform rule contained in that circular should be continued in effect. Later (April 15, 1920) it recommended that the Hocking Valley-Traer rule be applied by the carriers also to railroad fuel cars.6 But no uniform rule concerning assigned cars applicable to all carriers had been prescribed by the Commission until the entry of the order here complained of; and much diversity in practice existed. Many of the railroads had secured their coal during periods of car shortage without resort to the use of assigned cars; and one, at least, of the leading bituminous coal carriers of the United States declines to permit the use of any assigned cars on its lines.
The rule here assailed was the fruit of an investigation commenced by the Commission of its own motion, in March, 1921, with a view to prescribing just and reasonable rules applicable to all carriers concerning the use of assigned cars for bituminous coal. Every carrier subject to its jurisdiction was made a respondent. Private coal car owners, coal mine operators, coal miners, coal distributors and large coal consumers became parties by intervention. The evidence introduced occupied nearly 6,000 pages. The investigation extended over four years. The reports of the Commission on the original hearing and the rehearing occupy 117 pages of the record. It concluded that the practices expressed in the Hocking Valley-Traer rule, and other existing regulations of carriers, resulted in unjust discrimination and were unreasonable. It ordered that the carriers cease and desist from such practices. And it prescribed the uniform rule which prohibits any carrier from placing for loading at any mine more than that mine's ratable share of all cars, including assigned cars, available for use in the district; unless the carrier is permitted to place more by an emergency order issued by the Commission pursuant to paragraph (15) of section 1 of the Interstate Commerce Act section 402 of the Transportation Act February 28, 1920, c. 91, 41 Stat. 456, 477 (Comp. St. § 8563). This rule requires that in determining how many cars are available in the district, the carrier placing the cars shall count all cars; that is, it must include with those owned by it, all owned by foreign railroads and assigned for their fuel service and likewise all owned by private shippers and assigned for their service. Thus, the prohibition embodied in the rule applies to all carriers,...
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