American Trucking Assns., Inc. v. United States
Opinion of the Court
delivered the opinion of the Court.
These appeals attack new Interstate Commerce Commission rules governing the use of equipment by authorized motor carriers when the equipment is not owned by the carrier but is leased from the owner or obtained by interchange with another authorized carrier. They
Some six suits were instituted to test the validity of the rules in the district courts under 28 U. S. C. §§ 2321-2325. Three were stayed by orders and one was not moved pending disposition of the instant cases.
I. Introduction. — We consider at the outset the existing conditions of the motor truck industry and its regulation as developed during the Commission's hearings because only against such a background are the rules meaningful. Commission authorization in the form of permits or certificates of convenience and necessity is a precondition to interstate service by virtue of the Motor Carrier Act. Such authorization, except under the “grandfather” clause, is granted only after a showing of fitness and ability to perform and a public need for the proffered service. And it specifically limits the scope and business of the permitted operations in the case of a contract carrier, and the routes and termini which may be served by a certificated common carrier.
The Act waives these conditions of agency authorization and service limitations for a sizable portion of the industry, however. Most important of the exempt operations are those involving equipment used in the transportation of agricultural products. By and large, the equipment in this category is owned and operated by the same person. It falls only within the Commission’s jurisdiction over drivers’ qualifications, hours of service and safety.
Because of the limiting character of the regulatory system, authorized carriers have developed a wide practice of using nonowned equipment. They have moved in two directions. The first is interchange. This includes those arrangements whereby two or more certificated carriers provide for through travel of a load in order to merge the advantages of certification to serve different areas. In this fashion, a wholly or partially loaded trailer may be exchanged at the established interchange point, or even an entire truck travel the line without interruption, under the guise of a shift in control. The second is leasing. This relates to the use of exempt equipment in authorized operations. Carriers subject to Commission jurisdiction have increasingly turned to owner-operator truckers to satisfy their need for equipment as their service demands. By a variety of arrangements, the authorized carriers hire them to conduct operations under the former’s permit or certificate. Such operators thus travel approved routes with nonexempt property, and in the great majority of instances sever connections with their lessee carrier at the end of the trip.
The use of nonowned equipment by authorized carriers is not illegal, either under the Act or the rules under
Consequences on the economic stability of the industry were also noted. The carrier engaged in leasing practice is at the mercy of the cost and supply of exempt equipment available to him. Hence, he may at times find himself unable to undertake shipping obligations because no trucks are available willing to make a relatively unprofitable trip or to assume the burdens of less-than-carload service. Certification is granted on a showing that a concern is fit and willing to provide nondiscriminatory service required by the public convenience. To sustain this obligation, the authorized integrated carrier who finds his
Use of exempt equipment by authorized carriers also tends to obstruct normal rate regulation. Schedules are traditionally grounded in costs. But the cost picture of a carrier who depends largely on leased equipment is far different from that of a carrier owning his own trucks. Not only is the former able to undertake operations with relatively slight investment. As well, his current overhead involved in operating leased equipment is solely administrative, the owner of the exempt equipment bearing the expense of gas, oil, tires, wages and depreciation out of his share of the fee. And to refer to the exempt owner’s own expenses as determinative of what is a “reasonable” rate would be manifestly impossible as long as the relationships between lessor and lessee are too tenuous, short-termed and informal and the compensation of each based on a division of revenue.
It is claimed that the practice in fact has had a demoralizing effect on the industry. Authorized carriers find it advantageous to expand their operations by leased equipment because of the fact that no investment is required, nor is the risk of empty return trips and other overhead incurred. Hence, carriers owning their own trucks face a fluid rate structure in competition with those specializing in use of exempt equipment, especially where such equipment is offered for a trip, as it often is, for expenses. There is thus a pressure on the certificated operator to enter the leasing field and hence expand the effect of these conditions and practices on efficient, safe and nondiscriminatory truck service which the Act is designed to promote.
II. Commission Proceedings. — All before us admit the difficulties which have developed. In fact, the Commission has considered them for some years. As early as
III. The Rules. — In this final form, the rules establish as conditions to the use of nonowned equipment by authorized carriers the reduction of the contracts to writing. Rule § 207.4 (a) (2), 52 M. C. C. 744. It is required that such contracts vest exclusive possession of, and responsibility for, the equipment in the authorized carrier during the rental, Rule § 207.4 (a) (4), the life of which must exceed thirty days when the driver is the owner or his employee. Rule § 207.4 (a) (3). Finally, the contract must fix the compensation of the lessor, which may not be measured by a percentage of the gross revenue. Rule § 207.4 (a) (5). Interchange agreements between two authorized carriers must also be in writing and the equipment must be driven by an employee of the certificated carrier over whose authorized route it travels. Rule § 207.5 (a), (c).
