# Appendix — Western Pacific Railroad v. United States

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## Record

- **Collection:** Supreme Court brief
- **Document type:** Appendix
- **Published:** January 1, 1965
- **Citation:** 382 U.S. 237

## Text

PREME COURT OF THE UNITED STATES
OCTOBER TERM, 196% /7 65

rh cr

‘THE WESTERN PACIFIC RAILROAD COMPANY,
ET AL., APPELLANTS,

v8.
UNITED STATES, ET AL.

APPEAL FROM THE UNITED STATES DISTRICT COURT
FOR THE NORTHERN DISTRICT OF CALIFORNIA

INDEX
VOLUME 1
Original Print
| Proceedings before the Interstate Commerce Com-
a mission
| Seeretary’s certificate (omitted in printing) 1 1
Complaint in Docket No. 33679 5 1
' Separate answer of The Atchison, Topeka and
_ Santa Fe Railway Company 17 8
| Separate answer of Northern Pacific Railway
Company, Camas Prairie Railroad Company
- and Walla Walla Valley Railway Company _. 19 9
_ Answer of Union Pacific Railroad Company and
- Spokane International Railroad Company —.. 21 10
__ Answer of Great Northern Railway Company and
' Pacifie Coast B.R. Co. 4 ll
_ Answer of Washington, Idaho, and Montana
_ Railway Company 28 13
_ Petition of Southern Pacific Company for leave
to intervene in opposition to complaint 32 14

Recorp Press, Printers, New York, N. Y., May 27, 1965

Proceedings before the Interstate Commerce Com-
mission—Continued

Transcript of hearing, May 8, 9, and 10, 1961 __
Appearances
Testimony of T. P. Wadsworth—
direct (by Mr. Treanor) —
Statement.of T. P. Wadsworth entered into
record
Statement of D. L. Loftus entered into rec-
ord—

direct (by Mr. Treanor) -
Offers in evidence
Testimony of D. L. Loftus—
cross (by Mr. Hobbs)
redirect (by Mr. Burkett) —
Offers in evidence
Testimony of Grant 8. Allen—
direct. (by Mr. Treanor) _.
cross (by Mr. Hobbs) —
cross (by Mr. Farrell) —
cross (by Mr. Burkett) —.
eross (by Mr. Farrell) __
redirect (by Mr. Treanor)
recross (by Mr. Farrell) _

Offers in evidence
Testimony of F. B. Stratton—
direct (by Mr. Treanor) _
cross (by Mr. Hobbs) —
cross (by Mr. Farrell) _..
Testimony of Charles K. Faye—
direct (by Mr. Treanor) __
cross (by Mr. Hobbs) —
cross (by Mr. Farrell) _
Statement of A. K. Hinckle entered into rec-
ord—

direct
cross (by Mr. Burkett) —

&S

41

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78

101

INDEX iii

; Original Print
Proceedings before the Interstate Commerce Com-
mission—Continued
Transcript of hearing, May 8, 9, and 10, 1961—
Continued
Statement of F. W. Fuller entered into reec-
ord—
direct (by Mr. Treanor) 165 106
eross (by Mr. Farrell) ___ 168 108
redirect (by Mr. Treanor) 171 110
recross (by Mr. Farrell) _ 171 110
Statement of M. A. Kasen entered into rec-
ord—
direct (by Mr. Treanor) _ 172 111
eross (by Mr. Farrell) __ 177 114
Statement of Waldo Wolgamott entered into
record—
direct (by Mr. Treanor) _ 181 117
eross (by Mr. Farrell) __. 184 119

redirect (by Mr. Treanor) 185 120
Statement of N. C. Kunzmann entered into

record—
direct (by Mr. Treanor) _ 186 121
cross (by Mr. Burkett) __ 188 122
cross (by Mr. Farrell) ___ 189 123
redirect (by Mr. Treanor) 189 123
recross (by Mr. Farrell) _ 190 124
Statement of John M. Cox entered into rec-
ord—
direct (by Mr. Treanor) _ 190 124
eross (by Mr. Burkett) __ 193 126
Statement of Robert Stoll entered into rec-
ord—
direct (by Mr. Treanor) _ 194 127
eross (by Mr. Burkett) __ 196 128
iedirect (by Mr. Treanor) 197 129
recross (by Mr. Burkett) _ 197 129
Statement of C. V. Donaldson entered into
record—
direct (by Mr. Treanor) _ 199 130
cross (by Mr. Farrell) ___ 203 132
eross (by Mr. Burkett) __ 209 137

>

iv INDEX

iss ae Original Print
Proceedings before the Interstate Commerce Com-
mission—Continued
_ Transcript of hearing, May 8, 9, and 10, 1961—
Continued
Testimony of Clifford Worth—
direct. (by..Mr..Treanor) — 211 138
eross (by Mr. Burkett) — 216 142
cross (by Mr. Farrell) —.. 222 146
Offer in evidence 225 = 147
Testimony of P. Steele Labagh—
direct (by Mr. Treanor) - 225 147
cross (by Mr. Burkett) — 229 150
Statement of Myron Lindgren entered into rec-
ord—
direct (by Mr. Treanor) -- 231 152
cross (by Mr. Burkett) 234 8614
Statement of Avery M. Cloninger entered into
record—
direct. (by Mr. Treanor) . 235 14
eross (by Mr. Burkett) — 238 =: 156
Statement of Paul J. Roche entered into rec-
ord—
direct (by Mr. Treanor) 240 = 158
cross (by Mr. Farrell) —.. 243 =o
redirect (by Mr. Treanor) 244 160
Statement of Frank L. Sigloh entered into
record—
direct (by Mr. Treanor) ~ 244 ~=s 16
eross (by Mr. Burkett) — 247 163
redirect (by Mr. Treanor) 249 164
recross (by Mr. Farrell) — 249 164
Testimony of A. R. Allen—
direct (by Mr. Treanor) . 250 = 165
cross (by Mr. Hobbs) —— 254 167
Testimony of T. P. Wadsworth—
(resumed )—
cross (by Mr. Farrell) 257 169
cross (by Mr. Burkett) 304 =. 202

redirect (by Mr. Treanor) 312 = 209
reeross (by Mr. Farrell) — 314 += 210

roceedings before the Interstate Commerce Com-
mission—Continued
Transcript of hearing, May 8, 9, and 10, 1961—
Continued
Offers in evidence
Testimony of T. P. Wadsworth—
cross (by Mr. Burkett) __
Complainants rest direct case
hearse of A. J. Stilling—
direct (by Mr. Hobbs)
cross (by Mr. Treanor) __
cross (by Mr. Tjosseni) __
redirect (by Mr. Hobbs) _

Offer in evidence
Statement of R. B. Hardin entered into ree-

ord—
direct (by Mr. Higgins) _
cross (by Mr. Treanor) __
cross (by Mr. Pfrommer) _

Offer in evidence
Statement of G. E. Roeder entered into reec-
ord—
direct (by Mr. Treanor) _
cross (by Mr. Burkett) __
cross (by Mr. Farrell) __
redirect (by Mr. Treanor)
recross (by Mr. Farrell) _
Testimony of C. W. Evers—
direct (by Mr. Hobbs) __
cross (by Mr. Treanor) _.
Offers in evidence
Statement of L. S. Davis entered into record—
direct (by Mr. Farrell) __
cross (by Mr. Treanor) ___
redirect (by Mr. Farrell) _
recross (by Mr. Treanor) _
redirect (by Mr. Farrell) _

Offers in evidence

vi

Proceedings before the Interstate Commerce Com-. .
mission—Continued spr
Transcript of hearing, May 8, 9, and 10, 1961—

Continued
Testimony of Ferdinand Wascoe— ‘e
direct (by Mr. Burkett) —_
cross (by Mr. Treanor) —
cross (by Mr. Pfrommer) -
redirect (by Mr. Burkett)
Offers in evidence
EXHIBITs :
No. 1—Map which shows the Pacific Coast
areas involved in this case, as well as the
locations of the lines and routes of the
complainants and defendants —-.__
No. 2—Map which shows the points in Cali-
fornia served by complainants, as well as
the relationship between such points and
those situated on the Southern Pacific,
with whom the defendants maintain joint
rates via Portland, Oregon
No. 3—Tables 1-18 of Statistical and other
data referred to by Witness Wadsworth’s
prepared statement —
No. 4—Pages of Pacific Southcoast Freight
Bureau Tariff 1-S, ICC 1352, containing
present routing arrangements in effect via

the Southern Pacific Company via Port-:

land, Oregon, thence via the Northern Pa-
cific Railway or Union Pacific Railroad
Company

No. 5—Pages of Pacific Southcoast Freight

Bureau Tariff 1-8, ICC 1352, containing
present routing arrangements in effect via
The Western Pacific Railroad Company
via Bieber, Cal.. between points in Cali-
fornia and points in Oregon, Washington
and Northern Idaho

Original Print
449 - 37
472 399
475 39

ATT. 80
479 39
482 3%
482 309
483. 3%)
484 33
495 32
501 348

>

INDEX vii

Proceedings before the Interstate Commerce Com-
mission—Continued
Transcript of hearing, May 8, 9, and 10, 1961—
Continued
Exuipirs—Continued
No. 6—Map showing “Stations designated
in red are junction points between Union
Pacific and Great Northern Railway in
Oregon, Washington and Idaho, affording
interchange of carload freight without
transfer of lading” 508 355
No. 7—Map showing “Stations designated
in red are junction points between North-
ern Pacific Railway and Great Northern
Railway in Oregon, Washington and Idaho,
affording interchange of carload freight
without transfer of lading” === 509 356
No. 8—Page 38 of Southern Pacific Com-
pany Freight Tariff 230-K, ICC 4960,
containing absorption of Western Pa-
cifie’s switching charge at Sacramento on
Canned Goods moving from Sacramento
via SP to points on NP or UP in Oregon,
Washington or Idaho 510 357
No. 9—Statement showing “Representative
Commodities on which present combination
rates applicable via Bieber and Portland
thence Northern Pacific Railway or Union
Pacific Railroad Company are compared
with joint through rates in effect via de-
fendant’s routes with the Southern Pa-
cific Company via Portland” == 512 359

VOLUME 2

No. 10—Statement showing “Originations
and terminations of Carload freight traffic
via Bieber moving west of transcontinental
for the years 1955-1959” 556 403

viii INDEX

Proceedings before the Interstate Commerce Com-
mission—Continued
Transcript of hearing, May 8, 9, and 10, 1961—
Continued
Exurrrs—Continued
No. 11—Statement showing “Cars via. Santa
Fe Via Bieber or Portland (West of
Transcontinental Territory) for the years
1955-1959”
No. 12—Statement showing. “Traffic via
Bieber compared with total revenue
freight traffic handled by The Western
Pacific Railroad Company for the years
1955-1959”
No. 183—Statement showing “West of Trans-
continental Traffic via Bieber compared
with other West of Transcontinental
Traffic moving via The Western Pacific

Railroad Company and with the total rev-.

enue traffic handled by that Railroad” _.
No. 14—Pages of Pacific Southcoast Freight
Bureau Tariff 1-S, ICC 1352, containing
present rates on Cast Iron Pipe from
Decoto, California on the Western Pacific
Railroad to points in Oregon, Washington
and Northern Idaho, via Western Pacific
to Bieber, Cal.; Great Northern Railway
to Portland, Oregon, thence via Northern
Pacific Railway Company or Union Pacific
Railroad Company
No. 15—Pages of Pacific Southcoast Freight
Bureau Tariff 1-S, ICC 1352, containing
present rates on Automobiles from Oak-
land and Decoto, Cal. to points in Oregon,
Washington and Northern Idaho, via
Western Pacific to Bieber, Cal. Great
Northern Railway to Portland, Oregon,
thence Northern Pacific Railway Company
or Union Pacific Railroad Company —

