Source: http://www.law.cornell.edu/supremecourt/text/326/179
Timestamp: 2013-05-20 07:25:22
Document Index: 511585334

Matched Legal Cases: ['§ 309', '§ 309', '§ 309', '§ 302', '§ 309', '§ 302', '§ 309', '§ 302', '§ 1', '§ 909', '§ 909', '§ 902']

BARRETT LINE, Inc., v. UNITED STATES et al. | Supreme Court | LII / Legal Information Institute
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326 U.S. 179 (65 S.Ct. 1504, 89 L.Ed. 2128)
Argued: April 2, 1945.
[HTML] dissent, ROBERTS, FRANKFURTER, JACKSON
[HTML] Appeal from the District Court of the United States for the Southern District of Ohio.
In May, 1941, appellant applied for a permit to carry general commodities, with exceptions not now material, between points on the Mississippi River and its tributaries. The authority sought was to 'continue an operation in existence January 1, 1940, and continuously thereafter,' as a contract carrier of property over irregular routes, pursuant to 'grandfather rights' claimed under § 309(f) of Part III.
A year later, while the grandfather application was pending, appellant filed another application as a precautionary measure. This sought, in the alternative, leave to perform the same service as a new operation 'consistent with the public interest and the national transportation policy' under § 309(g).
The general effect of the historical evidence was to show the varied and sporadic character of the operations from about 1910. It appeared that the company might be without contracts or business for intervals of several months at a time. Much of its activity was in the nature of 'pioneering trades.' In brief this consisted in demonstrating the feasibility of water transportation for particular commodities. Generally, when the demonstration had been made, the result was for the shipper or another to take over the operation and appellant than would await or seek another similar opportunity.
Appellant and the Commission are at odds upon the effects of the showing made concerning movements on and after January 1, 1936, and as to whether the Commission erroneously refused to take account of earlier ones shown by the history prior to that time. The Commission thought that it should disregard them, more particularly with reference to the 'grandfather' application, as being too remote to substantiate the claim of 'bona fide operation' on the crucial date within § 309(f);
and found that the movements shown after January 1, 1936, were insufficient to establish the claimed rights because all, except one, were of exempt commodities, including petroleum products which were the only ones carried after January 1, 1940, except coal, which also is exempt.
Caught between the upper and nether millstones, so to speak, of denial of 'grandfather' rights and a permit for new operations,
appellant questions the Commission's limitation of evidence to be considered to that affecting operations after January 1, 1936; its evaluation of the evidence taken into account, particularly that relating to chartering, as showing transportation of exempt commodities only; its interpretation of the statutory provisions in their bearing upon these issues, especially as requiring a showing that chartering operations include nonexempt commodities to justify issuance of a permit; its conclusion that the showing was not sufficient to support the application for 'grandfather' rights; and the further conclusions concerning the showing as effecting the application to perform new operations.
The controversy has become most crucial in relation to chartering. The Commission found that these activities related, in the crucial period and on the showing made, only to exempt commodities, for carriage of which authority is not required,
and concluded that appellant was therefore not engaged in chartering operations subject to Part III or entitled to a permit for them. The opinion stated: '* * * the only transportation which might be subject to regulation under part III was that of chartering of vessels to shippers. However, no showing is made as to the nature of the services rendered, the commodities carried in, or the points served with such vessels. On such meager showing we would not be warranted in finding that applicant, on Januar 1, 1940, and continuously since, was engaged in chartering operations subject to part III of the act.' Appellant attacks this finding and the conclusion as contrary to law. The argument is founded upon § 302(e), which defines 'contract carrier by water' and provides that the furnishing of a vessel under charter or lease to a person other than a carrier subject to the Act, for use in transporting the latter's property, shall be considered to constitute 'engaging in transportation' within the meaning of the definition of 'contract carrier by water.'
Appellant relies especially upon the Commission's decision in C. F. Harms Company Contract Carrier Application, 260 I.C.C. 171, rendered January 4, 1944, after the complaint had been filed in this cause;
with emphasis also upon Russell Bros. Towing Co., Inc., Common Carrier Application, 250 I.C.C. 429, and Moran Towing & Transportation Co., Inc., Applications, 250 I.C.C. 541; Id., 260 I.C.C. 269.
'It will be noted that in neithe instance is there any reference to whether the transportation performed by the carrier is or is not subject to regulation. In determining a carrier's status and the scope of its operations during the 'grandfather' period, its entire operation should be considered, and not merely that part which the Congress has been fit to make subject to regulation. To find that 'grandfather' rights may be granted only to the extent that a showing is made as to the performance of regulated transportation requires the reading into the law of language which, in fact, is not there.' 250 I.C.C. 429, 433, 434.
