Carolina Freight Carriers Corp. v. United States

297 F. Supp. 848
CourtDistrict Court, W.D. North Carolina
DecidedMarch 18, 1969
DocketNo. 2365
StatusPublished
Cited by6 cases

This text of 297 F. Supp. 848 (Carolina Freight Carriers Corp. v. United States) is published on Counsel Stack Legal Research, covering District Court, W.D. North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Carolina Freight Carriers Corp. v. United States, 297 F. Supp. 848 (W.D.N.C. 1969).

Opinion

MEMORANDUM OF DECISION AND ORDER OF DISMISSAL

Before CRAVEN, Circuit Judge, JONES, Chief District Judge and MCMILLAN, District Judge.

McMILLAN, District Judge:

Plaintiffs, motor carriers, seek in this suit to set aside an order of the Interstate Commerce Commission (I.C.C. No. MC 107107, Sub. No. 343). awarding a certificate of public convenience and necessity to Alterman Transport Lines, Inc., to haul freight by truck between Charlotte, North Carolina and Florida.

We affirm the Commission and dismiss the suit.

On March 28, 1965 Alterman Transport Lines, Inc. requested authority from the Interstate Commerce Commission to haul general commodities between Charlotte, North Carolina and points in Florida. The hearing examiner took testimony for several weeks in Miami, Charlotte and Washington, and recommended denial of the application. The Interstate Commerce Commission reviewed the examiner’s report, made findings of fact and conclusions of law in favor of Alterman, and allowed the application. Petition for reconsideration was denied by order entered June 10, 1968. The plaintiffs, competing motor carriers, filed suit to obtain reversal of the Interstate Commerce Commission’s order and to restrain issuance of the certificate of public convenience and necessity until final decision of the case on the [850]*850merits. The petition for a temporary restraining order was heard at length in Charlotte on July 26, 1968 and the petition was denied. The case was set for hearing before a three-judge court pursuant to 28 U.S.C.A. § 2284, and was heard in Charlotte on October 22, 1968 before Circuit Judge James Braxton Craven, Jr. and District Judges Woodrow W. Jones and James B. McMillan.

The question before the three-judge court is whether the order of the Interstate Commerce Commission is supported by substantial evidence upon a view of the record as a whole, Illinois Cent. R. Co. v. Norfolk & W. R. Co. et al., 385 U.S. 57, 66, 69, 87 S.Ct. 255, 17 L.Ed.2d 162 (1966).

A bird’s-eye picture of the controversy among the competing carriers is simply this: Carolina Freight Carriers Corporation; Mercury Motor Express, Inc.; Johnson Motor Lines, Inc.; R-C Motor Lines; Georgia-Florida-Alabama Transportation Company, Inc.; P. C. White Truck Lines, Inc.; Pilot Freight Carriers; Gray Truck Lines; Ryder Truck Lines and others, parties or intervenors, hold certificates entitling them to haul some but not all freight from Charlotte to some but not all points in Florida. None of them provide complete service to North Carolina shippers. All of those named were represented at the hearing before the examiner. Alterman, an established Florida commodity carrier, hauls considerable fruits and frozen products out of Florida to North Carolina and points north, and it has between twenty and thirty-five trucks which return empty each week to Atlanta and Florida from the Carolinas. Alterman offered evidence of equipment and experience and financial capacity to give prompt service between Charlotte and Florida and points in Florida. Alterman proposes to supply service not now being rendered and to supply service which some of the plaintiffs and the protestants are turning down and are unwilling to perform. Ryder Truck Lines, for example, although it has rights to haul freight to Florida, declines to accept freight in Charlotte for forwarding from other carriers.

At the Florida end there is a public need for reliable service among the various cities of Florida for freight brought into Florida or originating in Florida. Alterman proposes to remedy all of this by giving regular pick-up in Charlotte, prompt transport to Florida, and prompt delivery to outlying points in Florida, including points removed from major cities.

The Commission determined that public convenience and necessity would be served if the certificate in question were issued to Alterman; that Alterman was able and willing and ready to perform under the requested franchise; and that the requested certificate should be issued and Alterman be given an opportunity to make good on its promises.

The plaintiffs contend that the Commission’s decision is erroneous in a number of particulars. Grounds asserted at the hearing in oral argument, which include substantially all of the objections are:

1. The plaintiffs contend that the grant of south bound authority from Charlotte into Florida is not supported by substantial evidence. On this subject the evidence is, of course, not unanimous, and conceivably the Commission might have reached a contrary result-as recommended by the hearing examiner. Nevertheless, the evidence abundantly and substantially supports a finding (if such finding were necessary, see Nashua Motor Express, Inc. v. United States, 230 F.Supp. 646 (D.N.H., 1964)) that existing service is unsatisfactory and inadequate and that public convenience and necessity justify and require the authorized additional service. Numerous shippers, freight handlers and receivers testified concerning unnecessarily long transit times and delays in handling of freight south bound from the Charlotte area. These shippers included Alabama Highway Express, Inc.; Alco Import Agency; American Express [851]*851Company; Belk’s Stores Services; Branch Motor Lines, Inc.; Central Motor Lines, Inc.; Eagle Stores; Florida Merchandising; General Tire and Rubber Company; W. T. Grant; Jenks Metals; Kresge; National Airlines; J. J. Newberry; Tarcon, Inc.; and U. S. Sugar Corporation. Central Motor Lines’ testimony described the difficulty of interchanging freight with reluctant existing south bound carriers. Tarcon, Inc., a freight handler dealing in assorted types of freight, offered supporting testimony. Retail stores including Belk’s, Kresge and. Newberry, testified that deliveries in Florida were both slow and unpredictable and that this interfered with the planning of sales and maintenance of inventory. General Tire and Rubber Company would like to retread its large size tires in its Charlotte plant, but because of uncertainties in transit north and south with existing truckers, it has recapping done by others in Florida instead. The new service, as proposed by Alterman, is, of course, ideal, and there may be doubt that in practice Alterman can carry out its “hearing room promises.” The Commission, however, found from the evidence that it should be given the opportunity, and the evidence certainly supports the findings and the conclusions reached by the Commission.

Perhaps the most dramatic evidence in the record on this question of south bound traffic is the testimony that both before and during the conduct of this litigation, the Charlotte based carriers who oppose the Alterman franchise have refused to handle out of Charlotte the very freight which they want to prevent Alterman from handling! It might not be accurate to call this a “dog in the manger” attitude, but the fact of the refusal of those carriers to handle the freight, whatever descriptive language is applied to it, is something which can not be ignored in appraising the Commission’s decision.

2. Plaintiffs contend that there is no substantial evidence to support the need for another carrier to haul freight north from points in Florida; they say there already are too many empty trucks coming north as it is. As to this the court is of the opinion that authority to bring freight back out of Florida would be a natural concomitant of authority to haul freight into Florida.

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Bluebook (online)
297 F. Supp. 848, Counsel Stack Legal Research, https://law.counselstack.com/opinion/carolina-freight-carriers-corp-v-united-states-ncwd-1969.