Original Print
557 404
558 405
558a 406
559 401
569 417

Proceedings before the Interstate Commerce Com-
mission—Continued
Transcript of hearing, May 8, 9, and 10, 1961—

Continued
Exuits—Continued
No. 16—Pacifie Southcoast Freight Bureau
Tariff No. 297-D (and Supplements 3 and
4), ICC. No. 1678, containing present
rates on Automobiles from points in Cali-
fornia on the Western Pacific Railroad
Company to points on the Northern Pa-
cific Railway and Union Pacific Railroad
Company via Western Pacific Railroad
Company to Bieber, California, Great
Northern Railway to Portland, Oregon,
thence Northern Pacific Railway or Union
Pacific Railroad Company
No. 17—Statement on “Economic Growth”
No. 18—Statement on “Production” ____
No. 19—Statement on “The Western Pacific
Transportation Plant”
No. 20—Map of The Western Pacific Rail-
road showing the interchange points
between the Western Pacific and the
Sacramento Northern, the Tidewater
Southern, and other railroads
No. 21—Map of U.P.R.R.Co. showing main
railroad routes and connections—Port-
land, Oregon, Aug. 4, 1960 =
No. 22—Statement showing “Gross Ton
Miles Trailing East, West & Total” ___
No. 23—Statement showing “Northbound—
Southern Pacific Schedules” ss
No. 24—Statement showing “Southbound—
Southern Pacific Schedules” e
No. 25—Statement showing “Comparison
between Lowest “Through” rate on Fibre-
board boxes, KD Flat from Stockton and
Antioch, Calif. to Selected Stations in
Washington and Lowest “Combination”
Rate Applicable via the Bieber Route” _

578 .
595
597

598

8

2

Proceedings before the Interstate Commerce Com-
mission—Continued
Transcript of hearing, May 8, 9, and 10, 1961—
Continued
Exuisits—Continued
No. 26—Map showing the Union Pacific line
in California, Nevada, Utah, Idaho, Ore-
gon and Washington indicated in red, the
principal lines of the Southern Pacific in
Oregon and California indicated in blue
and the joint line of the Santa Fe, West-
ern Pacific, Great Northern, between Cali-
fornia and Portland indiéated in green
No. 27—Map of Portland, Ore. and Van-
couver, Wash. and Vicinity showing prin-
cipal railroad trackage therein —____.
No. 28—Statement showing “Northbound
Freight Train Schedules Southern Pa-
cific—Union Pacific and Bieber Route and
Elapsed Times”
No. 29—Statement showing “Southbound
Freight Train Schedules—Southern Pa-
cific—Union Pacific and Bieber Route and
Elapsed Times”
No. 30—Map showing Lines of Southern Pa-
cific indicated in blue, Inside Gateway to
Portland, Ore. indicated in green, Lines of
Northern Pacific Railway Co. and connec-
tions indicated in red, and Lines of Ore-
gon Trunk and Spokane, Portland &
Seattle Railways indicated in yellow
No. 31—Enlarged Map showing Lines of
Southern Pacific indicated in blue, Inside
Gateway to Portlanc, Ore. indicated in
green, Lines of Northern Pacific Railway
Co. and connections indicated in red and
Lines of Oregon Trunk and Spokane,
Portland & Seattle Railways in yellow __

Proceedings before the Interstate Commerce Com-
mission—Continued
Transcript of hearing, May 8, 9, and 10, 1961—
Continued

Exuisrrs—Continued

No. 32—Exhibit showing comparison of

Railroad Distance via Existing joint rate

routes with route sought in this proceeding

and also routes via Oregon Trunk-

Spokane, Portland and Seattle Railway

Companies between Representative Points

on the Northern Pacific Railway Company

and San Francisco and Los Angeles, Cali-

fornia

No. 33—Statement showing Transportation

Conditions of Southern Pacifie Routes

Compared with Western Pacific Route via

Bieber, California between Portland, Ore-

gon and Stockton, California, San Fran-

cisco, California, and Los Angeles,

No. 34—Statement showing “Freight Train
Schedules—Southern Pacific Routes Com-
pared with Western Pacific Bieber Route”

No. 35—Statement showing “Gross Ton
Miles Trailing East, West and Total—
Gerber—Dunsmuir”

Brief of complainants to the Hearing Examiner,
dated and served July 6, 1961 (excerpts) __.
Complainants’ reply to exceptions of Northern
Pacific Railway Company, Union Pacific Rail-
road Company and Southern Pacific Company
(excerpts)
Transcript of hearing December 14, 1961 (ex-
cerpts)
Statement by Commissioner Freas and colloquy
with Mr. Treanor
Complainants’ petition for reconsideration of the
report and order of Division 2, dated and
served August 27, 1962 (excerpts) _..._

Original Print
612 473
622 483
640 501
641 502
642 503
648 505
654 508
655 508
659 6510

xii

Proceedings before the Interstate Commerce Com-
mission—Continued
Complainants’ petition for further hearing for
purpose of introducing newly developed evi-
dence, dated December 28, 1962 ~
Order of Commission denying petition for recon-
sideration of report and order of Division 2,
entered January 18, 1963
Complainants’ petition for waiver of the provi-
sions of Rule 1.101(e) of the Commission’s
general rules of practice, January 19, 1963 __
Petition of The Western Pacific Railroad Com-
pany pursuant to Rule 1.101(a) (4) general
rules of practice seeking a finding that an issue
of general transportation importance is in-
volved, filed January 30, 1963
Reply of defendants Northern Pacific Railway
Company, Camas Prairie Railroad Company
and Walla Walla Valley Railway Company to
complainants’ petition for waiver of Rule
1.101(e) and petition for further hearing —.
Reply of defendant Union Pacific Railroad Com-
pany to complainant’s petition for waiver of
Rule 1.101(e) and petition for further hearing
Reply of intervener Southern Pacific Company
to complainants’ petition for waiver of Rule
1.101(e) and petition for further hearing —~.
Order of the Commission designating this pro-
ceeding as one involving an issue of general
transportation importance, entered February
14, 1963
Complainants’ petition to the full Commission
for reconsideration of the report and order of
Division 2 and complainants’ request for oral
argument before the full Commission (ex-
cerpts)
Petition of United States for leave to intervene
for the purpose of petitioning the full Com-
mission for reconsideration of the report and
order of Division 2 and to be heard on oral

argument

Proceedings before the Interstate Commerce Com-
mission—Continued
Petition of United States to full Commission for
reconsideration of report and order of Division
2 and request of United States for oral argu-
ment before full Commission
Reply of intervener Southern Pacific Company
to petition of Department of Justice for leave
to intervene for the purpose of petitioning the
full Commission for reconsideration of the re-
port and order of Division 2 and to be heard
on oral argument dated and served August 1,
1963
Petition of United States to Full Commission (1)
to vacate its order served July 30, 1963; (2)
to reopen the proceedings for the purpose of
considering petitions of the United States filed
July 26, 1963 and such responses thereto as
may be filed by the parties; (3) to hear oral
argument if then warranted; and (4) to issue
a decision stating findings and conclusions and
the reasons or basis therefor upon all material
issues as well as an order granting or denying
the relief sought
Reply of defendants Northern Pacific Railway
Company, Camas Prairie Railroad Company
and Walla Walla Valley Railway Company to
petition of the United States for leave to in-
tervene
Order of Commission denying petitions of United
States entered August 9, 1963
Motion of Union Pacific Railroad Company, de-
fendant, for The Interstate Commerce Commis-
sion to deny or reject the petition of The
United States for leave to intervene served
August 9, 1963
Reply of defendants Northern Pacific Railway
Company, Camas Prairie Railroad Company
and Walla Walla Valley Railway Company to
petition of the United States to reopen pro-
ceedings

740

768

7174

783

794

796

573

577

589

590

592

xiv INDEX

Proceedings before the Interstate Commerce Com-
mission—Continued
Reply of Union Pacific Railroad Company, De-
fendant, to petition of The United States to
reopen proceedings served August 16, 1963 _.. 821 = 6
Reply of intervener Southern Pacific Company
to petition of United States to reopen proceed-
ing served August 21, 1963 830 = 610
Letter from Secretary, Interstate Commerce
Commission to Mr. John N. Dougherty, De-
partment of Justice, dated September 10, 1963 835 = 613
Record from the United States District Court for
the Northern District of California, Southern
Division 836 = 614
Complaint 836 = 64
Exhibit “A”—Report and Order of the Com-
mission, Division 2, Commissioner Freas, de-
cided July 26, 1962 and served August 2,

1962 846 = 6
Exhibit “B”—Notice of denial of hearing by

the full Commission, dated July 12, 1963

and service date of July 30, 1963 871 —s 6

Exhibit “C”—Report and Order recommended
by Hearing Examiner, John F. Wright,
dated July 31, 1961 and served August 10, |
1961 872
Order granting motion of Northern Pacific Rail-
way Company, Camas Prairie Railroad Com-
pany and Walla Walla Valley Railway Com-
pany to intervene as defendants, November 4,
1963 878 656
Answer of intervening defendants Northern Pa-
cific Railway Company, Camas Prairie Rail-
road Company, and Walla Walla Valley Rail-
way Company filed November 4, 1963 880 6H
Order granting motion of Union Pacific Railroad
Company to intervene as defendant, November
26, 1963 884 = 660

Record from the United States District Court for
the Northern District of California, Southern
Division—Continued
Answer of intervening defendant Union Pacific

Railroad Company filed November 26, 1963 __.
Order granting motion of Interstate Commerce
Commission to intervene as defendant, Decem-
. ber 16, 1963
Answer of intervening defendant, the Interstate
Commerce Commission filed December 16, 1963
Answer of the United States of America filed
December 16, 1963
Order granting motion of the Southern Pacific
Company to intervene as a defendant, dated
December 16, 1963
Answer of intervening defendant Southern Pa-
cific Company filed December 16, 1963 _._.__
Order allowing intervention of The Atchison,
Topeka, and Santa Fe Railway, dated Janu-
ary 13, 1964
Answer of intervening defendant, The Atchison,
Topeka and Santa Fe Railway Company filed
January 13, 1964
Transcript of hearing on motion to enjoin, set
aside, suspend and annul order of Interstate
Commerce Commission
Appearances
Argument by Mr. Treanor on behalf of plain-
tiff
Argument by Mr. Ginnane on behalf of Inter-
state Commerce Commission
Argument by Mr. Higgins on behalf of Union
Pacific, intervening defendant —
Argument by Mr. Farrell on behalf of North-
ern Pacific, the Camas Prairie and Walla
Walla Railroads
Rebuttal argument by Mr. Treanor
Opinion and judgment, Zirpoli, J.—Order deny-
ing petition, June 19, 1964

xv

Original Print
886 661
890 664
891 665
896 669
898 669
900 670
905 674
907 675
909 676
909 677
910 677
938 693
960 707
975 715
983 720
998 730

xvi INDEX

Record from the United States District Court for
the Northern District of California, Southern
Division—Continued

Notice of appeal to the Supreme Court of the
United States
Designation of additional portions of the record,
ete.
Clerk’s certificate (omitted in printing) ———___.

Order noting probable jurisdiction

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vad | ("| 8 | 8 RERRRRSHRR| 8 | BRERERR

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EFFECTIVE SEPTEMBER 15, 1960

M. A. NELSON, Tariff Publishing Officer,

Issued
in} Izarkot Street, San Francisco 3, Cal.

moana 5088 8 Hi
$a988 8|88| § it

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| || C-2500—Authy, C-7776.
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motor,
list of
11635 Chewelah. Wash. 384

PLELT WORDSIION —
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[fol. 575]

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(fol. 576]

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at

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@
70-A

|} SECTION 1—PROPORTIONAL RATES

Vehicles, as described in, and subject to, the provisions of Item 400, taking Columns A, B or C rates.

