602 F.2d 379

TRAILER MARINE TRANSPORT CORPORATION, Petitioner, v. FEDERAL MARITIME COMMISSION and United States of America, Respondents, Sea-Land Service, Inc., Seatrain Gitmo, Inc., State of Texas, Intervenors.

No. 78-1307.

United States Court of Appeals, District of Columbia Circuit.

Argued 17 Nov. 1978.

Decided 11 May 1979.

*380Michael Joseph, Washington, D.C., with whom John Cunningham, Washington, D.C., was on the brief, for petitioner.

Robert J. Wiggers, Atty., Dept, of Justice, Washington, D.C., with whom Robert B. Nicholson, Atty., Dept, of Justice, Mark L. Evans, Gen. Counsel, Henri F. Rush, Associate Gen. Counsel, Kathleen M. Dollar, Atty., I.C.C., Washington, D.C., were on the brief, for United States of America and Interstate Commerce Commission.

Gordon M. Shaw, Atty., Federal Maritime Commission, Washington, D.C., with whom Edward G. Gruis, Deputy Counsel, Federal Maritime Commission, Washington, D.C., was on the brief, for respondent Federal Maritime Commission.

Donald J. Brunner, Washington, D.C., with whom John Mason, Washington, D.C., was on the brief, for intervenor Sea-Land Service, Inc.

John L. Hill, Atty. Gen., David M. Kendall, Jr., First Asst. Atty. Gen., J. David Hughes and Marilynn D. Poole, Asst. Atty. Gen., were on the brief, for intervenor State of Texas.

Also Neal M. Mayer and Paul D. Coleman, Washington, D.C., entered appearance for intervenor Seatrain Gitmo, Inc.

Before WRIGHT, Chief Judge, and McGOWAN and WILKEY, Circuit Judges.

Opinion for the Court filed by WILKEY, Circuit Judge.

OUTLINE OF THE OPINION

Page

Introduction___________________ 381

I. FACTUAL AND PROCEDURAL

BACKGROUND ________________ 382

II. ANALYSIS____________________ 383

A. Statutory Authority for Jurisdiction of the ICC______________ 383

*381Introduction Page

B. The “Limitation Clause” Objection to ICC Jurisdiction------- 386

C. Statutory Authority Claimed for

Jurisdiction of the FMC_______ 393

D. The FMC’s “Section 21” Claim .. 397

III. POLICY CONSIDERATIONS_____ 399

Conclusion-------------------------- 400

WILKEY, Circuit Judge:

This case is an inter-agency dispute concerning jurisdiction over the filing and substantive regulation of tariffs on rail-water joint through routes1 between ports of the Commonwealth of Puerto Rico and inland points of states of the United States, whereby goods are carried by water to or from Puerto Rico and by rail within a state of the United States. Petitioner Trailer Marine Transport Corporation (TMT), a common carrier by water, and the intervenor Interstate Commerce Commission (ICC) argue that the Interstate Commerce Act2 confers exclusive authority on the ICC to regulate both the rail and water segments of these rail-water joint through routes. The Federal Maritime Commission (FMC) and intervenor Sea-Land Service, Inc. (Sea-Land), a common carrier by water in direct competition with TMT, argue that the Intercoastal Shipping Act of 1920 3 confers exclusive authority on the FMC to regulate the marine segment of the joint through routes, and that the ICC has authority to regulate only the mainland United States rail segment.

Though the issue of statutory construction is not easy,4 we believe that the Interstate Commerce (IC) and Intercoastal Shipping Acts, read together, confer plenary and exclusive jurisdiction on the ICC to regulate both the rail and water segments of joint through trade between Puerto Rico and inland points of states of the United States. Thus we vacate in part and remand in part the order of the FMC asserting jurisdiction over the marine segment of the subject rail-water joint through trade and requiring the petitioner to file with the FMC the divisions of joint through rates collected by the petitioner.

Our decision will necessarily turn on a closely measured construction of language of both the Interstate Commerce and Inter-coastal Shipping Acts. The merits of arguments put forward by the ICC and the FMC are almost evenly balanced. If these two independent agencies were both members of the Executive branch, the proper sphere of the regulatory authority of each could be authoritatively determined by a ruling from the Attorney General (Office of Legal Counsel) and no recourse to this court would be necessary. Since each is an independent agency, however, each has a right to a judicial delineation of its responsibilities. Thus it becomes our duty to draw the line between the jurisdictions of the two, and in so doing we note the merits of both *382competing claims. Though the logic of statutory construction and an examination of the purpose of applicable statutes suggest that jurisdiction properly lies with the ICC, Congress has it in its power to adjust the matter, probably with a single amending sentence, if in this period of reordering of regulation in the field of transportation it should choose for reasons of policy to do so.

