APPENDIX Applicant Fast Motor Service, Inc., of Brookfield, Ill., is a contract carrier presently serving seven separate shippers, most of which are can and bottle manufacturers. Its initial authority was acquired in 1965. Permits issued in 1968 and 1971 authorized service to two additional shippers. In 1972, permits were issued authorizing service to four additional shippers. In this proceeding, the applicant seeks authority to serve OwensIllinois, Inc., its eighth shipper. It is familiar with the transportation requirements of the supporting shipper, having served another of shipper's facilities for a number of years pursuant to authority which has subsequently been canceled. Should the instant application be granted, it proposes to dedicate equipment to shipper's exclusive use. The applicant's outstanding permits authorize service in 42 States and the District of Columbia. Although Fast Motor Services' primary commodities are metal cans, glass bottles, and associated articles and raw materials, it is also authorized to transport plastic products, products produced or distributed by manufacturers and converters of paper and paper products, nonalcoholic beverages, and foodstuffs (except in bulk). The equipment utilized by applicant in its service of the container and bottle industry is highly specialized. Applicant operates sanitary, closed highcube vans with special load-locking devices and extra-high rear door openings which are specially constructed according to applicant's specifications and are particularly suitable for the transportation of the involved commodities. It also operates 29 Essex roller-bed trailers which are utilized for automatic unloading by shipper's consignees in the beverage and beer industry. It operates a fleet of 92 power units and 235 trailers, and has submitted appropriate financial data. Applicant specializes in the transportation of light and bulky commodities for the container industry, and has heretofore handled identical commodities for most of its other contracting shippers. In fact, applicant presently holds authority to transport metal or glass containers and related accessories on behalf of five of its seven shippers. Applicant proposes to station between two and four complete tractor-trailer units at Owens-Illinois' Perrysburg plant and to provide service from there into an 11-State area pursuant to the terms of a continuing contract. The applicant presently operates from the Perrysburg plant to Frankenmuth and Holland, Mich., and Belleville, Ill., pursuant to temporary authority granted November 25, 1974. Temporary service to Owens-Illinois has been satisfactory. SHIPPER Owens-Illinois, Inc., is a large manufacturer of containers with approximately 108 plants throughout the United States. Its plant at Perrysburg opened in February of 1975 and, at the time of the hearing, was operating at 25 percent of its capacity, producing metal containers and container ends for carbonated and alcoholic beverages. Future plans are for the plant to manufacture containers for food and food products, motor oils, paints, detergents, and toiletries. At the time of the hearing, containers produced at Perrysburg were being shipped to beverage companies located at Belleville and Frankenmuth. Projected 1975 volume was 3.8 million pounds to Belleville and 6 million pounds to Frankenmuth. Shipper has real and potential customers in 9 cities in Michigan, 10 in Illinois, 9 in Indiana, 9 in Wisconsin, 8 in Missouri, 6 in Minnesota, 7 in Pennsylvania, 5 in Tennessee, 5 in Kentucky, 8 in Iowa, and 9 in Ohio. The annual production capacity of the involved facility is approximately 40 million cans or 4,000 truckloads. Anticipated annual volume, in truckloads, is as follows: 900 to Michigan, 500 to Illinios, 300 to Indiana, 400 to Wisconsin, 400 to Missouri, 250 to Minnesota, 475 to Pennsylvania, 250 to Tennessee. 300 to Kentucky, 200 to Iowa, and 250 to Ohio. Should the instant application be granted, approximately 25 percent of the involved traffic will be tendered to applicant. Shipper requires a carrier capable of providing high-cube roller-bed sanitary trailers with large rear door openings. Most of the major breweries and beverage producers have automated loading docks which require roller-bed trailers for the unloading of the involved palletized empty metal containers. Large door openings are required for the loading and unloading of the double-decked pallets shipped by shipper. High-cube trailers are a rarity in common carrier service, and, therefore, the container industry has increasingly sought specialized carriers to provide the required equipment. During the spring of 1974, Owens-Illinois, conscious of its transportation needs, looked for motor carriers which would be willing to furnish trailers with automated roller beds. The 14 motor carriers which it contacted indicated that they did not have available, nor would they provide, the requested roller-bed trailers. It is because applicant is willing to provide the equipment that Owens-Illinois has supported its request for temporary and permanent authority. 