CHICAGO, M., ST. PAUL & PACIFIC R. CO. V. ILLINOIS, 355 U. S. 300 (1958)

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U.S. Supreme Court

Chicago, M., St. Paul & Pacific R. Co. v. Illinois, 355 U.S. 300 (1958)

Chicago, Milwaukee, St. Paul & Pacific Railroad Co. v. Illinois

No. 12

Argued November 12, 1957

Decided January 13, 1958*

355 U.S. 300


After the Illinois Commerce Commission had denied a railroad's request for authority to increase intrastate passenger fares for its Chicago suburban commuter service, claimed as necessary to enable it to operate such service without an out-of-pocket loss, the railroad petitioned the Interstate Commerce Commission for relief under 49 U.S.C. § 13(4). The latter Commission found that the railroad's revenues from this particular service fell short of meeting the out-of-pocket cost of such service, concluded that this caused undue discrimination against interstate commerce, and prescribed higher intrastate fares to produce enough revenue to eliminate the out-of-pocket loss and to allow $77,000 annually as a contribution to indirect costs and taxes. It also increased interstate fares to two points in Wisconsin to conform to the increased intrastate fares. The District Court set aside the Commission's order, enjoined its enforcement, and remanded the case to the Commission for further proceedings.

Held: the judgment is modified and affirmed. Pp. 355 U. S. 301-312.

1. The Commission's findings were not adequate to support its order under § 13(4). Pp. 355 U. S. 306-309.

(a) The deficit from this single commuter operation cannot fairly be adjudged to work an undue discrimination against the railroad's interstate operations without findings which take into account the carrier's other intrastate revenues from Illinois freight and passenger traffic. Pp. 355 U. S. 306-309.

(b) The portion of the prescribed increases designed to produce $77,000 annually as a contribution to indirect costs and taxes is not based on adequate findings. P. 309, n 8.

2. The Interstate Commerce Commission did not err in considering evidence which was not presented by the railroad to the State Commission. Pp. 355 U. S. 310-311.

Page 355 U. S. 301

3. The District Court did not err in setting aide so much of the Commission's order as authorized an increase in the interstate fares to the two Wisconsin points, since those rates are so interwoven with, and so closely bound to, the intrastate rates that a proper disposition of this case requires that the Commission reconsider them as part of its reconsideration of the entire Chicago suburban commuter service. Pp. 355 U. S. 311-312.

146 F.Supp. 195 affirmed with modifications.

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