HB, Yao |

i3-

$113.70) 11
90} 11

i SESS
RSR S288

70 154
20 155

Ree RERS
Sous sess

$135.80
160.30} 130.00} 108.

.

$167.50
90

=

sdoaltiites

dddda defies

gi ber
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FROM POINTS ON SP IN CALIFORNIA

~~ ~aeeed
S2888 RSRA
, + s *
ARSGE 8584

R28RR SEAR
SSSR ARSE

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RESSS ase

..eee} 135.50} 110.20] + 92.30

+] $182.40) $123.70

.
.
.
.
.
.
.

FROM POINTS ON WP IN CALIFORNIA |
Decoto, Melrose (Oakland Oakland,
Pag a meng
$

Route .
(see Section 3)

Rg
RARAAAS

SRARRSR

Vebicles, as described in, and subject to, the provisions of Item 400, taking Columns A, B or C rates.
PO

“quevzejddng #rq3
£-98 20 1-90 “H-96 “G-00 “C1-06 ‘ST “PI ‘ET ‘ZT ‘OT ‘6 '8 ‘L ‘9 ‘9 ‘g eNO THA BoROoUUOD aT ATuO SEHAGVS
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FROM
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Column C

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Berore THE IwrerstaTE ComMMERCE CoMMISSION

(fol. 598]

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S5ET-HSET rn 2 2158 (4) UP #681 2:15P(3
r, Seattle 10:00P(3) UP #681 8:00P(4 1:30A(3) UP #681 8:00P(4
ly. Albina UP #198 * 11:00P(4) UP #198* 11 :00P(3
. Spokane 10:00a(4) UP #298 $:00P(5 10:00a(3) PW #298 8:00P(4 10:00a(5)
“Bir, Baker UP #IDS_—- 8:00 (6 UP #IDs_~ = 8:00a(5
os Angeles to Seattle 67'00" 89100" 51130" 70 '00"
Bien Francisco to Seattle 51'00" 7300" 45'30" 644008
Pekland to Seattle 48'00" 70*00" 42'30* 61'00"
Bios Angeles to Spokane 7900" 113 "00" 6000" 94,00" 100 130"
fn Francisco to Spokane 63 '00" 9700" 54°00" 88100" 8300"
yfftukland to Spokane 60 "00" 94,'00" 51'00" 85 '00" 81159"
“ios Angeles to Baker | 125 100" 106 '00"
“Tin Francisco to Baker 109'00" 100 '00"
‘Pikland to Baker 106 '00" 97'00"

ther to Oakland
tker to San Francisco
ker to Los Angeles

to Oakland
to San Francisco
to Los Angeles

[fol. 609]

Berore
SOUTHBOUND FREIGHT TRAIN SCHEDULES
SOUTHERN PACIFIC - UNION PACIFIC AND BIEBER ROUTE
AND ELAPSED TIMES
UNION PACIFIC UNION PACIFIC UNION PACIFIC NIC
Drag : | Drag
And #151 #151 #690 #692 And #151 #151 #690
6:00P(0) : pee
11:00P(1) 11:00P(1
11:00P(0 ye
11:00P(1 11:00P(1
11:00P(0) 4,:00a(1 11:00F
7 en 5:30A(1) 1:00P(1 5230A
SOUTHERN ‘PACIFIC \
ADV.
BAS PNL PCW ADV. PIL =e SiW-CS TFC SFC CaL
5:00A(1) 5;00A(1) 8:50a(1) 5:00P(1) 5:00P(1) 12:01a(1) 43:30P(1)
4:45P(2) 5:05A(2) 8325P(2 8 :00P(3)
10:30P(2) 11:30P(2
4:00P(3) 11:30a(3) 6:30a(2) 1:00P(4)
70945" 59'05" Th 45" 74," 00" 74," 008
76' 30" 77 30"
94 oo" 89! 30" 60! 30" gi! 0o# 91! 0o*
65'45" 54°05" 69'45"
71°30" 72°30"
89! oo" 84! 30" 55! 30"
42°05" 45'45" 88"
48'30" 91'0
7T2' 30® 113! ¢
40' 20"
43°30"
55130" 50! 30"

OVERSIZE PAGE SEE NEXT FRAME
FOR REMAINDER OF PAGE

(fol. 609] |
Berore THE Iwrerstate ComMMERCE CoMMISSION :

SOUSNOUD FREIONT TRAIN SOMMDGLES 47°

SOUTHERN PACIFIC - UNION PACIFIC AND BIEBER HOUTE Exner No. 29
AND ELAPSED TIMES

UNION PACIFIC

: and #151 #151 #690 #692 CaL Gus SP-OCM GN-Gus

6:00P(0

11:00R(1
11:00P 3 6:50a(1) 6:50a(1)
S) 11;:00P(1
11:00P(0) 4:00a(1 : a ah 1:00P(0) 2:00a(1)
5:30A(1) | 1:00P(1 ee 5330a(1 1:00P(1
ema a
: ADV. PIL «= SM-CS_-—s TC SHC CaL Gus
4330P(1 5:00a(2
; f oo zone oo sizortss 3200 4:00P(2) oe) 8:00P(3 gon}
11:30P(2 6:00P 7:00P(2) 6:00P(3 9:00P(3) 63
12:30a(3) 6:30a(2) 1:00P(4) 4:00P(5) 1:00P(3) 4:00P(4 4:00P(4) 43:00P

D5" 7h' 45" 74," 00" 74," 00®
77' 30"
89" 30" 60' 30" 91100" 91' 00"

Ds® 69'45" 61' 10" 56' 10°
72" 30" 62' 10" 59' 10"

45°45" 8800" 83008 51°00" 61'00"
48' 30" 91'00" 86' 00" 54°90" 64'00"

113' 00" 108" 00" — 72°00" 86'00*"

40' 20"
43°30"

fe re (%2

a Bzvore rue IwrerstaT:. Commence Commission

Exuzrr No. 32

Exhibit Showing Comparison of Railroad
Distance via Existing Joint Rate Routes
with Route Sought in This Proceeding and
also Routes Via Oregon Trunk-Spokane,
Portland and Seattle Railway

between Representative Points on the
Northern Pacific Railway C,mpany and San
Francisco and Los Angeles, California.

From

San Francisco, Cal.
Portland, Ore.

San Francisco, Cal.
Bieber, Cal.
Portland, Ore.

Sai; Francisco, Cal.
Bieber, Cale. ¢,
Bend, Ore.
Wishran,
Vancouver, Washs:

San Francisco, Cal.

Portland, Ore,

San Francisco, Cal.
Bieber, Cal.
Portland, Ore.

San Francisco, Cal.
Bieber, Cal.

Bend, Ore.
Wishranm, Wash,
Vancouver, Wash.

San Francisco, Cal.
Portland, Ore.

San Francisco, Cal.
Bieber, Cal.
Portland, Ore.

San Francisco, Cal.
Bieber, Cal.

Bend, ore.
Wishram, Wash,
Vancouver, Wash.

San Francisco, Cal.
Portland, Ore.

San Francisco, Cal.
Bieber, Cal,
Portland, Ore.

San Francisco, Cal.
Bieber, Cal.

Bend, Ore.
Wishram, Wash.
Vancouver, Wash.

Te
Portland, Ore.
Hoquiam, Wash.

Bieber, Cai.
Portland, Ore.
Hoquiam, Wash.

Bieber, Cal.
Bend, Cre.

Wishram, Wash.

vancouver, Wash.
Hoquiam, Wash.
Portland, Ore-
Shelton, Wash.
dieber, da2.

Portland, Ore.

Shelton, Wash.

Bieber, Cal.
Bend, Ore.
Wishram. Wash.
Vancouver, Wash.
Shelton, Wash.

Portland, Ore.
Seattle, Wash.

Bieber, Cal.
Portland, Ore.
Seattle, Wash.

Bieber . Cal.
Bend, Ore.
Wishram, Wash,
Vancouver, Wash.
Seattle, Wash.

Portland, Ore,
Bremerton, Wash.

Fleber, Cal,
Fortland, Ore.
Rremerton, Wash.

Bieber, Cal.
Pend, Ore.
Wishram, Wash,
Vancouver, Wash.
Bremerton, Wash.

ale

1039

1070

1050

1055

portland, Ore.

Wash,

Cal.

ae ”
Vancouver, Wash,

Cal.

To
Portland, Ore.
Everett, Wash,

Bieber, Cal.
Portlaad, Ore,
Everett, Wash.

Bieber, Cal.
Bend, Ore.
Wishram, Wash,
Vancouver, Wash.
Everett, Wash.

Portland, Ore.
Bellingham, Wash.

Bieber, Cal,
Portlend, Ore.

Bellingham, Wash.

Bieber, Cal.
Bend, Ore.
Wishram, Vash.
Vancouver, Wash.
Bellingham, Wash.

Portland, Ore.
Yakima, Wash.

Portland, Ore.
Pasco, Wash.
Yakima, Wash.

Bieber, Cal.
Portland, Ore.
Yakima, Wash,

Bieber, Cal.
Bend, Ore.
Wishram, Wash.
Pasco, Wash.
Yakima, Wash.

Portland. Ore.
Pasco, Wash.

Portland, Ore.
Pasco, Wash,

Bieber, Cal,
Fortland, Ore.
Pasco, Wash,

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1159

1106

1275

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(fol. 615]

From

San Francisco,
Bieber, Cal.
Bend, Ore.
Wishram, Wash.

San Francisco ’
Portland, Ore.

San Franciseo,
Portland, Ore.
Pasco, Wash.

San Francisco,
Bieber, Cal.
Portland, Ore.

Bend, Ore.
Wishram, Wash.
Pasco, Wash.

San Francisco,
Portland, Ore.

San Francisco,
Portlamd, Ore.
Pasco, Wash.

San Francisco,
Bieber, Cal.
Portland, Ore.

San Francisco,
Bieber, Cal,
Bend, Ore.
hwishram, Wash.
Pasco, Wash.

San Francisco,
Portland, Ore.

San Francisco,
Portland, Ore.
Pasco, Wash.

San Francisco,
Bieber, Cal.
Portland, Cre.

Cal.

Cal.

Cal.

Cal.

Cal.

Cale

Cal.

Cal.

i}

Bieber, Cal.
Bend, Ore.
Wishram, Wash.
Pasco, Wash.

Portland, Ore.
Walla Walle, Wash.

Portland, Ore.
Pasco, Wash.
Walla Walla, Wash.

Bieber, Cal.
Portland, Ore.
Walla Walla, Wash.

Bieber, Cal.
Bend, Ore.
Wishram, Wash.
Pasco, Wash.
Walla Walla, Wash.

Portland, Ore.
Pendleton, Ore.

Portland, Ore.
Pasco, Wash.
Pendleton, Ore.

Bieber, Cal.
Portland, Ore.
Pendleton, Ore.

Bieber, Cal.
Bend, Ore.
Wishram, Vash.
Pasco, Wash.
Pendleton, Ore.

Portland, Ores
Athena, Ore.

Portland, Ore.
Fasco, Wash.

“Kthena, Ore.

Bieber, Cal.
Portland, Ore.
Athena, Ore.

WP 39
GK 236
OT 152
SRS 125

OT 152
S&S 125
YP 64

WP 391;
re koh
ee
WP 39h,
GN 236
oT 152
SKS 125
YP _)

SP 719

8

SP 719
S&S 233.35
YP 6
uP 39h
or u9u
YP W435

Cal.

