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U.S. Supreme Court

Public Service Comm'n of Utah v. United States, 356 U.S. 421 (1958)

Public Service Commission of Utah v. United States

No. 15

Argued December 9, 1957

Decided May 19, 1958

356 U.S. 421


In a proceeding under §13(3) and (4) of the Interstate Commerce Act, the Interstate Commerce Commission considered the petition of railroads operating in Utah for an increase in freight rates on intrastate traffic in Utah, which had been denied by the Public Service Commission of Utah. After making findings patterned after those approved in Kiff v. United States, 344 U. S. 254, the Interstate Commerce Commission concluded that the intrastate rates caused "undue, unreasonable, and unjust discrimination against interstate commerce," and it issued an order generally applying to intrastate traffic in Utah the 15% increase previously granted generally for interstate traffic. Appellants sued to set aside the order, but the District Court denied relief.

Held: certain findings of the Commission lack sufficient support in the evidence; the judgment is reversed, and the cause is remanded to the District Court with instructions to set aside the Commission's order and remand the cause to the Commission for further proceedings in conformity with this opinion. Pp. 356 U. S. 422-429.

(a) The Commission's finding that prevailing intrastate rates were abnormally low and failed to contribute a fair share to over-all revenue was not adequately supported by the evidence, since there was no positive evidence to indicate that the relative cost of intrastate traffic was as great as that of interstate shipments. Pp. 356 U. S. 426-427.

(b) To support its finding that intrastate conditions were not more favorable than those incident to interstate transportation, the railroad evidence was far from substantial. Pp. 356 U. S. 427-428.

(c) The findings contain no indication that the Commission concerned itself with the revenues derived from, or the conditions incident to, intrastate passenger operations, which must be taken into consideration in arriving at a general intrastate freight level. Chicago, M., St. P. & P. R. Co. v. Illinois, 355 U. S. 300. Pp. 356 U. S. 428-429.

146 F.Supp. 803 reversed, and cause remanded.

Page 356 U. S. 422

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