Brady Transfer & Storage Co. v. United States

80 F. Supp. 110
CourtDistrict Court, S.D. Iowa
DecidedDecember 6, 1948
Docket834
StatusPublished
Cited by15 cases

This text of 80 F. Supp. 110 (Brady Transfer & Storage Co. v. United States) is published on Counsel Stack Legal Research, covering District Court, S.D. Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Brady Transfer & Storage Co. v. United States, 80 F. Supp. 110 (S.D. Iowa 1948).

Opinion

COLLET, Circuit Judge.

The plaintiff, Brady Transfer & Storage Company, which will hereinafter be referred to as Brady, carries on extensive operations as a common carrier by motor vehicle under certificates issued by the Interstate Commerce Commission. Brady was so engaged prior to the effective date of the Motor Carrier Act of 1935, now Part II of the Interstate Commerce Act, 49 U.S.C.A. §§ 301-327. In due time after the effective date of the above Act, Brady applied to the Commission under the so-called Grandfather Clause, 49 U.S.C.A. § 306(a), for authority to continue the operations then engaged in Pursuant to the authority of the Act, 49 U.S.C.A. § 306(a), Brady continued in the prosecution of its business pending final determination of the foregoing application. Originally the applications made were for several individual certificates. Among those applications authority was requested for the right to operate as a regular route common carrier of freight over specified routes serving specified points in many states and over a large area. After several years several of such regular route certificates were issued. None of them are in controversy in this action. One of the applications that Brady originally made under the Grandfather Clause was for authority to operate as an irregular route common carrier of freight. That application requested among other ■things authority to operate between St. Paul and Minneapolis, Minnesota, and all points in the State of Iowa. The application was not exactly so worded but for present purposes the question at issue will be simplified by referring to. it in that manner. This application had. a somewhat hectic course. Originally the Commission, in 1940, 23 M.C.C. 767, issued a report in which the conclusion was stated that Brady had been operating as a common carrier of freight over an irregular route between those points and that specified area, and that the certificate should be granted on that ground. After reconsideration the Commission issued a report denying the irregular route certificate. Subsequent hearings and rehearings finally resulted in the issuance in 1944 of a certificate authorizing among other things irregular *112 route service substantially as requested in the application. In 1947 all of Brady’s certificates were consolidated into one. In the meantime, however, in 1941 the Commission instituted on its own motion an investigation to determine whether Brady was actually carrying on an operation between St. Paul and Minneapolis, Minnesota, on the one hand and Spencer and Fort Dodge, Iowa, on the other which exceeded the authority requested in its application for an irregular route between those points. After an extensive investigation by the Commission and participation in the proceedings by many interested parties, all or most of whom have intervened in the present action, the Commission issued its report stating the conclusion that Brady was not carrying on an irregular route operation within the meaning assigned to that term by the - Commission and ordering him to cease and desist from exceeding the authority which he had applied for and which had been given him to operate between those points as an irregular route carrier in 1944. The report last referred to was issued in February, 1947. 47 M.C.C. 23. The effective date of this order has been extended from time to time, permitting the bringing of this action and has, since the action was brought, been further extended at the request of and for the convenience of the Court to permit the disposition of this action before the effective date of the order.

This action is brought under 28 U.S.C.A. §§ 1336, 1398, 2284, 2321-2323, 2325, challenging the validity of the Commission’s order directing Brady to cease exceeding its irregular route authority between St. Paul and Minneapolis, Minnesota, and Spencer and Fort Dodge, Iowa. The usual statutory three-judge Court ‘was convened and the cause submitted upon the pleadings, stipulation and affidavit. The material facts are not in dispute. Brady concedes, for the purposes of this case, that- the evidence before the Commission supports its factual findings in which the operations conducted by Brady are described. Brady does not concur, however, in the conclusion of the Commission that those facts demonstrate an exercise of authority in excess of that granted and' possessed by Brady under the irregular route certificate. A brief outline of the factual situation will materially ciar-' ify the legal differences now in dispute.

As heretofore noted, Brady was operating extensively as a motor carrier of freight prior to 1935. Incident to those operations occasions presumably arose, again presumably comparatively infrequent, for Brady, in its capacity as a common carrier, holding itself out to the public as ready, able and willing fq carry freight anywhere, for it to transport freight from St. Paul and Minneapolis to indiscriminate points in Iowa. We say “presumably” because that kind of an operation is the type of business which historically and customarily provoked the type of application which Brady filed — a request for irregular route authority between St. Paul and Minneapolis on the one hand and all points in Iowa on the other. Again, presumably, Brady was not .operat-. ing between St. Paul and Minneapolis on the one hand and all points in Iowa on the other at that time or any time nor was it necessary for it to be so operating in order t-o justify the application for and the issuance of a certificate as an irregular route carrier. Alton Railroad Company v. United States, 1942, 315 U.S. 15, 21, 62 S.Ct. 432, 86 L.Ed. 586. As time went on Brady saw the opportunity of increasing materially the volume of business and the profits rej suiting from its operation by the establishment of regular scheduled trips, the solicitation of business between St. Paul and Minneapolis and Spencer and F'ort Dodge, Iowa, the' advertisement to the general public, and the solicitation of shippers upon the basis that regular scheduled daily service was offered between St. Paul and Minneapolis on the one hand and Spencer and Fort Dodge on the other. Considerable business was built up as the result. The Commission concluded that this new systematic, regular scheduled service given by Brady between St. Paul and Minneapolis bn the one hand and Spencer and Fort Dodge on the other constituted a change in the type of the operation which Brady had been giving prior to 1935 and which it had requested authority to continue under the Grandfather Clause and which it had been granted authority to continue by the issuance of the irregular route certificate. *113 That conclusion was based upon the consideration of eight factors set forth in the Commission’s extensive report. 47 M.C.C. 23, 43-56 (1947). The Commission expressly disavows any intent to curtail the volume of Brady’s irregular route business between these points. With equal clarity and positiveness it renounces any intent or power to curtail the number of trips which Brady makes between St. Paul or Minneapolis and Spencer or Fort Dodge under the irregular route certificate. It states in its report (47 M.C.C. 23) (1947), in the language of the experts in that field, with a meticulous care as to terminology which we will not undertake to emulate or improve upon for the very good reason that it is not within the province of this Court to do so, why the present operations by Brady as demonstrated by the conceded facts represent a change in the type

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Bluebook (online)
80 F. Supp. 110, Counsel Stack Legal Research, https://law.counselstack.com/opinion/brady-transfer-storage-co-v-united-states-iasd-1948.