I. FACTUAL . AND PROCEDURAL BACKGROUND

The petitioner TMT since early 1975 has operated a single-rate, all-water service for the transport of goods between coastal points of Florida and Puerto Rico pursuant to tariffs on file with the FMC.5 In August 1977 TMT filed with the ICC a tariff covering a new rail-water (“intermodal”) service for the joint through carriage of goods between ports of Puerto Rico and various inland points of the United States.6 Under the terms of this service, TMT transports goods on the marine segment and rail carriers otherwise unassociated with TMT transport goods on the continental land segment of the journey. Shippers pay a single joint through rate7 for the transport of goods from point of origin to point of destination, and the tariffs on file with the ICC for these routes show no “divisions” of the joint rates retained by the participating rail and water carriers.8

The ICC accepted the tariff proposed by TMT for its through route service in a letter on 21 October 1977 asserting the ICC’s “exclusive jurisdiction” over rates included in that tariff.9 The joint through rail-water service commenced on 8 November 1977.10 Nevertheless, the FMC issued an order on 18 November 1977 directing TMT to show cause why TMT was not in violation of the Intercoastal Shipping Act by operating the water segment of its joint rail-water trade, pursuant to the tariffs on file with the ICC, without having also filed these tariffs with the FMC.11 As well as denouncing TMT’s refusal to acknowledge the jurisdiction of the FMC over the marine leg of this joint through traffic, the FMC ordered TMT to reveal the divisions of the intermodal tariffs TMT was collecting through its participation in the through route with connecting rail carriers. The FMC argued that information concerning TMT’s “share of the revenues collected” on the through route would be necessary to enable the FMC to determine the “reasonableness” of TMT’s rates for that carrier’s port-to-port service even where no through rate would be charged.12 The FMC subse*383quently issued the Report and Order here under Review,13 directing TMT to file with the FMC within 30 days tariffs concerning TMT’s transport of goods on the marine leg of its joint through routes between Puerto Rico and inland points of the United States. This court on 5 May 1978 granted a motion by TMT for a stay of the FMC Order pending judicial review.14

The intervenor Sea-Land, a water carrier seeking to participate in a joint through rail-water service to Puerto Rico similar to that of TMT, has pursued a regulatory route more compatible with that sought by the FMC. Sea-Land elected to file its tariffs for joint routes with both the ICC and FMC and to set forth in those tariffs the respective divisions of the joint rates to be retained by participating carriers.15 Upon instituting an investigation of the joint rates of Sea-Land on file with the ICC, the ICC reaffirmed its view that it has “exclusive jurisdiction” over rates for both the rail and water segments of the subject routes.16 Still, on 11 September 1978 a majority of ICC Commissioners voted to defer a final ruling on whether the ICC should seek to enforce that view with regard to Sea-Land, pending resolution by this court of the identical jurisdictional issue concerning the ICC and FMC raised earlier on appeal by TMT.17 The assignment between the FMC and ICC of jurisdictional rights over tariffs filed by both Sea-Land and TMT, therefore, as well as the jurisdiction of the two agencies over tariffs that may yet be filed by other carriers seeking to establish similar joint through routes in the domestic off-shore trade, will be determined by our disposition of the present case.

II. ANALYSIS

A. Statutory Authority for Jurisdiction of the ICC.

The source of authority claimed by the ICC to regulate joint through traffic between Puerto Rico and inland points of the United States is IC Act § 1(1), which, as recently recodified,18 provides that:19

*384(a) Subject to . [§§ 10501-62 of the IC Act as amended and recodified, establishing the jurisdiction of the ICC] and other law, the Interstate Commerce Commission has jurisdiction over transportation—
(1) by rail carrier . . . [and] water common carrier . . that is—
(B) by railroad and water, when the transportation is under common control, management, or arrangement for a continuous carriage or shipment . [and]
(2) to the extent the transportation is in the United States and is between a place in-—
(C) a State and a place in a territory or possession of the United States .