The rules also require inspection of nonowned equipment when the lessee carrier takes possession, Rule § 207.4 (c), as well as the identification of the trucks as within its responsibility, Rule § 207.4 (d), and the testing of the driver’s familiarity with Motor Carrier Safety Regulations. Rule § 207.4 (e). Records of the use of rented and interchanged equipment are mandatory. Rule § 207.4 (f).
IV. Commission Authority. — Appellants focus their principal attack on the lease provisions requiring a thirty-day period of carrier control and a measure of compensation other than revenue splitting. All agree that the rules thus abolish trip-leasing. Unfortunate consequences are predicted for the public interest because the exempt owner-operator will no longer be able to hire himself out at will — in sum, that the industry’s ability to serve a fluctuating demand will suffer and transportation costs accordingly go up. It is the Commission’s position that
Here, appellants have framed their position as a broadside attack on the Commission’s asserted power. All urge upon us the fact that nowhere in the Act is there an express delegation of power to control, regulate or affect leasing practices,
Moreover, we must reject at the outset any conclusion that the rules as a whole represent an attempt by the Commission to expand its power arbitrarily; there is clear and adequate evidence of evils attendant on trip-leasing. The purpose of the rules is to protect the industry from practices detrimental to the maintenance of sound transportation services consistent with the regulatory system. Sections 216 (b) and 218 (a) of the Act, for instance, require the filing of a just and reasonable rate schedule by each common carrier, and the violation of these rates and the demoralization of rate structures generally are a probable concomitant of current leasing practices. Section 204 (a) (2) requires the Commission to impose rules relating to safety of operation for vehicles and drivers. These are likewise threatened by the unrestricted use of nonowned equipment by the common carriers. And the requirements of continuous service in § 204 (a)(1), of observance of authorized routes and termini under §§ 208 (a) and 209 (b), and the prohibitions of rebates, §§ 216 (d), 217 (b), 218 (a) and 222 (c), also may be ignored through the very practices here proscribed.
We cannot agree with appellants’ contention that the rule-making authority of § 204 (a) (6) merely concerns agency procedures and is solely administrative. It ignores the distinct reference in the section to enforcement. Furthermore, the power of the Commission to make rules applicable to transfers of certificates or permits is recognized by §212 (b). That section permits transfers “pursuant to such rules and regulations as the Commission may prescribe.” It does not strain logic or experience to look upon leasing of exempt equipment and interchange as a transfer, temporary in nature, of the carrier’s authorized right to serve his specified area; in fact we think this interpretation is dramatically supported here by the evidence that owner-operators themselves take the initiative in securing cargoes, while the carriers accept only the administrative function of approving the use of the nonowned equipment over their authorized routes and under their names. It is an unnatural construction of the Act which would require the Commission to sit idly by and wink at practices that lead to violations of its provisions.
A fair analogy appears between the conditions which brought about the Motor Carrier Act and those sought to be corrected by the present rules, confirming our view of the Commission’s jurisdiction. Then the industry was unstable economically, dominated by ease of competitive entry and a fluid rate picture. And as a result, it became overcrowded with small economic units which proved unable to satisfy even the most minimal standards of safety or financial responsibility.
And as exercised, the power under § 204 (a) (6) is geared to and bounded by the limits of the regulatory system of the Act which it supplements. It is thus as clearly defined for constitutional purposes as the specified functions of the Commission, and so reliance on Schechter Poultry Corp. v. United States, 295 U. S. 495, 529, and Panama Refining Co. v. Ryan, 293 U. S. 388, 421, is misplaced. We reject for similar reasons the contention that Federal Power Commission v. Panhandle Eastern Pipe Line Co., 337 U. S. 498, is controlling here. Our holding that the Federal Power Commission’s authority did not extend to production and gathering of natural gas was specifically grounded in a provision of the Natural Gas Act to that effect. 337 U. S., at 504-505.
