1. After the Interstate Commerce Commission had twice denied
applications by a railroad for increased compensation for carrying
the mail, on the ground that the general rates fixed by the
Commission under the Railway Mail Pay Act, 39 U.S.C. §§ 523-568,
and already paid were "fair and reasonable" as applied to such
railroad, the Court of Claims awarded the railroad a money judgment
for additional compensation.
Held: this amounted to a review and revision of the
Commission's findings and orders, and was beyond the jurisdiction
of the Court of Claims. Pp.
336 U. S.
651-653,
336 U. S.
662-671.
(a) Congress has not expressly empowered the Court of Claims to
review rate orders of the Commission either to set them aside or to
render a money judgment for additional amounts found due upon a
determination of the invalidity of such an order, and to infer an
intention to confer such jurisdiction would be contrary to the
limitations Congress has placed upon review of such orders wherever
expressly provided as well as to the whole history and practice of
Congress in conferring jurisdiction on the Court of Claims. Pp.
336 U. S.
651-653.
(b) No such jurisdiction was intended to be suggested by the
language of this Court's opinion in
United States v.
Griffin, 303 U. S. 226,
303 U. S. 238.
Pp.
336 U. S.
666-671.
(c) In this case, the Court of Claims has not "given effect" to
the Commission's rate order, but, in the guise of finding "error of
law," has set it aside, together with the Commission's findings,
has substituted "findings" of its own, and, in effect, has made a
new order by its judgment. Pp.
336 U. S. 653,
336 U. S.
662-665,
336 U. S.
669.
(d) The same result would follow if this suit could be regarded
as one for just compensation under the Fifth Amendment, since
respondent has not shown that the Commission's order was
confiscatory
Page 336 U. S. 642
and since the entry of a money judgment by the Court of Claims
would short-circuit the Commission in the ratemaking process. Pp.
336 U. S.
670-671.
(e) Where the Commission is alleged to have acted in excess of
its authority or otherwise illegally, a more appropriate remedy
would be a suit in a district court as one arising under the postal
laws, 28 U.S.C. § 1339, since, unlike the Court of Claims, a
district court is not confined to rendering a money judgment by way
of relief against the United States, but, if it found a rate order
invalid, would have power under its general equity jurisdiction to
remand the cause to the Commission for further proceedings. Pp.
336 U. S.
671-673.
2. After reviewing the extended litigation arising out of
application to this carrier of the Commission's general orders
fixing rates for transporting mail, this Court finds (1) that the
carrier has not sustained its burden of showing that the Commission
acted arbitrarily or unreasonably, and (2) that the general rates
fixed by the Commission's 1928 order are, upon the record made,
fair and reasonable as applied to this carrier. Pp.
336 U. S.
653-666.
110 Ct.Cl. 330, 77 F. Supp. 197, reversed.
In a suit by the receiver of a railroad, the Court of Claims
awarded a judgment for increased compensation for the
transportation of mail notwithstanding findings and orders of the
Interstate Commerce Commission (192 I.C.C. 779; 214 I.C.C. 66)
denying any increase beyond the amounts already paid for that
service under the general rates fixed by the Commission. 110 Ct.Cl.
330, 77 F. Supp. 197. This Court granted certiorari. 335 U.S. 883.
Reversed and remanded, p.
336 U. S.
673.
Page 336 U. S. 643
MR. JUSTICE RUTLEDGE delivered the opinion of the Court.
This controversy began in 1931, when respondent's predecessors
as receivers of the Georgia & Florida Railroad filed an
application with the Interstate Commerce Commission for a
reexamination of rates then applicable to it for transporting the
mails. Since then, in one form or another, the dispute has found
its way back and forth through the Commission and the courts,
finally to come here now for the second time.
See United States
v. Griffin, 303 U. S. 226.
Through all these years, the carrier and the Commission have
been at odds over whether the railroad is entitled to an increase
in the rates prescribed for its service for the period beginning
April 1, 1931, and ending, as covered by the present suit, February
28, 1938. [
Footnote 1] The case
is now here on certiorari to the Court of Claims, 335 U.S. 883,
which had rendered a judgment awarding respondent $186,707.06 as
increased compensation due for the years 1931 to 1938,
Griffin
v. United States, 110 Ct.Cl. 330, contrary to the findings and
orders of the Commission denying any increase beyond the amounts
already paid for that service under the rates fixed by it.
Railway Mail Pay, Georgia & Florida R. Co., 192 I.C.C.
779;
id., 214 I.C.C. 66.
I
A statement of the background and course of the litigation will
aid in understanding the rather complicated problems presented,
both on the merits and affecting jurisdiction.
Page 336 U. S. 644
In 1916, Congress enacted the Railway Mail Pay Act. 39 U.S.C. §§
523-568. This embodied a comprehensive scheme for regulating
transportation of the mails by railroad common carriers. Such
carriers were required to transport the mails pursuant to the Act's
provisions. These included that the carriers should be compensated
at "fair and reasonable rates" to be fixed and determined by the
Interstate Commerce Commission. The rates were to be established
only after notice and hearing. But, after six months from the entry
of a rate order, the Postmaster General or a carrier was authorized
to apply for a reexamination of the order. 39 U.S.C. §§ 541, 542,
544-554, 553.
The Commission was authorized to prescribe "the method or
methods by weight, or space, or both, or otherwise, for
ascertaining such rate," 39 U.S.C. § 542, and, for the same
purpose,
"to make such classification of carriers as may be just and
reasonable, and, where just and equitable, fix general rates
applicable to all carriers in the same classification."
39 U.S.C. § 549. Other sections specify and define four classes
of service, namely, full railway post office car service, apartment
service, storage car service, and closed pouch service. 39 U.S.C.
§§ 525-530. [
Footnote 2] Only
apartment service and closed pouch service are involved in this
case.
On December 23, 1919, after extended investigation and hearings,
the Commission entered its first general mail rate order.
Railway-Mail Pay, 56 I.C.C. 1. This
Page 336 U. S. 645
adopted the space basis for determining "fair and reasonable
rates." On July 10, 1928, in proceedings for reexamination, the
Commission granted a general increase of 15% over the preexisting
rates.
Railway Mail Pay, 144 I.C.C. 675. The Georgia &
Florida Railroad accepted these general rates until April 1,
1931.
At that time, it applied to the Commission for a reexamination
of the rates as applied to itself. The application was heard and
determined by Division 5. On May 10, 1933, the Commission denied
any increase, holding the general rates established by the order of
July 10, 1928, fair and reasonable as applied to this carrier.
Railway Mail Pay, Georgia & Florida R. Co., 192 I.C.C.
779. This order is, in substance, though not technically, the one
now involved.
After the Commission had denied reconsideration, the railroad
sued in the United States District Court for the Southern District
of Georgia to set aside the Commission's order. A special
three-judge court was convened,
cf. the Urgent
Deficiencies Act, former 28 U.S.C. §§ 41(28), 47; held the order
unlawful, and remanded the case to the Commission for further
proceedings. This decree was filed on January 23, 1935.