Section 1(1) is complemented by IC Act § 6(1), which as recodified,20 provides that “A carrier providing transportation or service subject to the jurisdiction of the Interstate Commerce Commission shall publish and file with the Commission tariffs containing the rates . . . for transportation or service it may provide under this [Act].” Further, recodified § 15(1)21 provides that “When the . [ICC], after a full hearing, decides that a rate charged or collected by a carrier for transportation subject to the jurisdiction of the Commission under [Part I of the Act] . does or will violate this . [Act], the Commission may prescribe the rate . . to be followed.” Sections 1(1), 6(1), and 15(1) of the IC Act, therefore, define those carriers and routes that are subject to the tariff-filing requirements and substantive regulatory powers of the ICC.22

It is not disputed in the present case that the IC Act’s jurisdictional provision covering transportation “by railroad and water, when the transportation is under common control, management, or arrangement for a continuous carriage or shipment” 23 pertains to rail-water joint through traffic of the type at issue here.24 Nor do we believe it can be seriously disputed that the statutory extension of ICC jurisdiction to rail-water joint through traffic “between a place in — a *385State [of the United States] and a place in a territory or possession of the United States”,25 absent any conflicting language elsewhere, confers jurisdiction on the ICC over rail-water joint through trade between any state of the United States and Puerto Rico, since Puerto Rico in the past has commonly been identified as a “territory” and for present legal purposes is commonly identified as a “possession” of the United States.26 Thus the IC Act explicitly provides for ICC regulation of joint through rates involving rail- and water segments, and also for ICC regulation on equal terms of both the rail and water segments of such joint through traffic between Puerto Rico and inland points within states of the United States.. It is precisely this type of trade which is at issue in this case. The authority of the ICC to require the filing and to regulate the substantive reasonableness of these tariffs follows logically from the language of recodified IC Act sections 6(1) and 15(1), cited above.27

Significantly, because of the limited modes and routes of transport to which recodified IC Act § 1(1) confines its application,28 this Part of the Act confers on the ICC no jurisdiction over transportation on routes “only by water” between the various destinations specified in that subsection.29 *386Thus the Act stops short of conferring on the ICC any jurisdiction over those forms of transportation which are at the heart of the jurisdiction of the FMC: single rate all-water transportation from one port to another port of states of the United States and/or its territories or possessions; like transportation between ports of the United States and foreign countries; and, as will be discussed herein, all-water joint through routes that lie in their entirety between or among such ports.30 There is thus no language in the key jurisdictional section of the IC Act that warrants intrusion by the ICC into the regulatory domain that Congress expressly conserved for the ICC’s sister agency, the FMC, which was established to acquire and exercise a special regulatory expertise over certain water routes.31

B. The “Limitation Clause’’ Objection to ICC Jurisdiction.

The FMC, however, has raised at least one plausible objection to our construction, above, that the IC Act confers plenary jurisdiction on the ICC over both the rail and water segments of Puerto Rico-to-inland United States joint through trade. This objection rests on an apparent limitation on ICC jurisdiction made prominent in the recently recodified language of the Act: *387that ICC jurisdiction extends over specified routes (including routes between a state and a territory or possession of the United States) “to the extent . . . [such] transportation is in the United States . 32 (hereinafter referred to as the “limitation clause”). Elsewhere in the recodified Act, the “United States” are defined as “the States of the United States and the District of Columbia.” 33

Thus, in a memorandum submitted to this court following the recodification of the IC Act in late 1978,34 the FMC asserts that “the structure of the recodified statute . show[s] that the limitation of ICC jurisdiction to that taking place ‘within the United States’ [as provided in pre-recodified IC Act § 1(1)] was intended to restrict the ICC’s substantive regulatory authority, insofar as the joint rates here . . are involved, to that part of the transportation performed by the ICC-regulated rail carriers within the states of the United States and the District of Columbia.”35 Though the FMC does not carry the argument to its necessary conclusion, the crux of the contention must be that the limitation clause bars ICC regulation over the marine portion of the present trade because water carriers while en route from any state of the United States to Puerto Rico necessarily pass outside the geographic bounds of the “United States” by crossing the “high seas.” By both national and international understanding the high seas belong to no state; they are res communis and constitute a form of “international space.” 36 Thus the high seas certainly fall outside the above definition of the “United States,” and consequently any carrier passing through or into those seas must exit the “United States.”

Further, it is an unstated but logical corollary of the FMC argument concerning the limitation clause that the entire range of geographic routes over which the ICC exercises jurisdiction under the recodified IC Act’s jurisdictional section37 is similarly bound by the limitation clause. By this argument, the ICC could not exercise jurisdiction over either single or joint through routes between one “territory or possession of the United States and . . . another such territory or possession,” or between “the United States and ... a foreign country,” 38 to whatever extent, and at the precise point at which, a carrier on such a route passes outside the United States for the sole reason of crossing or entering the “high seas.” This argument, though facially and technically compelling, must be rejected on several grounds.