V. The National Transportation Policy. — What we have said above answers appellants’ companion contention that the rules are invalid because they violate the National Transportation Policy as set out in 49 U. S. C., preceding § 1. Regulation under the Act is there declared to be in the interests of the preservation of the inherent advantages of all modes of transportation, and of an economically sound, safe, and efficient industry. See United States v. Rock Island Motor Transit Co., 340 U. S. 419, and United States v. Texas & Pacific Motor Transport Co., 340 U. S. 450. But no overly-nice distinction between law and policy is needed to support
VI. Reasonableness of Rules and Exemptions Therefrom. — The relationship of these rules to the regulatory scheme they are designed to protect forms a basis for the answer to the various allegations that certain rules are arbitrary. For our purposes, such an argument must mean that the Commission had no reasonable ground for the exercise of judgment. In the instant case, such is not the situation; the evidence marshalled before the Commission plainly supports the conclusion that the continued effectiveness of its regulation requires the rules prescribed.
We also affirm a reasonable relationship between the aims of the federal regulatory scheme and the exemptions in the rules. That as to interchange between carriers over routes which both are authorized to serve, Rule § 207.3
VII. Preservation of the Right to Augment Equipment. — Appellants further contend, however, that the rules in effect will violate the protections in §§ 208 (a) and 209 (b) of the Act of the carriers’ right to augment their equipment.
VIII. Preservation of Agricultural Exemption. — As indicated above, the Act also exempts from Commission jurisdiction “motor vehicles used in carrying property consisting of ordinary livestock, fish (including shell fish), or agricultural commodities (not including manufactured products thereof), if such motor vehicles are not used in carrying any other property, or passengers, for compensation,” § 203 (b) (6),
We are unable, however, to conclude that the economic danger to the agricultural truckers from these rules constitutes a violation of § 203 (b) (6). The mere fact that commercial carriers of agricultural products will hereafter be required to establish their charges on the basis of an empty return trip is not the same as bringing them within. Commission jurisdiction generally. The exemption extends, by its own words, to carriage of agricultural products, and not to operations where the equipment is used to carry other property. Needless to say, the statute is not designed to allow farm truckers to compete with authorized and certificated motor carriers in the carriage of non-agricultural products or manufactured products for off-the-farm use, merely because they have exemption when carrying only agricultural products. We can therefore find nothing in it which implies protection of agricultural truckers’ right to haul other property, even though from an economic standpoint that right is important to protect profit margins. Regulated truckers must also receive protection upon their restricted routes and limited carriage. A balance between these competing factors, carried out in accordance with congressional purpose,
IX. Agency Procedure. — We need not pause long over certain procedural objections which appellants have interposed. They object that the rules were the product of proceedings fatally at variance with certain requirements of the Administrative Procedure Act. Appellants in No. 35 point to the requirement of § 7 (c), that “the
Similar reasoning supports our conclusion that § 8 (b) of the Administrative Procedure Act, which requires that decisions shall “include a statement of (1) findings and conclusions,” invoked by appellants in No. 26, is likewise inapplicable. For it, in turn, is limited to a “hearing . . . required to be conducted in conformity with section 7.”
X. Right to Introduce Evidence of Confiscation.— Finally, appellants assign as error the refusal of the District Court in No. 35 to permit introduction of additional oral evidence there. Their offer of proof indicated that it would concern the “value of Plaintiffs’ property and rights” and “the effect of the order on said property and rights.” This Court has indicated many times, it is true, that those concerned with an order affecting their just compensation for transportation services must be heard; indeed, their right to introduce evidence to support the claim that the order in question will unconstitutionally confiscate their property may be enforced even in the District Court, if the Commission bars an opportunity to do so. Manufacturers R. Co. v. United States, 246 U. S. 457, 488-490; St. Joseph Stock Yards Co. v. United States, 298 U. S. 38, 53-54; Baltimore & Ohio R. Co. v. United States, 298 U. S. 349, 362-369; New York v. United States, 331 U. S. 284, 334-335.
“Confiscatory” is not a magic word. Whether it should open the door to further proceedings depends on the nature of the order attacked. We think a claim of rate confiscation, which was the concern of the cases just cited, stands on a fundamentally different footing from that made in the instant case.
It is true that we have admonished the Commission and the courts to permit introduction of evidence on the economic impact of a rate order where the claim that it could not have been proffered during the original proceedings was genuine. But that was because the “constitutional right of compensation,” St. Joseph Stock Yards Co. v. United States, 298 U. S. 38, 54, was drawn in question. Here, appellants can make no comparable claim. They attack an order which is valid even if its effect is to drive some operators out of business. As we have indicated, the rule-making power is rooted in and supplements Congress’ regulatory scheme, which in turn derives from the commerce power. The fact that the value of some going concerns may be affected, therefore, does not support a claim under the Fifth Amendment, if the rules and the Act be related, as we have said they are, to evils in commerce which the federal power may reach.
