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Newtex S. S. Corp. v. United States
107 F. Supp. 388
S.D.N.Y.
1952
Check Treatment

*1 UNITED et al. v. CORP. S. S. NEWTEX et al. STATES Court States York. D. New

Sept. 15, 1952.

Judgment Dee. Affirmed 73 S.Ct. 285.

See

McGohey, J., dissented. Donovan, Jr., New City, York John J. Eisen,

S. S. New City, plaintiffs. York for Myles Lane, City, New York J. defendantUnited States. Crenshaw, Allen Washington, D.C., Dan . Knowlton, iel W Washington, D.C., of counsel, for defendant intervenor Inter state Commerce Commission. Kirlin, Campbell & Keating, New York City, Price, Warren Jr., Washington, C.,D. for defendant intervenor Pan-Atlantic S.S. Corp. Kirlin, Campbell Keating, & New York Crooker, City, Fullbright, & Freeman D.C., White, Washington, for defendant Corp., Atlantis Sales intervenors Frank Distilleries, Inc., Magnolia fort Petroleum Pipe Co., Magnolia Phelps Line Co. and Rice, Corp., Dodge Inc., Converted Sher *2 389 which, Commissioner Inc., one .dis-: mission Co., Congoleum-Nairn, win-Williams grant report and Sears, senting,-issued its Co., Bagging &Bag Lone Star the- issue before application.2 The ing the Co., County Houston Harris & Roebuck limited Houston, court, severely narrowed Dist., Navigation Ship Channel order of the- an scope Galveston, of its review3 and Tex., Board City of Commission, is.mere Interstate Commerce Wharves. Galveston Commissioners of report of the ly and whether the order Judge, Mc SWAN, and Chief Before encompass ultimate find Commission EDELSTEIN, District GOHEY, and statute, required by founded ings Judges. evidentiary findings adequate or basic -by supported substan which are in turn Judge. EDELSTEIN, District grava record. tial evidence in the by two certificated This is an action face, that, its complaint is men of Corpo- carriers, Steamship water report basic fatally defective the- Lines, Inc., to set ration Seatrain and by the findings and established were made Inter- enjoin an order aside and support the ultimate evidence which do Commission, August dated Commerce state posi merit in this find no We conclusion. authority prior whereby tion. Corporation plicant Steamship Pan-Atlantic required by law4 findings The ultimate its it to extend to authorize amended fit, (1) applicant willing, are that “the inland to include water properly perform able the service and passengers transportation freight and proposed”, (2) and ports Atlantic and Gulf specified between certificate, -the to the extent authorized by Galveston, and the Houston and ports of present required by or is or will under invoked Texas. Jurisdiction necessity”. and future convenience 1336, provisions 28,.U.S.Code, Title §§ explicitly made in were 1398, to 2325 inclusive. 2284 and '2321 statutory language, and terms of the an ex Interstate Commerce report amination of discloses that applicant Pan-Atlantic; representatives of rationally by adequate supported are basic ports Houston and Galveston and findings, supported by substan are shippers granted were leave number of ' n tial evidence. to intervene as defendants.1 In examining we bear hearings After extensive had in mind that the Commission is not re Examiner, been held before the issues quired to or detailed make formal find argued were before Division 4 the Com ings so; of fact.5 has not done on the County Ship 1. The Harris Houston Chan- Alabama Railroad 3. Great Southern Co. Navigation District, Houston, nel Texas States, 216, v. United 340 U.S. 71 S.Ct. (a political subdivision of the State of 264, 225; 95 United States L.Ed. v. Texas); City Galveston, Texas; Freight Lines, 515, Pierce Auto 327 U.S. ' the Board of Commissioners of the Gal- 687, 821; 66 S.Ct. 90 L.Ed. States Wharves; veston The Atlantis Sales Navigation Co., Cor-. v. Detroit & Cleveland poration; Distilleries, Inc.; Frankfort 236, 75, 90 326 66 S.Ct. L.Ed. 38. Magnolia Magnolia Petroleum Co. Interstate Commerce v. Pipe Phelps Co.; Didge Corp.; Line Parker, 1490, 89 326 U.S. Rice, Inc.; Converted The Sherwin-Wil- 2051. L.Ed. Co.; Congoleum-Nairn, Inc.; liams Lone 4. Part III of Interstate Commerce Bag Bagging Co.; Sears, Star Roe- Act, 309(e), 909(c), Sec. § 49 U.S.C. buck & Co. , 909(c). .§ U.S.C.A. petition reopening 2. A and reconsider- ing argued Except damages was before the entire Commis- 5. case where are denied, sion and was with two Com- awarded. Part III of the Interstate dissenting. subsequent Act, pe- 316(c), missioners Commerce § § 49 U.S.C. reopening 916(c), 916(c). tition for and for a Alabama U.S.C.A. § further hearing proof to receive Co. discon- Great Southern Railroad v. Unite d applicant page supra, tinuation was 340 U.S. at page likewise denied. S.Ct. at informally is' nevertheless quite negatively, the statement are contrary, its ability, if not a tech a of fitness a discussion incorporated in impli- face, -byreasonable then at problem, com least transportation nical *3 in con- cation, certainly read -summary, and when statement mingled with factual by . precluded the finding Nor this exposition and evaluation is text. of issue and in perform A record. failure to piece-meal, A conflicting of evidence. past compel logical inference the does not a requi hypercritical extract the reading to per- may that a failure to done, there will be similar it can be findings, site while in the future. A form different -service possibility a of dis dangerous lead the applicant’s past the