First, the FMC argument is seriously undermined by its reliance on the recently recodified language of the IC Act. The applicable statutory language prior to recodification provided, much more ambiguously, that ICC jurisdiction shall extend over carriers engaged in various modes of transportation: 39

[fjrom one State or Territory of the United States, or the District of Columbia, to any other State or Territory of the United States, or the District of Colum*388bia, or from one place in a Territory to another place in the same Territory, or from any place in the United States through a foreign country to any other place in the United States, or from or to any place in the United States to or from a foreign country, but only insofar as such transportation or transmission takes place within the United States.

It is not immediately clear from the above language which of the various descriptive clauses that precede the italicized “within the United States” limitation were intended by Congress to be modified by the limitation. The transportation at issue in the present case falls within the paragraph’s first clause, pertaining to transportation “[f]rom one State or Territory of the United States ... to any other State or Territory of the United States . . . .” This clause is separated by several intervening clauses from the limitation provision. Though the recodifiers of the section evidently assumed that the limitation clause was intended to apply to each of the descriptive clauses in the long and rambling paragraph, for reasons of both common sense 40 and legislative history 41 we are not entirely convinced. Even the FMC is not convinced of this point, for the FMC concedes in its brief the “apparent inapplicabil*389ity of the [within the United States] limiting language [in its pre-reeodified form]” to state-to-territory trade, such as that between the United States and Puerto Rico42 The FMC notes further in its supplemental memorandum that “[t]he structure of . [the pre-recodified section] alone might have suggested that the limitation of ICC jurisdiction applied only to transportation ‘to or from a foreign country.’ ”43 The FMC thus asserts that what the original section “might have suggested” concerning the applicability of the limitation clause is no longer suggested by the recodified language, and that therefore the meaning of the limitation language has somehow been altered in the process of recodification. If this is the case, however, the recodifiers exceeded their lawful authority, for Congress explicitly provided that language of the recodified Act “may not be construed as making a substantive change in the laws replaced.” 44

Thus if the recodifiers erred in construing the limitation clause as applicable to each of the routes of trade subject to ICC jurisdiction in IC Act § 1(1), we would have no choice but to rest our construction of the meaning of the limitation clause on the language of § 1(1) rather than on the recodified section. Since we find the limitation clause inapplicable to the present case on other grounds, we need not reach the issue of the possibility of error in recodification and we raise only a question in this regard.45 But the contention of the FMC that the language of the recodified IC Act means something different from that of the original Act is untenable in light of the express mission of the recodifiers to alter no substantive provision or meaning of the original statute.

Our second and principal objection to the FMC’s proffered application of the limitation clause concerns the meaning of the clause itself. The FMC suggests that ICC jurisdiction over all routes of transportation deemed subject to the limitation must end at the geographic point at which a subject carrier (which over sea routes most usually will be a ship, but may sometimes be a pipeline) passes outside the United States by crossing or entering the “high seas” without entering a foreign country. There is no authority that we can find, or that has been cited to us, however, that construes the “in the United States” limitation as setting geographic limitations on the ICC’s jurisdiction except to bar the unbridled over-reaching of such jurisdiction to foreign carriers within foreign countries.46

*391This more circumspect construction of the limitation clause has received strong support from the principal authority on point. In United States v. Pennsylvania Ry. Co.47 the Supreme Court held that, despite the limitation provision in IC Act § 1(1), the ICC has certain substantive regulatory power48 over rail-water through routes established between an inland point and a port of the United States where a water portion of the route passes through a foreign port and through international waters. The Court construed a series of earlier cases that turned on the same limitation language as meaning “simply . . . that . Congress . . . had, by the limiting provisions . . . expressed its purpose not to empower the [ICC] to regulate rail transportation in foreign countries.”49 The Court noted that the limitation clause could not possibly be applicable to the ICC’s power to regulate routes “ ‘from a place in the United States to another place in the United States’ ” because “a substantial part of intercoastal and lake transportation among the states traverses waters outside of the territorial limits of the United States.”50 The Court further noted that the power conferred on the ICC to regulate trade “ ‘from any place in the United States through a foreign country to any other place in the United States’ ” would “have little meaning, if the limiting clause were given the interpretation [that such transportation could not pass outside U.S. territorial waters while remaining subject to ICC jurisdiction].”51 The Court held, finally, that under the circumstances of that case the limitation clause did not impair or limit the authority of the ICC generally to establish and regulate joint through rates, and also, most crucially, that “There is therefore nothing in the [IC] Act to deny the . . . [ICC] the same power over interstate water-rail transportation which passes through foreign waters as . it enjoys where the transit is wholly within the territorial limits of the United States.”52

