Hugo Black

“ This clash between state and federal agencies came about because the State Commission and the Interstate Commerce Commission each claimed the paramount power to fix railroad rates in North Carolina. The North Carolina Commission ordered railroads doing business in the state to charge no more than 1.65 cents per mile for carrying intra-state coach passengers from one point in the state to another. Despite this State Commission order, the Interstate Commerce Commission authorized the same railroads to charge 2.2 cents per mile for the same type of carriage. ”

“ There is doubt whether at least in the southern district a coach fare of 1.5 cents per mile is not producing better revenue results for those respondents than would any higher fare, and it may also be that round-trip fares on both coach and pullman traffic at a lower rate per mile than the one-way fares herein prescribed would bring to respondents better revenue results than the higher fares. ”

“ The Commission said at page 187:
'At the time the 1920 increase was authorized many of the States prohibited passenger fares above certain amounts per mile, most of them 2 cents or 2.5 cents, and section 13 orders by us became necessary in order to bring the intrastate fares in those States up to the interstate basis.'
The tables of passenger statistics in the appendices do not separate the traffic. Revenue from all passenger traffic was the dominant motive. See 'Fact Findings,' page 253. Evidence in Ex parte No. 148 likewise related to aggregate revenue. So did the expected increases. ”

“ When general basic rates, fares or charges are fixed by the Commission, the Commission necessarily gives consideration 'to the need of revenues sufficient to enable the carriers, under honest, economical, and efficient management to provide' reailway transportation at the lowest cost. Section 15a. Therefore when interstate rates are fixed with the supposition of an equal level for intrastate rates, for substantially similar service, it requires a contribution on that basis from intrastate rates to avoid intrastate discrimination against interstate traffic. ”

“ It made no finding that the railroads needed this increase in order to maintain adequate railroad systems and of course could not have done so unless it relied upon the old 1936 evidence. There was no issue of this nature raised by any of the parties in the 10% rate increase proceedings. Neither before nor since these Southern railroads were authorized by the Commission to increase their interstate rate to 2.2 cents has any hearing been held on the subject. Petition of North Carolina for a hearing was denied. ”

“ In fact, it need have provided for no hearing at all since it could have easily stated in its legislation that intra-state rates shall never be lower than interstate rates. The argument of the Commission in this regard runs counter to the language of § 13 (4) , and would call for a declaration by us that Congress intended by this section to reverse the entire transportation history of the nation. The clause about 'persons' and 'localities' is as the legislative history shows, a practical enactment into law of a decision of this Court in the 'SHREVEPORT' CASE. [3] HOUSTON, E. & w.t. ry. co. ”

“ Kansas, 1901, § 66-1 7, Revised Statutes of Kansas (1923) ; North Dakota, 1907, § 4796, Compiled Laws of North Dakota (1913) ; Illinois 1907, Smith-Hurd Stats. c. 114, § 154; c. 114, § 170, Callaghan's Illinois Statutes Annotated (1924) ”