Thereupon, the full Commission conducted further hearings, and,
in a report filed February 4, 1936, again found the rates
previously fixed to be fair and reasonable in their application to
the Georgia & Florida Railroad. The order therefore denied any
increase.
Railway Mail Pay, Georgia & Florida R. Co.,
214 I.C.C. 66.
Again the carrier resorted to the District Court, filing a
supplemental bill. And again that court, composed of the same three
judges, held the Commission's order unlawful in a decree filed on
February 23, 1937. The Government appealed directly to this Court,
which, in
United States v. Griffin, supra, held that the
order was not of a type reviewable under the Urgent
Deficiencies
Page 336 U. S. 646
Act. [
Footnote 3]
Accordingly, on February 28, 1938, the District Court's judgment
was reversed, with directions to dismiss the bill and without
determination of the cause on the merits.
After nearly four years, the receivers renewed the litigation by
filing this suit in the Court of Claims. The amended petition sets
forth in some detail the history of the previous stages of
controversy before the Commission and the courts. The carrier's
basic claims on the merits are substantially the same as in those
proceedings. They are, in effect, (1) that the Commission's orders
denying any increase are confiscatory, in that the rates prescribed
by the general rate order on July 10, 1928, and continued in effect
specifically as to this carrier by the orders of May 10, 1933, and
February 4, 1936, do not afford just compensation under the Fifth
Amendment on the ground that they do not provide for payment of the
cost of the service rendered plus a reasonable return upon invested
capital allocated to that service, and (2) that the Commission's
orders do not afford the "fair and reasonable" compensation
required by the Railway Mail Pay Act. [
Footnote 4] Both claims rest upon attacks made on the
Commission's findings as being unsupported by the evidence before
it, and on its conclusions as being contrary to that evidence.
To sustain jurisdiction in the Court of Claims, respondent rests
upon § 145 of the Judicial Code, 28 U.S.C.
Page 336 U. S. 647
§ 250, now 28 U.S.C. § 1491, and upon statements made in part
Fourth of the opinion in United
States v. Griffin, at
303 U. S. 238.
[
Footnote 5]
II
Although the Railway Mail Pay Act contains no explicit provision
for judicial review of orders of the Interstate Commerce Commission
fixing rates of pay for transporting the mails pursuant to
authorizations of the Postmaster General for such service, it had
been thought, until the decision in
United States v. Griffin,
supra, that such orders were of the kind reviewable under the
Urgent Deficiencies Act. The affect of that decision, however, was
to rule out such orders as those now in question from the
jurisdiction conferred by the latter Act.
While the "negative order" basis for the Court's ruling is no
longer effective,
Rochester Telephone Corporation v. United
States, 307 U. S. 125, the
alternative grounding remains in full force. 303 U.S. at
303 U. S. 234.
[
Footnote 6] Since the very
orders now in issue were involved in the
Griffin case, it
is settled that the railroad or its receivers had no recourse
to
Page 336 U. S. 648
a district court, under the Urgent Deficiencies Act, for
securing review of the Commission's order or relief of the type now
sought.
The Court in the
Griffin case, however, was not content
to rest merely with this negative jurisdictional ruling. In part
Fourth of the opinion, the Court went on to say that its ruling did
not "preclude every character of judicial review." 303 U.S. at
303 U. S. 238.
The opinion then suggested three possible other methods, two in the
Court of Claims and one in the district courts.
Without doubt, it was due to these suggestions that respondent's
predecessors chose to bring this suit in the Court of Claims. The
language in which the suggestions were made has assumed such
importance, in view of the problems raised by the receivers' choice
in following them, that it seems wise here to quote in full what
the Court said:
"If the Commission makes the appropriate finding of reasonable
compensation, but fails, because of an alleged error of law, to
order payment of the full amount which the railroad believes is
payable under the finding, the Court of Claims has jurisdiction of
an action for the balance, as the claim asserted is one founded
upon a law of Congress.
Missouri Pacific R. Co. v. United
States, 271 U. S. 603.
Compare
United States v. New York Central R. Co., 279 U. S.
73,
aff'g 65 Ct.Cl. 115, 121. And since railway
mail service is compulsory, the Court of Claims would, under the
general provisions of the Tucker Act, 24 Stat. 505, have
jurisdiction also of an action for additional compensation if an
order is confiscatory.
United States v. Great Falls Mfg.
Co., 112 U. S. 645;
North
American Transportation & Trading Co. v. United States,
253 U. S.
330,
253 U. S. 333;
Jacobs v.
United States, 290 U. S. 13,
290 U. S.
16. Moreover, as district courts have jurisdiction of
every suit at law or in equity 'arising
Page 336 U. S. 649
under the postal laws,' 28 U.S.C. § 41(6), suit would lie under
their general jurisdiction if the Commission is alleged to have
acted in excess of its authority, or otherwise illegally.
Compare Powell v. United States, 300 U. S.
276,
300 U. S. 288-289."
303 U.S. at
303 U. S.
238.
Respondent and the Court of Claims are at odds over whether the
carrier's claims now asserted fall under the first or the second
class of cases of which this Court said the Court of Claims would
have jurisdiction. Respondent insists, both in the complaint and in
the brief filed here, that his claim is grounded on the basis that
the Commission's orders are confiscatory, and have the effect of
depriving the carrier of its property and services without just
compensation due under the Fifth Amendment.
On the other hand, the Court of Claims expressly disclaims that
it was exercising any jurisdiction over constitutional matters.
This was done in denying the carrier's claim to interest on the
award. [
Footnote 7] In the
court's view, therefore, the jurisdiction which it was exerting
fell within the first class of cases stated in the
Griffin
opinion to be within the Court of Claims' jurisdiction, namely,
where the Commission makes the appropriate finding of reasonable
compensation but fails, because of an alleged error of law, to
order payment of the full amount the carrier believes payable under
the finding.
The Government, however, insists that the Court of Claims did
not exercise jurisdiction under this category.
Page 336 U. S. 650
It disputes that the court "gave effect," as the court stated,
[
Footnote 8] to the
Commission's order or ordered payment of any balance due under the
Commission's finding. Rather, the Government urges, the court
flouted that order, substituted its own judgment for the
Commission's concerning the appropriate order to be entered, and in
effect entered a wholly new and different order from that made by
the Commission, together with a money judgment giving its own view
effect.
Ordinarily it would be sufficient for us to take the Court of
Claims at its word and accept its stated view of the nature of the
jurisdiction it was exerting. But the three differing views of its
action taken by itself, by the Government, and by the respondent,
together with the difficulties each raises on the record for
disposing of the cause, compel us to examine those claims.
