1 See 342 U.S. 950 and 96 Fed. Supp. 883. Consolidated for hearing with docket No. 751. Consolidated for hearing with docket No. 725. See 13316 and 13373 (Ct. App. D.C., p. 5 hereof). See 211 F.2d 51, 239 F. 2d 933, and 356 U.S. 481.

Court actions

Ultimate decision

Docket No.

684

684

730

730

730

Citation

342 U.S. 950 (No. 135 S.C. Octo-
ber term, 1951)-Federal Mar-
itime Board v. United States
et al. Appeals from the U.S.
District Court for Southern
District of New York.
96 Fed. Supp. 883-Isbrandtsen
Co., Inc. v. United States et al.
U.S. District Court, South-
ern District of New York.

211 F. 2d 51-Isbrandtsen Co.,
Inc. v. United States, et al.
No. 11679. U.S. Court of
Appeals, District of Colum-
bia Circuit. Writ of certio-
rari denied June 1, 1954. See
74 S. Ct. 852.

239 F.2d 933-Isbrandtsen Co.,
Inc., Petitioner V. United
States of America and Federal
Maritime Board Respondents,
The Secretary of Agriculture,
Intervenor, Japan-Atlantic and
Gulf Freight Conference, et al.,
Intervenors No. 13027. U.S.
Court of Appeals, District of
Columbia Circuit. Writ of
certiorari granted Mar. 25,
1957. See 77 S. Ct. 664.

356 US. 481-Federal Maritime
Board v. Isbrandtsen Co., Inc.,
et al. No. 73 argued Dec. 11,
1957. Decided May 19, 1958.1

Decided Mar. 10, 1952, per curiam.

"The judgment is affirmed by an equally divided court. Mr. Justice Clark took no part in the consideration or decision of these cases*** Reported below: 96 F. Supp. 883."

Decided Mar. 21, 1951.

"Suit to set aside so much of an order of Federal Maritime Board as approved provisions, in conference agreements, etc. "The district court, Frank, C. J., held that the Maritime Board's finding that the spread between the rates was arbitrarily determined was inconsistent with the Board's finding as an ultimate fact that the dual-rate system was not unjustly discriminatory or unfair as between shippers and held that since the latter finding could not be rationally inferred in the face of the specific finding of a basic fact it could not stand up."

Decided Jan. 21, 1954.

"Independent steamship line filed a petition to review order of
the Federal Maritime Board permitting proposed dual-rate
system of voluntary association composed of 18 common
carrier steamship lines, to go into effect within 48 hours and
denying requests by independent steamship line and At-
torney General for an immediate hearing of issues prior to
initiation of system and for suspension of system pending
hearing. The court of appeals, Bazelon, circuit judge, held
that order was a final order which could be reviewed by the
court of appeals, and that approval of system by Federal
Maritime Board was necessary under Shipping Act. Action
of Board set aside, and association enjoined from acting pur-
suant to such system until it should be approved by Board.
"Fahy, circuit judge, dissented."
Decided Nov. 9, 1956.

"Proceeding by shipper, as a party aggrieved, for review of
orders of the Federal Maritime Board approving an exclusive-
patronage contract/noncontract dual-rate system. The court
of appeals, Fahy, circuit judge, held that dual-rate system
providing that a shipper who failed to enter into an exclusive-
patronage contract would be charged a 91% percent higher rate
than a contracting shipper, and using a contract providing
that a breach by a contracting shipper would entail liquidated
damages of 50 percent of the contract rate, was retaliatory and
proscribed by section of Shipping Act providing that no
common carrier by water shall retaliate against any shipper
by threatening to refuse space accommodations when such
are available, or resort to other discriminating or unfair meth-
ods because such shipper has patronized another carrier,
notwithstanding the fact that the discrimination involved
under such system may have been reasonable.
"Orders of the Board set aside in accordance with opinion."
(The above afirmed by Supreme Court, 1958.)

"The Federal Maritime Board issued an order approving a
rate system proposed by a shipping conference of 17 common
carriers by water serving the inbound trade from Japan,
Korea, and Okinawa, to ports on the Atlantic and gulf coasts
of the United States. Under the proposed system, a shipper
who signed an exclusive-patronage contract with the con-
ference would pay less than the regular freight rates charged
to all others. The Court of appeals set aside the Board's
order, on the ground that this system of dual rates was un-
lawful under sec. 14 of the Shipping Act of 1916. Held: The
judgment is affirmed. Pp. 482-500."

1 Together with No. 74, Japan-Atlantic and Gulf Freight Conference, et al. v. U.S., et al., also on certiorari to the same court.

BEFORE THE U.S. DISTRICT COURT OF APPEALS, DISTRICT OF COLUMBIA CIRCUIT

Docket Nos. 725, 751: North Atlantic Continental Freight Conference et al. Now pending before Court of Appeals, District of Columbia, under docket Nos. 13,316 and 13,373.

Cases have not as yet been briefed or argued.

In view of amendment to Shipping Act, 1916, recently passed, court petitioned on September 19, 1958, to hold these cases in abeyance pending completion of congressional investigation related to dual-rate system.