favorable conveyed by reference torting meaning otherwise the operations increasing patronage and the significance the from words not divorced existing its service as the result of a of lent In the use of words to context. program the vigorous solicitation discloses greater express not thought, if the whole is upon re- evidence which the Commission parts; its at least the true than.the of sunt jected that Pan-Atlantic contention -separate the significance parts of the is a public profit would sacrifice -service the matter, determined relative -to -be expedient operation. the of The nature of after of the whole. a consideration peculiarly scope within issue is the of ex- meant, however, may not that be pert judgment specialized field, and undiscernable, nonexistent, vague or ab expert body the the decision of dicating generalized their function upon such be disturbed when based evi- impression conveyed by the said to be dence. report. question is whether whole essential, -of basis [the Commission’s] finding argue Plaintiffs that the ultimate judgment sufficiently in .its disclosed public necessity ar- of convenience and i® “ report” report, and ‘the whether read as bitrarily evi- illegally and based whole, sufficiently expresses a the conclu existing that the dentiary (1) upon sup sion of the based n service adequate, (2)- the and ’ * * * porting data ”. Alabama Great operated service cannot without en- Co. v. United R. 340 U. Southern operation's- dangering impairing or the 216, 228, 95 L.Ed. S.Ct. existing contrary carriers to» the- report 225. Reading whole, the as a we report reading interest. of the dis- that essential findings clearly think the no findings. closes such After an exten- appear. exposition, report pro>- the- sive factual ceeds to “Discussion and fitness, Conclusions?’-'cen- willingness finding on The basic principal tered about two issues::: whether applicant’s ade- forth the ability sets existing adequate the service is and' wheth- equipment, fa- position, quacy of financial er is room there for another carrier in. record personnel experienced cilities, the trade. “Discussion:- and Conclu- trade, operations in past the coastwise is in general sions” the nature of a eva-lm supporting abundance' is an and there ation of relevant considerations' and' for urged, how- record. the in against application, the and the “findings”' willing- fitness finding of ever, no that by plaintiffs urged pieces; no more- are than: ability, has been from ness, distinguished as surgically discussion dissected' from record such a that made, and That the Commission context. found?the- unwarranted, would finding existing inadequate service is clear. large number of authori- a applicant holds exercise, largely in de- viola- In the section does not which it ties evidence, summary the New- conditioned which is certificate voted to tion of “scant?’, authority sped-, with' was described service exercise of tex upon such limited' serv- “hampering argu- considered effect The Commission fied. “by repeated' the- aggravated require being it did “not ice” that but found ment to -sail on sched- vessels applicant fit of Newtex is not and failure that the finding outright cancel- numerous operations ule and willing perform available-tom- sailings where the phrased authority.” Though lations seeks it here sentence, which parently start warrant with this insufficient considered nage was fine-comb “finding” label a head- Under vessel.” dispatch of the finding that a subsequent language for and Conclusions” “Discussion ing of larger” be de- “substantially volume will disregarding after that report concludes veloped. Failing to discover existing criticisms certain vulnerable the Commis- insist that language, they such substantial “there remains forced sion has found fully meet do protestants’ services trade, possible into a retirement ex- shippers and the needs We, do application. allowance 'pro- applicant’s tension *4 report. the The discussion so read improve the situation.” posed would con- that the clearly judgment discloses a con- might approach incur piecemeal After indi- required will be met. dition imme- reading the sentence fusion tonnage had not potential cating that the hand, that “On the other following, diately proportionately, to the declined ap- oppose the ratio who .borne patrons protestants of by greater tonnage the to existing the adequacy the the of plication vouch for much pre-war tonnage, it was concluded in meet their needs existing to presently in trade moving “the volume this the respects.” of all But an evaluation regarded is not to be as the maximum the context discloses entire discussion in transportation.” available for -coastwise merely a this sentence as significance of - addition of a vessel to the service The way contrary in no statement of Seatrain, capacity, operating at or near inadequate detracting finding from of the pointed demonstrating out the avail- con- service. For there follows further a ability of “more business.” was found irregularity of the the sideration of New- providing regular, that “a breakbulk line tex and the that Sea- statement dependable frequent reasonably sail- train “too to meet needs of the fails the ings engender and reliance confidence shippers here concerned” because of a ten- upon coastwise service and attract addi- dency “selectivity” offering toward in no -supported by tional traffic.” This view shippers of less-than- accommodations