Consolidated Freightways, Inc. v. United States

136 F.2d 921, 1943 U.S. App. LEXIS 4265
CourtCourt of Appeals for the Eighth Circuit
DecidedJuly 6, 1943
DocketNo. 12403
StatusPublished
Cited by2 cases

This text of 136 F.2d 921 (Consolidated Freightways, Inc. v. United States) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Consolidated Freightways, Inc. v. United States, 136 F.2d 921, 1943 U.S. App. LEXIS 4265 (8th Cir. 1943).

Opinion

WOODROUGH, Circuit Judge.

This appeal is from a judgment rendered by the court after trial without a jury, finding the appellant guilty of violations of Part II of the Interstate Commerce Act, particularly 49 U.S.C.A. § 306 (a), as charged by criminal information against it in 117 counts, and imposing a fine of Fifteen Dollars in respect to each count, and costs.

Appellant is a common carrier by motor vehicle in interstate commerce between Minneapolis, Minnesota, and Seattle, Washington, and between various points and places in the states of Montana, Idaho, [922]*922Washington, Oregon and California, and is the successor to' Consolidated Freight Lines, Inc. A portion of its operations are authorized by certificates of public convenience and necessity issued by the Interstate Commerce Commission, and the remainder are being conducted without such certificates under claim of “grandfather” rights, under the first proviso of 49 U.S.C.A. § 306(a). There is no question that appellant is subject to the terms of the Act.

On February 12, 1936, it applied to the Commission under the “grandfather” clause of Section 306(a), for operating rights as a common carrier by motor vehicle‘between Marmarth, North Dakota, and Miles City, Montana, over U. S. Highway No. 12, and said application was denied by order of the Commission, January 11, 1939, 11 M.C.C. 131. On January 10, 1938, it filed application with the Commission for a certificate of public convenience and necessity between Marmarth, North Dakota, and Miles City, Montana, over U. S. Highway No. 12, and said application was denied by order of the Commission, January 17, 1941, 27 M.C.C. 705. No certificate has been issued to, it by the Commission between those points on that highway. But it claimed that it had the right to so operate and declared its intention to continue.

Accordingly, the Interstate Commerce Commission instituted action against it in the U. S. District Court in North Dakota, under authority of 49 U.S.C.A. § 322 (b), alleging that such operations of appellant were unlawful and in violation of the Act, and praying that appellant be enjoined therefrom. After trial the court granted the injunction as prayed, the opinion of the court being reported, Interstate Commerce Commission v. Consolidated Freight-ways, D.C., 41 F.Supp. 651.

The criminal information in this case was brought under 49 U.S.C.A. § 306(a), and 49 U.S.C.A. § 322(a), which provide in part:

“No common carrier by motor vehicle subject to the provisions of this chapter shall engage in any interstate or foreign operation on any public highway * * * unless there is in force with respect to such carrier a certificate of public convenience and necessity issued by the Commission authorizing such operations.”

“Any person knowingly and willfully violating any provision of this chapter, or any rule, regulation, requirement, or order thereunder, or any term or condition of any certificate * * * for which a penalty is not otherwise herein provided, shall, upon conviction thereof, be fined not more than $100 * * *. Each day of such violation shall constitute a separate offense.”

Each of the 117 counts of the information charged appellant on separate days between March 21, 1941, and August 13, 1941, with unlawfully transporting on public highway from Marmarth, North Dakota, which is on U. S. Highway No. 12, to a specified destination and consignee in Montana, Idaho, Washington, Oregon or California, without a certificate of public convenience and necessity, shipments of property from a designated consignor at St. Paul or Minneapolis, Minnesota. The substance of the charge in each count is illustrated by Count I, as follows: “That on, to wit, March 21, 1941, Consolidated Freightways, Inc., a corporation, defendant, then and there being a common carrier by motor vehicle * * * Ifor compensation, unlawfully did knowingly and wilfully engage in an interstate .operation on a public highway in that it did transport by motor vehicle * * * from Marmarth, * * * North Dakota * * * to Seattle, Washington, for Minnesota Mining and Manufacturing Company, St. Paul, Minnesota, consignor, certain property, to wit, 2 bundles, 13 rolls, 6 boxes abrasive paper, 1 drum polishing compound, consigned to Minnesota Mining and Manufacturing Company, Seattle, Washington, for compensation, to wit, $27.74, then and there without there being in force with respect to defendant a certificate of public convenience and necessity issued by the Interstate Commerce Commission authorizing such interstate operations.”

Although appellant pleaded not guilty, it stipulated on the trial that it performed the transportation alleged in each of the 117 counts on the dates specified, that the transportation was performed over U. S. Highway No. 12 from Marmarth, North Dakota, to the described destinations in other states, and that it charged and collected compensation as stated in the information. It offered no rebuttal to the proof of the government that it had applied to the Commission for operating rights under the “grandfather” clause and for certificate of public convenience and necessity over U. S. Highway No. 12, out of Marmarth, North Dakota, and had been refused, and that no certificate for that operation had been issued to it, and on this [923]*923appeal it stipulates and agrees that it was denied “grandfather” clause rights and a certificate of convenience and necessity specifically covering its use of Highway No. 12 between Marmarth, North Dakota, and Miles City, Montana.

Its position is that being a lawfully authorized common carrier by motor vehicle on routes in North Dakota and Montana, it has a legal right to use the highway in question as a harmless alternative route between the terminal points of its lawful operations, and that under proper interpretation of the Act, restriction of its operations to particular highways, either by giving or refusing certificates, was not within the powers and functions of the Commission. It also contends that the judgment rendered in its favor in a prior prosecution against it for specified operations over the same highway in the year 1937 constitutes a bar to this prosecution under the doctrine of res adjudicata.

Appellant has argued that the wording of the Act regulating motor carriers whose administration is entrusted to the Interstate Commerce Commission, is ambiguous, and leaves an uncertainty whether the “routes” to be designated by certificates of necessity and convenience or under the “grandfather” clause, may be restricted to particular highways between the named points.

It also argues that even if no such ambiguity is found, it should be held that the true intent of the Act is that the carrier should be left free in the public interest and its own, to effect economies and more practical operations by resort to alternative “harmless” roads.

We think that when 49 U.S.C.A. §§ 306, 307, 308 and 309 are read together, the contention that there is ambiguity, as claimed, is plainly seen to be without merit. The words “route” and “routes” are manifestly used to signify the highways where the motor vehicles operate and not the areas between terminal points, and the regulation of the carriers prescribed by the Act entrusts the designation of routes in the public interest to the Commission. The Commission has consistently so construed the law in its administration. 11 M.C.C. 705.

In 11 M.C.C. 131, the Commission said:

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136 F.2d 921, 1943 U.S. App. LEXIS 4265, Counsel Stack Legal Research, https://law.counselstack.com/opinion/consolidated-freightways-inc-v-united-states-ca8-1943.