Document: 377 U.S. 311 84 S.Ct. 1260 12 L.Ed.2d 341 RED BALL MOTOR FREIGHT, INC., et al., Appellants,v.Emma SHANNON etc. UNITED STATES and Interstate Commerce Commission, Appellants, v. Emma Nos. 406, 421. Argued April 28, 1964. Decided June 1, Robert W. Ginnane, Washington, D.C., Amos M. Mathews, Chicago, Ill., for appellants. Walter C. Wolff, Jr., San Antonio, Tex., appellees. Mr. Justice BRENNAN delivered the opinion of Court. 1 The Act provides that it is unlawful any person engaged in a business other than transportation to 'transport property by motor vehicle interstate or foreign commerce purposes unless such within scope, furtherance, primary enterprise (other transportation) person.' § 203(c), 49 U.S.C. 303(c).1 Appellees deal livestock commodities from place Texas. They make deliveries their own trucks customers Louisiana buy sugar at Supreme, Louisiana, which they backhaul 525 miles resale Antonio. Commission held this was not exempt under 203(c) as 'transportation * *' appellees, but 'conducted with purpose profiting performed, and, such, constitutes for-hire carriage operating authority required.' 81 M.C.C. 337, 347.2 A three-judge court District Court Western Texas set aside ICC order. 219 F.Supp. 781.3 We noted probable jurisdiction. 375 901, 197, 11 142. affirm. 2 Section designed explicitly authorize eliminate which, though carried on guise private carriage, effect thus might lawfully be only an authorized common contract carrier. Before enactment able reach abuses interpreting 203(a)(17), 303(a)(17), so exclude 'pseudo-private' its definition 'private carrier vehicle' person, 'common' 'contract' carrier, who transports he 'is owner, lessee, bailee, when sale, lease, rent, bailment, furtherance commercial enterprise.' Many cases involved nonauthorized carriers resorted transparent 'buy-and-sell' devices evade regulation. typical buy-and-sell arrangement one 'buys' shipping point, delivery point there 'sells' real purchaser, 'profit' amounting price between two points.4 Similar evasions through use spurious agreements were found where transported regularly used noncarrier businesses pickups deliveries.5 faced necessity determining facts each case whether constituted beyond scope economic regulation, subject all relevant provisions Act. In words, here, United States Drum, 368 370, 374, 82 408, 410, 7 360, we dealt another aspect problem, has also 'had decide particular gives rise 'for-hire' regulation public interest, is, fact, Congress determined (noncarrier's) interest should prevail.' 3 course discriminating pseudo-private fact business, developed so-called 'primary business' test. This test first enunciated full Lenoir Chair Co., 51 65, aff'd, sub nom. Brooks Transportation Co. States, 93 517, 340 925, 71 501, 95 L.Ed. 668. chair manufacturer some products trucks. Whenever possible, vehicles manufacturing materials processing plant. concluded, M.C.C., 76, goods lawful because undertaken 'as bona fide incident (its) *.' governing standard stated follows, id., 75: 4 'If establish operator supplying compensation then carrier's status established may time, transporting them sale. If, hand, enterprise, must operations are conducted related secondary performed. our opinion, cannot both.' 5 believed, however, 203(a)(17) sufficiently explicit, particularly since decisions lower courts after raised doubts truck could unauthorized absence affirmative showing his brought him definitions carriage.6 Consequently sought additional legislation.7 original bill area would have amended carrier' 203(a) (17) prohibit device employed subterfuge avoid See S. 1677, H.R. 5825, 85th Cong., 1st Sess. withdrawn, favor more broadly phrased provision, sponsored Association America, encompassed devices, similar subterfuges engage transportation.8 second cause substantially TAA proposal. 6 1958 amendment appears face codify determinin operation. appellants argue, intended impose broader limitation kind urges brief concerned diversion traffic regulated backhauling operations, object 'to plain purchase sale solely take advantage available capacity qualify transportation)." understand argument enacted per se outlawing trucking limited without inquiry into operation pursuant enterprise. find no support either words legislative history putting gloss upon amendment. On contrary, persuaded meant applied ICC, requires analysis factual setting case. fully supports view. Chairman, speaking amendment, expressly that, view, 'incorporate statute.'9 Similarly, President TAA, directly said 'Our proposal affect delivers direction, legal resorts practice get return load.'10 Senate House Reports, while less crystal clear, nevertheless reveal codification Thus Report states 'accurately reflects holding case.'11 Although includes discussion problem language tracks statement 1953 Annual Report—where directed attention arrangements12—the concludes: 'There intention part Committee way jeopardize interfere recognized case.'13 Moreover, managers bills both gave assurances incorporate positive law.14 No application conclusive backhauling. critical determination made arrangements, backhaul, true wholesaling utilizing operator's Backhauls treated merely presence presents special temptation indulge carriage. 