Document: 355 U.S. 141 78 S.Ct. 165 2 L.Ed.2d 158 AMERICAN TRUCKING ASSOCIATIONS, Inc., et al., Appellants,v.UNITED STATES of America al. RAILWAY LABOR EXECUTIVES' ASSOCIATION Appellants, v. UNITED Nos. 6 and 8. Argued Oct. 23, 1957. Decided Dec. 9, [Syllabus from pages 141-142 intentionally omitted] Mr. Peter T. Beardsley, Washington, D.C., for appellants American Trucking Ass'ns Edward J. Hickey, Jr., Railway Labor Executives' Ass'n Robert W. Ginnane, appellee Interstate Commerce Commission. A. B. Howland, Des Monies, Iowa, intervening Rock Island Motor Transit Co. Justice CLARK delivered the opinion Court. 1 These appeals involve, among subsidiary issues, basic question whether Commission in a proceeding under § 207(a)1 Act wherein railroad seeks certificate permitting it to provide ordinary motor carrier service at or near parent railroad's line, is required by 5(2)(b)2 Act, National Transportation Policy, 49 U.S.C.A. note preceding section restrict such that which auxiliary to, supplemental of, services. A three-judge District Court sitting Columbia upheld action issuing without restrictions. 144 F.Supp. 365. We agree with conclusion circumstances this case was well founded. At time we noted probable jurisdiction appeals, 1956, 352 816, 77 36, 43, counsel No. 8 were invited discuss issue appellants' standing sue. None parties now standing, our examination 17(11)3 205(h)4 leads us conclude may properly bring action. See Brotherhood Railroad Trainmen Baltimore & O.R. Co., 1947, 331 519, 67 1387, 91 L.Ed. 1646. 3 In 1938 authorized Transit, wholly owned Chicago, Pacific Railroad, purchase property operating rights White Line Freight Company, between Silvis, Illinois, Omaha, Nebraska. 5 M.C.C. 451. The certificate, issued 1941, restricted points on subject any further restrictions might impose 'to insure shall be supplementary train * *.' MC 29130. Three years later allowed Frederickson Lines, covering routes Atlantic, Omaha. 39 824. Prior an routes, however, reopened both proceedings imposed five conditions Transit's operation over combined routes.5 4 Although succeeded its efforts have order set aside Court, 90 516, appeal, power conditions, reversed United States 1951, 340 419, 71 382, 95 391. Pursuant holding, September containing as originally ordered.6 Soon thereafter filed present application certification unrestricted operations. Authority requested serve along certain off-line points, all parallel generally lines Chicago substantially granted November 1954.7 63 91. Operations authorized, free prior denied insofar sought authority Silvis Chicago; pointed out already possessed authority. attacked Associations, Regular Common Carrier Conference, nine carriers—all 6. Association two organizations since become members thereof—all whom are 8—intervened opposition order. Answers Intervenors support included committee employees, Iowa State Commission, numerous Chambers shipper organizations. taken upholding granted. 7 Appellants advance three reasons why should stricken. They say, general, not only acquisition 5(2)(b) but also 207 limit rail-owned rail parent; void previously subterfuge subsequent application; and, even if contentions no validity, evidence insufficient findings inadequate I. By 5(2)(b), formerly 213(a)(1) 1935, Stat. 555, Congress consolidation, merger, acquisition, lease carriers found 'consistent public interest.' However, transactions involving where affiliate applicant, directed 'not (to) enter unless finds transaction proposed' interest 'will enable (railroad) use vehicle advantage operations will unduly restrain competition.' has interpreted mandate confine 'operations service.'8 specifically approved long administrative practice supra. It remembered acquisitions 'auxiliary supplemental' imposed, pursuant Act. 9 proceedings, instituted 206 seq., involve applications certificates convenience necessity. had been carrying scheduled peddle entire regardless volume traffic available. secure same general 5(2) (b) proceedings. Such would haul, inter alia, more profitable truckload traffic, thus supplementing expensive service.9 10 Section 207, defines showing issuance necessity predicated, makes reference phrase 'service operations' used nor there language suggesting mandatory limitation supplementary. 11 legislative history 1935 gives indication 213(a)(1), predecessor considered 207. Congressional debate largely confined acquisitions, appears either Committee Reports. S.Rep. 482, H.R.Rep. 1645, 74th Cong., 1st Sess. Certain amendments proposed 1938, including one Senator Shipstead added 213(a) construed service. withdrew his amendment after Commissioner Eastman expressed view 'in interpreting applying provisions 207(a) read act whole take cognizance policy' restricting Hearings before Senate S. 3606, 75th 3d Sess., pp. 26—30, 141—142. 