reference to the increasing patronage of Finally, relating carloa-d lots. to a con- Pan-Atlantic’s existing Isolating service. sideration of the issue earlier in the re- context, and, these statements from labeled port, it shippers is set forth that at or as “findings”, considering them cumula- adjacent ports to other than New York tively, we are constrained to hold that the through ports are entitled to service the (cid:127) Commission sufficiently conveyed has the logically tributary, plain -are idea that enough Implication will be business devel- of a of finding inadequacy the oped preclude Newtex’s retirement existing of from .the service. ¡discussion the trade.6 Considering the statements in The of whether there is room context, that inescapable. conclusion is To in the trade -for another carrier is based n a contrary conclusion, draw in light the of prospect .an -evaluation of the the report, the indulge would be to pre- ¡development of new indi- business. sumption ¡on that the disregarded only present cated that the basis public Cf., the interest. United States v. tonnage, .an .-additional line in the trade is nn unwarranted, Lines, Pierce Auto Freight substantially and “Unless a ¡overall 90 L.Ed. 821. 'larger The worst volume of coastwise ton- that can be said is part that in nage developed, the -can 'be extension of n plicant’-soperations following discussion posing probably would force problem, conceivably the Commission did Newtex into deficit and re- intro- ap- duce, tirement .from the trade.” Plaintiffs with reference to consideration dissenting thought finding Commissioner 'The the dissent it is evident . - concerning majority 'the the antici Division is that sufficiently tonnage tonnage pated was not “sufficient” new ‘new would be de- granting opinion veloped,' being to warrant definite application. difference weight supporting court review bn the evidence ¡thus weigh the evidence. from mot But made. traffic, SWAN, Judge, Circuit concurs. additional development of bal- “substantially”, in the word (dissenting). McGOHEY, Judge mathematical equation verbal ance the equiva- conclu- nicety my opinion Commission’s In if such precision. But spelled out. present and future can required, it sion “that lence is pro- existing necessity require serv- that where convenience and it was found For applicant” (Pan-Atlan- attributed irregularity posed operation by possesses the ice freq- supported required in the Newtex, increase as it is tic) “an is not that of ex- reasonably may Com- which the the basic uency of -service of traffic the volume made. pected increase mission has proportionate than greater measure found: Commission has Such frequency of service.” increase in “Considering the volume (a) result- of traffic the volume an increase in currently tonnage coastwise mov- service can reason- ing from Texas, ing an additional “substantially larg- ably be described clearly un- line in trade would be er” volume. *5 warranted” parallel- (b) “a break-bulk -service plaintiffs’ that apparent provided by may ing that now find basic position not- that essential expected part to divert a of the- evidence upon substantial made ings were moving by that line” traffic now - ultimate with the which are inconsistent findings' the basic conclusions, (c) that but Newtex had “substantial defi- precluded evidence. So- made are. in 1947 and 1948. had “modest cits” merely stated,-the problem profits” review in 1949 and. 19S0. ' substantial evidence to whether there is substantially (d) larger “unless a -Except support findings. the basic tonnage overall volume of coastwise passenger finding on developed, appli- can be extension of ' contained in itself indicates operations cant’s [Pan-Atlantic’s] supports the record which probably would force Newtex into a made, and the existence of is'suffi conceivably deficit and retirement from to exhaust the function of re cient the trade.” (cid:127) However, viewing court. we discover no clearly “pres- show that support' a finding leading necessity do public convenience ent” per the conclusion that Pan-Atlantic be operation by require not n passenger mitted undertake service. they think, clearly, I plicant.” Just injunction But this is an proceeding, and convenience “future” that show .injunction only will issue when it is it, require “unless a sub- necessity will necessary adequate protection for the of coast- volume overall stantially larger -plaintiff’s rights.7 Plaintiffs here have developed,” which can be tonnage wise way in no indicated that rights their will be Newtex will to insure that sufficient prejudiced by permitting Pan-Atlantic the conceivably a deficit “into be forced authority carry passengers in At This, then, is the trade.” retirement lantic-Texas Accordingly, service. determining standard for the Commission’s standing have no injunction -seek an necessity public convenience and “future” on that score. conclusion Accordingly, case. only be denied and injunctive relief will if the be warranted reached would operation complaint dismissed. found that new to a not resort court v. Railroad 7. “Suitors Fuel Gas Co. merely 310, equity 300, a threatened act to restrain 49 278 U.S. S.Ct. illegal or transcends consti- it L.Ed. 390. They powers. show that must tutional complained Florida v. United 1. of will inflict the act injury.” 291. irreparable L.Ed. them least, likely would, at develop or would meet this tonnage sufficient to develop

