Arrowhead Freight Lines, Ltd. v. United States

114 F. Supp. 804, 1953 U.S. Dist. LEXIS 2153, 1953 WL 81417
CourtDistrict Court, S.D. California
DecidedAugust 31, 1953
DocketCiv. No. 15356
StatusPublished
Cited by3 cases

This text of 114 F. Supp. 804 (Arrowhead Freight Lines, Ltd. v. United States) is published on Counsel Stack Legal Research, covering District Court, S.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Arrowhead Freight Lines, Ltd. v. United States, 114 F. Supp. 804, 1953 U.S. Dist. LEXIS 2153, 1953 WL 81417 (S.D. Cal. 1953).

Opinion

MATHES, District Judge.

Plaintiff, a common carrier by motor vehicle, sues “to enjoin, set aside, suspend and annul a certain report and order made and entered by Division 5 of the Interstate Commerce Commission” on October 17, 1952 in a proceeding entitled “Transportation Activities of Arrowhead Freight Lines, Ltd., Docket No. MC-C-1052.” 61 M.C.C. 131 (1952).

The challenged order directs plaintiff “to cease and desist * * * from the performance of transportation * * * of the character indicated in said report to be beyond the scope of its authority.” See 61 M.C.C. at 142. The effective date of compliance by plaintiff has been postponed by the Commission pending hearing and determination of this action.

Jurisdiction of this court is invoked under 28 U.S.C. § 1336. See also: Id. §§ 2321-2325, 2284, 1398; 49 U.S.C.A. § 17(9); 5 U.S.C.A. § 1009; Am. Trucking Ass’ns v. United States, 344 U.S. 298, 318—320, 73 S.Ct. 307; United States v. L. A. Tucker Truck Lines, 1952, 344 U.S. 33, 173 S.Ct. 67.

Since prior to June 1, 1935, the effective <"grandfather”-certificate date specified in the Motor Carrier Act of 1935, 49 Stat. 543, 551 (1935), 49 U.S.C.A. § 306, plaintiff has been engaged continuously in the transportation of property by motor vehicle between Los Angeles Harbor and Ogden, Utah, serving various intermediate points including Salt Lake City. Plaintiff’s present certificate No. MC-69526 authorizing this operation stems from a “grandfather”-certificate issued pursuant to § 206(a) of the Interstate Commerce Act, 49 U.S.C.A. § 306(a). This certificate is involved in another case this day decided in this court, Arrowhead Freight Lines, Ltd. v. U. S., D.C.S.D.Cal.1953, 115 F.Supp. 537.

Pursuant to authority granted by the Commission, plaintiff purchased on September 21, 1942 the operating rights of Rapid Express, Inc., to transport “express” between Weiser, Idaho and Salt Lake City. Arrowhead Freight Lines-Purchase-Rapid Exp., Inc., 38 M.C.C. 558 (1942).

The operating rights thus acquired by plaintiff had been embraced in a certificate issued to Rapid Express on May 26, 1937 pursuant to a “grandfather”-clause application under § 206(a) of the Act, 49 U.S. C.A. § 306(a). By that certificate Rapid Express was merely authorized to transport “express” between Weiser, Idaho and Salt Lake City over the route and between the points indicated.

In consolidated certificates thereafter issued by the Commission to plaintiff, No. MC-69526, the phrase “general commodities moving in express service” was substituted for the single word “express” in describing the operating rights acquired through this purchase.

By schedule filed to become effective April 25, 1949 plaintiff proposed, under its authority to transport “general commodities moving in express service,” to establish initial rates on liquid petroleum products, in tank trucks in bulk, from Salt Lake City to points in Idaho over the route to Weiser. 49 U.S.C.A. § 6. Protests were filed based upon the contention that plaintiff’s operating authority over the route to Weiser did not permit such service. An investigation and suspension proceeding followed, 49 U.S.C.A. § 15(7), and the effective date of [807]*807the proposed rates has been voluntarily postponed by plaintiff pending final order in the proceeding under review here. Investigation and Suspension Docket No. M-3022, Petroleum Products, Arrowhead Freight Lines, Ltd.

The proceeding here under review arose while the investigation and .suspension proceeding just described was pending. The Commission, Division 5, 49 U.S.C.A. § 17, upon its own initiative commenced an investigation of the transportation activities of plaintiff pursuant to § 204(c) of the Act, 49 U.S.C.A. § 304(c).

Section 204(c) of the Act provides that: “Upon complaint in writing * * * or upon its own initiative without complaint, the Commission may investigate whether any motor carrier * * * has failed to comply with any provision * * * or with any requirement * * *. If the Commission, after notice and hearing, finds upon any such investigation that the motor carrier * * * has failed to comply with any * * * provision or requirement, the Commission shall issue an appropriate order to compel the carrier * * * to comply therewith.” 49 U.S.C.A. § 304(c).

As stated in the report of Division 5, the investigation proceeding under review was “instituted * * * for the purpose of determining (1) whether the presently effective certificate * * * held by * * * Arrowhead Freight Lines * * * should be corrected by substituting the term ‘express’ in lieu of the term ‘general commodities, moving in express service,’ and (2) whether respondent [plaintiff here] has held itself out to the public to perform or has performed transportation in interstate or foreign commerce, as a common carrier by motor vehicle of property which, with respect to the commodities transported and services performed, was or might be beyond-the scope of the operating authority described in its presently effective certificate or such certificate as it might be corrected.” 61 M.C.C. at 131.

To quote further from the report:

“As indicated, Rapid’s certificate was issued after informal proceedings on a ‘grandfather’-clause application. On June 1, 1935, the critical date for determination of common carrier ‘grandfather’ rights, Rapid was engaged in proving an expedited delivery service over the route and between the points indicated utilizing light equipment with limited carrying capacity, in order to maintain the speed of delivery required. The backbone of the operation appears to have been the distribution of motion picture film and related items to theatres along the route, but a considerable amount of miscellaneous small-package freight was also handled in connection therewith. * * *
“Since the acquisition by respondent of the operating rights of Rapid, certain marked changes have taken place in the operation, with the result that two different types of service are now conducted. The delivery of film and related articles has been continued as a separate service in much the same manner as conducted by Rapid. * * * In addition to the film delivery service respondent has, in effect, established a second service in which it operates large heavy equipment over the route transporting general freight in both truckload and less-than-truckload quantities. * * * Notwithstanding the size of the equipment utilized, the operation, without service at intermediate points, provides overnight delivery from Salt Lake City to Boise. In fact, the heavy units make better terminus-to-terminus time than the lighter film delivery units because of the number of stops made by the latter. A recent investigation * * * indicates that respondent, omitting service at authorized intermediate points, maintains somewhat faster service between Salt Lake City and Boise than the other general-freight carriers operating between these points.
“Except for the film delivery service, respondent’s present service over the route here involved is not distinguishable from the general-freight service which it maintains over the balance of its system.

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Related

Akers Motor Lines, Inc. v. United States
286 F. Supp. 213 (W.D. North Carolina, 1968)
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91 So. 2d 489 (Supreme Court of Alabama, 1956)
Future Farmers of America v. Romack
211 F.2d 925 (Seventh Circuit, 1954)

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Bluebook (online)
114 F. Supp. 804, 1953 U.S. Dist. LEXIS 2153, 1953 WL 81417, Counsel Stack Legal Research, https://law.counselstack.com/opinion/arrowhead-freight-lines-ltd-v-united-states-casd-1953.