To mere the objections an amendment was offered in the House to make the original proposal read: '* * * a person which * * * furnishes a vessel * * * shall itself not be considered to be engaged. * * *' 84 Cong.Rec. 9979. Had this finally been adopted, chartering would have been wholly exempt. The final form of the bill struck out the word 'not' and substituted the present provision. The Conference Report states, in addition to the purpose to limit application to cases where the vessel is furnished to a person other than a regulated carrier, the intention to clarify the language 'to make sure that the person furnishing the vessel will not, simply by reason of furnishing the vessel, become a contract carrier subject to part III of the act as to that part of its business not related to the furnishing and use of the vessel.'
Accordingly we think the Commission erred in concluding that appellant was not engaged in chartering operations subject to Part III on the critical date, for failure to show 'the nature of the services rendered, the commodities carried in, or the points served with such vessels.' This conclusion, moreover, seems to be in accord with its own decision in the Harms case and in harmony with the principles followed in the Moran Towing case and that of Russell Bros.
With full respect for the dissenting judgment, we think the view eventually reached by the majority in those decisions accords with the statutory purpose and provision.
The dissenting Commissioners emphasize the requirement of § 309(g) that a permit shall specify the business of the contract carrier and the scope thereof; and regard this as qualifying the 'furnishing' provision of § 302(e) so as to require substantially the same specific showing as to character of the commodities and territorial scope of operations in chartering as has been deemed required for other forms of transportation. Without this, they say, the substantial parity between future operations and prior bona fide operations contemplated by the grandfather provisions cannot be maintained.
This language has particularly appropriate application to the proof made in this case, at any rate in relation to the chartering operations, in so far as proof may be required for compliance with the requirements of § 309(g). Beyond this, it bears also upon the extent to which those requirements are to be taken as qualifying § 302(e). To consider them as doing so in a manner to require the chartering carrier to prove specific instances of nonexempt commodity carriage would molecularize, if not atomize, the chartering business and threaten, if not accomplish, the destruction anticipated in the congressional debates. That result, or one tending strongly toward it, as would such a construction, hardly can be taken to be consistent with the declared national transportation policy, Act Sept. 18, 1940, § 1, 49 U.S.C.A. preceding section 901, 'to provide for fair and impartial regulation of all modes of transportation subject to the provisions of this Act, so administered as to recognize and preserve the inherent advantages of each' or the further declaration that this policy is to be applied in enforcing all of the Act's provisions.
Nevertheless, our views in these respects are not to be substituted for the Commission's which is not only specially informed but broadly discretionary and controlling except in case of clear departure from statutory requirements. Apart from the chartering, we are unable to say there was such a departure in this case. The policy of the Commission has recognized that a somewhat more liberal attitude is required in the case of water carriers than with respect to others in the length of the period to be considered as establishing the claim of bona fide operation.
In this phase of the case it is necessary only to add that in view of the specific statement contained in the Conference Report quoted above,
appellant is not entitled to found grandfather rights to transportation other than chartering upon a showing only of chartering operations.
'Except as otherwise provided in this section and section 311, no person shall engage in the business of a contract carrier by water unless he or it holds an effective permit, issued by the Commission authorizing such operation: Provided, That, subject to section 310, if any such carrier or a predecessor in interest was in bona fide operation as a contract carrier by water on January 1, 1940, over the route or routes or between the ports with respect to which application is made, and has so operated since that time (or, if engaged in furnishing seasonal service only, was in bona fide operation during the seasonal period, prior to or inc uding such date, for operations of the character in question) except, in either event, as to interruptions of service over which the applicant or its predecessor in interest had no control, the Commission shall issue such permit, without further proceedings, if application for such permit is made to the Commission as provided in subsection (g) * * *.' 49 U.S.C. 909(f), 49 U.S.C.A. § 909(f).
'* * * Subject to section 310, upon application the Commission shall issue such permit if it finds that the applicant is fit, willing, and able properly to perform the service proposed and to conform to the provisions of this part and the requirements, rules, and regulations of the Commission thereunder, and that such operation will be consistent with the public interest and the national transportation policy declared in this Act. The business of the carrier and the scope thereof shall be specified in such permit and there shall be attached thereto at time of issuance and from time to time thereafter such reasonable terms, conditions, and limitations, consistent with the character of the holder as a contract carrier by water, as are necessary to carry out the requirements of this part of those lawfully established by the Commission pursuant thereto: Provided, however, That no terms, conditions, or limitations shall restrict the right of the carrier to substitute or add contracts within the scope of the permit, or to add to his equipment, facilities, or service, within the scope of the permit, as the development of the business and the demands of the carrier's patrons shall require.' 49 U.S.C. 909(g), 49 U.S.C.A. § 909(g).
'The furnishing for compensation (under a charter, lease, or other agreement) of a vessel, to a person other than a carrier subject to this Act, to be used by the person to whom such vessel is furnished in the transportation of its own property, shall be considered to constitute, as to the vessel so furnished, engaging in transportation for compensation by the person furnishing such vessel, within the meaning of the foregoing definition of 'contract carrier by water'.' 49 U.S.C. 902(e), 49 U.S.C.A. § 902(e).