Affirmed.
APPENDIX TO OPINION OF THE COURT.
Rules -prescribed governing the practices of authorized carriers of property by motor vehicle in Interstate or Foreign Commerce in (1) augmenting equipment, (#) interchanging of equipment, and (3) renting vehicles or equipment to private carriers or shippers
§ 207.3 Exemptions. — Other than § 207.4 (c) and (d), relative to inspection and identification of equipment, these rules shall not apply—
(a) To equipment leased by one authorized carrier operating over regular routes to another authorized carrier operating over regular routes and operated between points and over routes which both lessor and lessee are authorized to serve, and to equipment leased by one authorized carrier operating over irregular routes to another such carrier and operated between points and within territory which both the lessor and lessee are authorized to serve;
(b) To equipment utilized wholly or in part in the transportation of railway express traffic, or in substituted motor-for-rail transportation of railroad freight moving between points that are railroad stations on railroad billing;
(c) To equipment utilized in transportation performed solely and exclusively within any municipality, contiguous municipalities, or commercial zone, as defined by the Commission;
(d) To equipment utilized by an authorized carrier in transportation performed pursuant to any plan of opera
§ 207.4 Augmenting equipment. — Other than equipment exchanged between motor common carriers in interchange service as defined in § 207.5 of these rules, authorized carriers may perform authorized transportation in or with equipment which they do not own only under the following conditions:
(a) The contract, lease, or other arrangement for the use of such equipment—
(1) Shall be made between the authorized carrier and the owner of the equipment;
(2) Shall be in writing and signed by the parties thereto, or their regular employees or agents duly authorized to act for them in the execution of contracts, leases, or other arrangements;
(3) Shall specify the period for which it applies, which shall be not less than 30 days when the equipment is to be operated for the authorized carrier by the owner or employees of the owner; .
(4) Shall provide for the exclusive possession, control and use of the equipment, and for the complete assumption of responsibility in respect thereto, by the authorized carrier, ....
(5) Shall specify the compensation to be paid by the lessee for the rental of the leased equipment; provided, however, that such compensation shall not be computed on the basis of any division or percentage of any applicable rate or rates on any commodity or commodities transported in said vehicle or on a division or percentage of any revenue earned by said vehicle during the period for which the lease is effective;
(c) Inspection of equipment. — It shall be the duty of the authorized carrier, before taking possession of equipment, to inspect the same or to have the. same inspected ....
(d) Identification of equipment. — The authorized carrier acquiring the use of equipment under this rule shall properly and correctly identify such equipment as operated by it ... .
(e) Driver of equipment. — Before any person other than a regular employee of the authorized carrier is assigned to drive equipment operated under these rules, it shall be the duty of the authorized carrier to make certain that such driver is familiar with, and that his employment as a driver will not result in, violation of any provision of parts 192, 193, 195, and 196 of the Motor Carrier Safety Regulations (Rev.) pertaining to “Driving of Motor Vehicles,” “Parts and Accessories Necessary for Safe Operation,” “Hours of Service of Drivers,” and “Inspection and Maintenance,” and to require such driver to furnish a certificate of physical examination in accordance with part 191 of the Motor Carrier Safety Regulations (Rev.) pertaining to “Qualifications of Drivers,” or, in lieu thereof, a photostatic copy of the original certificate of physical examination, which shall be retained in the authorized carrier’s file.
§ 207.5 Interchange of equipment. — Common carriers of property may by contract, lease, or other arrangement, interchange any equipment defined in § 207.2 of these rules with one or more other common carriers of property, or one of such carriers may receive from another such carrier, any of such equipment, in connection with any through movement of traffic, under the following conditions:
(a) Agreement providing for interchange. — The contract, lease, or other arrangement providing for interchange shall specifically describe the equipment to be interchanged; the specific points of interchange; the use to be made of the equipment and the consideration for such use; and shall be signed by the parties to the contract, lease, or other arrangement, or their regular employees or agents duly authorized to act for them, in the execution of such contracts, leases, or other arrangements.
