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OHIO V. UNITED STATES, 292 U. S. 498 (1934)

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U.S. Supreme Court

Ohio v. United States, 292 U.S. 498 (1934)

Ohio v. United States

No. 868

Argued May 8, 1934

Decided May 28, 1934*

292 U.S. 498


The Interstate Commerce Commission found that intrastate rates on bituminous coal from certain mining districts in southeastern Ohio to destinations in the northeastern portion of the state, as reduced by order or permission of the Public Utilities Commission of the state, were substantially lower, distance considered, than interstate rates on such coal moving to the same destinations from districts in Pennsylvania and West Virginia; that the interstate rates from the latter districts were reasonable; that the system of differentials between the Ohio origins and the more remote other-state origins was proper, distance and other conditions considered; that the reduced Ohio rates were unduly preferential of persons and localities in Ohio and unduly prejudicial to persons and localities in the Pennsylvania and West Virginia districts, and that, to remove such discrimination, the intrastate rates should be increased to their former level and the preexisting interrelationship reestablished. In a suit to annul the resulting order, held:

1. Objection that the Commission did not afford a fair hearing is based on excerpts from its report, taken out of their connection, and is disproved by an examination of the record, report, and findings. P. 292 U. S. 505.

2. There was ample evidence before the Commission to sustain the finding of undue prejudice against interstate shippers and localities. P. 292 U. S. 506.

3. It is not required of the Commission that, before it can remove undue prejudice caused by intrastate rates to districts of origin in other nearby states whose rates are under consideration and found reasonable, it must find or make reasonable other interstate rates to the destination in question, which are adjusted on a chanroblesvirtualawlibrary

Page 292 U. S. 499

different rate base and apply to districts lying in comparatively remote areas. P. 292 U. S. 506.

4. It is a theory of ratemaking that the longer haul may be expected to yield a lower ton-mile return. P. 292 U. S. 508.

6 F.Supp. 386 affirmed.

Appeal in No. 886 dismissed.

Appeals from decrees of the District Court, constituted of three judges, which dismissed the bills in two suits to set aside an order of the Interstate Commerce Commission. The two suits had been consolidated for trial. The cross-appeal, No. 886, was from an order of the court below staying the operation and enforcement of the order of the Commission for 60 days. This order of the court below was vacated by this Court, February 12, 1934, see 291 U.S. 644. The cross-appeal is therefore now dismissed as moot. chanroblesvirtualawlibrary

Page 292 U. S. 500

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