Document: 340 U.S. 450 71 S.Ct. 422 95 L.Ed. 409 UNITED STATES et al.v.TEXAS & PACIFIC MOTOR TRANSPORT CO. REGULAR COMMON CARRIER CONFERENCE OF AMERICAN TRUCKING ASS'NS, INC. v. TEXAS Nos. 38, 39. Argued Nov. 7—8, 1950. Decided Feb. 26, 1951. Rehearing Denied April 9, See 341 906, 609. Mr. Daniel W. Knowlton, Washington, D.C., for the United States and Interstate Commerce Commission. Frank C. Brooks, Dallas, Tex., Regular Common Carrier Conference of American Trucking Associations, Inc. J. T. Suggs, Texas Pacific Motor Transport co. Justice REED delivered opinion Court. 1 These appeals, by Commission, intervenor, Inc., from judgment a three-judge federal district court setting aside two orders entering permanent injunction, raise questions similar to those discussed in No. 25, Rock Island Transit Co., 419, 382. The relate power Commission ban service practices theretofore permitted under certificates public convenience necessity previously issued common carrier motor vehicle. acted authority reserved certificate impose additional restrictions insure that carrier's operations will be auxiliary or supplemental its parent rail. 2 Company is wholly owned subsidiary Railway, operating system regular routes carriage freight, New Orleans El Paso, Texas, Lovington, Mexico, roughly paralleling lines railway subsidiaries. was organized 1929 provide local pick-up delivery connection with rail transportation between points on railway. Its first over-the-road common-carrier operation, Monahans, inaugurated just before affective date Act 1935, 49 U.S.C.A. § 301 seq. It extended obtaining both 213 1935 Act, now 5 providing acquisition established rights purchase other carriers ('grandfather' rights); 207 new operations. 3 Between July 1939 November 1942, sixteen Transport, covering various segments presently routes.1 In all right further order confine Transport's operation 'auxiliary, of, service.' This condition expressed either one forms set out margin.2 addition, each contained more, usually conditions: (1) That performed 'auxiliary to, of' service.3 (2) only station were served.4 (3) Either (a) shipments should made through bill lading, including prior subsequent movement;5 (b) no certain 'key points' line, more than them.6 And (4) contractual arrangements Railway subject modification Commission.7 4 irregular incidence these conditions may accounted segmentary fashion which built up routes, over period several years. They not reconsidered as group until 1943, when, response petition determine what MC—50544 (Sub-No. 11), particularly regard freight Paso Sierra Blanca, Railroad Company, it reopened nine proceedings consider whether could join rates, some provided substituting service. held 'Since petitioner's limit (in limitation reservation), without engage unconnected and, accordingly, properly party tariffs containing all-motor joint nor participate directory substitution train motor-vehicle at option. To extent petitioner performing participating movements bills lading competition existing carriers; service, rather being service.'8 did issue any affirmative order, but directed modify accordance findings, within reasonable time. then petitioned jointly reconsideration, hearings, hearings certificates; although petitioners later attempted withdraw their ground permission file tariff had been granted, nevertheless ordered certificates, three Temporary Authorities, 'solely what, if any, changes modifications outstanding * *.' 6 After hearing appeared, refused introduce evidence, after oral argument examiner's report, January 22, 1948, modified include uniformly substance five above, specifically follows: 7 '1. applicant shall limited Weatherford, Mineral Wells Northwestern Texas-New Mexico hereinafter called railways. 8 '2. Applicant render point line 9 '3. No transported following points, through, from, said points: Orleans, Alexandria, Shreveport, La., Texarkana, Tex.-Ark., Fort Worth-Dallas (considered one), Abilene, Tex. 10 '4. All railways reported us revision we find necessary, such fair equitable parties. 