, Cal.

Cal.

y Cale

2

Bieber, Cal.
Bend, Ore.
Wishram, Wash.
Pasco, Wash.
Athena, Ore.

Portland, Ore.
Spokane, Wash.

Portland, Ore.
Pasco, Wash.
Spokane, Wash.

Spokane, Wash.

Portland, Ore.

Riparia, Wash.
Lewiston, Ida.

Portland, Ore.
Pasco, Wash.

Riparia, Wash.
Lewiston, Ida.

Bieber, Cal.

Fortland, Ore.
Riparia, Wash.
Lewiston, Ida.

Bieber, Cal.
Bend, Ore.
Wishram, Wash.
Pasco, Wash,
Riparia, Wash.
Lewiston, Ida,

E
3

ae

955

3 leswes Nes lege ke leks
3

LSb

ls
&

478
[fol. 617]

From
los Angeles, Cal.
Portland, Ore.

Los Angeles, Cal.
Stockton, Cal.
Bieber, Cals
Portland, Ore.

Los Angeles, Cal.
Stockton, Cal.
Bieber, Cal,
Bend, Ore.
Wishram, Wash.
Vancouver, Wash.

Vancouver » Wash.

los Angeles, Cal.
Portland, Ore.

los Angeles, Cal.
Stockton, Cal.
Bieber, Cal.
Portland, Ore.

los Angeles, Cal.
Stockton, Cal.
Bieber, Cal.
Bend, Ore.
Wishram, Wash.
Vancouver, Wash.

Los Angeles, Cal.
Fortland, Ore.

los Angeles, Cal,
Stockton, Cal.
Bieber, Cal.
Portland, Ore.

To

Portland, Ore.
Hoquiam, Wash.

Stockton, Cal.

. Bieber, Cal.

fortland, Ore.
Hoquiam, Wash.

Stockton, Cal.
Bieber, Cal.
Bend, Ore. .
Wishram, Wash. —
Vancouver, Wash.
Hoquiam, Wash.

Portland, Ore.
Shelton, Wash.

Stockton, Cal.
Bieber, Cal.

Portland, Ore,
Shelton, Wash.

Stockton, Cal,

Bieber, Cal.
Bend, Ore.
Wishram, Wash.
Vancouver, Wash.
Shelton, Wash.

Portland, Ore.
Seattle, Wash.

Stockton, Cal. —
Bieber, Cal,
Fortland, Ore.
Seattle, Wash.

Stockton, Cal.
Bieber, Cal.
Bend, Ore.
Wishram, Wash.
Vancouver, Wash.
Seattle, Wash.

Portland, Ore.
Bremerton, “ash.

Stockton, Cal.
Bieber, Cal.
Portland, Ore.
Bremerton, Wash.

—ts

- Bremerton, Wash.

Fortland, Ore,
Everett, Wash.

Stockton, Cal.
Bieber, Cal.

Portland, Ore.
Everett, Wagh.

Stockton, Cal.
Bieber, Cal.
Bend, Ore.
Wishram, Wash,
Vancouver, Vash.
Everett, Wash.

Portland, Ore, .
Bellingham, Wash.

Stockton, Cal.
Bieber, Cal.
Portland, Ore.
Bellingham, Wash.

Stockton, Cal,
Bieber, Cal.
Bend, Ore.
Wishram, Wash.
Vancouver, Wash,
Bellingham, Wash.

Portland, Ore.
Yakima, Wash,

Portland, Ore.
Pasco, Wash.
Yakima, Wash.

Stockton, Cal.
Bieber, Cal.

Fortland, Ore.
Yakima, Wash.

BR

issee lee bt anuee bese bE lesuese ewe EE ke

-]

1507

1383

8

E

los Angeles, Cal.
Portland, Ore.

los Angeles, Cal.
Portland, Ore.

los Angeles, Cal.
Portland, Ore.

los angeles, Cal.
Portland, Ore.
Pasco, Wash.

To

Steckton, Cal.
Bieber, Cal.
Bend, Ore.
Wishram, Wash.
Pasco, Washes
Yakima, Wash.

Fortland, Cre.
Pasco 5 Wash.

Portland, Ore.
Pasco, Wash.

Stockton, Cal.
Bieber, Cale
Portlam, Ore.
Pasco, Washe

Stockton, Cal.

_ Bieber, Cal.

Berd, Ore.
Wishram, Wash.
Pasco, Wash.

Portland, Ore.
Walla Walla, Wash.

Portland, Ore.
Pasco, Wash.
Walla Walla, Wash.

Stockton, Cale
Bieber, Cal.
Fortland, Ore.
Walla Walla, Wash»

Stockton, Cal.
Bieber, Cal.
Bend, Ore.
Wishram, Wash.
Pasco, Wash.
Walla Walla, Wash.

fortland, Ore.
Pendleton, Ore.

Portland, Orc.
Pasco, Wash.
Fendleton, Ore.

re
Stockton, Cal,
Bieber, Cal.
Portland, Ore.
Pendleton, Ore.

Stockton, Cal,
Bieber, Cal.
Bend, Ore. ‘
Wishram, Wash.
Pasco, Wash.
Pendleton, Ore.

Portland, Ore.
Athena, Ore,

Portland, Ore.
Pasco, Wash,
Athera, Ore.

Stockton, Cal. :

Bieber, Cal.
Portland, Ore.
‘Athena, Ore,

Stockton, Cal.
Bieber, Cal.
Bend, Ore,
Wishran, Wash.
fthena, Ore.

Portland, Ore.
Spokane, Wash.

Portland, Ore.
Pasco, Wash.
Spokane, Wash.

Stockton, Cal.
Bieber, Cal.

Portland, Ore.
Spokane, Wash.

Stockton, Cal.
Bieber, Cal.
Berd, Ore.
Wishram, Wash.
Pasco, Wash.
Spokane, Wash.

leiweee bee lee’ 8 lunes kee eed ee hiwase less

1753

3

§

175

g

R

1643

1475

482
[fol, 621] coe

los Angeles, Cal,. Portland, Ore, SP 1092...

, Ore. Riparia, Wash, NP 45u
Riparia, Wash. Lewiston, Ida. Cam.P, _ 72
los. 2: » Cal. Portland, Ore. SP 1092

Pasco, Wash. SF&S 231...

Pasco, Wash. Riparia, Wash. NP feee ON
Riparia, Wash. Lewiston, Ida. CameP, 72
Ios Angeles, Cal,.. Cal. AT&SF 516 .

9 Cal. Bieber, Cal, WP 30—«
Bieber, Cal. » Ore. oy a
Portland; Ore. Riparia, Wash. FP Us.
Riparia, Wash. Lewiston, Ida, Cam, P, ai? iw
los «ngeles, Cal, Stockton, Cal. AMSF 516.

Bieber, Cal. WP 300.

Bieber, Cal. . Bernd, Ore. it J 236
Bend, Ore. ~ Wishram, W oT 152

Wash. Pasco, Wash, S&S 125.
Pasco, Wash. Riparia,; Wash, YP 67
Riparia, Wash. Lewistor, Ida. Cam.P, _ 72

of tions

Cam. Pe * Camas Prairie Railroad Company
a a ee

NP Oo LES

Ore. Oregon

oT “Oregon Trunk Railway Company

SP - Southern Pacific Company |

( Spokaney Portland & Seattle Railway Company

WP “Restore Pacific Railroad Company

ee Ice i-6710
WP - 1500=1 Tec 9759
oT 97-K -. Ic 732
sP ~ h20-D - Ic
S&S - .685-K wee 732
WP ~~ 39-6 Ivc 490

‘483

ffol. 622] [S00 ts}

BerorRE THE IwrerstaTe CoMMERCE Commssio
Exuzir No. 33

:
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Portland, Oregon to San Francisco, Californ:

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5° Route vic ~

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TRANSPORTATION CONDITIONS - FORTLAND, OREGON TO SAN FRANCISCO, CALIFORNIA
; >
: ar ghers
PACIFIC ROUTE VIA DAVIS - OAKLAND, CALIFORNIA ;
SOUTHERN » CALIFORNIA ;
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708

Portland, then over the Bieber run, through Bend, Bieber,
to California points.

The Commission accordingly, because over-all single
component rates are involved, which involves the carriers
in the over-all transportation, the Commission must then
compare the over-all circumstances and conditions over the
[fol. 962] two allegedly preferred and allegedly prejudiced
routes. And that is just what the Commission did in re.
gard to that matter. They did compare one route versus
the other. The component north of Portland, the Portland
interchange, the No. 1 route over the other, the circum.
stances and conditions, in fact, of the two routes.

They also compared the over-all circumstances such as
comparative distances from the same point in California
to the same point in the Northwest, again one route versus
the other. They compared also over-all transit lines, one
route versus the other.

Now, to avoid any confusion respecting the respective
routes, I would like to mention that the route of the Union
Pacific from certain parts of the Northwest area, generally
east of the Cascades, to a rather limited area in the Los
Angeles area, that there are joint rates in effect over that
route which are the equivalents as to both points and as
to a limited number of commodities as like rates over the
Southern Pacific route from Portland.

Judge Zirpoli: When you say “limited,” doesn’t it apply
to all commodities?

Mr. Higgins: No, sir, it does not.

Furthermore, the Western Pacific does not allege that
. [fol. 963] this route is prejudiced at all. It is not com-

' plaining of that route or complaining of the rates for that
route, and that is irrelevant to the issues before the Com-
mission.

I think we would take the position that the Union Pacific
as to points at which it provided service from this area
through this area here (indicating on map) is entitled te
compete with the other route, and nobody has objected to
that.

There is one other circumstance, one other route that
should be mentioned and that is from all points served by
the Great Northern in the Northwest, the full line of joint

709

rates is the same as in effect over the Southern Pacific
route, are in effect to destinations of the Western Pacific
and the Santa Fe in California as an existing route. Now,
when Mr. Treanor refers to performance, and when he
says that the Bieber Route is the equal of the Southern
Pacific’s Portland route, he is talking about that route.
He is talking about present movement on the Great North-
ern over the Bieber Route. The shippers who testified in
the case for the Western Pacific were using that route.
That meant the shipments from points such as Seattle
would go through Vancouver, on down across the Columbia
River, down here. From points in this area shipments
[fol. 964] would go here—not to Portland but via Great
Northern right on down. :

Now, that route isn’t in issue. That is present. That is
being used. It’s not an allegedly preferred route, it is not
an allegedly prejudiced route. The shippers who testified
in this case in no case have ever used the proposed sup-
posedly prejudiced Bieber Route. They have never done
it. They have never shipped from a point in this area east
of the Cascades to Portland over the Great Northern and
then over the—I beg your pardon, they have never shipped
from points east of the Cascades via Northern Pacific or
the Union Pacific, then to Portland and then back over the
Great Northern. All the evidence in this case relating
to route comparisons have demonstrated that the Bieber
Route, if it were to be participated in by the Northern
Pacific and the Union Pacific, would be decidedly inferior
from all ordinarily accepted operating characteristics to
the present Southern Pacific-Portland-Union Pacific-North-
ern Pacific route, which is allegedly the preferred route.

Judge Merrill: Would you concede a similarity of cir-
cumstances between the Great Northern route to Wishram
and south and the Great Northern-Southern Pacific con-
nection at Portland and south?

Mr. Higgins: I don’t know, sir. There was no attempt
to compare the two. It has no relevance. The Great
[fol. 965] Northern did not introduce any evidence as to
the characteristics of their route to the north.