If, as the court asserts, it was "giving effect" to the
Commission's order, and doing so without substituting its own
judgment for the Commission's as to what was a "fair and reasonable
rate," there should be little difficulty in sustaining the
jurisdiction [
Footnote 9] --
that is, unless respondent is right in his contention the the Court
was called upon to and, notwithstanding its disclaimer, in fact
did, adjudicate his claim for just compensation under the Fifth
Amendment. In that event, and on the assumption that the award was
proper on the merits, reversal would be required in order that the
court might make appropriate allowance for interest. [
Footnote 10]
On the other hand, if the Government is correct in the view that
the court did not give effect to the Commission's order, but,
instead disregarded that order and
Page 336 U. S. 651
substituted its own judgment for the Commission's concerning
what constituted a "fair and reasonable rate," the question arises
whether the
Griffin statements were intended to give that
power to the Court of Claims under either category of jurisdiction
the opinion said that court might have.
III
The Railway Mail Pay Act gives the Interstate Commerce
Commission exclusive jurisdiction to determine "fair and reasonable
rates." The Urgent Deficiencies Act provided for judicial review of
the Commission's rate orders in "cases brought to enjoin, set
aside, annul, or suspend" such orders. No power was given the
reviewing court to revise them when found invalid, or to render
judgment for any amount thought to be due under such a
revision.
It would be strange, indeed anomalous in the extreme, if this
Court, by its
Griffin pronouncements, intended to confer
on the Court of Claims, by implication in the cases there held not
reviewable under the Urgent Deficiencies Act, a broader, more
conclusive, and final power of judicial review than that Act
expressly provided for like orders within its purview. The
assumption is hardly tenable that Congress intended such a result
when it enacted the Railway Mail Pay Act or the Urgent Deficiencies
Act or both. Congress in no instance has expressly empowered the
Court of Claims to review rate orders of the Commission, [
Footnote 11] either to set them
aside or to render a money judgement for additional amounts found
due upon a determination of an order's invalidity. To infer such an
intention would be contrary not only in spirit to the limitations
Congress has placed upon review of such orders wherever expressly
provided, but
Page 336 U. S. 652
also to the whole history and practice of Congress in conferring
jurisdiction on the Court of Claims.
Thus, when these very orders were twice before the district
court, under the assumption that it had jurisdiction, that court
found the orders invalid. But, in each instance, it remanded the
cause to the Commission for further proceedings; there was no
attempt to render a money judgment for the carrier.
Necessarily, this restraint reflected the jurisdictional
limitations placed upon the court by the Urgent Deficiencies Act.
But those limitations themselves reflected another policy, quite
apart from and in addition to that giving effect to the
constitutional limitations of Article III. [
Footnote 12] The limitations exemplify settled
congressional policy concerning the relations of ratemaking bodies
and reviewing courts. Not only is ratemaking essentially
legislative in the first instance. The policy of judicial restraint
is one having regard for the expertise of special agencies charged
with performing the ratemaking function, and for the inherent
actual, as well as legal, disability of courts to execute that
function. Such doctrines or policies as those of "primary
jurisdiction" [
Footnote 13]
and exhaustion of administrative remedies [
Footnote 14] lie at the very root of the
problem. And this is as true of the jurisdiction
Page 336 U. S. 653
of the Court of Claims, which is not restricted by Article III,
as it is of courts so limited. [
Footnote 15]
Hardly can it be conceived, therefore, that Congress would have
provided expressly for review of the Commission's ratemaking orders
by the Court of Claims, or that, if it had done so, it would have
authorized a money judgment for such amount as that court in its
own judgment considered the rate should have produced.
It is equally significant, we think, that, when the three-judge
district court twice set aside the Commission's order, it did so on
grounds substantially similar to those used by the Court of Claims
in this case for holding the order invalid. In other words, what
the district court did by way of examining the orders on their
merits, factual as well as legal, the Court of Claims has done in
this case. Indeed, it has gone much further, since it has rendered
a money judgment for the carrier covering the period 1931-1938,
having the effect in the particular circumstances of a new and
final order.
IV
A full understanding of the Commission's orders and of the
effects of the action taken regarding them, both by the three-judge
district court and by the Court of Claims, can be had only by
reading and comparing the reports and opinions. [
Footnote 16] The limitations of space
prevent summarizing their content here in substantial detail. But
the gist of the controversy between the Commission and the courts
may be indicated.
We note, to begin with, that the court awarded to the respondent
$186,707.06, or some 87 percent more than the amount allowable
under the Commission's orders.
Page 336 U. S. 654
This, in itself, shows the wide discrepancy between the
Commission's view and the court's concerning the amount of a "fair
and reasonable rate."
Moreover, the Commission's task in fixing that rate was both
gigantic and complex. It was authorized to make classification of
carriers where "just and reasonable" and, "where just and
equitable," to "fix general rates applicable to all carriers in the
same classification." 39 U.S.C. § 549. That authority, of course,
was not to be ignored in applying the requirement for compensation
of carriers at "fair and reasonable rates." 39 U.S.C. § 542. The
two were not entirely separate, but were merely different prongs of
the same fork.
In its first general rate proceeding, the Commission classified
the nation's carriers, for mail-pay compensation purposes, placing
the Georgia & Florida Railroad in Class I. [
Footnote 17] It also decided generally upon
the space basis as an appropriate method of determining fair and
reasonable compensation. 56 I.C.C. 1.
Railroad accounting, however, does not, and concededly cannot,
accurately reflect actual operating costs of each type of service
rendered, or the proportionate amounts of capital employed in
rendering each service. The Commission therefore sought a method or
methods for making such allocations tentatively as the initial
stage of performing its ratemaking function. This required, first,
segregating freight service from passenger train service; then
dividing the latter into three categories:
Page 336 U. S. 655
passenger service proper (including baggage service), express
service, and mail service.
The problem arose both in the proceedings culminating in the
first general rate order, 56 I.C.C. 1, and in those resulting in
the general rate increase of 1928. 144 I.C.C. 675. In the latter,
the initial separation of total operating expenses between freight
and passenger services was made on the basis of the Commission's
rules governing such separation on large steam railways.
Id. at 685-688. But, for determining the cost of service
in respect to the further allocation and apportionment of passenger
train service among its three components, the Commission, having
determined upon the space basis for this initial stage in fixing
"fair and reasonable rates," was faced with the problem of what
should be done with unused space.
That problem presents the crux of this case, as it did of the
Commission's action. In the proceedings leading to the 1928 order,
three general plans were given primary consideration for
distributing space. They are described in the report last cited.
See id. at 681, 689. In general, they were alike in
allocating full car [
Footnote
18] space to the service it performed. But they differed widely
in allocating unused space in so-called combination cars and mixed
cars. [
Footnote 19] Without
going into further detail here, suffice it to say that Plan 3
allocated the largest amounts of unused space to passenger and
express service and correspondingly the smallest amount to mail
service; Plan 2, more nearly approximating the carrier's proposals,
worked out in inverse proportions, and Plan 1 lay between the two.