125 M.C.C. EX PARTE No. MC-29 (SUB-NO. 3) REGULATIONS GOVERNING SPECIAL OR CHARTERED PARTY SERVICE Decided June 15, 1976 Upon consideration of a petition filed in the above-entitled proceeding and of the views, arguments, and representations of the parties, a need found to amend the regulations governing special or chartered party service (49 CFR part 1054) and those governing interpretation of operating rights (49 CFR 1041). Appropriate order entered and proceeding discontinued. Dellon E. Coker and Peter Q. Nyce, Jr., for United States Department of Defense, petitioner. Edward F. Bowes, John Paul Fischer, Robert E. Goldstein, W. L. McCracken, John R. Sims, Jr., D. Paul Stafford, John F. Ward, and Samuel B. Zinder for individual carriers. Drew L. Carraway, John S. Fessenden, and Wayne J. Smith for passenger carrier associations. REPORT OF THE COMMISSION BY THE COMMISSION: By petition filed July 11, 1974, the Secretary of the Army, on behalf of the U.S. Department of Defense (DOD), seeks institution of a rulemaking proceeding with a view toward the interpretation or possible modification of (1) this Commission's regulations concerning the transportation of special or chartered parties by common carriers, contained in 49 CFR 1054 et seq., and (2) certain conclusions reached by this Commission in Greyhound Corp. v. Edwards, 100 M.C.C. 453, 465 (1966). Petitioner states that groups of members of the military service, traveling under military orders, are currently transported in charter operations from an origin military installation to a destination military installation' and that groups of different members of the service are transported from that particular destination back to the 'Hereinafter referred to as the "A Trip." 2 origin of the first group. The pertinent Commission regulations are now interpreted to mean that the group of military service members traveling unders orders from the destination point to the origin point (B Trip) is not deemed to be a return movement of the original group (A Trip). Greyhound, supra. As a result, DOD, if it uses a motor passenger carrier operating under the incidental charter provisions of section 208(c) of the Interstate Commerce Act, states that empty mileage may be incurred and that it may be required to pay deadhead mileage charges for vehicles used in each such oneway movement. It, therefore, seeks an interpretation of this Commission's existing regulations, or amendment thereof, which would deem the movement of the second group, from the destination of the first group to the origin point of that group (B Trip), a "return" movement of the original group (A Trip). Notice of the filing of this petition was published in the Federal Register on December 3, 1974, together with an order instituting a general investigation and rulemaking proceeding, pursuant to the authority granted to this Commission in Part II of the Interstate Commerce Act (49 U.S.C. 304(b)) and the Administrative Procedure Act (5 U.S.C. 553 and 559), to develop information concerning (1) the interpretation of Commission regulations pertaining to special or chartered party service rendered in Greyhound, supra, (2) the effects of such interpretation upon the operations of motor common carriers of passengers and upon the public, (3) the possible modification of relevant regulations, and (4) the formulation of any legislation which the public interest might require. All regulated motor carriers of passengers were made parties to the proceeding. Oral hearings were not deemed necessary, and, therefore, all interested parties were invited to file written initial and reply statements of their views and suggestions within prescribed time limits. REPRESENTATIONS In addition to an initial statement filed by DOD, joint and individual representations (or letters indicating adoption by a party or parties of the views expressed in another's initial statement) were received from 44 motor carriers of passengers and 3 passenger carrier trade associations, listed in the appendix here to. Although our Notice and Order urged the participation herein of the U.S. Environmental Protection Agency (EPA), which originally had Hereinafter referred to as the "B Trip." indicated, by letter, its interest in the institution of this proceeding, no further statement of evidence or comments were submitted by EPA. In its initial statement, DOD emphasizes that its interest herein is limited to its receiving either an interpretation of the pertinent Commission regulations which would deem the movement of the B Trip, as described above, a "return" movement of the A Trip, or a modification of those regulations which would specifically provide for such or which would exempt from the application of such regulation members of the military service traveling pursuant to orders. It believes that the passengers involved herein share a "community of interest" which would permit them to fall within the definition of "special or chartered party" found in 49 CFR 1054.2. DOD states that, although it would like to avoid the payment of any deadhead mileage charges, it is concerned here primarily with the elimination of empty mileage itself, which would lead, in turn, to a reduction in fuel consumption, in air and noise pollution, and in wear and tear on the Nation's highways. To support these contentions, petitioner submits two exhibits which list almost 300 bus trips made in 1974 between two common points, within 24 hours, and which involved the transportation of members of the military service traveling under orders from one installation to another. Petitioner's Exhibit I shows the points. involved, the date of the trips, the number of buses and the number of passengers involved on each trip, the carrier used, and the distance between points involved. Exhibit II is an abstract of the same movements and it shows the "avoidable deadhead miles" incurred on each trip. Based on this data, DOD asserts that 183,005 miles were traveled unnecessarily in 1974, and that 22,875 gallons of fuel (at 8 miles a gallon) were consumed and over $47,000 was expended as a result of this deadhead operation. Petitioner claims that revision of this Commission's regulations to accommodate the situation herein would actually lead to an increase in revenue per mile for the motor carriers used. It also states that if a change in the regulations or in the interpretation thereof is effected herein, DOD would attempt to distribute its traffic so as to minimize any empty mileage. The National Association of Motor Bus Owners (NAMBO) and the National Bus Traffic Association, Inc. (NBTA), in their joint initial statement, state that they and their members do not oppose any measures which would result in a saving of energy and expenses, but that such actual savings should be demonstrated before |