Legal Document

359 U.S. 171 79 Supreme Court Reporter 714 3 United States Reports Lawyer’s Edition 2d Series KF101.8 U54 717 SERVICE STORAGE & TRANSFER CO., Inc., Petitioner,v.COMMONWEALTH OF VIRGINIA. Number 92. Argued Feb. 26, 1959. Decided March 30, Mr. Francis W. McInerny, Washington, D.C., for the petitioner. Robert D. McIlwaine, III, Richmond, Va., respondent. Justice CLARK delivered opinion of Court. 1 Petitioner, an interstate motor carrier certificated by Interstate Commerce Commission, but without a permit from Virginia allowing intrastate operations, was fined $5,000 State Corporation Commission carrying 10 shipments freight alleged to have been in character and, therefore, violation Chapter 12, Title 56, Code Virginia.1 The question originated at points and were destined routed through Bluefield, West Virginia, where petitioner maintains its main terminal. They transported vehicle with outside Virginia. Upon arrival Bluefield removed consolidated coming terminal non-Virginiaori gins. It then moved back into destinations. found that routes thus employed subterfuge evade state law. Appeals agreed directed fine be reduced $3,500 because failure Commonwealth's case on three shipments. 199 Va. 797, 102 South Eastern Reporter, 2nd 339. Petitioner pleads Virginia's interpretation operations conflicts certificate as well thereof Commission. claims respondent power impose criminal sanctions operations. We granted certiorari, 358 810, 25, 54, test out conflicting contentions. agree under facts here petitioner's commerce should first litigated before provision § 204(c) Act, 49 KF62 304(c), Annotated KF65 U5 304(c).2 2 operates truck lines parts Its activity is carried convenience necessity issued present I.C.C. combination original 1941 second 1943 upon purchase operating rights another carrier. Neither it nor predecessor held authorizing any carriage. authorized relevant transport general commodities common commerce: 'Between places within five miles 4 those respectively, one hand, other, part 75 territory. Between west Highway 29 south 60 including indicated portions highways specified, north which 80 Va.' 5 Petitioner's metho operation uncontradicted record. headquarters Bristol Roanoke. movement less-than-truckload In order gather combining them, make up full load 'peddler runs' terminals serve pick ups vicinity. All traffic About percent consists point while remainder State. gathered combined placed 'over road' tractor trailer unit There broken down other received all runs That around locally operated sorted forwarding nearest destination 'filed out' operation. latter local destination. 6 bottomed origin final are While stipulated these were, their face shipments,3 takes position they clearly had over direct none would ever left Commonwealth. contends circuitous unnecessarily long mere escope regulation jurisdiction. Aside testimony highway officers actual shipments, disputed, evidence consisted solely maps substantiating often long, sometimes exceeding twice shortest possible route. However, offered no bad faith moving 7 On manager others bona fides proved predecessor-operator business similar manner many years enjoyed certificates admits some this method gathering regardless routing them 'gateway' assorted according stands not only practical, efficient profitable, also creation 'flow traffic' timesaver shipper since there less time lost waiting making truckload. unique service central Virginians who ship southwest Kentucky otherwise suffer delays deliveries or obliged special higher rates. considerations controlling, throw light claim fides. 8 Castle versus Hayes Freight Lines, 1954, 348 61, 63—64, 191, 192, 99 L.Ed. 68, we observed 'Congress Motor Carrier Act adopted comprehensive plan regulating carriage goods iners tate commerce.' pointed 312, provides 'that certificates, permits licenses 'shall remain effect until suspended terminated herein provided'. * Under circumstances, odd if could take action amounting suspension revocation carrier's commission-granted right operate.' To uphold fines assessed tantamount partial federally certificate. Even though questioned constitute minor, i.e., percent, portion business, nevertheless entitled same protection conducted fact, handling identical vehicle. covers whole 1953, approving acquisition carrier, expressly approved very type now being on. unpublished report, noted: 9 'Under existing authority, Service Storage may lawfully perform cross-haul radial operating, example, between base area, 60, counties provided such various gateway.' MC—F—5361, Smith's Transfer Staunton, Va.—Control—Service Company, 59 M.C.C. 803 (report published.) appears clear interpretations federal made instance authority issuing whom Congress has responsibility action. taken position. Compare Atlantic Pennsylvania Public Utility 163 Pa.Super. 215, 589, Inc.—Petition Declaratory Order, 51 175. wisdom practice highlighted case. close hearing, announcement Commission's decision, petitioned declaratory interpreting Commonwealth, although notice proceeding, elected participate. After operation, opinion, 71 304, construed Virginia-to-Virginia Virginia.4 This reaffirmation prior 803, supra. Such can best avoided 11 Nor Eichholz 1939, 306 268, 622, 532, 83 641, contrary. Missouri revoked interstte crossed Kansas City, Kansas, sole purpose creating Eichholz, however, Court's premised fact rather than merely hence fide. words Chief Hughes distinguish present: 12 'When (Missouri) permit, acted appellant's application Federal meanwhile body appropriate law enforce reasonable regulations superseded.' page 273, 534. 13 followed naturally holding Welch company New Hampshire, 79, 438, 500, enactment did not, more, supersede regulation, continuing subject matter. admittedly done here. 14 Finally, Commonwealth helpless act. If believes fide escape jurisdiction, avail itself remedy Act. Section 204(c), supra, note 2, authorizes filing 'complaint writing board (that) *' abused See Thus possibility multitude several will uniform administration achieved. 15 judgment reversed. 16 Reversed. Va.Code, 1950, 56—278, provides: 'No restricted exempted shall engage having obtained public statement applicable proposed route complied size, weight, vehicles used, like increase applicant after granted.' section (c) 'Upon complaint person, board, organization, politic, own initiative complaint, investigate whether broker failed comply chapter, requirement established pursuant thereto. finds investigation requirement, issue compel therewith. Whenever does grounds part, dismiss complaint.' 304(c). 303(a)(10), defines 'interstate commerce' 'commerce State, *.' Statutes-at-Large 544. 'In absence showing use avoid logical normal headquarters, described, transportation commerce. 'We find described MC—30471.' Co., Incorporated Petition 306.

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