Baggett Transp. Co. v. United States

116 F. Supp. 167, 1953 U.S. Dist. LEXIS 2123
CourtDistrict Court, N.D. Alabama
DecidedNovember 4, 1953
DocketCiv. A. No. 7223
StatusPublished
Cited by1 cases

This text of 116 F. Supp. 167 (Baggett Transp. Co. v. United States) is published on Counsel Stack Legal Research, covering District Court, N.D. Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Baggett Transp. Co. v. United States, 116 F. Supp. 167, 1953 U.S. Dist. LEXIS 2123 (N.D. Ala. 1953).

Opinion

LYNNE, Chief Judge.

This action, brought under Title 28, U.S.C.A. §§ 1336, 2284, and 2321-2325, seeks to have the court vacate and set aside certain orders of the Interstate Commerce Commission1 in a proceeding under Section 5 of the Interstate Commerce Act, 49 U.S.C.A. § 5.2 By such orders the Commission approved and authorized the purchase by C. R. Floyd and J. D. Beasley, partners, doing business as Floyd & Beasley Transfer Company,3 of certain motor common carrier operating rights of Central Alabama Express, Inc.,4 and found that upon consummation of the said transaction Floyd & Beasley would be entitled to a certificate of public convenience and necessity authorizing operations in interstate or foreign commerce to the extent Express had been operating under the rights thus transferred. The United States was made a defendant, as required by Title 28 U.S. C.A. § 2322, and the Commission, Floyd & Beasley, and Express were also named as defendants. The jurisdiction of the court is admitted.

Floyd & Beasley and Express filed their joint application with the Commission on February 16, 1951, for approval and' authorization of the proposed purchase by the former of the latter’s operating rights, and for the issuance to Floyd & Beasley of a certificate of public convenience and necessity covering the said rights. The application alleged that both purchaser and seller were motor carriers operating in interstate commerce ; that together they owned and operated in excess of twenty motor vehicles, and that the subject matter of the proposed purchase included a certificate of public convenience and necessity issued to Express by the Alabama Public Service Commission, under which Express was engaged in interstate operations solely within the State of Alabama by virtue of the second proviso in Section 206(a) of the Act.

By notice issued April 2, 1951, the Commission informed the applicants and numerous other interested parties, including the present plaintiff, Baggett Transportation Company, that the application would be heard before a Commission examined at Birmingham on April 30, 1951, and that:

“At such hearing, opportunity will be afforded for introduction of the usual evidence adduced in section 5 proceedings, and evidence as to whether in the event the proposed transaction is approved and consummated, a certificate of public convenience and necessity should be issued to [Floyd & Beasley] covering operations in interstate or foreign commerce as a motor vehicle common carrier * * * which are presently being conducted by [Express] under the partial exemption of the second proviso of Section 206(a).”

After two postponements, the application was heard on September 20, 21, and 22, 1951. Fourteen shipper representatives and four motor carrier representatives testified in support of the application, and fourteen motor carriers (including Baggett) intervened in opposition thereto. Testimony (859 transcript pages) was taken during three full days, and a large volume of documentary evidence was received. On February 19, 1952, the examiner submitted his pro[169]*169posed report, recommending approval of the proposed transaction (except as to certain particulars) and issuance of a certificate to the purchaser. Exceptions were thereafter filed by the applicants as well as by the intervenors in opposition.

The report of the Commission, Division 4, was entered August 19, 1952, together with its order approving Floyd & Beasley’s purchase of most, but not all, of the operating rights of Express, and authorizing the issuance to Floyd & Beasley of a certificate covering the purchased rights upon consummation of the transaction. A copy of the report and order appears as Appendix A to the complaint herein, and the report is printed in 58 M.C.C., commencing at page 507.

On October 24, 1952, Baggett and one other motor carrier, Malone Freight Lines, filed with the Commission a petition for reconsideration, the other carriers who had opposed the application not joining therein. On February 2, 1953, the entire Commission entered an order denying the petition. That was the final order in the proceeding, and a copy of it also is appended to the complaint.

This complaint was originally filed in court by Baggett and Malone, as joint plaintiffs, but was amended a few days later so as to eliminate Malone and leave Baggett as the sole plaintiff.

The main thrust of plaintiff’s argu7 ment is against the jurisdiction of the Commission under Section 5 of the Act5 to entertain an application by a multiple-state certificated carrier for authority to purchase the properties of a carrier which operates physically within but a single state but whose activities involve the transportation of passengers or property in interstate or foreign commerce between places within such state under an intrastate certificate, as authorized by the second proviso of Section 206(a) of the Act.6

Reliance is placed upon the Commission’s denial of its jurisdiction in an identical factual situation in Baggett-Purehase-Bishop, 36 M.C.C. 659, decided May 5, 1941. It is insisted that the rationale of the opinion which prevailed then is the true touchstone for construction of Section 5(2) of the Act. However, it is interesting to note that on September 11, 1942, in C. & D.-Purchase-Elliott, 38 M.C.C. 547, the Commission receded from its former position [170]*170and in an unbroken line of decisions throughout the past eleven years 7 has claimed and exercised jurisdiction under similar circumstances.

It must be acknowledged that the jursdiction of the Commission must arise from the Act of its own creation and is not one which it is free to exercise or abdicate ex proprio motu. This court must now assume the task of construing for itself the provisions of Section 5(2) of the Act, wherein all of the parties to this litigation agree that the grant of jurisdiction resides if, indeed, it does exist. That is not to say, however, that this section must be wrenched from its context and that the court should blind itself to the congressional effort to integrate into the vast, national transportation scheme the fragmentary but essential operations of intrastate motor carriers.

Careful consideration of this section leads to the conclusion that a “second proviso operator” is a carrier, within the definition contained in Section 1 of the Act, and that its right to engage in interstate commerce is contemplated by and included within the generic term “properties”, as it appears in Section 5(2). It follows that such right is intrinsically valuable and that it may not be sold or transferred to another carrier without the approval and authorization of the Commission. To that body the Congress has entrusted the function of determining whether the proposed sale or transfer will be consistent with the public interest and has directed it to consider expressly enumerated factors, We hold that the Commission clearly had the jurisdiction which it asserted in this proceeding.

Of course, if the purchaser of the interstate authority of a “second proviso operator” is a multiple-state certificated carrier, it may not perform the transportation services which its vendor was authorized to furnish until after issuance by the Commission of the certificate required by Section 207(a) of the Act.8

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Related

Navajo Freight Lines, Inc. v. United States
263 F. Supp. 438 (C.D. California, 1967)

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Bluebook (online)
116 F. Supp. 167, 1953 U.S. Dist. LEXIS 2123, Counsel Stack Legal Research, https://law.counselstack.com/opinion/baggett-transp-co-v-united-states-alnd-1953.