The attempt of the FMC to distinguish Pennsylvania Ry. from the present case is of no avail. Contrary to the contentions of the FMC, the Court in Pennsylvania Ry. noted explicitly that the limitation language there at issue “basically rests on paragraphs (1) and (2) of § 1 of the Interstate Commerce Act,”53 which in recodified form (except to any extent altered in meaning through recodification) is the same lan*392guage at issue here.54 The contention that the logic of the Supreme Court’s decision in Pennsylvania Ry. must be confined to the issue of foreign railroad transportation also misses the mark. Factually, Pennsylvania Ry. is quite closely on point for present purposes since it dealt with joint through rail-water routes passing through foreign waters, and with regulations that the ICC sought to impose on carriers engaged in the transport of goods on the extra-territorial water segments of such voyages. Furthermore, the railroad cars carried by train and boat in Pennsylvania Ry. had the same commercial purpose as the containerized cargoes shifted between train and boat at issue in the present case. The principal factual difference between Pennsylvania Ry. and the present ease is that the former dealt with interstate shipments via a foreign port, while the present case deals with shipments between inland points of the United States and a port of a United States “possession.” For the purpose of the limitation

clause under Part I of the Act, however, this distinction is irrelevant, for the jurisdiction of the ICC over both routes of transportation is conferred in the same statutory section,55 and ICC jurisdiction over both routes is subject, if jurisdiction over either route is subject, to the same limitation.56 Thus if the ICC’s interstate jurisdiction under Part I of the Act is not subject to the “in the United States” limitation, in the sense that such jurisdiction is barred “to the extent” that a subject carrier crosses international space without entering a foreign country, then the ICC’s state-to-“possession” jurisdiction under that Part is also not subject to the limitation, in that technical, geographic sense.

We believe that logically the only purpose intended to be served by the limitation clause was to avoid jurisdictional conflicts between the United States and foreign countries, rather than to separate the jurisdictional functions of the ICC and the FMC.57 It follows, therefore, that at least *393for the purposes of trade between ports of Puerto Rico and inland points of the United States, the limitation clause does not bar ICC jurisdiction over carriers that pass outside the technical geographic bounds of the United States merely by crossing the high seas without entering a foreign country.58 Thus we are led to the inescapable conclusion, despite apparent geographic limitations, that the IC Act confers on the ICC plenary jurisdiction to require the filing of, and to regulate substantively the tariffs of both the land and sea segments of joint through rail-water routes for the carriage of goods between ports of Puerto Rico and inland points of the United States.

C. Statutory Authority Claimed for Jurisdiction of the FMC.

Since it seems clear to us that the language of the IC Act confers on the ICC plenary jurisdiction over both the land and sea portions of the present joint through trade, our statutory enquiry could come to an end. For the Intercoastal Shipping Act,59 on which the FMC relies as the source of its authority to regulate the marine portion of this trade, must be read together with the Shipping Act, 1916, as amended,60 which explicitly provides that both Acts “shall not be construed to affect the power or jurisdiction of the . . . [ICC], nor to confer upon the . . . [FMC] concurrent power or jurisdiction over any matter within the power or jurisdiction of . [the ICC].” 61

Thus the enquiry of this case has properly been posed as, first, whether the IC Act confers jurisdiction on the ICC over the marine (as well as the land) segment of joint through trade between Puerto Rico and inland points of the United States; and, second, only upon the condition that such jurisdiction over the marine segment is not conferred on the ICC, whether the Intercoastal Shipping Act confers such jurisdiction on the FMC.62 The potential for such a problem of concurrent power is raised by our finding (discussed earlier) that the IC Act confers jurisdiction on the ICC over both the land and sea segments of the present trade. The Shipping Act’s concurrent power clause would thus be triggered if the Intercoastal Shipping Act confers any overlapping authority on the FMC. Since the FMC and intervenor Sea-Land have argued forcefully that only the Intercoastal Shipping Act speaks to the issue of agency authority over the marine leg of the present joint through trade, and since we have conceded that the language of the IC Act is not entirely free from ambiguities, we will en-quire briefly whether the jurisdictional claim of the FMC based on the Shipping Acts has merit.

