George Transfer & Rigging Co. v. United States

380 F. Supp. 179, 1974 U.S. Dist. LEXIS 8704
CourtDistrict Court, D. Maryland
DecidedMay 2, 1974
DocketCiv. A. No. 71-1114-Y
StatusPublished
Cited by1 cases

This text of 380 F. Supp. 179 (George Transfer & Rigging Co. v. United States) is published on Counsel Stack Legal Research, covering District Court, D. Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
George Transfer & Rigging Co. v. United States, 380 F. Supp. 179, 1974 U.S. Dist. LEXIS 8704 (D. Md. 1974).

Opinion

WINTER, Circuit Judge:

Convened as a three-judge court in accordance with 28 U.S.C. § 2325, we are asked to enjoin, annul and set aside two orders of the Interstate Commerce Com[181]*181mission which have the effect of prohibiting George Transfer and Rigging Company, Incorporated (George Transfer) from transporting “pig iron,” or “ferro-alloys” on pallets, as a common carrier by motor vehicle under operating certificates theretofore issued to it. We deny the requested relief.

I.

George Transfer’s operating certificate, obtained under the grandfather clause of the Motor Carrier Act, 49 U. S.C. § 306, authorizes it to transport

building and contractors’ equipment, materials and supplies; machinery and machine parts; pipe line and plant construction materials and supplies ; steel; and also heavy and bulky articles generally requiring rigging, special equipment, or specialized handling, between points and places in Maryland, Delaware, Pennsylvania, New Jersey, New York, Virginia, West Virginia, Kentucky, Ohio, and the District of Columbia.

Because its right to transport pig iron and ferro-alloys on pallets under these commodity and service descriptions was questioned by the Commission’s field staff, George Transfer sought from the Commission a declaratory order, or, alternatively, an interpretive order, confirming its claimed right. George Transfer’s petition alleged that it had transported these commodities for a “long period” and that George Transfer believed that it had acted within its right. The petition was not verified, nor were supporting affidavits annexed. An order issued August 10, 1970, in which the Commission denied its petition without a hearing. Summarized, the reasons assigned in the order were that: (a) while pig iron and ferro-alloys may be fabricated into commodities that George Transfer was authorized to carry, they are not in a form useable as such commodities (building and contractors’ equipment, materials and supplies, and pipe line and plant construction materials and supplies) and therefore they do not fall into those descriptions; (b) “steel” does not embrace iron and iron products including pig iron and ferro-alloys; (c) the authority to transport “heavy and bulky articles generally requiring rigging, etc.” authorizes operations as a heavy hauler; and (d) a heavy hauler is not authorized to carry ferro-alloys or pig iron because neither is heavy nor bulky, nor of a nature requiring aggregation on palletizing. The reasons for these conclusions were supplied by citation to relevant prior decisions of the Commission involving other carriers.

George Transfer then petitioned for reconsideration of the August 10, 1970 order, and for rehearing, by a petition containing several proffers of proof. First it tendered evidence that, on the “grandfather” date (October 1, 1935), it was a recognized carrier of a wide variety of iron and steel and iron and steel products, so that, George Transfer argued, the designation “steel” as an authorized commodity in its operating certificate was intended to include a wider variety of products than subsequent Commission interpretations of the generic term “steel” encompass. Second, George Transfer asserted the right to carry pig iron and ferro-alloys under the service description of its operating certificate. This argument was premised on the use of the word “generally” against the background that on the grandfather date George Transfer performed a wide variety of services different from those of the usual heavy haulers ; and therefore the word “generally” was used to permit George Transfer to continue to perform broad and comprehensive operations.

As a third ground for reconsideration, George Transfer tendered proof that ferro-alloys, with rare exception, were always carried in bulk or in pallet boxes; that carriage in small packages or containers was not economically feasible for a shipper; and that, moreover, the chemical properties of certain ferro-alloys required that they be carried in lined and sealed pallet-boxes, all with the result that special equipment in loading [182]*182and unloading is necessary. Thus, George Transfer sought to demonstrate that the requirements of its service description authority were literally met.

Finally, with regard to transportation of pig iron, George Transfer tendered proof that loading with magnetic cranes has been the exclusive practice in the industry for at least fifty years and that manual loading is both economically prohibitive and extremely hazardous. It follows, so George Transfer asserts, that pig iron required special equipment and was within its service description authority.

By order of August 10, 1971, again issued without a hearing, the Commission denied the petition for consideration. This order and its predecessor of August 10, 1970, are the orders before us on review.

II.

On its merits, George Transfer’s case raises various aspects of the ultimate question of what may a “heavy hauler” carry? A “heavy hauler” is a carrier authorized to haul commodities that “by reason of size or weight require the use of special equipment”—in short, because of their inherent qualities. In contrast, a “general commodity hauler,” which is restricted from engaging in heavy hauler carriage, may transport all goods except those which require special equipment for their, transportation. Classification of Motor Carriers of Property, 2 M.C.C. 703, 709-10 (1937). Both from the nature of the commodities specified in George Transfer’s certificate of public convenience and necessity, and the service description employed, George Transfer is a “heavy hauler.” Specifically, the instant case presents the question of whether pig iron or ferro-alloys on pallets are within permissible categories of commodities that a heavy hauler may carry.

Since the enactment of the Motor Carrier Act, the Commission has concerned itself from time to time with the delineation of commodities of permissible carriage by heavy haulers from commodities of permissible carriage by general commodity carriers. The delineation has not been an easy one, especially as the technology of loading, unloading and carriage, and shippers’ preferences and shippers’ requirements have changed since 1935. It may be fairly said, also, that from a close reading of the Commission’s views in its reported opinions, there has not been unwavering consistency in approach of how to classify commodities between the two categories of carriers. In Ace Doran Hauling & Rigging Co., Investigation, 108 M.C.C. 717 (1969), the Commission undertook to reexamine and restate its views on the subject. After extended discussion, it summarized its position as follows (108 M.C.C. at 757):

(1) With respect to bundled, aggregated or palletized commodities, the presumption described in the Dillner case, 79 M.C.C. 335, at 358—that such shipments, in the absence of a sound basis for a contrary conclusion, are outside the scope of heavy-hauler authority—is reaffirmed without modification.
(la) That, again in accordance with Dillner, exceptions to the foregoing general rule will not be recognized when the use of aggregation is attributable solely

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380 F. Supp. 179, 1974 U.S. Dist. LEXIS 8704, Counsel Stack Legal Research, https://law.counselstack.com/opinion/george-transfer-rigging-co-v-united-states-mdd-1974.