See 144 I.C.C. at 681, 689.
Page 336 U. S. 656
The differences in results following from use of the various
plans were highly significant, making the difference between net
return and net deficit, or deficits of different sizes, depending
upon which plan was used. [
Footnote 20] In each plan, after the ultimate space
ratios were determined by complicated statistical studies, they
were applied to total passenger train service expense to determine
expense ratios for the three constituent services. And those
expense ratios were also used to apportion investment in road and
equipment assigned to passenger train service.
The Commission rejected Plan 3 because, it said, that plan had
departed from the car operating unit which it had adopted for
making space allocations. 144 I.C.C. 689-691. While not
specifically eliminating Plan 1 from consideration for purposes of
comparison, the Commission primarily rested its allocations of
space for purposes of tentative or preliminary apportionment of
costs and capital on Plan 2.
Id. at 691.
In utilizing the ratios derived from using Plan 2, however, the
Commission expressly stated:
"In connection with the cost studies under any of the plans for
dividing the train space, it should be borne in mind that, in
computations of this character, where the direct allocations are
relatively small and the great bulk of expenses and investment are
necessarily divided, subdivided, apportioned, and reapportioned
upon
various theories and assumptions,
Page 336 U. S. 657
the results cannot be accepted as an accurate ascertainment of
the costs of service.
At best, they are approximations to
be given such weight as seems proper in view of all the
circumstances under which they have been obtained and the theories
underlying the assumptions and the various steps in the
computations."
144 I.C.C. at 691-692. (Emphasis added.)
The Commission proceeded to consider the results obtained by the
use of the Plan 2 formula in the light of other circumstances and
considerations deemed relevant, including comparison with results
obtained upon the basis of the total equated 60-foot-car miles
(
see 144 I.C.C. at 692), the fact that there was no such
incentive to limit the amount of space utilized for passenger,
baggage, and express services as existed in the case of mail
service,
id. at 693, and other factors. The Commission
then concluded:
"Giving consideration to all the figures
based upon the
respective cost studies; to the fact that none of these
figures except those in the carriers' exhibits includes any charge
against the passenger train service for its proportion of the cost
of handling nonrevenue freight; giving special weight to the
figures based on the plan for the division of train space followed
in the original proceeding and subsequent reexaminations, and
making allowance for weaknesses of theories and methods, an
increase of 15 percent in mail revenues for the carriers as a whole
in this group is justified."
144 I.C.C. at 695. (Emphasis added.)
This increase, very much smaller than a use of the results
obtained by unqualified application of Plan 2 would have produced,
resulted in general rates of 14.5 cents per mile of service in a
"15-foot apartment car"
Page 336 U. S. 658
and 4.5 cents per mile of service in a "3-foot closed pouch
service space." Those rates became applicable to the Georgia &
Florida Railroad, were accepted by it from 1928 to 1931, and are
the rates now in question.
In this suit and in the prior proceedings since 1931, no attack
has been made on the validity of these rates as general rates
applicable to Class I carriers. But the 1931 proceedings challenged
their validity as applied to this particular carrier. This has been
the bone of contention throughout the subsequent phases of
controversy.
When, in 1931, the carrier's application for reexamination was
filed, the Commission, by its Division 5, first proceeded to make a
cost study of the railroad's individual operations, conducted along
the same lines as the cost studies in its general rate hearings. A
test period of 28 days from September 28 to October 25, 1931, was
selected for obtaining space and other data. Space ratios were
determined on the data secured, applied to expenses, and the
resulting expense ratios used to apportion investment, all under
Plan 2. After adjustments made to reflect the year's operations for
1931, the Plan 2 formula worked out to show a net operating deficit
for mail service of $4,945, which, together with a return of 5.75
percent on the capital allocated by the formula to mail service,
brought the carrier's claim for increased compensation for that
year to $31,227. 192 I.C.C. 779, 781. To meet this, an increase of
87.40 percent would have been necessary.
As in the general rate investigations and for the same reasons,
the Division was unwilling to rest exclusively upon the results
obtained by the computations under Plan 2, and went on to consider
other factors which it deemed relevant in determining the fairness
and reasonableness of the rates. It found that of the three
component services in passenger train service, "the mail service
makes the best showing with respect to revenue." [
Footnote 21]
Page 336 U. S. 659
The Division further pointed out that, in the period 1929 to
1931, mail revenues had been more stable than revenues from other
passenger train services, passenger service proper having decreased
67 percent, express service 64 percent, and mail service 12
percent. Consideration also was given to the special facts shown
relating to use of unused space.
Pointing out that the carrier's claim was based on the special
cost study and the fact that
"because of its low traffic density and low earnings per mile of
road, it is not comparable with many class I roads which receive
the same rates of pay,"
the Division reiterated that
"The cost study is not considered to be an accurate
ascertainment of the actual cost of service. It is an approximation
to be given such weight as seems proper in view of all the
circumstances.
See Railway Mail Pay, supra."
192 I.C.C. at 783. It then concluded:
"The comparison of mail revenue with other revenue received for
services in passenger train operations shows that mail, with
relation to the other services, is bearing its fair share of the
expenses of operation, and is contributing relatively more than the
other services for the space furnished. Applicant receives the same
rates as those received by other roads for the same kind of
service. Many of these other roads are, as applicant points out,
roads which are very much larger and which have greater traffic and
lower unit operating costs. On the other hand, many are
Page 336 U. S. 660
in much the same situation as the applicant in respect of
passenger train operations. The data submitted fail to justify
giving the applicant rates higher than those now paid other railway
common carriers for like service."
"We find that the rates of pay now received by applicant for the
transportation of mail, established in Railway Mail Pay, 144 I.C.C.
675, for railroads over 100 miles in length, are fair and
reasonable. The application for increased compensation is
denied."
Ibid.
When the cause was returned to the Commission by the Georgia
District Court in 1935, the full Commission reopened the proceeding
and held a further hearing at which further evidence was received.
In remanding the cause, the district court had stressed the
computed finding under Plan 2 that "[t]he distribution of expense
upon the space ratios shows that the operating ratio for mail
service was 102.79," [
Footnote
22] or, as the court added, "that, for every dollar applicants
received for transporting mails, they expended one dollar and 2.79
cents." The court then asserted that other considerations taken
into account by Division 5
"do not refute or impair the fact that the compensation allowed
this railroad for the transportation of mail does not equal the
cost of so doing."
Counsel for the carrier stressed this before the Commission as
"an adjudication" that the previous rates of pay were "totally
inadequate." But the Commission rejected the apparent district
court inference that abandonment of mail service would save the
carrier money:
"Considering the character of the expenses included in the
study, it is clear that no such saving could be made. The
importance of the operating ratio figure has been overemphasized.
Relative costs derived from a series
Page 336 U. S. 661
of studies of expenditures for operations common to a number of
services cannot be converted into absolute costs by using a
single-figure relation derived from such studies."