11 '5. Such specific future necessary railways.'9 12 effect appellee bar issuing own rates connecting carriers, tariffs.10 Prior participated motor-carrier tariffs. District Court found value $65,000, would destroyed $240,000 annual revenue lost. 13 A reconsideration this entire denied May 1949. thereupon brought suit Federal Court, seeking Commission's 1949, enjoin enforcement. Associations intervened behalf hearing, findings fact conclusions law, entered orders, permanently enjoining imposing 'in manner prohibit from: 14 'a. Filing, publishing maintaining statute case generally; 15 'b. Interchanging traffic rates; 16 'c. Issuing tendering generally contracts shipment; 17 'd. Transporting so-called part route covered interstate necessity, point' restriction attached issuance restrict ship railroad lading.' 18 From Conference, appeal here. 19 87 F.Supp. 107, 112, reasoned times ways therefore restricted attempted. connotation supplementary trial limiting points. Without dealing reservation restricting coordinated decided valid view 216, Transportation 1940, Stat. 560, 54 924. section allows establish division charges motor, water.11 held, too, action essence revocation unlawful except prescribed 212, 555, 924, unconstitutional because confiscatory. 20 here supports soundness reasons given injunction supplements them contentions support evidence accorded due process law October 17, 1944, 47 M.C.C. 753, 755. our decision today upholding 382, affirming below promptly rejected. 21 So far above issues relied upon are concerned, they seem have resolved favor Government case. proceeding involves 207. applications opinion, however, considered practice stated same §§ proceedings. We hold considerations justify n. 2, supra. 22 position question based theory taken original resulted 1940 affiliates, cannot formerly inconsistent interest unduly restrain competition. States, 326 77, 86, 65 1499, 1503, 89 2065, Louisville Nashville R. 227 88, 91, 33 185, 186, 57 431.12 23 required full privilege introducing testimony road's unreasonable. taking Hepburn allowed 'hearing' evidence. dealt series railroad-affiliated refusal admit flow truck localities along railroad, prospective carriers. On an affirmance court, reversed 24 situation, differs referred has proceedings, started interpretation maintain tariff. Hearings 1942 appellee's witnesses gave interchange existence tariffs, etc. report page 454, 424, facts current operations, addressing themselves elimination rail-haul condition. Thereafter made. Another At appeared examiner examined official nature developed operated Thus there appears record adequate circumstances 25 Upon due-process approve ruling 'Applicant argues notice inform parties met, give sufficient time prepare meet issues; request cancellation, ex parte proceeding. impressed applicant's unable foresee issues. purpose determining changes, conditions, thus placed issue. One 5A, itself primary determine, condition, change add others so effectively opportunity presenting show need exists present conditions; choose offer objected receipt respect thereto. circumstances, motion discontinue witness, overruled objection adduction witness.'13 26 remanded directions dismiss complaint. 27 BLACK, Mr, DOUGLAS, JACKSON BURTON dissent. Sixteen I.C.C. docket number MC 50544, subnumbers, Appendix Co. Application, 764. also temporary authorities, (Sub-Nos. 21—TA, 24—TA, 30—TA), expired consideration we, future, '5A. herein granted limitations hereafter tto railway, rendered competition.' 766. cases lines, (or Company) railway.' Ibid. serve, Shipments receives delivers covering, addition movement applicant, '3A. rail, transports parts appropriate transit rules.' '3B. vehicle Worth, Tex.-Ark. '3C. Pecos, Tex.' revision, suitable parties.' 41 721, 726. 763—764. 754, Rules 30, 107(a) 107(b) Supp. Tariff Circular 20. 726, excerpted note 19, 'Thus, while might prescribe served, forbid participation simple reason provision wording Sec. 216 Act.' 112. Several decisions general rulings added. Greyhound Corporation (etc.)—Control, 50 237, 242; Scannell 535, 541; D. Delivery Company—Purchase—Hubert Elliott, 38 547, 553; Joint N.E. Ass'n, Rose Welloff, 43 487, 488. None bear situation this. transfer revocation. 756.

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