(b) Authority of carriers participating in interchange. — The certificates of public convenience and necessity held by the carriers participating in the interchange arrangement must authorize the transportation of the commodities proposed to be transported in the through movement, and service from and to the point where the physical interchange occurs.
(d) Through bills of lading. — The traffic transported in interchange service must move on through bills of lading issued by the originating carrier, and the rates charged and revenues collected must be accounted for in the same manner as if there had been no interchange of equipment. Charges for the use of the equipment shall be kept separate and distinct from divisions of the joint rates or the proportions thereof accruing to the carriers by the application of local or proportional rates.
(e) Inspection of equipment. — It shall be the duty of the carrier acquiring the use of equipment in interchange to inspect such equipment, or to have it inspected in the manner provided in § 207.4 (c) of these rules; and equipment which does not meet the requirements of the safety regulations shall not be operated in the respective services of the interchange carriers until the defects have been corrected.
(f) Identification of equipment. — The authorized carriers operating equipment in interchange service under this section shall carry with each vehicle so operated a copy of the contract, lease, or other arrangement while the equipment is being operated in the interchange service.
Oklahoma-Louisiana Motor Freight Corp. v. United States (D. C. W. D. Okla.); Movers’ Conference of America v. United States (D. C. E. D. Mich.); Greyvan Lines, Inc. v. United States (D. C. N. D. Ill.), and Apger v. United States (D. C. N. D. Ohio), respectively.
Interstate Commerce Act, §§ 206-209, 49 Stat. 551-553.
The Commission’s safety regulations are published at 49 CFR, Parts 190-196. Section 203 (b) also exempts (1) school transportation, (2) taxicabs, (3) hotel service, (4) national park transportation, (4a) farmers, (5) cooperatives, (7) newspapers, (7a) airlines, (8) local service, and (9) “casual” transportation.
See Interstate Commerce Act, §§209 (b), 216 (e), 217 (b), 49 Stat. 553, 558, 561, and 49 CFR, Part 174.
It apparently is.difficult to generalize about the economic significance of leasing and interchange. A survey made by the Bureau in 1947 disclosed only that about two-thirds of the carriers did not lease. The desirability to each carrier would be affected by many variables, of course, including the number of trucks he owned, the volume and stability of local demand and the extent of his carrying authority.
It appears, however, that a number of states control the practice already. Washington, which has filed an intervenor brief here urging affirmance, is notable in limiting trip leases, and in requiring that the driver be an employee of the carrier and that the latter control the vehicle. The relevant provision is cited to us as “Leasing Rule 40” by the Brief of the Attorney General of that State.
The conclusion that highway safety may be impaired rests admittedly on informed speculation rather than statistical certainty. A road check examination conducted by the Bureau did not indicate any significant difference in the number of safety violations between leased and owned vehicles.
See General Order O. D. T. 3, Revised, §§ 501.5 (d), 501.9, 501.10, 501.13, July 14, 1942, 7 Fed. Reg. 5445 et seq., requiring full leasing, interchange and division of revenues; I. C. C. Emergency Order No. M-l, June 11, 1942, §§215.101, 215.105, 7 Fed. Reg. 4429; and I. C. C. Emergency Order M-6, November 1, 1945, § 176.10 (a), 10 Fed. Reg. 13595.
Ex Parte No. MC-43, Lease and Interchange of Vehicles by Motor Carriers, 51 M. C. C. 461.
The change went to the heart of the problem. The examiner had suggested a requirement that the rental be of at least 30 days’ duration and that compensation be on a basis other than a division of revenues. Division 5 rejected both provisions, recognizing that they would in effect abolish trip-leasing.
The Act as originally drafted included, as a definition of carriers, all engaged in transportation “whether directly or by a lease.” § 203 (a)(14), (15), 49 Stat. 544, 545. The “added language [was] intended to check evasion of the act by bringing within its terms such transportation operations as are performed through the leasing of motor vehicles or other similar arrangements which may constitute either common or contract carriage, according to the particular nature of the arrangements. The language inserted will enable the Commission to strike through such evasions where the facts warrant it.” 79 Cong. Rec. 5651. The terminology was stricken by the Transportation Act of 1940, 54 Stat. 898, 920, which, however, introduced no qualification and which, as we have indicated, was merely “[f]or purposes of clarity.” Thomson v. United States, 321 U. S. 19, 23. See 86 Cong. Rec. 11546.