Now, I would like to emphasize that the Commission did
not consider only the circumstances and conditions south
of Portland—the Bieber Route vis-a-vis the Southern

710

Pacific route up to Portland. They went beyond that and
considered the over-all conditions over the two routes,

Now, just as the plaintiff in this case has been hesitant
to come to grips with the test of connecting line status,
so have they been uncertain as to the actual test of simi.
larity of circumstances and conditions. I think you have
to establish a principle first and see if the Commission has
applied or misapplied the facts to the principle.

Before the Commission the Western Pacific has con-
tended that the test must be confined to the transportation
conditions over the route of the defendants—that is, the
conditions north of Portland—and in the opening briefs
of this court it stated that the only lawful test is whether
there are more costly or more difficult transportation con-
ditions imposed upon those allegedly discriminating, that
is, Union Pacific and Northern Pacific north of Portland.
_Now, in the complaint to this Court the Western Pacific
(fol. 966] said that the error of the Commission was that
in applying the test of physical operating conditions it
limited itself to the route south of Portland. But the Com-
mission did not do that.

In their reply brief there seems to be a certain change
in the test that the Western Pacific feels is applicable in
that they said that the Commission should review the evi-
dence as it applies to the routes as a whole, in their entirety,
and not fragmented north and south, which we contend the
Commissioners do.

Now Western Pacific asserts that the error of the Com-
mission was in requiring that the inherent physical char-
acteristics of the two routes must be identical. I submit
that the Commission’s report contains no such language
and no such finding. The Commission in its report said
that, “Equality of treatment is determined by similarity of
circumstances and conditions.”

They referred then to the Routing, Coal case, 313 1.0.C.
752. In that case there was a comparison of over-all cir-
cumstances and conditions over the entire routes. In the
district court proceeding, 205 Fed Supp 360, the conten-
tion was made that the Commission should have looked
only at the portion of the transportation provided by the

711

allegedly discriminated carrier. In this case that would
[fol. 967] be only the-service performed by Northern Pacific
and Union Pacific north of Portland.

The Court and the Commission both rejected that argu-
ment and said there must be an evaluation of over-all cir-
cumstances and conditions to determine if there is suffi-
cient similarity to require equal rate treatment. That was
affirmed by the Supreme Court, 371 U.S. 6.

Now, the Commission, after asserting the principle of
the Routing Coal case, went on to make this finding:

“The route sought through Bieber and Portland is
longer and involves more difficult operating condi-
tions that the Southern Pacific route, and they require
hauls in a general direction opposite to the direct move-
ment.”

Now, that implies an evaluation of more than just the
route south of Portland because the haul in the opposite
direction is north of the Columbia River, back and forth.

Judge Zirpoli: When you consider the similarity and
dissimilarity, do you consider them as they relate to the
effect on transportation or do you consider them because of
physical differences? Isn’t it the ultimate effect on trans-
portation which determines whether it is similar or dis-
similar?

Mr. Higgins: I would say it is a dual test, a test of
{fol.968] operating characteristics and also the test of the
effect upon the allegedly discriminating carrier.

Judge Zirpoli: Would the time consumed in shipping be
a major consideration?

Mr. Higgins: It would be a very, very significant factor.
It might explain the reason why carriers such as Union
Pacific or Northern Pacific decline to participate in joint
rates on this route. I don’t know.

Judge Zirpoli: When you look at it from the shipper’s
point of view in which time might not be an important
factor, where you look at the shipper’s point of view where
the only important factor to him may be cost—or do you
just look at it from the point of view of the railroads?

712

Mr. Higgins: We look at it from the point of view of
the railroad and the shipper. The railroads are not ina
position of encouraging circuitous, round-about, slow and
costly routes if that is not going to provide a good service
to the shipping public. This is a competitive situation be.
tween the Northwest and California, not only between rail.
roads but between other forms of transportation as well,
and if a railroad in one case were to offer service over a
route that just does not make sense from an operating or
competitive standpoint, that railroad will be hurt the next
(fol. 969] time it solicits a shipper against a truck opera.
tion. That is one of the reasons why Union Pacific has de-
clined to participate in what it considers to be an inefficient,
slow and circuitous route.

Judge Merrill: Well, this is what troubles me about this:
We are talking about similarity of circumstances which
might be relevant in a consideration of a granting of a
through route through public necessity or anything of that
sort. The similarity of circumstances that we are con.
cerned with here would be those that would disqualify some-
one from claiming to have been discriminated against, and
in this case by virtue of the rates charged.

Now, what possible relevancy is there to the round-about
route south of Portland that would justify discrimination
as to rates charged north of Portland?

Mr. Higgins: Your Honor, there is no rate charged north
of Portland. If we had segmented rates, rates which broke
on Portland, one north and one south, perhaps there would
be a relevance in examining only the portion relating to
that rate either north or south, but these are over-all single
factors, one component rate.

Judge Zirpoli: Would a division of rates then be of some
significance for that purpose?

Mr. Higgins: Not to this extent, sir, no. That question
was reserved later. The charges that accrue under the rate,
[fol. 970] of course, are divided between the carriers upon
a basis which was in the formula which in a number of
circumstances included circuity and number of miles of
routes, and so forth.

713

But I would like to point out briefly that the test of simi-
larity of circumstances and conditions was, as used by the
Commission in this case, adopted previously. The Supreme
Court has affirmed the use of that principle and that test.
The Western Pacific contends that the facts are different.
Of course they are. Elements present in one instance are
not present in the other. I think it is fair to say that in
this case there were more and different dissimilar circum-
stances than there were that the Commission considered
in the Routing Coal case.

Judge Zirpoli: Well, there is some dissimilarity in every
competing line, isn’t there, in every competing line situa-
tion?

Mr. Higgins: Yes, sir, there would be. No two routes are
identical. The Commission did not observe that test. They
did not require identical physical characteristics.

Judge Zirpoli: What I am trying to get at, what is the
ultimate basic objective which determines whether or not
similarity of circumstances exists or does not exist? Is it
[fol. 971] the ultimate transportation benefits that a ship-
per gets between Sacramento and Seattle, or what is it?

Mr. Higgins: It rests in the ultimate discretion of the
Commission as to whether the conditions and circumstances
are so dissimilar that the carrier that is allegedly discrimi-
nating has a good reason for doing it.

I would like to point out, first of all, that this is a com-
plaint case. The Western Pacific came in this case attempt-
ing to upset and attacking a long-established rate structure.
They had the burden of proving similarity. They admit
that that is the test and they had the burden of proving it.
However, there was no evidence introduced by the Western
Pacific that compared one route versus the other. In fact,
the Western Pacific witness who testified on the operating
circumstances acknowledged that there was circuity and
back-hauls and less favorable interchange at Portland.

The only over-all evidence introduced by the Western
Pacific was the miles between northwest points and Cali-
fornia points, and in every case the mileage was consid-
erably longer over the supposedly prejudiced route than
it is over the present Southern Pacific route.

I would like to point out, if I may, to the Court why
the Union Pacific considered the circumstances so different

4

(fol. 972] that it is justified in declining to participate jp
joint rates with the Bieber Route and the Great Northern,
For more than 50 years the Union Pacific had participated
with rates and routes with the Southern Pacific from Points
such as Spokane to the east and Seattle to the west. There
was a direct movement from Portland by the Union Pacifo.
and at that point there was a short interchange at Po

four and one- miles to the Southern Pacific. Shipments
were then moved over the Southern Pacific route to and
from points in California. The Southern Pacific did not
compete in the Northwest with the Union Pacific, and when.
ever a shipment was originated by the Union Pacific at
one of these points and delivered to the Southern Pacific,
that is as far as it would go. It received the full haul.

On the other hand, if joint rates were put into effect at
Union Pacific points in the Northwest to Portland over the
Bieber route, this would be the result: A typical shipment
would move over the same trackage to a point in Portland
as it did in the first instance. But at Portland, instead of
being interchanged for the short four-and-one-half mile
distance, it would have to be interchanged to the Great
Northern at Vancouver, Washington, across the Willamette
River, across the Columbia River, some twelve and one-half
[fol. 973] miles. At that point the Great Northern would
move the shipment back east along the north bank of the
Columbia River. The Union Pacific shipment moves this
way, west on the south bank, and then south to the Cali-
fornia destination.

Now, it is apparent, first of all, in every case from points
east of the Cascades there is, in fact, a reverse movement.
The result of this, and the evidence also indicated numer-
ous other characteristics where the supposedly prejudiced
—(unintelligible)—the result is there’s a slower time and
a longer distance between comparable points. For example,
from Los Angeles to Seattle the mileage over the present
Southern Pacific route is 1,275 miles to the Union Pacific
points in Seattle. If the Bieber Route were used, the mile-
age over the Bieber Route to Portland and then Union
Pacific would be 1,493 miles. The scheduled transit time
over the present Southern Pacific route is 44 hours. If

715

the same service were provided over the Bieber route, the
scheduled transit time would be 70 hours.

Another circumstance, the Great Northern competes with

the Union Pacific at all points in the Northwest. And the
Union Pacific also has a trackage which goes along the
‘Columbia River at this point, and then south to Bend,
Oregon. Every shipment received and originated by the
Union Pacific at one of these points is delivered to the
[fol. 974] Northern—that is, the Great Northern points,
would be moved along a track parallel to the Union Pacific,
and for a distance of 246 miles, which is the distance of
the Union Pacific, that they themselves could serve.

Judge Zirpoli: Why is it the only interchange is at Port-
land? Why is there an interchange there?

Mr. Higgins: Because that is the place where the com-
plainant, Western Pacific, alleges discrimination results.
We have had no request from Great Northern, or, appar-
ently, to participate in rates at Bend or Wishram. Perhaps
they don’t want it. They haven’t appeared and haven’t
complained, Your Honor.

I submit, then, that the circumstances and conditions
are so dissimilar over the two routes—and the Commission
found this and decided to fix rates, comparing one route as
against the other, reached the final conclusion that the
Western Pacific did not prove the similarity required, and
beyond that found a dissimilarity in all respects—opera-
tional, competitive—and the final result was they found
that they are so strongly dissimilar that the different rate
struciure was justified, one route versus the other.

Thank you.

ArcuMENT By Mr. Farre.. on BEHALF OF
NorTHERN PaciFic, ET AL.

Mr. Farrell: May it please the Court, my name is Frank
[fol.975] Farrell. I represent the Northern Pacific, the
Camas Prairie and Walla Walla Railroads.

I understand the Court is concerned about competition.
Well, they should be. At the time the Interstate Commerce
Commission authorized the construction of the Western
Pacific North Bieber to meet the needs of the Great North-
ern, and for the Great Northern construction to their
junction 490 miles from the point of interchange, which

716

the plaintiff Western Pacific seeks in this proceeding, the
parties represented to the Commission—and that went on
into the field of the federal court and ultimately was heard
_ —if this construction was authorized, they would establish
joint through routes and rates between points in the states
of Oregon, Washington and Idaho to points in California,
They fulfilled that obligation, and they have worked as
team in the movement of freight between these points,

My company, the Northern Pacific, also maintains rates,
but the rates we maintain are local rates from Portland to
points within the state, with certain exceptions which the
Court has referred to, namely, on livestock, on pipe, on
automobiles, and what are called class rates which are not
here involved.

The circumstances of those, in 1951, the United States
Pipe Company, which established a plant at Tecopa,
(fol. 976] California, that if it had shipments going to
points on the Northern Pacific in these northern states, it
would therefore like joint through rates. A complaint was
filed with the Interstate Commerce Commission. Before
the matter came on for hearing we had agreed to and we
did publish those joint through rates. Cars have continued
to move on those rates, and still do.

In 1959 an automobile manufacturer said it was going to
establish an automobile assembly plant in Northern (Cali-
fornia. Again a complaint was filed. We did establish those
rates. The plant was not built and no movement has ever
occurred on it.