The Intercoastal Shipping Act, as amended, applies generally to “every common carrier by water in interstate commerce,” 63 as defined in § 1 of the Shipping Act, 1916. Section 1 of the Shipping Act. defines such a carrier as one that is 64

*394engaged in . transportation by water ... on the high seas or the Great Lakes on regular routes from port to port between one State, Territory, District, or possession of the United States and any other State, Territory, District, or possession of the United States . . .

Since the Commonwealth of Puerto Rico often has been identified as either a “territory” or “possession” of the United States,65 the interstate commerce provisions of the Intercoastal Shipping Act are those that must be applied to the question of trade between states of the United States and Puerto Rico.

The authority of the PMC under the Intercoastal Shipping Act to require the filing of tariffs by carriers engaged in interstate land-water through routes, however, is somewhat more circumscribed than the authority of the FMC under that Act to regulate single rate all-water interstate routes. Section 2 of the Intercoastal Shipping Act requires every common carrier by water in interstate commerce to file with the FMC tariffs: 66

showing all the rates, fares, and charges for or in connection with transportation between intercoastal points on its own route; and, if a through route has been established, all the rates, fares, and charges for or in connection with transportation between intercoastal points on its own route and points on the route of any other carrier by water.

This FMC filing requirement for carriers in interstate commerce contrasts sharply with the statutory requirement pertaining to filing of through route tariffs by carriers engaged in foreign commerce. Section 18(b)(1) of the Shipping Act, 1916, provides that every common carrier by water engaged in foreign commerce shall file with the FMC tariffs: 67

showing all the rates and charges of such carrier . . . for transportation to and from United States ports and foreign ports between all points on its own route and on any through route which has been established. .

Thus the two Shipping Acts provide that each carrier engaged in interstate commerce shall file with the FMC all tariffs pertaining to transportation between inter-coastal points on that water carrier’s route and the route of any other carrier “by water,” but the Acts establish no such “by water” qualification in the parallel foreign commerce provision. Instead, “any through route” that is established in foreign commerce — including, we must presume, a route that extends in part across land of the United States — may be subject to the extent of its water segment (since the Shipping Act pertains only to water carriers) to the jurisdiction of the FMC.

With regard to interstate commerce, therefore, § 2 of the Intercoastal Shipping Act: 1) explicitly anticipates FMC regulation only of water carriers; and 2) in the only language that pertains to through routes, appears to restrict FMC through route jurisdiction in interstate commerce (in contrast with FMC jurisdiction in foreign commerce set forth in the Shipping Act) to those through routes that extend in their entirety from the coastal points on one water carrier’s route to the coastal points on another water carrier’s route, i. e., that extend no further than from port to port.

By this construction, § 2 of the Intercoastal Shipping Act provides that all-water through routes established in interstate commerce may be subject as a single unit to regulation by the FMC, and each water carrier associated with such a through route may be obliged by the FMC to submit all “rates, fares, and charges” sought for such transport. But the FMC would have no jurisdiction over the marine segment of an interstate through route — or over the divisions of rates to be charged for carriage of goods on a segment of an interstate *395through route — where that route, as in the present case, begins or ends at an inland point.

We believe that this construction of § 2 is preferable not only for reasons of logic, but principally because it provides for consistency between the jurisdictional provisions of the FMC and ICC. Draftsmen of the interstate maritime shipping provision in 1933 could not have been unaware of the need to concern themselves only with through routes involving transshipment of goods between or among water carriers, for the issue of intermodal (e.g., rail-water) through routes in interstate commerce was already addressed explicitly in § 1(1) of the IC Act. To provide like authority to the FMC would have raised serious problems of concurrent power, which the Shipping Act specifically sought to avoid.68

A contrary construction of § 2 of the Intercoastal Shipping Act, however, is not totally unreasonable: that the maritime interstate commerce through route provision defines only which segments of through routes but not the kinds of through routes over which the FMC may exercise regulatory authority.69 This construction rests on the fact that the opening phrase of the interstate through route provision — “and, if a through route has been established”— does not itself specifically identify to which kinds of through routes (e.g., rail-water routes as opposed to all-water routes) the remainder of the sentence applies. Thus it could be argued that the FMC is entitled to *396regulate the water segment of an interstate commerce through route that does not begin and end at a coastal point but that, instead, as in the present case, either begins or ends on land.

Support for the above construction, however, must rest heavily on certain dictum in this court’s recent decision in Commonwealth of Pennsylvania v. ICC.70 In Commonwealth of Pennsylvania we held that the ICC was entitled to require carriers to file tariffs established by carriers for the transport of goods on the marine segment of joint through routes between the United States and foreign countries. We also sanctioned FMC, rather than ICC, substantive jurisdiction over the marine segment of such joint through international trade.

