INTERSTATE COMMERCE - DISCRIMINATION BETWEEN SHIPPERS BY PROVIDING NON-TRANSPORTATION SERVICES AT LESS THAN COST

In order to increase the use of rail transportation, seven railroads with terminals at the Port of New York expended a total of $35,000,000 in construction of warehouse and docking facilities. Charges for leases, storage (both in and out of the transit privilege), handling and insurance were found by the Interstate Commerce Commission to be non-compensatory. The commission further found that the below-cost warehouse rates were not available to all shippers alike. Upon an appeal by the carriers from a three-judge court's dismissal of their petition to enjoin enforcement of a cease and desist order issued by the commission, it was held, that sections 2, 3 (1) and 6 (7) of the Interstate Commerce Act had been violated, in that the carriers had discriminated unlaw-fully, had given unreasonable preferences, and had received less compensation than the rates filed.

Baltimore & Ohio Railroad v. United States, (U.S. 1939) 59 S. Ct. 284.