But here there is no question: Through routes, which is
what the Western Pacific seeks in this proceeding, do not
exist. The Western Pacific has conceded it before the
Commission, and they concede it in the brief before this
Court at page 8, and they said that under the rule of the
Thompson case, 343 U.S., through routes do not presently
exist. That is their objective. That is what they seek.
That’s what they want.

So there is no dispute about it. We cite that case at some
length. In that case the Commission held not that through
routes do exist. The Supreme Court in overturning it said
that if you take the construction which the Commission
[fol.977] had taken in that proceeding and hold, well,

717

the subject is a rate for one point, and there is another rate
beyond another point, that through routes exist, then
through routes will exist between all points in the United
States. I think it is a very important case in this proceed-
ing, if the Court please.

So, then, if they could have proceeded under 1(4) and
under 15(3) and 15(4), as this Court well knows—and they
did start to proceed on that basis—if the public interest
required it, the Commission could have required through
routes. Not the circuitous routes which would be here in-
volved, but they could have required, for example, that
other roads participate, so that here when you get up to
here, for example, you get on the S.P. and §. lines, and the
§.P. & S. Railroad could have been included in those routes
and in those rates and could have actually participated in
the revenue. Here the S.P.&S. is not named as a defendant
in this proceeding. The S8.P.& S. could then have taken the
traffic going to Eastern Washington, east of the Cascades.
The S.P.& S. could have then moved that traffic directly to
points east, from which it then could have been inter-
changed at Pasco or Spokane to the Northern Pacific and
moved on to destinations further east.

Now, that is what they could do under Paragraph 1(4)
of the Act. And the same going west here (indicating on
[fol. 978] map), and you would have had very efficient
routes.

But the Commission found that the public interest did
not require it. The plaintiff agrees with the Commission
and says the public interest does not require it. But it says
that these defendants have violated Paragraph 4 of Sec-
tion 3 of the Act.

~Well;-Paragraph 4 of Section 3 of the Act came into
the Act at the very inception and is not changed in the
77 years that have elapsed. At that time carriers were
under no injunction to establish through routes or through
rates. They had a completely free hand, subject only to
3(4). And 3(4) provides that you cannot discriminate in
facilities. But how can you extend facilities to a point that
is a thousand or two thousand miles away?

Congress was talking about the common law duty that
carriers that met together in the same town, they had to
treat each other alike. They couldn’t just go ahead and

718
establish routes with one carrier and refuse to establish |
them with another.

They also provided that you could not discriminate jp
your rates.

That provision remained unchanged, and finally in 1906
they said, “Well, there are some through routes in the
(fol. 979] United States, but there are not enough.” Noy,
a through route is a simple thing. A through route jg
simply a holding out of the roads together to move freight
over that route. So in 1906 in the Hepburn Act Congress
gave the Commission powers for the first time to prescribe
through routes. Then the Supreme Court held in 1907 that,
well, if there was one through route, that the Commission
could not require that a second route be prescribed so there
could not be competition.

Congress said this was bad. So in 1910 they again ex.
tended it and gave the Commission powers to prescribe
through routes, subject to the short haul limitation that a
carrier was entitled to have its long haul protected.

Then there are two exceptions to that in the Act today,

If efficient and economical transportation is required and
will not result in a—(word unintelligible)—or in circuity,
they can short-haul it. And of course there is a short haul
involved here because my road, the Northern Pacific, owns
a half interest in the S.P.& S. Railroad. We are under
common management and control. And the S.P.& S. comes
down to Bernd. So does the Union Pacific. So, of course,
if what is sought here is accomplished, we will be short-
hauled some 246 miles up to Bend.
(fol. 980] The plaintiff says, “Well, that isn’t involved
because I don’t seek through routes direct. All I seek to
do is end the discrimination at this junction 490 miles from
my railroad, so it should not be considered.”

The findings with respect to the short haul related
simply and solely to their finding that through routes and
rates were not required under 1(4), 15(3) and 15(4) of
the Act.

Now, I think it is interesting they have gone ahead and
completely abandoned that. They say, “Well, now, there is
discrimination.”

719

I think it should also be mentioned, too, despite all their
work on this case, they have come up with one case, 270
U.S., with which the Court is familiar. And as the Court

well knows, Michigan City, Indiana, all that was involved

was switching. Five carriers. One carrier says he has

switching arrangements with Carrier No. 2, “We do not

have switching arrangements with other freight carriers.

We think we have been discriminated against.” The Com-

mission so held. On appeal the plaintiff said to the Su-

preme Court—what they said was, “Well, we do not have

a direct physical connection.” There was actually a dis-

tance of a little over 1.38, a little over three miles—“and

therefore there is a difference in circumstances and con-

ditions.”

(fol. 981] They did not say, “We are not a connecting

line within the meaning of the Act,” they said, “There is

a difference in circumstances and conditions, such that we

should not be required.”

The Court held discrimination could, of course, be re-
moved, and held that despite the fact that there was a
difference, true, the Commission had found there to be
sufficient similarity that they could not substitute their
judgment for that of the Commission.

I submit it’s clearly distinguishable and in no way in
point in this proceeding.

So I might say further, too—and I guess I am out of
time, unfortunately—but we have—I just want to clear
this one point up—the Northern Pacific has for more than
50 years participated via Portland with the Southern
Pacific in joint through rates. It has not done so with
Western Pacific because of the tremendous back haul. For
example, let’s take just one illustration. Let’s take a ship-
ment going to Portland. If the joint through rates that the
plaintiff seeks were established, that shipment comes up
the Bieber on the Western Pacific, at Bieber it goes to the
Great Northern, the Great Northern takes it up to Wish-
ram, 106 miles west of Vancouver, the Northern Pacific
gets it at that point and takes it up around Auburn, and
[fol. 982] then over to Spokane. That bill of lading that
goes along with that shipment shows the route. The Great
Northern knows where that shipment is going. If the ship-
ment is routed Great Northern, it goes directly north to
Wishram and back east to Spokane.

720

Plaintiff says, “Well, I don’t seek through rates. Al] J
seek to do is eliminate discrimination. I don’t care how
Northern Pacific handles that shipment north of Portland”

But the short answer to that is Paragraph 8 of Section 15
requires that Northern Pacific follow the routing that the
shipper affixes on the bill of lading, and follow it right to
the T.

But even assuming their whole argument, assuming that
they could do anything with it despite the Act, despite
what the rulings provide, nevertheless you would still have
106 miles west and 106 miles east. All of that could have
been eliminated if plaintiff had gone ahead and proceeded
under 1(4) and 15(3) and 15(4) of the Act in asking the
Commission to prescribe joint through routes and rates,
which it has not done, and which it has completely aban-
doned.

So I submit, Your Honors, that if connecting line is con-
strued as this plaintiff would seek to have it construed,
there would be no need for Congress to confer its power
(fol. 983] on the Commission to prescribe through routes
and rates and expanding that power in 1910. It is wholly
without precedence, wholly without authority.

I am sorry, I think my time has elapsed. I thank the
Court.

Judge Merrill: Do you have some rebuttal argument to
present, Mr. Treanor?

ResuttaL Arcument spy Mr. Treanor

Mr. Treanor: Yes, Your Honor.

Your Honors, first I would like to observe that in the
rather dramatic pointing out of the Commission’s efforts
to compare transportation characteristics over the pre-
ferred and discriminated line, that while there was em-
phasis to point to the movement along this line over the
prejudiced line, there was a studious avoidance of showing
the various directions the shipment on §8.P. routes take.

There was an avoidance of pointing out that in the Los
Angeles area where the Santa Fe is the beneficiary of the
routes, the non-discriminatory routes and rates that we
seek, that there is as much of a bend coming into Los

a

721

Angeles over the Santa Fe as there is in this direction.
As a matter of fact, when the Commission compared the
alleged length of the two routes, it compared only the single
(fol. 984] line shorter portion of the Southern Pacific route,
and compared at all times the longer length of the Western
Pacific route. 3

Mr. Farrell—and I don’t want to let this get away from
me—persists in pointing out that if the Southern Pacific
traffic comes to this point, destined to points on the North-
ern Pacific east of the Cascades, it moves over their sub-
sidiary, S.P.& S., and he says they would have to move
our traffic up to Auburn and over and not use their sub-
sidiary because their subsidiary is not a defendant in this

case.

We say that if the order to cease and desist from dis-
crimination is entered, the Northern Pacific will soon
voluntarily find that they will publish the same rates over
their subsidiary.

But I would like to point something else out to the Court.

Mr. Farrell says that the law requires them to follow the
shipper’s routing, and if the Northern Pacific is in there
and not the S.P.& S., they must move it via Auburn. If
that is the case, their chief witness at the hearing testified
that he is violating the law, because he testified that as a
matter of operating convenience, regardless of the routing
shown in the bill of lading, to a Northern Pacific point east
of the Cascades, the traffic is moved over their shorter sub-
sidiary route.
[fol. 985] Now, the Commission has made, and we think
correctly, a point of emphasizing to us that the S.P.& S.
must, for rate-making purposes, be considered a part of
the Northern Pacific-Great Northern system, and I don’t
know how they can eliminate rate discrimination them-
selves and not eliminate it over their subsidiary.

The Commission, I believe, Your Honors,—Mr. Ginnane
stated right at the outset this is a question of: How is the
Western Pacific being hurt and the public interest is really
not too involved here? We think it is. We have the same
conviction that the public interest is involved, and we sub-
mit to Your Honors that the overwhelming testimony, the

722
only testimony, as a matter of fact, regarding the public

interest was put in by Western Pacific. And we s
that any discrimination, an act of discrimination—

Judge Zirpoli: Does this become germane siice yoy
abandoned 1(4)?

Mr. Treanor: Yes, sir, to this extent—only to this ex.
tent: The shipping interest is always in competition, |
don’t think you can disregard the shipper interests with
regard to the competition. As a matter of fact, Your Honor,
when the Bieber Route was born by the Commission, the
whole emphasis was on “At last we have a route which
will compete with the Southern Pacific and give it—” Ip
(fol. 986] fact, almost the words of the Commission was,
“The only area that has any competition, that will give any
competition to the Southern Pacific, is a small area around
Los Angeles served by Union Pacific.”

Now, the Commission mentioned the Rio Grande case to
you. However, Your Honors, the Rio Grande case was not
decided on the question of connecting line status. And Mr.
Farrell said to you, and he tipped his hat and said that
Western Pacific worked very hard in this case, but they
could only come up with one case—the Chicago, Indianap.
olis & Louisville.

Well, I submit, Your Honors, that all of them in their
number have worked very hard, too. And what have they
come up with? They come up with Atlantic Coastlines vy,
The United States, the issue which we have already dis.
cussed. There is very little case law on the subject. But
I do submit to you that in their attempt to discredit the
applicability of Chicago, Indianapolis & Louisville, they
have overlooked the very precise language of the Court
that there-was a complaint made to the Court that causing

discrimination to cease would have the effect of estab-
lishing through route and joint rates.

Now, Your Honors, if the absence of joint rates, through
routes, and the absence of joint service referred to, con-
[fol. 987] sidered by the Court there, is not clearly indi-
cated by that language, I don’t know how clearer it can be.
Both of the elements that we are complaining about here
were present in that case.

723

Now, mention has been made of the pipe traffic, the cast
iron pipe traffic. That traffic, Your Honors, moves and has
moved for over ten years in substantial quantities over the
very route that will exist if the discrimination ceases. This
record contains not one word of testimony which casts an
adverse reflection upon the service which that traffic has
had over the Bieber Route to its destinations on the Union
Pacific and Northern Pacific. The Examiner so found.
There is no reason why all classes of traffic cannot move
as expeditiously, as economically, and as efficiently as that
traffic.