EXHIBIT 2

EXCERPTS FROM UNITED STATES CODE TITLE 7

(Agricultural Adjustment Act of 1938, Sec. 201)

7 U.S.C. 1291. (a) The Secretary of Agriculture is authorized to make complaint to the Interstate Commerce Commission with respect to rates, charges. tariffs, and practices relating to the transportation of farm products, and to prosecute the same before the Commission. Before hearing or disposing of any complaint (filed by any person other than the Secretary) with respect to rates, charges, tariffs, and practices relating to the transportation of farm products, the Commission shall cause the Secretary to be notified, and, upon application by the Secretary, shall permit the Secretary to appear and be heard.

(b) If such rate, charge, tariff, or practice complained of is one affecting the public interest, upon application by the Secretary, the Commission shall make the Secretary a party to the proceeding. In such case the Secretary shall have the rights of a party before the Commission and the rights of a party to invoke and pursue original and appellate judicial proceedings involving the Commission's determination. The liability of the Secretary in any such case shall extend only to liability for court costs.

(c) For the purposes of this section, the Interstate Commerce Commission is authorized to avail itself of the cooperation, records, services, and facilities of the Department of Agriculture.

(d) The Secretary is authorized to cooperate with and assist cooperative associations of farmers making complaint to the Interstate Commerce Commission with respect to rates, charges, tariffs, and practices relating to the transportation of farm products.

(Agricultural Marketing Act of 1946, Secs. 202, 203 (j), 207)

7 U.S.C. 1621. Congressional declaration of purpose; use of existing facili ties; cooperation with States.-The Congress declares that a sound, efficient, and privately operated system for distributing and marketing agricultural products is essential to a prosperous agriculture and is indispensable to the maintenance of full employment and to the welfare, prosperity, and health of the Nation. It is further declared to be the policy of Congress to promote through research, study, experimentation, and through cooperation among Federal and State agencies, farm organizations, and private industry a scientific approach to the problems of marketing, transportation, and distribution of agricultural products similar to the scientific methods which have been utilized so successfully during the past eighty-four years in connection with the production of agricultural products so that such products capable of being produced in abundance may be marketed in an orderly manner and efficiently distributed. In order to attain these objectives, it is the intent of Congress to provide for (1) continuous research to improve the marketing, handling, storage, processing, transportation. and distribution of agricultural products; (2) cooperation among Federal and State agencies, producers, industry organizations, and others in the development and effectuation of research and marketing programs to improve the distribution processes; (3) an integrated administration of all laws enacted by Congress to aid the distribution of agricultural products through research, market aids and services, and regulatory activities, to the end that marketing methods and facilities may be improved, that distribution costs may be reduced and the price spread between the producer and consumer may be narrowed, that dietary and nutritional standards may be improved, that new and wider markets for American agricultural products may be developed, both in the United States and in other countries, with a view to making it possible for the full production of American farms to be disposed of usefully, economically, profitably, and in an orderly manner. In effectuating the purposes of this chapter, maximum use shall be made of existing research facilities owned or controlled by the Federal Government or by State agricultural experiment stations and of the facilities of the Federal and State extension services. To the maximum extent practicable marketing research work done under this chapter in cooperation with the States shall be done in cooperation with the State agricultural experiment stations: marketing educational and demonstrational work done under this chapter in

cooperation with the States shall be done in cooperation with the State agricultural extension service; market information, inspection, regulatory work, and other marketing service done under this chapter in cooperation with the State agencies shall be done in cooperation with the State departments of agriculture, and State bureaus and department of markets.

81622. Duties of Secretary relating to agricultural products.—The Secretary of Agriculture is directed and authorized: * * *

(j) Improvement of transportation facilities and rates.-To assist in improving transportation services and facilities and in obtaining equitable and reasonable transportation rates and services and adequate transportation facilities for agricultural products and farm supplies by making complaint or petition to the Interstate Commerce Commission, the Maritime Commission, the Civil Aeronautics Board, or other Federal or State transportation regulatory body with respect to rates, charges, tariffs, practices, and services, or by working directly with individual carriers or groups of carriers.

§ 1626. Definitions.-When used in this chapter, the term "agricultural products" includes agricultural, horticultural, viticultural, and dairy products, livestock and poultry, bees, forest products, fish and shellfish, and any products thereof, including processed and manufactured products, and any and all products raised or produced on farms and any processed or manufactured produce thereof.

EXHIBIT 2

UNITED STATES DEPARTMENT OF AGRICULTURE

PRODUCTION AND MARKETING ADMINISTRATION

TRANSPORTATION RATES AND SERVICES DIVISION

(Excerpt from the Agricultural Marketing Act of 1946)

TRANSPORTATION RATES AND FACILITIES FOR FARM PRODUCTS

SEO. 203. The Secretary of Agriculture is directed and authorized:

(i) To determine the needs and develop or assist in the development of plans for efficient facilities and methods of operating such facilities for the proper assembly, processing, transportation, storage, distribution, and handling of agricultural products.

(j) To assist in improving transportation services and facilities and in obtaining equitable and reasonable transportation rates and services and adequate transportation facilities for agricultural products and farm supplies by making complaint or petition to the Interstate Commerce Commission, the Maritime Commission, the Civil Aeronautics Board, or other Federal or State transportation regulatory body with respect to rates, charges, tariffs, practices, and services, or by working directly with individual carriers or groups of carriers.

47063 0-60-pt. 1, v. 1- -52