United States v. Allegheny-Ludlum Steel Corp.,
406 U.S. 742 (1972)

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U.S. Supreme Court

United States v. Allegheny-Ludlum Steel Corp., 406 U.S. 742 (1972)

United States v. Allegheny-Ludlum Steel Corp.

No. 71-227

Argued March 27, 1972

Decided June 7, 1972

406 U.S. 742


1. Two "car service rues" promulgated by the Interstate Commerce Commission (ICC), requiring generally that unloaded freight cars be returned in the direction of the owning railroad, are "reasonable" under the Esch Car Service Act of 1917 in view of the ICC's finding, for which there is substantial record support, of a national freight car shortage, and its conclusion that the shortage could be alleviated by mandatory observance of the rule, which would give the railroads greater use of their cars and provide an incentive for the purchase of new equipment. Pp. 744-755.

2. The ICC proceeding in this case was governed by, and fully complied with, § 553 of the Administrative Procedure Act. Pp. 756758.

325 F.Supp. 352, reversed.

REHNQUIST, J., delivered the opinion for a unanimous Court.

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