standard. that future I only findings as to are these: to discover able

am do not protestant’s services “that 1. shippers and needs

fully meet the applicant’s

that extension improve the situa- proposed would

tion;" supplied.) (Emphasis providing “a break-bulk line

2. reasonably dependable fre-

regular * * * quent sailings will attract traffic,” sup- (Emphasis

additional

plied.) pro- solicitation vigorous “a building up materially in

gram will aid traffic volume.”

substantial on testi- finding is based

This last representative.

mony In of Pan-Atlantic’s me to mean it

context seems program” will

Pan-Atlantic’s “solicitation

produce traffic for it- “substantial volume” *6 This, course, be accom-

self. could

plished by merely taking over the traffic driving it

now Newtex and thus handled business; out result which under- I —a stand, the 'Commission to hold “would

unwarranted.” findings, which I think fall .far standard,

short of the Commission’s do not

support its ultimate conclusion.

I would reverse order. Myles Lane, City, New York J.

petitioner. City, Mitchell, New York for re- Robert spondent.

EDELSTEIN, Judge. 41(e) Defendant moves under Rule Procedure, the Federal Rules of Criminal UNITED STATES v. MOORE. U.S.C.A., directing for an $1,500 currency return of and one dia- Court States District $1,800 ring. Cash in excess of mond was New York. D. from her at the time of taken husband his Sept. 23, arrest, which occurred after he had shot mortally an F.B.I. agent wounded apprehend seeking to agents while- were outstanding him warrant charging on robbery him of Kansas bank of with $60,000. The than defendant more was charged subsequently arrested be-

Case Details

Case Name: Newtex S. S. Corp. v. United States
Court Name: District Court, S.D. New York
Date Published: Dec 15, 1952
Citation: 107 F. Supp. 388
Court Abbreviation: S.D.N.Y.
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