Decided on the authority of North Carolina v. United States,
p. 325 U. S. 507
56 F. Supp.
Appeals from a decree of a district court of three judges
denying injunctions and dismissing the complaints in three suits to
enjoin and set aside an order of the Interstate Commerce
Page 325 U. S. 536
MR. JUSTICE BLACK delivered the opinion of the Court.
The States of Alabama, Tennessee, and Kentucky filed a bill in a
federal district court seeking to set aside and enjoin enforcement
of an order of the Interstate Commerce Commission. The Federal
Economic Stabilization Director, acting through the Price
Administrator, was granted the right to intervene. The Commission's
order directed that intrastate railroad rates in Alabama, Kentucky,
Tennessee, and North Carolina, be raised to the level of interstate
rates fixed by the Commission.* The
Page 325 U. S. 537
district court declined to enjoin enforcement of the order, 56
Fed.Supp. 478, and the case is here on direct appeal under Section
210 of the Judicial Code.
The issues here are substantially the same as in North
Carolina v. United States, ante,
p. 325 U. S. 507
which involved the same order of the Commission as it applied to
rates in the North Carolina. The Commission relied basically on the
1936 rate order, to which we referred in our opinion in the
case. Here also, the Commissions of the
three states had held hearings and determined that the intrastate
rates were adequate in every respect to give the particular
railroads involved a sufficient income to compensate them fully for
their services and to enable the railroads adequately and
efficiently to operate in the State. There was evidence before each
of the state Commissions, as there was before the Interstate
Commerce Commission, that the railroads were enjoying an
unprecedented prosperity and reaping a tremendous harvest of
profits from their railroad operations in the state. There was
evidence from which the Interstate Commerce Commission could have
found that the intrastate passenger rates involved were sufficient
to pay each railroad a substantial profit for each mile it carried
an intrastate passenger. The findings here possess the same
infirmities as those in the North Carolina
follows that our judgment must be the same.
Because the order of the Commission was not based on adequate
findings supported by evidence, the District Court should have
declined to enforce the Commission's order. The judgment of the
district court is therefore reversed.
THE CHIEF JUSTICE, MR. JUSTICE ROBERTS, MR. JUSTICE REED, and
MR. JUSTICE FRANKFURTER dissent for the reasons stated in the
dissent in North Carolina v. United States, ante,
325 U. S.
* Together with No. 592, Davis, Economic Stabilization
Director, by Bowles, Price Administrator v. United States et
also on appeal from the District Court of the United
States for the Western District of Kentucky.
** 258 I.C.C. 133. The state 1.65 cents per mile passenger coach
rate was directed to be raised to 2.2 cents per mile. Round trip
coach rates were ordered proportionately raised. Sleeping and
parlor car intrastate fares in some of the States were also
directed to be increased.