Application of our holding in Commonwealth of Pennsylvania to the present case, however, is misplaced, because the types of commerce involved in the two cases are totally different. In Commonwealth of Pennsylvania no issue was raised (as in the present case) of FMC jurisdiction over the water segment of joint through rates established in “interstate” commerce,71 and, as noted above, there is a crucial difference between provisions in the Shipping and Intercoastal Shipping Acts pertaining to the jurisdiction of the FMC over the filing of tariffs for through routes established in foreign as opposed to interstate commerce. Under § 18 of the Shipping Act, 1916,72 there is no question but that the FMC has authority to require the filing of tariffs for the carriage of goods on the marine segment of joint through routes in foreign commerce. In interstate commerce, however, § 2 of the Intercoastal Shipping Act73 borrows language from the Shipping Act74 that most logically must be construed as limiting the routes over which the FMC may exercise any extent of regulatory control to those routes that both begin and end on water. Thus our support in Commonwealth of Pennsylvania for FMC jurisdiction over the water segment of joint through international trade gains crucial strength from, and must be clearly distinguished from the present case on the basis of, the sharply contrasting statutory provisions that establish the authority of the FMC over through routes in the two types of commerce.75

*397We do not believe that this difference between the language of the two sections of the shipping laws was merely accidental. Instead, we believe that these laws were drafted with the specific purpose of avoiding a conflict between the ICC and the predecessor agencies of the FMC over interstate (including domestic offshore) intermodal rates by withholding such jurisdiction from the shipping agencies.76

Different policy considerations also are present in foreign commerce, for which we have found that Congress intended a bifurcated system of regulatory jurisdiction over rail-water joint through routes.77 Thus we agree with the argument of the petitioner that we do not have here, as in Commonwealth of Pennsylvania, “two regulatory systems . . . applicable” to the same rates.78 We also have no problem of overlapping or concurrent jurisdiction, since the applicable language of the Shipping Acts confers no jurisdiction on the FMC that is also conferred elsewhere on the ICC.

D. The FMC’s “Section 21” Claim.

The FMC has ordered petitioner to file its joint rail-water rates and divisions not only under § 2 of the Intercoastal Shipping Act, but also pursuant to § 21 of the Shipping Act, 1916. Section 21 in very general language authorizes the FMC to “require any common carrier by water ... to file with . [the FMC] any rate, or charge . . appertaining to the business of such carrier . . . subject to . [the Shipping and Inter-coastal Shipping Acts].”79

Since the commencement of these proceedings, the FMC has supported this statutory filing claim with arguments that have been little more than perfunctory, and that have sought (we believe without success) to establish a rationale for the § 21 claim that is distinguishable from the rationale pertaining to the FMC’s principal claim under the Intercoastal Shipping Act. In its initial Order, the FMC noted merely that information on TMT’s joint rates and divisions was sought under § 21, as well as under § 2 of the Intercoastal Shipping Act, because such information was “necessary to enable the . [FMC] to make initial determinations concerning the reasonableness of TMT’s [single rate] all water service from [a mainland port] to Puerto Rico.”80 In its Report and Order here under review, the FMC noted that the infor*398mation sought under § 21 was required in order to “help” the FMC make the same determination identified in its first Order, and the FMC suggested for the first time that the § 21 claim pertained only to TMT’s divisions of the joint through rates rather than the entire joint through rates, for which filing was sought only under the Intercoastal Shipping Act.81 Subsequently the FMC has argued that TMT’s through route divisions would be “both material and relevant in analyzing local rates and practices associated therewith” 82 — an argument developed in less cursory fashion only in briefs presented before this court.83

In reviewing the FMC’s § 21 claim, we note preliminarily that the present proceedings do not concern the reasonableness of petitioner’s single rate all-water tariffs for trade between ports of the mainland and Puerto Rico. As recently as 31 March 1978 informal agreement concerning the reasonableness of those rates was apparently reached, and no present genuine controversy concerning these rates has been brought to our attention.84 We do not argue here that the FMC’s § 21 powers can be exercised only in order to procure information immediately and exclusively relevant to a live tariff controversy or investigation.85 But in the context of the FMC’s principal attempt in these proceedings to exercise substantive jurisdiction over petitioner’s tariffs, the off-hand manner in which the FMC’s § 21 claim has been coupled with the principal, substantive jurisdictional claim makes it clear that the FMC seeks via § 21 to “bootstrap” its way to tariff information which it feared it would not be entitled to gain under the Intercoastal Shipping Act.

