JT Transport Company v. United States

185 F. Supp. 838, 1960 U.S. Dist. LEXIS 4334
CourtDistrict Court, W.D. Missouri
DecidedAugust 9, 1960
Docket12497
StatusPublished
Cited by8 cases

This text of 185 F. Supp. 838 (JT Transport Company v. United States) is published on Counsel Stack Legal Research, covering District Court, W.D. Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
JT Transport Company v. United States, 185 F. Supp. 838, 1960 U.S. Dist. LEXIS 4334 (W.D. Mo. 1960).

Opinion

R. JASPER SMITH, District Judge.

This is an action brought under Sections 1336, 1398, 2284 and 2321 to 2325, inclusive, of Title 28 United States Code, to enjoin, set aside and annul orders of the Interstate Commerce Commission dated January 31, 1958, and June 15, 1959, and to compel action by the Interstate Commerce Commission unlawfully withheld upon the application of plaintiff in a proceeding under Section 205(g) of the Interstate Commerce Act (49 U.S. C.A. § 305(g)), to grant to plaintiff a permit as a contract carrier of certain property by motor vehicle from Indianapolis, Indiana, to Wichita, Kansas. By leave of Court Contract Carrier Conference of American Trucking Association, Inc. and Aerospace Industries Association of America, Inc., as Intervening Plaintiffs, and U.S.A.C. Transport, Inc., Regular Common Carrier Conference of American Trucking Association, Inc., and Common Carrier Conference — Irregular Route — of American Trucking Association, Inc., as Intervening Defendants, were allowed to intervene and file briefs.

Since 1953, plaintiff has held certain irregular route permits from the Commission as a contract carrier of property by motor vehicle. On March 14, 1957, it filed its application for an additional irregular route permit to authorize an extension of its operations in transporting aircraft assemblies, uncrated, requiring special handling and special equipment because of their fragile nature, from Indianapolis to Wichita. The application is supported by Boeing Aircraft Company, which operates a plant at Wichita for the production of airplanes.

The specific commodities to be transported are “landing gear bulkheads”. They are purchased by Boeing from a manufacturer at Indianapolis, for installation at Boeing’s assembly plant in Wichita. Each bulkhead weighs about 1380 pounds, it has a value of about $24,-000, and extreme care must be exercised in its transportation. Because of the nature of the commodity, crating as required for rail transportation is impracticable. Each bulkhead is manufactured for use in a particular airplane, and ordinarily, a bulkhead can be used *841 only in the plane for which it is manufactured.

Operating under its temporary authority, plaintiff has designed a specially constructed trailer, 35. feet long, 12% feet high, and 8 feet wide. It utilizes this equipment in transporting the commodities for Boeing. It is possible to haul four bulkheads in one load, without special crating. Plaintiff’s Wichita Terminal is located near the Boeing Plant, special equipment is assigned to the exclusive use of Boeing, and Boeing directs the movement of plaintiff’s equipment which is available upon one hour’s notice. The incoming bulkhead shipments are scheduled into Boeing’s production line, for use on particular airplanes. Hence it is highly important that the bulkheads reach Boeing at a previously determined proper time to prevent disruption of production schedules. The bulkheads are unloaded directly into Boeing’s production line. They are rigidly inspected by Boeing and the United States Air Force, and if there is material damage, they are returned to the Indianapolis plant. Security safeguards must be taken, and plaintiff’s drivers all have “security clearance.”

Rail service was used at one time, but the cost of crating, loading and unloading was prohibitive. Furthermore, because of Boeing’s need to correlate these incoming shipments with its production schedule, rail service was not feasible.

U.S.A.C. Transport, Inc., as a motor common carrier, holds authority to operate, over irregular routes, in the transportation of aircraft parts, crated or uncrated, restricted to parts requiring special equipment or handling by reason of size, weight or fragile character, between the points involved in this application. It has never performed this transportation service for Boeing. It has indicated, however, that it, too, will design and construct any special equipment needed for hauling this commodity, and that it, in all other ways, stands ready and willing to serve Boeing’s needs. It has no terminal or other facilities at Wichita, Kansas, although it does have terminal facilities at Indianapolis.

Boeing has urged that only very specialized contract carriage can reasonably satisfy its transportation requirements. Although it has not sought to utilize U.S. A.C.’s service in this particular operation, it had experienced unsatisfactory service by U.S.A.C. on a prior occasion in 1953.

Initial hearing on plaintiff’s application was completed in May, 1957. On July 18, 1957, the Examiner filed his report recommending that the application be granted, and that the permit for contract carrier operation be issued. After reviewing the evidence described above, the Examiner, upon finding that “a need has been shown for the proposed operation and * * * a grant of such authority will not adversely affect present transportation facilities to any materia! extent. * * concluded that a grant of authority would be consistent with the public interest and the national transportation policy.

On January 31, 1958, after exceptions were filed to the Examiner’s recommendation, Division One of the Commission, Commissioners Hutchinson and McPherson participating, adopted the Examiner’s findings as to facts, but ruled that inasmuch as plaintiff had failed to establish that the proposed operation would be consistent with the public interest and the national transportation policy, the application would be denied. No mention whatever was made concerning tests prescribed by Sections 203(a) (15) and 209(b) of the Interstate Commerce Act, as amended August 22, 1957. The basis for the finding was expressed as follows:

“The existing services of the opposing carriers which appeared to be in a position to handle the described traffic and are willing to modify equipment if necessary, have not been tried, much less, shown to be inadequate * * * The burden is upon an applicant seeking contract carrier authority, -as', well as one *842 seeking common carrier authority, to establish, among other things, that there is a need for the services proposed which existing carriers cannot or will not meet.” (Emphasis supplied.)

On July 25, 1958, the entire Commission denied petitions for reconsideration and oral argument. Subsequently, however, on October 16, 1958, the Commission reopened the proceeding for consideration, and the matter was held under advisement until June 15, 1959, when the decision of January 31, 1958, was reaffirmed.

In its second report, the Commission, in discussing the 1957 amendments to Sections 203(a) (15) and 209(b), observed that “the decisive factor” in ruling upon applications for contract carriage permits has always been whether “the available common carrier service was reasonably adequate” to “meet the reasonable transportation needs of those supporting the application”, and that the 1957 amendments did not change this test. The Commission further concluded that, in determining the adverse effect upon protesting carriers, there is a presumption that an adverse effect will follow from a loss of potential traffic, even if it may not have been handled before.

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Related

Midwest Truck Lines, Ltd. v. Interstate Commerce Commission
269 F. Supp. 554 (District of Columbia, 1967)
Mitchell Transport, Inc. v. Railroad & Warehouse Commission
137 N.W.2d 561 (Supreme Court of Minnesota, 1965)
Meat Packers Express, Inc. v. United States
244 F. Supp. 642 (D. Nebraska, 1965)
J-T Transport Co. v. United States
191 F. Supp. 593 (W.D. Missouri, 1961)
Reddish v. United States
188 F. Supp. 160 (W.D. Arkansas, 1960)

Cite This Page — Counsel Stack

Bluebook (online)
185 F. Supp. 838, 1960 U.S. Dist. LEXIS 4334, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jt-transport-company-v-united-states-mowd-1960.