12 accepted policy guiding light, rigid limitation. While applied many occasionally subsidiaries 'special circumstances' prevail, namely, railowned specific facts interest.10 least these cases decided when extensively revised enactment 1940, 54 898, 213 re-enacted into while left unchanged. 13 conclude, therefore, did intend requirement Nor contrary holding supra, discussed '(r)ail affiliates permitted leave line communities other transportation Those divergences, exercise discretionary supervisory endowed Commission.' page 442, 395. Commission's purpose apply Policy so preserve inherent advantages motor-carrier service.' discussing quoted 428 U.S., 388 case, stated test language: 14 'In words, applicant operate common vehicle, though do than prove, necessity, special burden reason very circumstance railroad. Where fails show negativing disadvantage fact, grant supply justified.' 40 457, 474. 15 Texas Transport 450, 422, 409, day Island, imposition case. Pacific, involved restrictions, here. 16 repeat, said those cases, underlying must divorced new Indeed, 'cognizance' 'as whole.' But, stated, believe acts beyond statutory departs limitations proceeding. II. 17 find indications device evade Certificate separate distinct although governs both. If requires restriction, denying simply because just emerged Moreover, approval here expressly continuing activity placing necessary interest. condition contractual arrangements revision 18 Finally, interpretation 'loophole' exists shown inclination permit such. Should prove less stringent future, recourse Congress, courts review finding exist. III. 19 Appellants' last contention relates sufficiency concede need smaller contest major Davenport, Cedar Rapids, Moines, Council Bluffs, 20 inclined disturb findings. Approval urged 149 shippers receivers, who interline (including some appellant Association), several commercial There serious less-than-truckload service: frequently failed handle gave inferior they operate. testimony weight key-point operated make adequate. appeared alone profitable, could longer render caliber maintained temporary Further, totally applied. Apart effect service, record indicates sometimes reluctant accept truckloads low-rated commodities. 21 This leaves unwilling suggest advanced confining communities, leaving business others. Public extent can grounded economic justification costly depends combining lucrative operation. true railroads trucking industry primarily build independently operation, foundation construing require field unprofitable. Observance realities ascertaining due independent carrier. 22 If, fear, destructive competition otherwise detrimental interest, situation remedy. retained future whatever any, appear material changes surrounding applicant's relation competing carriers.' M.C.C., 108. reservation unlimited does defeat Policy. 23 Affirmed. 24 DOUGLAS dissents. 'Sec. (a) Subject 210, qualified therefor, authorizing part covered application, fit, willing, able perform conform requirements, rules, regulations thereunder, necessity; 551, U.S.C. 307(a), 307(a). Sec. '* that, terms modifications reasonable, within scope subparagraph consistent approving transaction, upon modifications, reasonable: Provided, That part, person controlled carrier, affiliated therewith meaning paragraph (6), 906, 5(2)(b). 916, 17(11), 17(11). 550, amended, 922, 305(h), 305(h). '1. performed Company limited supplmental hereinafter called Railway. '2. interchange point station '3. No shipments transported following through, from, points: Nebr., collectively Davenport Bettendorf Moline, East Ill. '4. All reported (sic) revision, fair equitable parties. '5. we, 477. date, restrictions: 1. originating Ill., destined points. 2. shipment Bettendorf, Moline 3. single handled billing weighing 2,000 pounds. Two imposed: '(1) attached privileges herein reasonable terms, require, (2) (Motor Transit) (Rock Island) 109. Pa.Truck Lines—Control—Barker, 101, supplemented, 11; see, e.g., Gulf Co.—Purchase—Crane, 35 699; Co.—Purchase—Keithly, 427; P. Co.—Purchase—Southern Transp. 653. contrast 'truckload traffic,' refers starting full load delivering destination, term 'peddle traffic' various destination converse, picking up parts destination. Because exclusively licensed intrastate go outcome addition, rail-billed matter course. Therefore, kinds actually interstate bill lading. For Kansas City Com. Car. Application, 221, 28 5; M., St. P.R. Extension—Milwaukee Division, 53 341; Frisco Extension—Springfield Airport, 47 63; Great Northern R. Extension—Hobson—Lewistown, 745; Extension—Big Spring—Pecos, Tex., 649. Burlington Truck Lines Extension—Iowa, 48 516; Extension—Wellman, 31 643; Extension—Council Bluffs Weldon—Kansas City, 783; Santa Fe Trail Stages, 725; Extension—Verdon, Neb., 665; Andrews Bay Extension, 711. instant summarized practice: 'This (of imposing restrictions) sound relaxed clearly establish (1) resulted probably result undue restraint competition, furnished, except suited their convenience. 'The made precedent. Each character determined disclosed evidence.' 91, 102,

Category: 7