This court previously has not hesitated to bar a § 21 information claim by the FMC, or by its predecessor agency, where the agency has failed adequately to state the reason and purpose for the information sought and thus establish a basis to determine the relevance of the information to agency action and the reasonableness of the agency request.86 By these standards, the agency’s various statements of need for disclosure of TMT’s through route divisions under § 21, to the extent that such statements concern some purported examination by the FMC of TMT’s all-water tariffs rather than TMT’s through route tariffs (over which we have held the FMC has no jurisdiction), are clearly deficient. The FMC’s casual, albeit repeated assertions of a “need to know,” with little more, can not suffice.

*399This obligation to explain the reasons for which the FMC seeks filings under § 21 is no empty ritual or formalism, but instead is a vital necessity, inter alia, to allow a reviewing court to assure that the agency has “given reasoned consideration to all the material facts and issues”87 and “pertinent factors”88 at stake in the agency’s order. Many such issues are present here, and in large part these are the identical issues that led the petitioner to protest so vigorously the FMC’s order to file its through route tariffs and divisions under the Intercoastal Shipping Act.89 To allow the agency, in what is little more than a sideshow to the present proceedings, to extract the very information through the back door that it is barred from gaining through the front, would violate fundamental fairness as well as the purpose and intent of § 21. Thus we must remand to the agency for further consideration that portion of the agency’s Order that rests on authority claimed under § 21 of the Shipping Act, 1916.

III. POLICY CONSIDERATIONS

Returning to the central issue of substantive jurisdiction, certain policy considerations support our holding in favor of the ICC. As conceded by the FMC in its Order under review, situations have long existed in which water carriers simultaneously have transported cargo at rates subject to ICC jurisdiction and cargo subject to FMC jurisdiction, without causing “undue difficulties to date.”90 A notable example is the carriage of goods by water between the mainland and the states of Alaska and Hawaii, for which Congress has explicitly provided for jurisdiction in the ICC over both the onshore and ocean segments of joint through motor-ocean and domestic water-ocean trade.91 Goods transported by single rates from port to port along these routes remain subject to the jurisdiction of the FMC.92 We do not foresee that any greater difficulties will be encountered by affected parties as a result of the analogous practice here.

To the contrary, greater efficiencies may result in the operations of the carriers, shippers, ports, and also the regulatory agencies if only a single agency regulates the transport of cargo on the full extent of the offered service in the domestic offshore trades. Though intervenor Sea-Land objects that the result we reach here will serve to “dichotomize” regulatory jurisdiction to and from Puerto Rico,93 certainly from the point of view of shippers of goods on through routes the result will be just the opposite.94 Nor will the “freedom of the *400seas,” so ardently defended by the FMC, hereby be placed in jeopardy.95

Furthermore, no demonstration whatsoever has been made that the ICC is not as well qualified as its sister agency, the FMC, to regulate trade that falls within its rightful jurisdiction, or that the ICC will not faithfully execute its mission to balance and protect those interests affected by its authority.96 If adverse consequences do result, and if it appears that on balance a bifurcated system of regulatory jurisdiction over these joint through routes is to be preferred, Congress can make the necessary statutory changes by the addition or deletion of a few words.97

CONCLUSION

As we noted in a recent case even more complex than this one, “the present case turns on the question of the meaning and proper construction of a very few words.” 98 Careful reading of the applicable “few words” of the Interstate Commerce, Shipping, and Intercoastal Shipping Acts leads us to conclude that those Acts confer on the ICC plenary and exclusive jurisdiction over both the rail and water segments of joint through trade between inland points of the United States and ports of Puerto Rico. This is a limited holding that reaches no issue resolved in our previous case of Commonwealth of Pennsylvania v. ICC, which concerned foreign rather than domestic offshore trade.

Furthermore, we conclude that the FMC has not laid the proper foundation for its order to TMT to file the divisions of its joint through rates under § 21 of the Shipping Act. Thus we remand that portion of the Order and we pass no judgment on its merits at the present time.

For the reasons set forth above the Order of FMC here under review is vacated in part, and remanded in part to the FMC for further consideration in light of this opinion.

Trailer Marine Transport Corp. v. Federal Maritime Commission
602 F.2d 379

Case Details

Name
Trailer Marine Transport Corp. v. Federal Maritime Commission
Decision Date
May 11, 1979
Citations

602 F.2d 379

Jurisdiction
United States

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