We have been accused of putting in comparisons of serv-
ice from points east of the Cascades via Wishram. That is
not so, Your Honors. Seattle, Washington, is a point
served in common by the various defendants. Consolidated
Dairy Company, a major shipper located in Seattle on the
lines of the Northern Pacific, testified without contradiction
that he prefers to use the Bieber Route. If he wants to
use the Bieber Route, he must ask the Northern Pacific,
on whose line he is located, to come in, pick up his traffic,
[fol. 988] and ship it to the Great Northern for movement
via the Vancouver-Portland area and then south over the
Bieber Route. That witness testified that he finds he has
to wait 24 hours at Seattle for that switch from the North-
ern Pacific. And yet the service is faster. So he has been
putting most of his traffic over the Bieber Route from
Seattle, and the only difference will prevail, if this dis-
crimination is struck down, will be that he won’t have to
wait 24 hours to put his traffic in the flow of commerce.
He can move it down over the Northern Pacific. And inci-
dentally, the Northern Pacific will benefit because they will
get the revenue which now goes to the Great Northern. And
I don’t see how tl ey can complain about correcting that
situation.

It has been emphasized to you that the essence of a
through rate or a through route is the holding out. But
the essence of discrimination is the holding out to one and
the withholding from the other. And this is what we com-
plain about.

724

We don’t think the defendant should be able, that
should be allowed to pick and choose who will be able to
participate in this traific.

The seriousness of the situation I think is most empha.
sized by the fact that annually 2,500 carloads of traffic
which either originate or terminate on the plaintiff's ling
({fol. 989] must be surrendered to the Southern Pacific
only because they are destined or have originated at points
served by the Northern Pacific and the Union Pacific.

And when one of the parties says to you, “Well, 30 cars
found their way over the Bieber Route to our line by mis.
take,” let me say to Your Honors that it is no mistake
which has happened here. The shippers are forced to give
up—give their traffic which could move over the Bieber
Route.

And much emphasis has been made about the fact that
the Southern Pacific through the Bay Area is a single-line
road. And yet what do the discriminatory practices dot
They take traffic which originates on the Western Pacific
Railroad, which belongs on the Western Pacific Railroad,
and it must be surrendered to the Southern Pacific. That
makes it automatically a two-line haul. And if the two-line
haul is so odious that it doesn’t justify an end to this dis.
crimination, it certainly doesn’t justify it being maintained,
And this is something that we think the Commission com.
pletely missed in their evaluation of the evidence.

The comment has beer made that for 25 years Western
Pacific has sat back on this. Well, I don’t know why hey
did before I got there. I don’t know whether their previous
(fol. 990] counsel failed to see—and I don’t mean to take
any bouquets for myself, but when this case was presented
to me within a year after I joined the carrier from another
carrier, I had no difficulty in seeing it.

But in investigating why this had happened in the past,
why we waited so long, I got the following answers:

1. In the early years— Picture this little railroad trying
to build up to the giant of the Southern Pacific— In the
early years it probably wasn’t prepared to take on the
battle. It probably couldn’t show that it could perform as
well as the Southern Pacific did.

725

And then the war came along and the Bieber Route was
used to a tremendous capacity, and the road grew strong,
and the road grew firm. And it took on new management
after the war, aggressive management. And all these peo-
ple that tell you we put in no testimony about our com-
parative statistics of our line overlook—and I don’t know
why—the testimony of Mr. Donald Loftus, Director of
Research for our railroad. And Mr. Loftus, in addition to
putting in tremendous testimony on the economic growth
of the area, testified as to the tremendous improvements
that have been made in the physical plant of the Bieber
[fol.991] Route as it applies to the Western Pacific seg-
ment thereof.

And so in 1952 when the pipe company asked for the
rate, and they were turned down until they went through
the formal complaint route, they put the rates in. All right,
the Western Pacific was lulled into a false sense of security.
“We are going to get them now. They are going to work
with us.”

Well, nothing happened until 1959 when the automobile
plant sought some of our property. And then once again
we said, “Please put the rates in.” Nothing doing. We filed
a complaint. They withdrew from battle and put the rates
in immediately before the hearing.

But they didn’t tell you this, Your Honor. That plant
wasn’t just not built. That plant went to our competition
which had the routes and the rates that we are seeking
here. And that plant is built, but it is served only by
Southern Pacific. They couldn’t wait for us to correct this
situation.

And so finally we decided that it was time to face up
to the issue and not be led to the conclusion that we might
get them by their grace, by their extending them to us.

Judge Sweigert: Pardon me, Mr. Treanor. Can I ask
you one question, and the line of your argument suggests
it: You are arguing that various circumstances considered
[fol. 992] by the Commission, and so forth, as though it
were still an open, factual question. Now, as I understand
it, the Commission finally found that there was dissimi-
larity of circumstances.

126

Now, would you state what you would suggest be the
theory of this Court in upsetting that finding of the Com.
mission, having in mind the limited power that the Court
has?

Mr. Treanur: Yes, Your Honor. Two points: First, we
believe that the ultimate conclusion does not qualify as a
bona fide finding under the Act. To say that the Western
Pacific or the Bieber Route is longer and involves more
operating condition, that finding, standing by itself, has
had no proper foundation laid for it, and therefore, stand.
ing by itself, is not a finding on a material issue of fact
such as the Commission is required to make under the
Administrative Procedure Act.

Now, proceeding beyond that, however, if Your Honor
should find that conclusion, or such other conclusions ag
may be culled out of the record, or the Commission’s report,
if they qualify as findings, then we ask that you find them
to be absolutely arbitrary and capricious and beyond the
power of the Commission because they are directly contrary
(fol. 993] to the record. For example, if we can assume—

Judge Zirpoli: What is the test to apply to find out
whether they are arbitrary or not? What is the test that
we are to apply to determine what constitutes a similarity
or a dissimilarity?

Mr. Treanor: I would say, Your Honors, that the major
test is performance. As Your Honor inquired earlier of
some of the previous arguers here, is it the inherent physi-
cal layout or is it the effect upon the moving, the hauling
of goods? Me

Judge Zirpoli: Has anyone so defined the test for simi-
larity or dissimilarity?
one Treanor: I thought I had to the Commission, Your

onor.

Judge Zirpoli: I don’t mean counsel; I am talking about
some court or someone who has had some approval. Has
someone defined it before so that it has some acceptance!

Mr. Treanor: Well, Your Honor, I would say this: The
very fact that the saw fit to refer to Routings
Coal as its authority for its proposition here is an indica-

727

tion that there is no really clear-cut, definable judicial or
administrative authority for the test which is to be applied.
I think the test has to be applied on each set of facts
as it comes up.

[fol. 994] And as indicated earlier in questions, from the
Court, the question of transportation characteristics from
Southern California to Portland, that bridge was crossed
a long time ago by the Interstate Commerce Commission
when it, in full recognition of our somewhat longer length,
in full recognition of the operating characteristics that we
would have to encounter, still permitted us to establish
the route for the purpose of meeting the competition of
Southern Pacific.

Now, as to the conditions north of Portland, Mr. Higgins
refers to the interchange differences up there, overlooking
the fact completely that Northern Pacific interchanges at
exactly the same point with the Bieber Route as they inter-
change with Southern Pacific, overlooking the fact that the
Commission— And this is something we do have some
authority on—the Commission has repeatedly said that
interchange arrangements are an operating matter to be
arranged by mutual agreement between the carriers in-
volved. And it has prescribed certain standards.

The receiving carriers, for example, will decide where,
within reason, it will receive the cars from its connection.
So it is a mutual operation, a mutual obligation there. And
the Commission has said, “If you can’t agree as an oper-
[fol. 995] ating detail as to how you will interchange, we
will do it for you. We have the facilities set up to do that
for you. We will litigate that for you.”

So, therefore, I say that the facts of this case—and this
is why we complained to this Court, Your Honors. We are
not here saying that the Commission looked at the evidence,
found us wanting, and yet obviously we should have won.
Now, in the Routings case which they rely on, it is sig-
nificant that the facts were not in dispute. The facts of
dissimilarity were not in dispute. And the party that was
complaining there said, “Don’t look at what the evidence is,
but only apply the test beyond the point of interest.”

728

We don’t say that, Your Honor. We are complaining
because the evidence has not been looked at. And I don’t
think that the Commission by merely saying, “Look, we did
refer to the Southern Pacific evidence”—which was a care-
fully contrived and selected study—“and compared it to
your route, and that shows you shouldn’t be performing as
well as you are.”

We say the test should be: What did the 16 shippers
testify? Well, they testified, most of them, as to per-
formance.

- Judge Merrill: You had better bring your argument to
a close, if you will.

[fol. 996] Mr. Treanor: Thank you, Your Honor. The
only thing that I would like to close with is the position
that, contrary to what the Interstate Commerce Commis-
sion has suggested, there is only one thing we see here,
Your Honors. That is the opportunity to make our physical
route a practical route, under the test suggested by the
Southern Pacific, and that is by non-discriminatory rates,

Thank you.

[fol. 997] [File endorsement omitted]

Iy tHe Unrrep States District Court
For THE NortHErn Disteict oF CaLirorNnia
SoutHern Division
No. 41779 Civil

Tae WesTERN Paciric Ramroap Company, et al., Plaintiffs,
vs.

Untrep States or America, et al., Defendants.

Walter G. Treanor, E. L. Van Dellen, R. W. Bridges,
San Francisco, California, Attorneys for Plaintiffs The
Western Pacific Railroad Company, Sacramento Northern
Railway and Tidewater Southern Railway Company.

William H. Orrick, Jr., Assistant Attorney General,
Cecil F. Poole, United States Attorney, Charles Elmer
Collett, Assistant United States Attorney, Attorneys for
Defendant United States of America.

Robert W. Ginnane, General Counsel, Robert S. Burk,
Attorney, Interstate Commerce Commission, Washington
25, D. C., Attorneys for Intervenor Interstate Commerce
Commission.

Charles W. Burkett, W. Harney Wilson, San Francisco,
California, Attorneys for Intervenor Southern Pacific Com-

pany.

Vaughan, Paul & Lyons, Varnum Paul, San Francisco 4,
California ;

Earl F. Requa, Frank S. Farrell, St. Paul, Minnesota,

Attorneys for Intervenor Northern Pacific Railway Com-
pany, Camas Prairie Railroad Company and Walla Walla
Valley Railway Company.

730

(fol. 998] F. J. Melia, J. H. Anderson, William P. Higgins,
Omaha, Nebraska;

Robert N. Lowry, San Francisco, California,
Attorneys for Intervenor Union Pacific Railroad Com.
pany.

No appearance for Intervenor The Atchison, Topeka &
Santa Fe Railway Company.

OPINION AND JUDGMENT
Orxver Denyine Petrrrion—June 19, 1964

Before Merrill, Circuit J udge, and Sweigert and Zirpoli,
District Judges.

ZiePout, District Judge

This is an action brought ‘under the Judicial Code, Sec-
tions 1336, 1398, 2284 and 2321 through 2325 of Title 28,
United States Code, to enjoin, annul and set aside a report
and.order of the Interstate Commerce Commission. The
plaintiffs, Western Pacific Railroad and its subsidiaries,’
claim that the defendants? are engaged in discriminatory

* The Sacramento Northern Railway and the Tidewater Soutlhern
Railway Company.