214 I.C.C. at 69.
The Commission then again repeated its insistence that cost
computed under such a formula as Plan 2 "is a hypothetical cost,
and not an actual cost,"
ibid.; that, in other mail-pay
proceedings, consideration had been given to other factors;
[
Footnote 23] and, again
taking such factors into account, concluded upon the augmented
record that the rates then applicable to the carrier were fair and
reasonable. 214 I.C.C. at 70-76.
On return of the cause, the district court disclaimed
entertaining the view "that the hypothetical cost is
necessarily conclusive.'" Rather, the court said, "It is merely
the fairest method that has been devised." It held inapplicable to
the carrier the considerations utilized by the Commission to
qualify the results computed by
Page 336 U. S.
662
the cost formula, such as "comparisons with compensation
received from other service in passenger train cars;" and
"comparisons per car-mile and per car-foot mile of the computed
cost of mail service and the revenue from authorized mail service
with the computed cost of corresponding units in passenger train
service as a whole."
The court accordingly again found the Commission's order
unlawful and remanded the cause to it a second time for further
proceedings.
It is obvious from the foregoing account that the basic
difference between the Commission and the district court lay in
whether the Commission's statistical and mathematical computations
under Plan 2 alone should be taken as determinative of costs, and
thus of fair and reasonable rates, [
Footnote 24] or whether those computations were rightly
taken by the Commission as merely tentative estimates or
approximations, applicable in the initial stage of rate
determination, but subject to qualification by comparison with
results obtained under other plans and, in the final stage, by
consideration of other factors found pertinent in the Commission's
judgment.
This is exactly the question which was crucial in the judgment
rendered by the Court of Claims In its opinion, much more extended
than either of those rendered by the district court, it said:
"Under finding 16 herein, it is shown that the Interstate
Commerce Commission found and determined that plaintiff would
require an increase in its mail revenue of 87.4% in order to secure
for itself, under Plan 2 adopted by the Commission, a return of
5.75% theretofore fixed by the Commission, on its investments in
road and equipment engaged in mail traffic. . . .
The
Commission has, by its
Page 336 U. S. 663
use of Plan No. 2, adjudged it to be a fair and reasonable
basis. And out of that basis there has been ascertained, by
formulae prescribed by the Commission, what is the fair and
reasonable compensation for plaintiffs' carriage of the mails
beginning the first of April 1931, and ending at the close of
February, 1938. Fair and reasonable compensation cannot be both a
deficit and the amount of $186,707.06 so found. It is, we conclude,
the latter."
110 Ct.Cl. at 366-367, 369. (Emphasis added.)
The court then quoted the Commission's concluding language in
192 I.C.C. 779, 783, set out above in the text, and said:
"We are of the opinion that the 'approximation' [Plan 2] should
be given greater weight than the Commission affords it, because, as
we have said, and the Commission in effect admits, there is no such
thing as certainty in actual cost. Approximate, or, as it is
called, 'computed,' cost must be relied upon, and, as a matter of
law, must be decisive. There is no alternative -- at least no
satisfying alternative. Of course, there were other methods of
computing cost, but the Commission, put to the choice, selected
Plan No. 2."
110 Ct.Cl. at 370.
Then followed rejection of the factors considered by the
Commission in qualifying the computations obtained under Plan 2 as
"not convincing, or even persuasive." 110 Ct.Cl. at 372. According
to the court:
"It was for the Commission to demonstrate that the general rates
prescribed gave the plaintiffs a fair and reasonable return. This
the Commission failed to do. More than that, the Commission has, by
its findings, using its adopted plan and its own methods as applied
to plaintiffs' circumstances, proved that plaintiffs have been
underpaid $186,707.06 in fair and reasonable compensation for the
period in question."
Ibid.
In view of these groundings, the court's decision tied the
Commission exclusively and finally to the results
Page 336 U. S. 664
which it had obtained by using Plan 2 in the initial stage of
the ratemaking process. It rejected the Commission's repeated
assertion, in both the general rate hearings and the special
hearings given this carrier, that the cost studies under Plan 2 (or
any other such plan) could not be taken as an accurate
ascertainment of actual costs of service, and should be given only
such weight as seemed proper in view of all the circumstances. The
court likewise rejected as "not convincing, or even persuasive,"
the numerous factors the Commission considered not only proper, but
highly important to be taken into account in qualifying the
computed results under Plan 2.
In doing all this, the court substituted its own judgment for
the Commission's concerning the relevance of facts to be taken into
account in fixing a fair and reasonable rate; the weight to be
given to those facts, including the computations under Plan 2 as
well as the other facts utilized to check and qualify them, and the
burden of proof on the whole case.
In the latter respect, the court disregarded not only the
general rule which gives administrative determinations in such
matters presumptive weight, [
Footnote 25] but also the effect of the statute itself.
As has been noted, the Railway Mail Pay Act expressly authorized
the Commission to classify carriers, and, "where just and
equitable, fix general rates applicable to all carriers in the same
classification." 39 U.S.C. § 549. While this general authority did
not preclude examination of the general rate's application to a
particular carrier, it gave that rate
prima facie validity
as to all within the classification. Indeed, contrary to the
court's holding that the Commission could not consider rates paid
to other carriers or their effects, the statute required the
Commission to take those rates
Page 336 U. S. 665
into account.
Ibid. The burden of proof was therefore
clearly upon the carrier to show that the general rate was unfair
and unreasonable as applied to it, and not, as the court held, upon
the Commission to show that that rate as applied was fair and
reasonable.
We cannot say that the Commission acted arbitrarily or
unreasonably in respect to its use of Plan 2 or of the factors used
in checking the plan's results and qualifying them. Contrary to the
court's conclusion, Plan 2 was never intended or accepted by the
Commission as furnishing a final and exclusive basis for fixing
rates. Certainly it was not arbitrary or unreasonable to use such a
plan, which proceeded step by step upon "various theories and
assumptions," as merely a preliminary and wholly tentative step in
the process of ratemaking; or to check its results against those
produced by other such plans differing in detail of theories and
assumptions employed; or to qualify the computations by the factors
which the Commission took into account in the final stages of
judgment.
In holding the initial formula conclusive, the court has
disregarded the Commission's informed contrary judgment in matters
committed to its special competence. This the court did in the
guise of "giving effect" to the Commission's "finding" -- namely,
its preliminary computations under Plan 2 -- and by disregarding
all else the Commission took into account as "error of law." The
"finding" was, in fact, no finding at all, but only a preliminary
figure. And the matters thrown out as "error of law" were matters
of fact and expert judgment, not legal questions.
We think the carrier has not sustained its burden of showing
that the Commission acted arbitrarily or unreasonably, and we
conclude that the general rates fixed by its 1928 order are, upon
the record made, fair and reasonable as applied to the Georgia
& Florida Railroad. But
Page 336 U. S. 666
for the matter of jurisdiction, this determination would end the
case. But the question of jurisdiction remains, and is important.
