Transcontinental & Western Air, Inc. v. Civil Aeronautics Board (336 U.S. 601)

U.S. Supreme Court · decided April 18, 1949 · Supreme Court Database (Spaeth)

Citation
336 U.S. 601 · 69 S. Ct. 756
Docket
No. 387
Argued
February 8, 1949
Decided
April 18, 1949
Term
October Term 1948
Vote
6–2
Majority author
Justice Douglas
Issue area
Economic Activity
Disposition
Affirmed
Outcome
Petitioning party lost
Ideological direction
Liberal

How the Justices voted

Majority
Chief Justice Vinson, Justice Burton, Justice Douglas (wrote), Justice Black, Justice Rutledge, Justice Murphy
Dissenting
Justice R. H. Jackson (wrote), Justice Frankfurter

Opinion on Justia

Opinion excerpt

Mr. Justice Douglas delivered the opinion of the Court. The question in this case is whether the Civil Aeronautics Board has authority to fix a new mail rate for air carriers and to make it retroactive for a period in which a final rate previously fixed by the Board was in effect and unchallenged by the initiation of a mail rate proceeding. The answer turns primarily on the meaning of § 406 (a) of the Civil Aeronautics Act of 1938 as amended, 52 Stat. 998, 49 U. S. C. § 486 (a), which empowers the Board to fix and determine the fair and reasonable rates of compensation for the transportation of mail by aircraft and “to make such rates effective from such date as it shall determine to be proper . ...” The Board in an order dated October 26, 1945, fixed a mail rate of 45 cents per mail ton-mile for petitioner. From that date until March 14, 1947, petitioner was paid at that rate for its air carrier services. During that time no action was taken by petitioner or by the government to initiate a change in that rate. On March 14, 1947, petitioner filed a petition with the Board alleging that its mail rate had not been fair and reasonable since January 1, 1946, and requesting the Board to fix a fair and reasonable rate “from and after January 1, 1946.” After hearing, the Board by a divided vote ruled that it had no authority to fix a mail rate for a period prior to March 14, 1947,…

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