Regular-route carriers should benefit by recapturing traffic that was lost due to shipper migration to points beyond existing zone limits. There is no evidence that the economic health of irregular route carriers will be jeopardized by the proposed expansion. 25 Nor are all irregular route operating rights territorial in nature-many authorize service at particular municipalities, and, thus, irregular route carriers will participate in the enlargement of operating rights caused by expansion, of the population-mileage formula. Many regulated carriers assert that expansion of terminal areas will increase the number of unsafe vehicles and unfit drivers in urban areas. While recognizing that this is a serious concern, it is rather a matter more properly considered by DOT's Federal Highway Administration. 26 Since 1967 regulations relating to qualifications and maximum hours of service of employees and safety standards for equipment have been within the jurisdiction of that agency. This same agency oversees regulation of the transportation of explosives and other dangerous commodities. No. evidence has been presented which might convince us that carriers within the exempt zone do not maintain safe and adequate equipment. In addition, because we believe that shippers of all types of commodities (including motor vehicles and bulk commodities) should be given an equal opportunity to enjoy the benefits of the proposed rules, no exceptions to the rules by type of carrier will be imposed. The existing zone rules make no such exceptions and no evidence has been presented which warrants a change in this policy. CONCLUDING REMARKS A few related matters require comment. Certain carriers possess operating rights containing restrictions against service at points within a particular commercial zone. It is not our intent to diminish the scope of any carrier's operating authority, so these restrictions "An in-depth study of the irregular route segment of the motor carrier industry has recently been completed by David Rodriquez, a University of Maryland graduate student, under the direction of Professor Charles A. Taff entitled "A Study of Irregular Route Motor Common Carriers of Freight and their Competitive Impact on Railroads." This study indicates that the irregular route carrier industry is economically strong and possesses an extensive network of operating authority. The Motor Carrier Safety Board of the Federal Highway Administration is presently studying this allegation. A contract has been awarded to study whether commercial zones are used as a "dumping ground" for unsafe vehicles and unqualified drivers. If this study shows that there is a safety hazard, it is assumed that appropriate regulations will be adopted. See, Traffic World, September 16, 1974, issue at p. 106. should be construed as excepting service at points within the involved commercial zone as it was defined on the date the certificate, permit, or license was issued. 27 Certain motor carriers argue that expansion of exempt local operations will render their certificates worthless, and, consequently, they have been denied substantive due process since their "property rights" have been "taken" without compensation. We must disagree. Carriers investing in operating authorities have done so with the knowledge that changing circumstances may at any time require that we alter our interpretation of the geographic scope of the exemptions provided in sections 203(b)(8) and 202(c). We do not see any merit to the argument that this is an "unjust taking" of property. Several parties urge that this Commission compile maps of commercial zones, at least for major cities. This would eliminate much confusion on behalf of shippers and carriers alike concerning zone limits. We believe there is merit to this proposal and if these rules are adopted and made effective, the possibility of maps being compiled and sold at a reasonable charge will be explored further. Finally, an independent assessment of the potential environmental effects of the proposed rules has been made and is set forth in Appendix D. This environmental analysis has been carefully weighed in reaching our conclusions in this report. SUMMARY As presently informed, we are of the opinion that the existing rules and regulations concerning commercial zones and terminal areas are outdated, and should be expanded to conform to the broader territorial areas served by base municipalities. Such expansion is reasonable and necessary and will serve the public interest and promote the national transportation policy. We wish to emphasize that the proposed population mileage formula remains tentative. Having recognized the