Moreover, the determination on the merits is relevant to its
disposition.
V
In sustaining its jurisdiction, the Court of Claims stated:
"As the Supreme Court has said, this Court has jurisdiction to
render judgment of recovery for an amount sufficient to constitute
fair and reasonable compensation
under the facts as found by
the Commission, unpaid through failure of the Commission,
because of an error of law, to order payment thereof."
110 Ct.Cl. at 366. (Emphasis added.) That language, on its face,
seems fully in accord with the
Griffin pronouncement. As
will be recalled, it was:
"If the Commission makes the appropriate finding of reasonable
compensation but fails,
because of an alleged error of
law, to order payment of the full amount which the railroad
believes is payable
under the finding, the Court of Claims
has jurisdiction of an action for the balance, as the claim
asserted is one founded upon a law of Congress."
(Emphasis added.)
On its face, this language does not authorize revision of the
Commission's findings or of the rate it prescribes by the Court of
Claims. The claim of which it is said to have jurisdiction is one
for "the full amount which the railroad believes is payable
under the finding," some part of which the Commission has
failed to order paid by reason of an error of law. There was no
intimation of authority for the court to reexamine the facts or to
substitute its own judgment concerning the facts to be considered
or the weight to be given them in determining the rate. True, the
wording reads "appropriate" finding. But we cannot construe that
single word to mean that this Court intended the Court of Claims to
reopen the entire question of the order's appropriateness and
substitute
Page 336 U. S. 667
its own judgment, either on the record made before the
Commission or on independent evidence, for the Commission's
findings and conclusions on that question.
Such a construction is sustained by none of the cases cited in
the
Griffin opinion to support the statement, [
Footnote 26]
Page 336 U. S. 668
and is directly contrary to previous decisions by the Court of
Claims with reference to its power to review such orders of the
Commission. [
Footnote 27]
Moreover, to conceive
Page 336 U. S. 669
the
Griffin statement as sanctioning the broad
authority assumed by the court would be, for reasons already
stated, to give it by implication a jurisdiction which Congress has
never expressly conferred.
We think the
Griffin language contemplated a much
narrower jurisdiction. The purpose was, in our judgment, to
indicate that review might be had of the carrier's claim whenever
it does not run in the teeth of the Commission's findings or order
or seek revision of that order. In other words, the claim must be
one consistent with the Commission's order fixing the rate, but
asserting underpayment by reason of some error of law in its
application which would not require the Commission's further
consideration for fixing a new rate. This view is consistent with
all of the authorities cited in
Griffin, supra, to sustain
the first category of jurisdiction said to reside in the Court of
Claims. It is the view we think this Court meant to be taken.
As we have pointed out, however, here, the Court of Claims,
though asserting the contrary, has not "given effect" to the rate
order, but, in the guise of finding "error of law," has set it
aside, together with the Commission's findings; has substituted
"findings" of its own, and has made, in effect, a new order by its
judgment. It follows, in our view of what was intended by the
Griffin statement, that the Court of Claims had no jurisdiction in
this case, since it involves no such "error of law" as that
statement contemplated, but relates only to questions essentially
of fact going to the order's appropriateness on the merits. The
case is wholly unlike
Missouri Pacific R. Co. v. United
States, 271 U. S. 603;
United States v. New York Central R. Co., 279 U. S.
73, and other cases cited in the
Griffin
opinion.
The same result would follow if, contrary to the Court of
Claims' disclaimer, the suit could be regarded as one for just
compensation under the Fifth Amendment, as
Page 336 U. S. 670
respondent insists it was. For the reasons already stated,
respondent has not shown that the Commission's order was
confiscatory in its effects. Moreover, jurisdictionally speaking,
none of the cases cited by the
Griffin opinion to sustain
the second category [
Footnote
28] of jurisdiction in the Court of Claims involved any problem
of reviewing rate orders of the Interstate Commerce Commission. All
related to questions of compensation resulting from takings of
private property for public use, in which the only questions
determined were the value of the property taken or that value
coupled with the right to interest on the award. [
Footnote 29] While respondent contends that
the effect of the Commission's order here has been to deprive it of
its property without just compensation, and justifies the Court of
Claims' award on that basis, the court did not so ground its
decision, and, as we have said, respondent has not made out any
such case.
Moreover, in view of the fact that the Court of Claims has
jurisdiction only to render a money judgment against the United
States, and none to remand to the Commission for further
consideration a rate order which it might find confiscatory, we do
not think the
Griffin ruling can be taken to have
contemplated that, upon such a finding, made after reviewing the
Commission's order on the merits, the Court of Claims could
foreclose the Commission from further consideration of the order,
and render
Page 336 U. S. 671
final judgment for the amount by which it had found the order
confiscatory. This not only would short-circuit the Commission in
the ratemaking process, but would involve substituting the court's
judgment for the Commission's as to the amount of any new rate
which might be fixed. Consequently, we do not think this case falls
within either category of jurisdiction indicated by the
Griffin statement as possibly available in the Court of
Claims.
There remains the third remedy suggested in the
Griffin
opinion, namely, by suit in the district court as one at law or in
equity "arising under the postal laws," former 28 U.S.C. § 41(6),
cf. present 28 U.S.C. § 1339, where the Commission is
alleged to have acted in excess of its authority, or otherwise
illegally. Strictly speaking, it is not necessary to consider
whether this remedy would have been available to respondent, since
it has not been followed.
However, notwithstanding some obvious difficulties in making
district court jurisdiction available for review in such a
proceeding as this, [
Footnote
30] that jurisdiction possesses one outstanding advantage over
review in the Court of Claims. It is that the district courts are
not confined, as is the Court of Claims, to rendering a money
judgment by way of relief against the United States. Under their
general equity jurisdiction, they would have power, on finding a
rate order invalid, whether as confiscatory or as not complying
with the statute, to remand the cause to the Commission for further
proceedings. In this respect, the review afforded and the relief
given would more
Page 336 U. S. 672
nearly approximate that given by the Urgent Deficiencies Act in
similar cases reviewable under its terms.
Since the
Griffin case was decided, Congress has
adopted the so-called Administrative Procedure Act, [
Footnote 31] which, by § 10, entitled
"Judicial review of agency action," provides:
"Except so far as (1) statutes preclude judicial review of (2)
agency action is by law committed to agency discretion --"
"(a) Any person suffering legal wrong because of any agency
action, or adversely affected or aggrieved by such action within
the meaning of any relevant statute, shall be entitled to judicial
review thereof."
"(b) The form of proceeding for judicial review shall be any
special statutory review proceeding relevant to the subject matter
in any court specified by statute or, in the absence or inadequacy
thereof, any applicable form of legal action (including actions for
declaratory judgments or writs of prohibitory or mandatory
injunction or habeas corpus) in any court of competent
jurisdiction. . . . ."