Regulation of Transportation Agencies, S. Doc. No. 152, 73d Cong., 2d Sess. 14-15, 22-35, 226; 79 Cong. Rec. 12196, 12209; Hearings, Senate Committee on Interstate Commerce, on S. 1629, S. 1632, and S. 1635, 74th Cong., 1st Sess., Part I, 78-80, 404-405, 410-411.
79 Cong. Rec. 12207-12211; 12222-12225.
See footnote 8, supra.
Dixie Ohio Express Co. Common Carrier Application, 17 M. C. C. 735; Greyvan Lines, Inc., Common Carrier Application, 32 M. C. C. 719. See, however, I. C. C. Administrative Ruling No. 4, August 19, 1936, which represents an early effort on the part of the Commission to bring leased equipment under the control of the carriers for purposes of the Act. This was apparently abandoned after this Court’s decisions in United States v. Rosenblum Truck Lines, Inc., 315 U. S. 50, and Thomson v. United States, 321 U. S. 19.
“Sec. 208. (a) Any certificate issued under section 206 or 207 shall specify the service to be rendered . . . : Provided, however, That no terms, conditions, or limitations shall restrict the right of the carrier to add to his or its equipment and facilities over the routes, between the termini, or within the territory specified in the certificate, as the development of the business and the demands of the public shall require.”
Sec. 209. “(b) . . . The Commission shall specify in the permit the business of the contract carrier covered thereby and the scope thereof . . . Provided, however, That no terms, conditions, or limitations shall restrict the right of the carrier to substitute or add contracts within the scope of the permit, or to add to his or its equipment and facilities, within the scope of the permit, as the development of the business and the demands of the public may require.”
Likewise exempted are “motor vehicles controlled and operated by any farmer when used in the transportation of his agricultural commodities and products thereof, or in the transportation of supplies to his farm.” § 203 (b) (4a).
The National Transportation Policy, 49 U. S. C., preceding § 1, specifically refers to “fair and impartial regulation of all modes of transportation subject to the provisions of this Act, so administered as to recognize and preserve the inherent advantages of each.”
Section 4 of the Administrative Procedure Act sets out only the following applicable requirements:
“(a) Notice. — General notice of proposed rule making shall be published in the Federal Register (unless all persons subject thereto are named and either personally served or otherwise have actual notice thereof in accordance with law) and shall include (1) a statement of the time, place, and nature of public rule making proceedings; (2) reference to the authority under which the rule is proposed; and (3) either the terms or substance of the proposed rule or a description of the subjects and issues involved. . . .
“(b) Procedures. — After notice required by this section, the agency shall afford interested persons an opportunity to participate in the rule making through submission of written data, views, or arguments with or without opportunity to present the same orally in any manner; and, after consideration of all relevant matter presented, the agency shall incorporate in any rules adopted a concise general statement of their basis and purpose.” 60 Stat. 237, 239, 5 U. S. C. § 1003.
There is no question but that the Federal Register notice and participation requirements were satisfied. See p. 307, supra.
We have already noted the Motor Carrier Act itself distinguishes between the scope of a hearing required in rate proceedings and those held in relation to general rule-making under §204 (a)(6).
Compare the principles applicable to rate-making with what we have said about the Fifth Amendment in the related field of wage and hour laws under the commerce power, United States v. Darby, 312 U. S. 100, 125. This Court has pointed out many times that the exercise of the federal commerce power is not dependent on its maintenance of the economic status quo; the Fifth Amendment is no protection against a congressional scheme of business regulation otherwise valid, merely because it disturbs the profitability or methods of the interstate concerns affected. Labor Board v. Jones & Laughlin S. Corp., 301 U. S. 1, 43-45; Currin v. Wallace, 306 U. S. 1, 13-15; United States v. Rock Royal Co-operative, Inc., 307 U. S. 533, 572-573; North American Co. v. Securities &. Exchange Comm’n, 327 U. S. 686, 707-710; American Power & Light Co. v. Securities & Exchange Comm’n, 329 U. S. 90, 106-108.
Concurring in Part
dissenting.
I agree with the Court that the Interstate Commerce Act grants the Commission broad implied powers to carry out the general purposes outlined in the law. See United
A. The congressionally granted right of motor carriers to choose for themselves whether they would use leased or purchased equipment is practically destroyed by the imposition of burdensome restrictions.
B. The exemption from regulation granted carriers of agricultural products by § 203 (b) of Part II'of the Act is burdened by restrictive rules that substantially take away the advantages Congress intended to confer by the exemption.
