CHICAGO, M. & ST. P. R. CO. V. UNITED STATES, 366 U. S. 745 (1962)

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U.S. Supreme Court

Chicago, M. & St. P. R. Co. v. United States, 366 U.S. 745 (1962)

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

v. United States

No. 306

Argued May 2, 1961

Decided June 5, 1961*

366 U.S. 745


Appellant railroad applied to the Interstate Commerce Commission for an order requiring the Spokane, Portland & Seattle Railway and its two wholly owned subsidiaries (collectively referred to as the "S. P. & S. System") to join appellant in through routes and joint rates via Spokane, Wash., as extensive as those the S. P. & S. System participates in with its two owners, the Great Northern Railway and the Northern Pacific. The Commission found that, with limited exceptions, no through routes existed for the movement of freight by the S. P. & S. System and the appellant railroad via Spokane. It held that the "short haul protection" provided in § 15(4) of the Interstate Commerce Act applied, because the S. P. & S. System was operated in conjunction with and under common management of its parents, each of which owned 50% of the S. P. & S. It also found that the refusal of the S. P. & S. System to grant the through routes and joint rates requested did not result in discrimination against appellant or in undue preference or prejudice between shippers and localities, and that they were not "needed in order to provide adequate and more efficient or more economic transportation." Accordingly, it dismissed the application. The District Court held that the findings of the Commission were supported by substantial evidence, and affirmed its ruling as to the application of § 15(d).

Held: the judgment is affirmed. Pp. 366 U. S. 746-756.

(a) The Commission's findings were supported by substantial evidence. P. 366 U. S. 749.

(b) Section 15(4) of the Interstate Commerce Act, which prohibits the Commission from establishing any through route which would require a railroad to include in such route substantially less than its entire length and that of any intermediate railroad "operated in conjunction and under a common management or control

Page 366 U. S. 746

therewith," applies to a railroad like the S. P. &. S. which is operated in conjunction with and under the joint common management and control of two railroads. Pp. 366 U. S. 749-756.

182 F.Supp. 81 affirmed.

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