8 therefore conclude codifies test, embodies outright prohibition practices. statutory scheme recognizes mere availability completely consistent conduct business. question narrow one: whether, applying standards appellees' primary, non-carrier 9 developing standard, elaborated criteria characteristic device. Among these large investment assets payroll operations;15 negotiating advance dispatching pick up;16 direct ultimate buyer, rather warehoused stocks;17 solicitation order supplier owner;18 inclusion sales amount cover costs.19 10 examination record sufficient evidence ICC's conclusion appellees 'have long been buying selling certain connection therewith purchasers, dealer those commodities.' 345. further 'The usual (appellees) operate preexisting order, later en route accomplished. procedure ordinarily coordinated dealings generation shipments can transport lading moving opposite direction.' 346. But findings, record, 'within began 1934 dealers livestock. gradually added feed mill corn, oats, wheat, bran, molasses, salt fertilizer. 1954. addition element—usually arrangements—of obtaining orders commodity (in sugar) efore purchasing it, indicia absent. Appellees' composed facilities, nor major item expense; bear risk damage transit sell market price, loss value due changes; credit discount payment days, same terms; accounts receivable date hearing exceeded $10,000, amounted $20,000 $30,000 during previous year. It small stock generally buyers upon, day after, arrival offered entirely reasonable explanation this, however: perishable commodity, preservation apparently air conditioning facilities warehouse equipped; nothing contrary. And Antonio differently rate Supreme 69 cents, rail $1.09 hundred pounds, shows efficient equipment; does prove, found, respect commodities, performed 347. agree rather, clearly indicates general mercantile many items, including sugar.' F.Supp., 782. As shown, provide outbound movements Affirmed. GOLDBERG, whom HARLAN, STEWART WHITE join, dissenting. 13 I 'that test,' ante, 318, case.* 'the *, case.' Ante, 317. 14 need decide. errs, my deciding purely 'whether, business.' 318. 15 responsibility granting denying enforcement Courts 28 1336; cf. National Labor Relations Board Pittsburgh Steamship 498, 502, 453, 455, 479. enjoining Commission's did refer implicitly cite enunciating test' basis decision. discuss based transportation. 781; compare Unite 385, 415. 16 Having determined, does, remand issue unsubstantiality proper Under disposition case, mindful 'belongs administrative routine' agency, Gray v.Powell, 314 402, 411, 62 326, 332, 86 301, specific accepted if 'warrant record' law.' Hearst Publications, Inc., 322 111, 131, 64 851, 861, 88 1170; supra, 386, 416. 17 WHITE, 18 join dissenting Brother GOLDBERG. add failed demonstrate how qualifies 'primary' clears 35 cents 100 pounds over above cost Louisiana. normal costs viable out admit 'backhauling profit.' view incident. appropriate say catch-as-catch-can wholly incidental otherwise empty backhaul. 1957, Stat. provided pertinent part: '* shall vehicle, force certificate permit issued authorizing transportation.' 1958, 72 574, section provision hereinvolved providing, 'nor 1957 version examiner submitted report Division served report. action §§ 1336, 1398. convened 2325. See, e.g., Lyle H. Carpenter, M C.C. 85; B. E. Farnsworth, 164; Thomas Stanley Redding, 608; I.C.C. Tank Car Oil Corp., 151 F.2d 834 (C.A.5th Cir.). T. J. McBroom, 425; Triangle Motor 485. Cf. Congoleum-Nairn, 237. Woodall Food Prods. 207 517 Cir.); Taylor I.C.C., 209 353 (C.A.9th Sixty-eighth (1954), p. 82. pressed amendments Reports 1957: Report, 55; 1954 5; 1955 99; 1956 2; pp. 137 138. amending definitional sections, met protests opposed ground construed throw doubt unduly restrict Remarks Frazor Edmondson, Private Truck Council Hearings before Subcommittee Foreign 1384, Sess., 163 (1957); R. Van Liew, Carrier Conference, American Trucking Associations, 275. Chairman Clarke, 13, 19 (1957). Statement Baker, President, 244, 246. S.Rep. No. 1647, 2d (1958). (p. 55): 'Merchandising motortruck, actual pretended, distances increasing extent becoming factor freight distant points. Manufacturers establishments, deliver articles manufacture sell, increasingly merchandise near terminal others. Such purpo e receiving Sometimes merchandising venture. cases, arrangements consignee receive reduced cost.' Compare H.R.Rep. 1922, (1958), U.S.Code Congressional Administrative News 3456. 19. 104 Cong.Rec. 12535—12536 (1958) (House); 10818 (Senate). Virgil P. Stutzman, 223, 226; Joseph V. Hofer, 527, 540. 85, 86; 608, 609; Jay Cee Transport 68 758, 759; Church Point Wholesale Beverage 457, 459, 200 508 (D.C.W.D.La.). L. A. Woitishek, 42 193; supra; William Stewart, 89 281, 286. Subler Transfer, 79 561, 565; Riggs Dairy Express, 78 575—576; Donald Wilson, 651, 661. supra.

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