5 U.S.C. § 1009.
This provision, we think, adds force to the suggestion made in
the
Griffin case concerning the jurisdiction of the
district courts in relation to review of rate orders like those now
in question. Such review under the equity or declaratory
jurisdiction of those courts would seem to afford a remedy
consonant with § 10 of the Administrative Procedure Act, and also
more nearly like that afforded by the Urgent Deficiencies Act,
though without its expediting features. The relief afforded, unlike
that required in the Court of Claims, could thus be limited to
setting aside or enjoining the Commission's order and remanding the
cause to it for further consideration, as
Page 336 U. S. 673
is done in like cases reviewable by three-judge courts.
Consistently with that jurisdiction also, the review could be
confined to the record made before the Commission, [
Footnote 32] rather than one compiled by
independent evidence not presented to the Commission or considered
by it.
These suggestions, as we have said, are not strictly necessary
for disposition of this case. But we think them appropriate in
order to prevent a recurrence in the future and in other cases of
long and chiefly jurisdictional litigation such as this cause has
involved with profit to no one.
The judgment is reversed, and the cause is remanded to the Court
of Claims with instructions to dismiss it.
Reversed and remanded.
MR. JUSTICE REED and MR. JUSTICE JACKSON took no part in the
consideration or decision of this case.
* Together with No. 198,
Jones, Receiver v. United
States, also on certiorari to the same court.
[
Footnote 1]
The present receiver, Alfred W. Jones, was substituted as
respondent in No. 135 by order of this Court dated December 6,
1948. 335 U.S. 883.
[
Footnote 2]
Full railway post office car service involves service in which
an entire car of specified length and equipment is authorized.
Apartment car service involves authorized use of thirty- or
fifteen-foot apartments partitioned off from the remaining portion
of the car. Closed pouch service involves handling by railroad
employees where full or apartment railway post office cars are not
authorized and where space authorizations are for units of seven
feet and three feet in space, unenclosed, on both sides of the
car.
[
Footnote 3]
See note 6
[
Footnote 4]
[
Footnote 5]
As has been stated, the Court of Claims, accepting jurisdiction,
rendered judgment for the respondent for $186,707.06. Its
determination was based upon the various reports of the Commission
above cited, although evidence was received by the court's
commissioner which was not before the Interstate Commerce
Commission. He made extensive special findings of fact based in
part upon this evidence which were adopted by the court and filed,
together with its opinion. 110 Ct.Cl. 330. Both the Government and
the respondent applied for certiorari and both petitions were
granted.
See note
4
[
Footnote 6]
This was in brief that Congress could not be assumed to have
made the extraordinary remedy of the Urgent Deficiencies Act
applicable to such orders as the one here involved, since "[t]here
is no wide public interest in its speedy determination;" "no danger
of temporarily interrupting the mail service through the
improvident issue of an injunction by a single judge;" and "only
the method or amount of payments currently to be made would be
affected."
[
Footnote 7]
The opinion, quoting the Court of Claims' language in an earlier
railway mail pay case,
New York Central R. Co. v. United
States, 65 Ct.Cl. 115, 128-129,
aff'd, United States v.
New York Central R. Co., 279 U. S. 73,
stated:
"We do not think the plaintiff can have judgment for interest on
the deferred payments. We are not determining just compensation,
but are giving effect to an authorized order of the Interstate
Commerce Commission. In such case, the statute forbids the
allowance of interest. Sec. 177, Judicial Code, as amended."
110 Ct.Cl. at 373.
Cf. notes
10 and |
10 and
S. 641fn29|>29
infra.
[
Footnote 8]
See note 7
[
Footnote 9]
[
Footnote 10]
Cf. Jacobs v. United States, 290 U. S.
13.
[
Footnote 11]
[
Footnote 12]
Which, among other things, forbid non-District of Columbia
courts created pursuant to that Article to exercise legislative
functions such as ratemaking.
Cf. Keller v. Potomac Electric
Power Co., 261 U. S. 428;
Postum Cereal Co. v. California Fig Nut Co., 272 U.
S. 693;
Prentis v. Atlantic Coast Line Co.,
211 U. S. 210,
211 U. S.
226.
[
Footnote 13]
Texas & Pacific R. Co. v. Abilene Cotton Oil Co.,
204 U. S. 426;
cf. Rochester Telephone Corporation v. United States,
307 U. S. 125,
307 U. S. 139;
Myers v. Bethlehem Shipbuilding Corporation, 303 U. S.
41.
See 51 Harv.L.Rev. 1251.
[
Footnote 14]
United States v. Illinois Central R. Co., 291 U.
S. 457,
291 U. S.
463-464 (
and cf. concurring opinion, 291 U.S.
at
291 U. S.
465);
Myers v. Bethlehem Shipbuilding
Corporation, 303 U. S. 41,
303 U. S. 50-52.
See Berger, Exhaustion of Administrative Remedies, 48 Yale
L.J. 981; 44 Mich.L.Rev. 1035.
[
Footnote 15]
[
Footnote 16]
The opinions of the three-judge court rendered when this
controversy was twice before its are not reported.
[
Footnote 17]
Class I included all railroads of more than 100 miles in length.
At the general rate hearings, the Georgia & Florida Railroad
was represented by representatives of another class, and seems to
have contended that it should be classified with or treated as
though it were a member of that class. But no question concerning
its classification has been made in the proceedings begun in 1931
or afterward.
[
Footnote 18]
See note 2
[
Footnote 19]
Combination cars include space separated by partitions into
"apartments,"
cf. note
2 with each apartment devoted exclusively to a different use.
Mixed cars contain no partitions or "apartments," but are used for
several different services,
e.g., baggage, express and
mailpouch services.
See note 2; 144 IC.C. at 679.
[
Footnote 20]
See Railway Mail Pay, 144 I.C.C. at 688-689. Plan 3,
the Commission said in that general rate proceeding, would result
in a
"net railway operating income from mail of $18,759,056, instead
of a deficit of $1, 104,744 under plan 2 and a net income of
$12,844,643 under plan 1,"
id. at 689, giving a net return under Plan 3 of 5.94
percent, but requiring an increased rate of 26.48 percent under
Plan 2 and of 7.43 percent under Plan 1 to meet the computed
deficits and give a net return of 5.7 percent on the invested
capital allocated to mail.
[
Footnote 21]
The report continued:
"The total mail revenue of $35,728 for the year 1931 on a space
ratio of 12.96 was only $594 less than the total revenue from
passenger service proper, including baggage, and miscellaneous
service, with a space ratio of 80.35. . . . The distribution of
expense upon the space ratios shows that the operating ratio for
mail service was 102.79 as compared with 630.41 for passenger
proper, including baggage, etc., and 249.67 for express."