C. Railroads that operate motor vehicles as a part of the business of common carriage are granted special advantages in violation of the express policy of the Act which requires each method of transportation to be left with its inherent advantages.
A. Motor vehicle common carriage had reached an advanced stage when Congress passed the Motor Carrier Act in 1935.
The new rules adopted by the full Commission put burdensome restrictions on the power to lease appropriate vehicles, restrictions which, in my view, go beyond the power of the Commission. These burdensome restrictions had been previously rejected by the Commission’s Division Y, composed of Commissioners particularly responsible for supervision of motor vehicle affairs as distinguished from supervision of railroad affairs. This record makes plain that enforcement of these burdensome rules will produce violent repercussions in the motor carrier industry; many motor carriers will suffer ruinous losses. The business of leasing vehicles for use by common carriers will be curtailed or perhaps even destroyed. The tendency of the rules is thus to eliminate many small business ventures. It may be, as the Commission seems to think, that the Nation’s motor carrier business can be more efficiently accomplished by a few big companies that own all their equipment, than by a large number of small companies that obtain all or part of their equipment by lease. But if that governmental alteration in our business structure is to be ordained, Congress, not the Commission, should do the ordaining.
The reason the Commission has adopted a rule so destructive of the agricultural exemption Congress granted is apparent from a colloquy which took place in the District Court. The attorney for the Commission was asked
C. The Commission has exempted railroads and express companies that carry goods for hire in motor vehicles from all of the regulations except the provisions of § 207.4 (c) and (d), which latter two provisions relate to inspection and identification of equipment. It is rather interesting that while the full Commission granted the railroads this amazing exemption, Division V, the Motor Carrier Division of the Commission, refused to allow it. The Commission at the same time refused to exempt from its new rules motor carriers whose operations were shown to be substantially identical with those performed by railroad and express carriers which the Commission left free from the burdens of the rules. Since the railroads and the independent motor carriers are in competition, it is not strange to find the railroads arguing here that while the railroads’ exemption should be sustained, the new rules should be applied in all their vigor to the independent motor carriers. I know of no power which the Commission has to allow railroads which
The Commission’s rules as a whole fashion broad new national transportation policies different from and in conflict with those Congress adopted after mature consideration. I would reverse the judgments of the District Courts and direct that the rules be set aside as beyond the Commission’s authority.
49 Stat. 543, as amended, 54 Stat. 919, 49 U. S. C. § 301.
This denial of power to the Commission appears in §§ 208 (a) and 209 (b) of Part II of the Act. 49 U. S. C. §§ 308 (a) and 309 (b).
Crescent Express Lines v. United States, 320 U. S. 401, 408-409.
For example, in 1950:
Percentages op Selected Farm Products Transported to Principal Markets in Trucks.
Percent
Hogs . 79
Cattle . 76
Calves. 78
Sheep and Lambs. 44
Shell Eggs. 93
Dressed Poultry. 76
Live Poultry. 99
Percent
Grapefruit .43
Oranges . 33
Apples. 64
Tomatoes . 60
Potatoes . 37
Lettuce. 41
Milk . 79
Transportation of Selected Agricultural Commodities to Leading Markets by Rail and Motortruck, 1939-50, United States Department of Agriculture, Bureau of Agricultural Economics (June 1951), Table 1, p. 10.
For illustration, Congressman Walter Pierce of Oregon said, “Mr. Chairman, I have watched the debate very closely. I wonder why this bill? I am a farmer, living 300 miles from tidewater. I raise wheat and stock. The only relief I have ever seen in my 40 years on that farm from the terrific confiscatory railroad freight rates was when the trucks came.
“The camel is certainly getting his nose into the tent, and this means the death of the motor transportation which the farmer has had and which has been the only relief that has come to him from the previous excessive railroad rates.” 79 Cong. Rec. 12216, 12217; see also 12197-12198.
Trip leases can be made by motor carriers specifically exempted from the rules by the Commission — railroad motor carriers, express company motor carriers, and the Allied Van Lines.
This statutory agricultural exemption reflects a congressional belief that . . it would be better for the Congress to decide what should be exempted rather than to leave it in the hands of the Commission that might nullify the entire intentions of Congress 79 Cong. Rec. 12225.
Reference
- Full Case Name
- AMERICAN TRUCKING ASSOCIATIONS, INC. ET AL. v. UNITED STATES Et Al.
- Cited By
- 343 cases
- Status
- Published