need for expansion and chosen to continue using a population-mileage formuia, our energies on further proceedings must be directed at the proper parameters of that formula. In those further proceedings we will consider the detailed economic analysis presented by the Freight Forwarders Institute, 27For example, if a certificate, permit, or license reads "except points in the commercial zone of Chicago," it is construed as excepting service to those points in the Chicago commercial zone as it was defined on the date the certificate, permit, or license was issued. the Port Authority of New York and New Jersey, and others already submitted, and we hereby solicit additional comment and economic analysis from other parties to this matter. We believe that the issues discussed and rules proposed are of importance to the public and the motor carrier and freight forwarder industries. Accordingly, a synopsis of this entire interim report will be published in the Federal Register, and we invite all interested parties to file statements relating to any of the matters discussed in this interim report, making any suggestions that might aid us in formulating a better scheme of rules so as to implement properly the relevant sections of the Interstate Commerce Act and better effectuate the public interest. An appropriate order will be entered. APPENDIX A The representations INDIVIDUAL MOTOR CARRIER REPRESENTATIONS Airway Trucking Co. Albert Delivery Service All Cities Transfer, Inc. Anaheim Truck & Transfer Co. Astor Truck-rite, Inc. Atlas Marine Freight Lines Baker Petroleum Transportation Co., Inc. Be-Mac Transport Company, Inc. Blue Arrow-Douglas, Inc. Blue & Gray Transportation Co., Incorporated Briggs Transportation Co. M. Bruenger & Co., Inc. Budig Trucking Co. California Cartage Company, Inc. California Delivery Service Capitol City Warehouse Company Carpenter's Motor Freight, Inc. Centralia Cartage Co. Checker Express Co. Churchill Truck Lines, Inc. City Freight Lines Commercial Motor Freight, Inc., of Indiana Consolidated Freightways Corporation of Delaware Creech Bros. Truck Lines, Inc. Grant M. Crocket, doing business as Murray Midvale Truckline Danella Bros., Inc. Daum Over-Nite Express, Inc. Dependable Trucking Company Distribution Service, Inc. Dorn's Transportation, Inc. Dotson's Delivery Service, Inc. Dunbar Transfer & Storage Company, Inc. East Texas Motor Freight Lines, Inc. Epes Transport System, Incorporated Estes Express Lines Farruggio's Bristol & Philadelphia Auto Express, Inc. Fulsang's Motor Service, Inc. George Transfer and Rigging Company, Incorporated Graham Ship By Truck Company Grane Trucking Company Griley Freightlines Frank A. Guerero Trucking Gumprecht Trucking Co. Wm. Hafer Drayage Co. Houdek Motor Service, Inc. Howard's Express, Inc. Huskie Freightways, Inc. Hyman's N.Y. & L.I. Express, Inc. Indiana Transit Service, Inc. Inter-City Trucking Service, Inc. Javco Trucking Company Jayne's Motor Freight Jet Delivery Inc. Johnson Motor Lines, Inc. Joliet Warehouse & Transfer Jones Transfer Company Kerner Trucking Service, Inc. Lakeville Motor Express LaPorte Transit Co., Inc. Liberty Trucking Co., Inc. Harry H. Long Moving-Storage & Express, Inc. Long's Express, Inc. Los Angeles City Express, Inc. John Lynn Trucking Company McLean Trucking Company The Mason and Dixon Lines, Inc. Matlack, Inc. Metro Dispatch Company Middlewest Freightways, Inc. Minnesota-Wisconsin Truck Lines, Inc. Modern Trucking Service, Inc. Morgantown & Indianapolis Freight Line Motor Transport Company Murphy Transportation, Inc. National Trucking Company Nehalem Valley Motor Freight, Inc. Nelson's Express, Inc. Nelson Transfer, Inc. Niedert Freight Northwest Drayage Company Neuendorf Transportation Company Nu-Car Carriers, Inc. Overnite Transportation Company Pacific Intermountain Express Co. Parcel Delivery Company Presto Delivery Service, Inc. Purolator Courier Corp. Qwikway Trucking Co. R & W Express, Inc. Red Ball Motor Freight, Inc. Red Star Express Lines of Auburn, Incorporated, doing business as Red Star Express Lines Reddaway Truck Line Redway Truck & Warehouse Company Redhage Truck Line George Rimes Trucking Co. Risberg's Truck Line Roadway Express, Inc. Royal Transportation Co. Rozay's Transfer Russell Transfer, Inc. Ryder Truck Lines, Inc. Earl C. Smith, Inc. Spring City Trucking Co. Southeastern Motor Freight, Inc. Southern California Motor Delivery, Inc. Stephens Truck Line, Inc. Terminal Transport Company, Inc. T.I.M.E.-D.C., Inc. Trans-Harbor Trucking Company Vess Transfer, Inc. Victorsville-Barstow Truck Line Wagner Cartage Service, Inc. Ward Transfer, Inc. Ward Trucking Corp. Welsh Bros. Motor Service, Inc. |