192 I.C.C. at 781-782.
[
Footnote 22]
See note 21
[
Footnote 23]
"In other mail pay proceedings, in which space authorized and
paid for was found to be the space that should be charged to mail
in cost studies similar to that here, consideration was given to
other factors as well, such as the amount and character of the
unused space reported as operated,
Railway Mail Pay, 85
I.C.C. 157, 170, 123 I.C.C. 33, 39; the actual space occupied by
mail, as distinguished from authorized space, determined by the
mail load, carried, based upon a count of bags and of packages
outside of bags, and, in some instances, by the weight,
Railway
Mail Pay, 95 I.C.C. 493, 500, 511, 120 I.C.C. 439, 446;
comparisons with compensation received from other services in
passenger train cars,
Railway Mail Pay, 144 I.C.C. 675,
706; comparisons with freight rates,
Railway Mail Pay, 144
I.C.C. 675, 705, 151 I.C.C. 734, 742; comparisons per car-mile and
per car-foot-mile of the computed cost of mail service and the
revenue from authorized mail service with the computed cost of
corresponding units in passenger train service as a whole,
Railway Mail Pay, 144 I.C.C. 675, 699, and the character
of the service performed in connection with transporting the mail,
Railway Mail Pay, 56 I.C.C. 1, 8,
Electric Railway
Mail Pay, 58 I.C.C. 455, 464, 98 I.C.C. 737, 755."
214 I.C.C. at 69-70.
[
Footnote 24]
It is to be recalled that the expense ratios based upon the
space ratios accepted under Plan 2 were applied also to capital
allocated to passenger train service to apportion that capital
among the three component services making up passenger train
service.
[
Footnote 25]
See, e.g., Shields v. Utah Idaho Cent. R. Co.,
305 U. S. 177,
305 U. S.
184-185.
Cf. Norton v. Warner Co., 321 U.
S. 565,
321 U. S.
568-569.
[
Footnote 26]
Cited in the text, 303 U.S. at
303 U. S. 238,
were
Missouri Pacific R. Co. v. United States,
271 U. S. 603,
upholding the Court of Claims' view on demurrer that Congress, in
enacting 39 U.S.C. § 536, not only intended to, but had power to,
provide that land grant railroads were to receive only 80% of
whatever mail pay rate the Commission should set not only for mere
transportation of mail (
e.g., closed pouch space) but for
space in which postal employees sorted mail (
e.g.,
apartment mail cars), and
United States v. New York Central R.
Co., 279 U. S. 73,
affirming the Court of Claims' conclusion that the Commission had
power to make mail rate revisions applicable as of the date of the
carrier's request for reexamination of rates, rather than as of the
date of the Commission order raising the rate.
Court of Claims mail pay decisions cited in a footnote, 303 U.S.
at
303 U. S. 238,
n. 10, included:
Chicago & E.I. R. Co. v. United
States, 63 Ct.Cl. 585;
Nevada County Narrow Gauge R. Co.
v. United States, 65 Ct.Cl. 327;
Chicago & E.I. R. Co.
v. United States, 72 Ct.Cl. 407;
Macon, D. & S. R. Co.
v. United States, 78 Ct.Cl. 251; 79 Ct.Cl. 298. In each of
these cases, the claimant carrier recovered compensation in excess
of that allowed it by the Postmaster General, but, in each case,
the dispute centered around the meaning of a Commission rate order
or the Commission's power to enter the order made; in none was
there any challenge to the rate itself. Thus, in the first
Chicago & E.I. R. Co. case, supra, the question was
whether the Commission had, in accordance with 39 U.S.C. § 535,
ordered compensation for the return to their departure points of
mail storage cars. In the second
Chicago & E.I. R. Co.
case, supra, the question was whether "closed pouch space" was
a "lesser unit" within the meaning of a rate order setting
compensation for a "storage car or lesser unit." The
Nevada
County Narrow Gauge R. Co. case, supra, was a companion to
New York Central R. Co. v. United States, 65 Ct.Cl. 115,
aff'd, United States v. New York Central R. Co.,
279 U. S. 73,
holding that the Commission had power to order a rate increase
effective as of the date of the application for such increase.
Similarly, the two opinions in
Macon, D. & S. R. Co.,
supra, held that the Commission had power retroactively to
reclassify the claimant carrier in a higher compensation bracket as
of a date prior to the carrier's application for reclassification
so as to impose on the United States liability for additional
compensation from that retroactively determined date of
reclassification.
[
Footnote 27]
In
Pere Marquette R. Co. v. United States, 59 Ct.Cl.
538, the carrier sought compensation for mail car space furnished
by the carrier where that space was neither authorized by the Post
Office Department nor in fact used for mail transportation, and
where the Commission had not ordered compensation; the Court of
Claims said,
id. at 545, in dismissing the petition:
"The act of July 28, 1916, clearly intended that all questions
of the compensation to be paid railroad companies for carrying the
mails should be determined by the Interstate Commerce Commission.
The commission having acted within the scope of its authority,
having fixed the reasonable compensation to which the plaintiff is
entitled, this Court cannot review the action of the commission and
undertake to fix a different compensation from that arrived at by
the commission. If the plaintiff has performed any service which
the commission has failed to provide for in its order fixing
compensation, then the plaintiff's remedy is before the Interstate
Commerce Commission, and not in this court."
"the recovery in this court merely carried into effect the
Commission's determination, that is to say, this court did not
undertake to make a classification or to fix a rate of
compensation."
80 Ct.Cl. at 248.
Cf. Denver & Rio Grande R. Co. v.
United States, 50 Ct.Cl. 382, 391.
[
Footnote 28]
"And, since railway mail service is compulsory, the Court of
Claims would, under the general provisions of the Tucker Act, 24
Stat. 505, have jurisdiction also of an action for additional
compensation if an order is confiscatory.
United States v.
Great Falls Mfg. Co., 112 U. S. 645;
North
American Transportation & Trading Co. v. United States,
253 U. S.
330,
253 U. S. 333;
Jacobs v.
United States, 290 U. S. 13,
290 U. S.
16."
303 U.S. at
303 U. S.
238.
[
Footnote 29]
As to interest,
compare the
Great Falls case
with the
Jacobs case, both cited in
note 28
[
Footnote 30]
Our attention has not been called to attacks on railway mail
rate orders based on this grant of jurisdiction, but it may be
noted that district court suits to enjoin the Postmaster General's
fraud orders are commonplace.
See, e.g., Williams v.
Fanning, 332 U. S. 490,
332 U. S. 492,
n. 2.
[
Footnote 31]
5 U.S.C. §§ 1001-1011.
[
Footnote 32]
See Tagg Bros. & Moorhead v. United States,
280 U. S. 420,
280 U. S. 444,
n. 4.
Cf. National Broadcasting Co. v. United States,
319 U. S. 190,
319 U. S. 227;
Shields v. Utah, Idaho Cent. R. Co., 305 U.
S. 177,
305 U. S.
185.