Bondurant v. United States

50 F. Supp. 704, 1943 U.S. Dist. LEXIS 2471
CourtDistrict Court, M.D. North Carolina
DecidedJuly 7, 1943
StatusPublished
Cited by7 cases

This text of 50 F. Supp. 704 (Bondurant v. United States) is published on Counsel Stack Legal Research, covering District Court, M.D. North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bondurant v. United States, 50 F. Supp. 704, 1943 U.S. Dist. LEXIS 2471 (M.D.N.C. 1943).

Opinion

PARKER, Circuit Judge.

This is a suit under 28 U.S.C.A. § 41(28) to enjoin and set aside an order of the Interstate Commerce Commission made upon an application for a certificate under the “grandfather” clause of section 206(a) of the Motor Carrier Act of 1935, 49 U.S. C.A. § 306(a). See 24 M.C.C. 174, 179-181. Interlocutory injunction has been applied for and a special statutory court of three judges has been convened pursuant to section 47 of Title 28 of the United States Code Annotated. At the hearing upon the application for interlocutory injunction, the evidence heard before the Commission has been introduced and the case has been submitted for final decree.

The plaintiff is the successor of Textile iruckers, Incorporated, which in turn was the successor of W. G. Bondurant, doing business as Bondurant Transfer Co., of Mount Airy, N. C., who began operations as a carrier by motor vehicle in the year 1932. In 1934 W. G. Bondurant transferred the business to Textile Truckers, Inc., and the business was being conducted by that corporation on June 1, 1935. Application for certificate under the “grandfather” clause was duly filed by the corporation within the time allowed; and subsequently the Commission heard a joint petition to transfer to plaintiff the operating rights claimed under the “grandfather” application and ruled that no approval thereof by the Commission was necessary to the validity of the transfer. We entertain no doubt but that the effect of the filing of this joint application was to transfer to plaintiff the operating rights to which it related, and contention to the contrary seems little short of frivolous. The Commission does not join in such contention, but recognizes that plaintiff has succeeded to any rights under the grandfather clause that Textile Truckers, Inc., may have had.

The operations upon which plaintiff bases the claim to rights under the “grandfather” clause were commenced in 1932. They have at all times been confined to transporting rayon yarn from manufacturer to spinner and returning empty containers to the manufacturer. Prior to June 1, 1935, yarn had been transported from seven points in the states of Virginia, West Virginia, Pennsylvania and Tennessee to two points in North Carolina and nowhere else. Plaintiff’s predecessors held themselves out as willing to transport to any points in the southeastern territory and had actively solicited business to a large number of points, but prior to June 1, 1935, had received no business to any points except the two in North Carolina. The facts are correctly stated in the report of the Commission as follows:

“No. MC-29624. — W. G. Bondurant, doing business as Bondurant Transfer Company, of Mount Airy, N. C., began operations as a carrier by motor vehicle, of property, in interstate or foreign commerce, in 1932, and so operated until the latter part of 1934, when his operation was transferred to applicant, Textile Truckers, Inc. Applicant continued the operation theretofore conducted by its predecessor, and, on June 1, 1935, with seven units of equipment, operated as a common carrier by motor vehicle, of rayon and celanese yarn and empty containers for yarn, between certain points in the territory applied for, over irregular routes. Since prior to June 1, 1935, predecessor and applicant have solicited rayon traffic from manufacturers, as well as from weaving mills.
“Abstracts prepared from bills of lading and freight bills giving a list of representative shipments transported by predecessor and applicant since prior to June 1, 1935, were introduced in evidence as proof of the character and extent of their operations. They show that prior to and on June 1, 1935, applicant was regularly engaged in the transportation of rayon yarn from rayon manufacturing plants at Roanoke, and Covington, Va., Parkersburg, W. Va., Meadville and Marcus Hook, Pa., Amcelle, Md., and Kingsport, Tenn., to weaving mills at Hemp and Newton, N. C. Empty containers from rayon yarn are shown to have been transported on return trips from Hemp and Newton to the above-described rayon manufacturing plants. No rayon traffic is shown to have been transported between a considerable number of origins and destinations not served prior to the statutory date.”

Plaintiff contends here, as she did before the Commission, that because of the nature of the service rendered in transportation of rayon yarn she is entitled to a wider [706]*706territory than that represented by a certificate -authorizing transportation between the seven points of origin and the two points of destination. She argues that, having confined herself to a specialized service in the handling of a single commodity, she should be granted a territorial designation measured by her holding out and solicitation and not be confined to a point to point designation determined on the basis of actual business done. Before the Commission she asked for a certificate covering the states of Virginia, North Carolina, South Carolina and Georgia. Before us she contends that it should cover the state of North Carolina. The Commission gave consideration to this contention of plaintiff, but rejected it on the ground that a “grandfather” certificate should be limited to areas and points as to which substantial service had been shown during the crucial period. The business done by plaintiff and her predecessors was distinguished from that involved in transportation of such commodities as “by their very nature habitually move from irregular points”. In this connection the Commission said:

“Applicant contends in the exceptions that the evidence of its actual operations on and since June 1, 1935, coupled with its holding out and willingness to transport rayon and empty containers between all points in the territory applied for in the Application, entitles it to authority to transport these commodities between such points, over irregular routes. Protestants challenge this contention. The problem is presented, therefore, as to the extent of the ‘grandfather’ rights to which applicant is entitled.
“We have taken the view that where there is a class of commodities which by their very nature habitually move from irregular points, rather than in a constant stream from established origins to established destinations in a well defined territory, we will authorize irregular-route service within a fairly wide range of territory. This distinction seems reasonably designed to carry out the intent of Congress. In the broad sense, that intent may be restated to be one that grants to carriers engaged in bona fide operations on June 1, 1935, the right to continue to do what they were doing prior to and continuously since, that date. If a carrier was continually operating over irregular routes from and to various points, then upon a review of the facts and a finding that such type of operation was being conducted, we would without further proof authorize that a carrier continue such operations in the future.
“As seen, predecessor and applicant solicited rayon yarn for transportation to and from points in the territory covered by the application, but the evidence of actual operations since prior to June 1, 1935 shows that they have only transported these commodities from seven points scattered over five states (two each in Virginia and Pennsylvania, and one each in West Virginia, Maryland, and Tennessee) to two points in one state.

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Bluebook (online)
50 F. Supp. 704, 1943 U.S. Dist. LEXIS 2471, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bondurant-v-united-states-ncmd-1943.