United States Supreme Court Cases & Opinions

U.S. Supreme Court

United States v. Chicago, M., St.P. & Pacific R. Co., 294 U.S. 499 (1935)

United States v. Chicago, Milwaukee, St. Paul & Pacific R. Co.

No. 379

Argued February 6, 1935

Decided March 4, 1935

294 U.S. 499

Syllabus

1. An order of the Interstate Commerce Commission disapproving reduced rates proposed by a carrier is void unless supported by findings of the basic or quasi-jurisdictional facts conditioning the power of the Commission. P. 294 U. S. 504.

2. Such findings should be precise and clear. P. 294 U. S. 511.

3. There is a zone of reasonableness between rates that are excessively high and rates that are less than compensatory within which a carrier is ordinarily free to adjust its charges for itself. P. 294 U. S. 506.

4. A rate schedule initiated by a carrier must be upheld as lawful unless adequate reasons are presented for setting it aside. P. 294 U. S. 510.

5. The Commission may not prevent a carrier from reducing its rates to meet competition merely upon the ground that the reduction

Page 294 U. S. 500

would disturb the prevailing rate structure, grouping, and differentials, and possibly lead to a "rate war" between carriers. Pp. 294 U. S. 507, 294 U. S. 509.

8 F.Supp. 970 affirmed.

Appeal from a decree of the District Court of three judges, which enjoined the enforcement of an order of the Interstate Commerce Commission annulling reductions proposed by the Milwaukee Railroad of some of its rates on coal.