United States v. Mitsubishi International Corporation, Union Pacific Railroad, and Burlington Northern, Inc.

Mitsubishi International Corporation (“Mitsubishi”), Union Pacific Railroad (“Union Pacific”), and Burlington Northern, Inc. (“Burlington Northern”) were indicted for numerous violations of the Elkins Act (“Act”), formerly 49 U.S.C. § 41 (1) (now codified at 49 U.S.C. §§ 11903 and 11915). These were violations of railroad freight tariffs that resulted in special favorable treatment for Mitsubishi. Each pleaded guilty to violating the applicable freight tariff regulations imposed under the Act on cargoes shipped by rail. Mitsubishi pleaded guilty to nine counts of a twenty-seven count indictment; Union Pacific pleaded guilty to five counts of an eighteen count indictment; and Burlington Northern pleaded guilty to three counts of a nine count indictment.

The district court sentenced each corporation to the maximum fine of $20,000 on each count. Upon the condition that the minimum fine of $1,000 be paid on each count, however, the remainder of the fine was suspended and each corporation was placed on three years’ probation. On appeal, there is a challenge to the legality of the sentence and to the conditions of probation. We affirm.

I

Legality of the Sentence

Only Mitsubishi…