Clark Transport Co. v. Interstate Commerce Commission

233 F. Supp. 839, 1964 U.S. Dist. LEXIS 8292
CourtDistrict Court, N.D. Illinois
DecidedAugust 10, 1964
DocketNo. 63 C 2337
StatusPublished
Cited by2 cases

This text of 233 F. Supp. 839 (Clark Transport Co. v. Interstate Commerce Commission) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Clark Transport Co. v. Interstate Commerce Commission, 233 F. Supp. 839, 1964 U.S. Dist. LEXIS 8292 (N.D. Ill. 1964).

Opinions

SWYGERT, Circuit Judge, IGOE, District Judge, concurring.

This action to set aside an order of the Interstate Commerce Commission issued on September 11,1963, having been heard by this court as a three-judge district court pursuant to 28 U.S.C. § 2284, the court makes the following findings of fact and conclusions of law:

FINDINGS OF FACT

1. On September 28,1962, an application was filed with the Commission by K. W. McKee, Inc., of St. Paul, Minnesota, for a permit authorizing operation in interstate or foreign commerce as a contract carrier by motor vehicle of automobiles and trucks in secondary movements in truckaway service from St. Paul, Minnesota, to points in North Dakota.

2. Pursuant to statutory authority and the rules of the Commission, the application was referred to the Commission’s joint board No. 24 for a hearing and recommendation of an appropriate order thereon.

3. Clark Transport Company, an Illinois corporation, opposed the application and participated in the hearings as a protestant.

4. Ford Motor Company intervened in the proceedings and participated therein in support of the application.

5. On June 6, 1963, the joint board filed its report and recommended order. The report found that McKee is a contract carrier within the provisions of section 49 U.S.C. § 303(a) (15), considered the statutory criteria set forth in 49 U.S.C. § 309(b) as interpreted in ICC v. J-T Transport Co., 368 U.S. 81, 82 S.Ct. 204, 7 L.Ed.2d 147 (1961); made findings and conclusions based thereon and concluded that upon consideration of all evidence of record, operation in interstate or foreign commerce by McKee as a contract carrier, under a continuing contract with Ford, of automobiles and trucks, in secondary movements in truck-away service from St. Paul, Minnesota, to points in North Dakota would be consistent with the public interest and the national transportation policy; that McKee is fit to perform such service; and that McKee’s application should be granted.

6. In addition the joint board found that:

(a) The only shipper which applicant, McKee, proposes to serve is Ford Motor Company.

(b) Ford Motor Company has a distinct need for a specialized service be[841]*841cause Ford, at its St. Paul assembly plant, has constructed a railhead to receive vehicles from other assembly plants. It combines, in mixed shipments from St. Paul, vehicles assembled at St. Paul with those delivered by rail, and it has integrated its unloading, loading, dispatching, and accounting operations so that they are performed with a high degree of efficiency.

(c) Ford, however, has not been able to realize fully the advantages inherent in this integrated system since it has had to utilize two carriers to effectuate deliveries from St. Paul. McKee has both initial and secondary authority to all states serviced from Ford’s St. Paul plant with the exception of North Dakota where it has only initial authority. Thus, there is a gap in McKee’s authority which has necessitated using Clark for secondary movements into this state, which is the only state where Clark has both initial and secondary authority.

(d) McKee meets Ford’s distinct need for a carrier whose operations are integrated with those of Ford. McKee has a loading yard adjacent to Ford’s plant. Vehicles arriving by rail, with the exception of those destined for North Dakota, are immediately parked in McKee’s yard for mixing with vehicles manufactured at St. Paul and transportation to their ultimate destination. Ford can plot the destination of every vehicle and plan the most economical load mixture. McKee’s billing system is adapted to Ford’s punch-card system.

(e) Clark’s service is primarily designed to meet the requirements of shippers who do not have their own railhead facilities. There is additional handling of the vehicles Clark delivers since Clark must pick up the vehicles at Ford’s plant and truck them across town where they are unloaded and reloaded for shipment. This requires Clark to travel through Ford’s plant area, and it necessitates separate inspection of the vehicles handled by Clark. Moreover, Clark determines the composition of the loads, not Ford, and Ford must provide additional handling and facilities at its plant for ve-hides set aside for Clark. Clark-has .not shown that its service is tailored to meet Ford’s distinct needs. ;

(f) Although Clark would be adversely affected by a grant of this application,, the disadvantage Clark would suffer would be outweighed by the advantages: to the supporting shipper resulting from a grant of the application.

(g) If the application were denied, McKee would lose the opportunity to increase the efficiency of its operations, which would result from a grant of authority. Ford, however, would be adversely affected since it would not be able: to take full advantage of its railhead facility. )

(h) The changing character of Ford’s: requirements is pertinent in that Ford’s' shipping patterns have recently changed', to emphasize rail-motor movements; which, in turn has created Ford’s distinct need! for a carrier that will enable it to make full use of the St. Paul plant as an ex rail terminal. ..

(i) Weighing these criteria, the ap-^ plication should be granted.

7. Exceptions to the report and recommended order were filed by Clark, to> which replies were made by McKee and! Ford. On September 11, 1963, the Commission, division 1, found that the intervention by Ford was proper; that the exceptions and replies raised no" matters of' fact or law not considered by the joint, board. The Commission found that the evidence considered in the light of the exceptions and replies thereto did not warrant a result different from that reached by the joint board; that the statement of facts, the conclusions, and the findings of the joint board should be affirmed and adopted by the Commission. The Commission ordered that an appropriate permit be issued to McKee upon compliance with specified procedural requirements. Because of the temporary restraining order issued on October 24,, 1963, and the superseding interlocutory injunction issued by this court on March 24, 1964, the permit has not been issued, to McKee.

[842]*842, 8. In September, 1963, Clark filed a petition with the Commission to have this matter declared an issue of general transportation importance which was denied.

9. The findings of the Commission are supported by substantial evidence in the record as a whole and there is a rational basis for the findings and conclusions of the Commission based upon such evidence.

OPINION

This is an action to review the order of the Interstate Commerce Commission granting K. W. McKee, Inc., a permit authorizing it to operate as a contract carrier, by motor vehicle over irregular routes, of automobiles and trucks in secondary movements, in truckaway service from St. Paul, Minnesota, to North Dakota, under a contract with Ford Motor Company.

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233 F. Supp. 839, 1964 U.S. Dist. LEXIS 8292, Counsel Stack Legal Research, https://law.counselstack.com/opinion/clark-transport-co-v-interstate-commerce-commission-ilnd-1964.