* The defendants named in the complaint filed in the Commission
action were: The Atchison, Topeka & Santa Fe Railway Company;
The Great Northern Railway Company; The Northern Pacific
Railway Company; The Union Pacific Company; The Camas
Prairie Railroad Company, jointly owned by Northern Pacific
and Union Pacific; The Pacifie Coast R.R. Co.; The Spokane: In-
ternational Railroad Company, a subsidiary of the Union Pacific;
and the Washington, Idaho and Montana Railway Company. The

731

rate practices at the Portland, Oregon interchange, in vio-
lation of Section 3(4) of the Interstate Commerce Act;
49 U.S.C. §3(4). Section 3(4) provides as follows:

“All carriers subject to the provisions of this part
shall, according to their respective powers, afford all
reasonable, proper, and equal facilities for the inter-
[fol. 999] change of traffic between their respective lines
and connecting lines, and for the receiving, forwarding,
and delivering of passengers or property to and from
connecting lines; and shall not discriminate in their
rates, fares, and charges between connecting lines, -
or unduly prejudice any connecting line in the dis-
tribution of traffic that is not specifically routed by
the shipper. As used in this paragraph the term ‘con-
necting line’ means the connecting line of any carrier
subject to the provisions of this part or any common
carrier by water subject to part III.”

Several issues were ruled on by the Commission which
are challenged here;* but since we agree with the Commis-

*The Commission noted that although plaintiffs had “indicated
a willingess to rely alone on the alleged violation of Section 3(4)”,
they had not withdrawn their Section 1(4) [Title 49 US.C. See.
1(4)] allegations nor their request for “prescription of through
routes”, a remedy related to a Section 1(4), rather than a Section
3(4) violation (316 I.C.C. at 810). The Commission ruled on both
issues. On the Section 3(4) issue, after a lengthy discussion of
the law and the facts, the Commission found (316 I.C.C. at 810):

“There is, therefore, no basis for a finding that the carriers are
connecting lines within the meaning of section 3(4).” It then
went on to say: “Even if the complainants were connecting car-
riers, the evidence of record does not establish the similarity of
circumstances and conditions which justifies equality of treatment.”
This last quoted issue this Court need not and does not reach. On
the section 1(4) issue, which plaintiffs do not now urge, the Com-
mission found (316 I.C.C. at 811): “On the basis of this record,
we cannot find that the public interest would be served by re-
quiring the establishment of joint rates and through routes which
are substantially slower and costlier than the present route.” The
Cone r ion ordered plaintiffs’ complaint dismissed because (316

C. 811):
(footnote continued on next page)

732

sion’s conclusion that plaintiffs are not a “connecting line”
within the meaning of Section 3 (4) of the Act, we find it
unnecessary to resolve the remaining issues presented by
the complaint.

The factual background of this case is as follows: The
two routes considered herein are called the Bieber route
and the Southern Pacific route. The former was created by
an order of the Commission in 1931 and was designed
to be a competitor with the Southern Pacific route. See
Great Northern Ry. Co. Construction, 166 L.C.C. 3, 170
(fol. 1000] I.C.C. 399. For purposes of this case, the Bieber
route consists of the Santa Fe from points in southern
California to Stockton, California, thence Western Pacific
to Bieber, California, and thence Great Northern to Port-
land, Oregon. This line extends along the eastern side
of northern California through eastern Oregon to Wishram
on the Columbia; from Wishram the line runs to Vancouver,
Washington and thence to Portland, Oregon. The Southern
Pacific route extends from points in southern California
by either Santa Fe or Southern Pacific, through the central
part of northern California and central Oregon to Port-
land. Southern Pacific and defendants have maintained
a system of through routes and rates at the Portland in-
terchange for over 50 years. With the exception of a few

“We find that the failure and refusal of the defendants to
establish through routes and joint rates with the complainants
through Bieber and Portland, between points in California, on
the one hand, and points in Oregon, Washington, and Idaho, on
the other, on the same basis as those published in connection with
the Southern Pacific through Portland, is not shown to be unjust
or unreasonable, nor to result in discrimination against the com-
plainants in violation of section 3(4) of the act; and that the
establishment of through routes and joint rates in connection
with the complainants, through Bieber and Portland, is not shown
to be necessary or desirable in the public interest.”

Other issues raised in the complaint before this Court, and
which this Court need neither reach nor resolve, relate to the
evidence, testimony rejected and findings of fact that the Com-
mission is alleged to have either failed to make or erroneously
found.

733

commodities, defendants have refused to establish a similar
system of through routes and rates with Western Pacific.

A connecting line within the meaning of Section 3(4) is
one which has either a direct physical connection at the
common interchange or is one which makes up “through
route” through the interchange point. Atlantic Coast Line
R. Co. v. United States, 284 U.S. 288 at 293 (1932). Because
Western Pacific terminates at Bieber, California and is
therefore the middle link in a three line route, it does
[fol. 1001] not have a direct physical connection with the
defendant at Portland, Oregon.

The criteria for the determination of whether a through
route exists are set forth in Thompson v. United States,
343 U.S. 549, 557 as follows:

“Existence of a through route is to be determined by
the incidents and circumstances of the shipment, such
as the billing, the transfer from one carrier to another,
the collection and division of transportation charges,
or the use of a proportional rate to or from junction
points or basing points. These incidents named are not
to be regarded as exclusive of others which may tend
to establish a carrier’s course of business with respect
to through shipments.

“In short, the test of the existence of a ‘through route’
is whether the participating carriers hold themselves
out as offering through transportation service.
Through carriage implies the existence of a through
route whatever the form of the rates charged for the
through service.” (Emphasis added)

Plaintiff properly concedes that it does not meet the above
test* because the existence of a few instances of joint rates

‘Plaintiffs’ opening brief, page 8, states: “There is little doubt
that, under the doctrine of the Thompson case, supra, there are
not, as yet, a full line of through routes over the Bieber route
to or from Northern or Union Pacific points.”

134

and through routes on some commodities is not sufficient to
erally. Chicago M. St, P, ¢

ast Line case, it is not
within the meaning of section 3(4),
Plaintiff’s reliance on Chicago, I & L. Ry. v. United’
States, 270 U.S. 287 (1926) is misplaced. This case in-
volved reciprocal switching arrangements and presented
no question of whether the carriers in that case were “con-
(fol. 1002] necting lines” for section 3(4) purposes. More.
over, the case was decided prior to the Atlantic Coast Line
case. Plaintiff’s principal argument is that the definition
of a “connecting line” is not limited to the definition of
Atlantic Coast Line. This Court is satisfied that the present
definition fully comports with the statutory purpose, and
that any further expansion of the term is not warranted,
Because the Supreme Court has not rendered any decision
on this question since Atlantic Coast Line, this Court is
bound to follow that decision. Any further liberalization
of the present definition will have to come from the Su-
preme Court.

It Is Therefore Ordered that the petition to enjoin,
annul and set aside the order of the Commission is denied,
and the complaint is dismissed.

Dated: June 19, 1964.

Charles M. Merrill, Circuit Judge, William T. Swei-
gert, District Judge, Alfonso J. Zirpoli, District
Judge. ‘

(fol. 1003] [File endorsement omitted]

Iw THE Unrrep States District Court
For Tue Nortnern Disraict or CaLirornia
SoutHern Drvision
Civil Action No. 41779

Tue Western Pacrric Ramroap Company, et al., Plaintiffs,
v.

Untrep States or America, Defendant.

Norice or AppgaL To THE SuPREME COURT OF THE
Unrrep States—Filed August 17, 1964

I

Notice is hereby given that The Western Pacific Rail-
road Company; Sacramento Northern Railway ; and Tide-
water Southern Railway Company, plaintiffs in the above-
entitled case, hereby appeal to the Supreme Court of the
United States from the final judgment dismissing the com-
plaint against the report and order of the Interstate Com-
merce Commission and thereby denying the petition to
enjoin, annul and set aside such order, which judgment
was entered on June 22, 1964.

This appeal is taken pursuant to 28 U.S.C. 441253 and
2101(b).

Ul
The clerk will please prepare a transcript of the record
in this case for submission to the Clerk of the Supreme

Court of the United States, and include in said transcript
the following:

1. The complaint, including appendices A, B, and C
attached thereto, filed September 20, 1963.

. Answer of intervening defendants Northern Pacifie
Railway Company, Camas Prairie Railroad Com.
[fol. 1004] pany, and Walla Walla Valley Railway
Company, filed on ox about November 4, 1963.

- Answer of intervening defendant Union Pacific Rail.
road Company filed on or about November 25, 1963,

. Answer of intervening defendant Southern Pacific
Company filed on or about December 16, 1963.

- Answer of intervening defendant Interstate Com-
merce Commission filed on or about December 16,
1963.

. Answer of the United States of America filed on or
about December 16, 1963.

. Answer of intervenor The Atchison, Topeka and
Santa Fe Railway Company filed on or about Janu-
ary 13, 1964.

. Transcript of Oral Argument, June 5, 1964.

- That portion of the record before the Interstate Com-
merce Commission comprised of the following items
submitted to the Court by plaintiffs:

Certified copies of the following documents in
Docket No. 33679—The Western Pacific Rail-
road Company, et al. v. Camas Prairie, et al,

(1) Complaint, filed February 10, 1961,

(2) Separate Answer of The Atchison, Topeka and
Santa Fe Railway Company, filed March 2, 1961,

(3) Separate Answer of Northern Pacific Railway
Company, et al., filed March 10, 1961,

(4) Answer of Union Pacific Railroad Company and
Spokane International Railroad Company, filed
March 13, 1961,

737

(5) Answer of Great Northern Railway Company
[fol. 1005] and Pacific Coast R. R. Co., filed
March 15, 1961,

(6) Answer of Washington, Idaho, and Montana
Railway Company, filed March 16, 1961,
(7) Petition of Southern Pacific Company for leave
to intervene, filed at hearing held May 8, 1961,
(8) Transcript of proceedings held in San Francisco,
California, May 8, 1961,
(9) Transcript of proceedings held in San Francisco,
California, May 9, 1961,
(10) Transcript of proceedings held in San Francisco,
California, May 10, 1961,
(11) Exhibits 1 to 35, both inclusive, filed at the hear-
ings held May 8, May 9, and May 10, 1961 at
San Francisco, California,

(12) Order of the Commission denying Petition for

Reconsideration of Report and Order of Division
2, entered January 18, 1963,

(13) Petition of The Western Pacific Railroad Com-
pany, et al., seeking finding that issue of general
transportation importance is involved, filed Jan-
uary 30, 1963,

(14) Order of the Commission designating this pro-
ceeding as one involving an issue of general
transportation importance, entered February 14,
1963,

(15) Petition of United States for leave to intervene
for the purpose of petitioning the Full Commis-
sion for reconsideration of the Report and Order
of Division 2 and to be heard on Oral Argument,
filed July 26, 1963,

(fol. 1006]

(16) Petition of United States to Full Commission

for reconsideration of Report and Order of

738

Division 2, and request of United States for
Oral Argument before Full Commission, filed
July 26, 1963,

(17) Order of the Commission denying petitions of
United States, entered August 9, 1963, served
September 9, 1963,

(18) Petition of United States to Full Commission
(1) to vacate its Order served July 30, 1963;
(2) to reopen the proceeding for the purpose of
considering petitions of the United States filed
July 26, 1963 and such responses thereto as may
be filed by the parties; (3) to hear Oral Argu-
ment if then warranted; and (4) to issue a deci-
sion stating findings and conclusions and the
reasons or basis therefor upon all material issues
as well as an Order granting or denying the
relief sought, dated August 7, 1963,

(19) Carbon copy of letter dated September 10, 1963,
at Washington, D.C. addressed Mr. Joh

[Text truncated at 120,000 characters. The full text is on the page linked above.]

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40386411_0195%3A02. Public record. Not legal advice.
