Court Opinion

ID: 9450011
Source: CourtListenerOpinion
Date Created: 2023-08-04 16:32:46.739031+00
Date Added: 2024-06-11T17:32:07.001199
License: Public Domain

ALDRICH, Circuit Judge
(concurring).
I share in the court’s criticism of the Board’s failure to express itself adequately, and concur in the court's ultimate conclusion, but I take a somewhat different approach. It seems to me, too, with all deference to the Board, that the deficiencies in its opinion, particularly in the light cast by the minority opinion which not only invited a better answer, but should have dictated it, indicate lack of developed thought. In a case as important as this the greatest attention should have been given to a careful denomination of the issues, an analysis of the underlying relevant considerations (with a corresponding exclusion of the irrelevant ones) and a reasoned conclusion. The more I review the Board’s opinion, the more I believe that it justifies the minority’s charge of equivocation. However, I disagree with my brethren that lack of need for a third carrier was the sole basis for the Board’s conclusion not to extend Northeast’s certificate. To me it seems that in the last sentence of the quoted footnote in its opinion denying rehearing the Board stated sufficiently explicitly, as an alternative ground, not that Northeast was unfit, but that the selection of Northeast would not be in the public interest. But the announcement of that ground in such a manner, with no seeming recognition that it was a complete contradiction of the apparent tenor of, and, indeed, express statements in, its opinion, is an example of administrative fiat, which, frankly, shocks me. Even if I am correct in thinking that the court erred in discounting this as a basis for the Board’s decision, I would quite agree that as attempted patchwork afterthought 1 it is unworthy of present attention.
Turning to the Board’s denominated “ultimate finding” that three carriers are not needed on this route, the first question is whether this represents a fundamental change in policy, and means that the Board proposes to reduce its emphasis on competition. The Board is free, of course, to make changes in policy, but the seriousness of this one, if that is what it is, would call not only for deep and mature thought, but for the assembly of the most cogent reasons. In the Board’s opinion I find neither. If, on the other hand, the opinion is viewed as limited to a single case it seems no more illuminating. Faced with a consistent practice of authorizing three or more carriers on less demanding routes, the Board emphasizes that this one has not increased to the degree expected. This scarcely serves to answer the fact that it is still one of the world’s richest and heaviest. Nor is it an answer that the remaining carriers are physically capable of handling the traffic. Presumably two carriers, or even one, could be capable of handling all the traffic anywhere. In so reasoning I agree with the court that the Board has said nothing.
The only matter I find of special moment is the Board’s discussion of North*590east’s lack of financial success. If the Board had considered this on the issue of Northeast’s fitness, it would have been undoubtedly relevant. (So, also, would a number of other factors which the Board did not consider, and justifiably, in the light of its disclaimer.) As a demonstration that this route cannot support three carriers, it is unimpressive. The Board adopted the examiner’s finding that “[pjerhaps no other carrier in the history of the industry has been plagued with more adverse circumstances in its operations than Northeast * * Northeast’s peculiar vicissitudes in no way indicate that this highly travelled route cannot support three carriers. Significantly the Board, for all its attempt to avoid the implication of its 1956 decision by outlining Northeast’s failure to become self-sufficient, does not criticize the examiner’s finding of economic capacity of the route. All of its discussion of Northeast’s financial difficulties comes to naught in the course of its opinion, because instead of facing up to what should be the consequences, so far as Northeast is concerned, the Board says it is “unnecessary” to do so “in view of our ultimate finding that there is no need or economic justification for a third carrier.” 2
The Board’s reason that Eastern needs strengthening, calls for no further comment. However, I think there is one important consideration which has not been dealt with in the court’s opinion. It is true that Northeast had only a temporary certificate. To an extent it obviously 'took its chances, not only with respect to the inherent financial difficulties of operating under a temporary certificate referred to in the court’s opinion, but to what would be the circumstances at the time of renewal. But if anything seems clear in this case, it is that the reason that Northeast’s certificate was originally made temporary was the question in the minds of the then minority members of the Board of its ability to compete. The Board is not estopped from changing its views. At the same time I feel there should be some recognition of the fact that the single, express burden which it placed upon Northeast in 1956 was to demonstrate an ability as a competitive trunkline carrier, an undertaking which, at least as of the moment, we must take as accomplished. Certainly from the standpoint of national policy the present decision of the Board, if affirmed, will exist as a serious warning to anyone contemplating accepting a temporary certificate. What the Board has done was to find in 1956 that, because of the deficiencies of the then two carriers, additional competition would be to the public benefit; then, when these benefits have been, concededly, conferred at the cost of a necessarily enormous commitment, the Board’s response is that you satisfied our doubts about your ability to compete and you accomplished much of what was wanted, but now we find that three carriers are not needed after all. Not only has the Board done this, but, as the court has pointed out, it has left Northeast in a worse position competitively than before, because to com-penstate Eastern and National for Northeast’s intrusion into their area it allowed them to extend into Northeast’s. I agree that it would overdignify Northeast’s status to say that it is entitled to “security of route,” but in this overall situation I would have thought the Board would have recognized a special burden to justify non-renewal of Northeast’s certificate on the particular ground that its competition was not required. If it did feel that burden it has given no indication of it beyond an expression of regret.3

. That it was an afterthought seems candidly admitted by the Board’s use of the present tense “we find.” It was not too late to rewrite its opinion, but that is not what the Board did. See, e. g., fn. 2, infra.

. On that broad basis it was, of course, unnecessary. But, correspondingly, it should have become necessary when the Board adopted its new position expressed in its final footnote.

. The Board’s brief is equally unsatisfying. Stating that this is “not the first time” that the Board has denied renewal applications because of a carrier’s “inability to conduct profitable operations,” it cites two cases, in both of which the ground for refusal was that the route itself was uneconomical and did not warrant a subsidy. That counsel should be reduced to such citations speaks for itself.