INSURANCE And Surety Bonds: Rule VIII amended to require that insurance
companies providing coverage be authorized to do business in all States in which
carrier is authorized to operate, except that complete coverage may be provided
by different companies covering separate States; and that each company must
meet prescribed minimum financial standard for stock corporations or nonstock
organizations. Motor Carrier Insurance for Protection of Public, 355 (367).
TRANSFER OF OPERATING RIGHTS: Rule 2 (c): Federal Stor. Whses., Inc.-
Purchase Wm. Schafer & Son, 673.
REMEDIES. To hold that a motor carrier which has violated its prescribed
duties under part II is immune to civil liability, while rail and water carriers
must respond in damages, would contravene the fundamental rule of ubi jus ibi
remedium and disregard secs. 216 (j), 217 (b), and 22, which preserve all common-
law and statutory remedies. The statute, by prohibiting unreasonable and dis-
criminatory rates, superseded the common-law right without abrogating remedies
theretofore recognized. Bell Potato Chip Co. v. Aberdeen Truck Line, 337 (342).
REOPENING. See CONVENIENCE AND NECESSITY (Certificates); INVESTIGA-
TION AND SUSPENSION.
REPORTS. CARRIERS': Specialized character of contract-carrier service does
not justify relief from requirements for filing annual and quarterly reports and
keeping accounts on prescribed uniform system. United Parcel Service of Pa.,
Inc., Filing of Contracts, 689 (698);
-Permanent relief of parcel-delivery carriers from such requirements would.
by depriving Commission of valuable information, defeat specific direction of
Congress in sec. 204 (a) (7) to keep informed of operations of carriers within its
jurisdiction. Id. (699);
-Refusal to exempt such carriers from reporting requirements would not
result in disclosure of confidential information concerning stores which they
served, as information required covered their operations as a whole and would not
reflect data of individual shops. Id. (698);
-Effective date of denial of permanent relief was fixed sufficiently in the future
not to unduly burden carriers. Meanwhile, they should file copies of reports
filed with State regulatory authorities. Id. (699).
RESTRICTED OPERATION. See BROKERS (Licenses); EXPRESS AND
MOTOR; RAIL and Motor; ROUTES (Radial vs. Nonradial); SERVICE; THROUGH
ROUTES.
RESTRICTED RATES. See CLASS RATES; DENSITY; JOINT RATES AND
FARES; REASONABLENESS. ETC.; ROUTES (Circuitous).
RETURN LOADING. General-commodity "grandfather" authority was
granted for return trips when, although the bulk of applicant's traffic was out-
bound and variety of in-bound commodities and number of shipments were not
large, he had transported whatever return traffic was available. Taylor Com.
Car. Applic., 44 (45);
-Although applicant had transported only 7 commodities on return trips
prior to the "grandfather" date, no particular class had predominated, the 20
additional commodities transported thereafter were sufficiently various to show
a general-commodity service, and the essential nature of the operation did not
appear to have changed at any time. Elders Transfer Co., Inc., Com. Car.
Applic.. 63 (68);
—But holding out to transport general commodities was disregarded when open
equipment used in applicant's principal operation afforded inadequate protection
to commodities susceptible to damage. Sullivan, Long & Hagerty, Inc., Com.
Car. Applic.. 203 (211).
REVENUES. See INCREASED RATES; INVEStigation and SUSPENSION; PROFIT.
ROUTES. See also CONTRACT CARRIERS (Permits); Distance; ExpreSS AND
MOTOR; INTERMEDIATE POINTS; THROUGH ROUTES; TRANSPORTATION.
ABANDONMENT: Carrier which obtained additional intrastate authority in
order to participate in war traffic was unable, owing to equipment shortage, to
continue all interstate service, and thereupon, despite advice that such action
would amount to abandonment requiring prior approval, notified shippers that it
would suspend all service on a certain interstate route during the war, and there-
after referred shippers to carriers who would interchange with it. Such failure to
render continuous and adequate service required by its certificate could only be
viewed as willful. Compliance order issued. R. D. Fowler Motor Lines, Inc., v.
Colonial Motor Frt. Lines, Inc., 781 (782, 784).
ALTERNATE: When an alternate route, involving no additional service, will
enable a carrier to render a more efficient and economical service without unduly
affecting existing carriers, it should be authorized. Burlington Transp. Co.
Ext.-Ill., Iowa, and Mo., 729 (731);
-Of three such alternate routes sought, that one was authorized which would
result in the greatest operating economies. Id. (731);
-When applicant already had authority for another alternate route almost
equally shorter than the principal route, authority was denied.
Id. (734);
-But operating-convenience route was authorized although distance was about
the same as over existing route, when latter was a winding road with steep grades,
heavy traffic, and numerous traffic signals, and use of proposed route for express
bus schedules would permit safer, more economical, and possibly faster transpor-
tation. Public Serv. Interstate Transp. Co.-Bergen Turnpike, 599 (608. 611).
CIRCUITOUS: See also JOINT RATES AND FARES. Although difficulty of exactly
determining shortest routes between initial origin and ultimate destination.
necessity for detours due to road conditions, and considerations of operating
efficiency and economy warranted liberal treatment of irregular-route carrier
in imposing circuity limitation on partial loading or unloading in transit, those
practical difficulties would not justify operation over unduly circuitous routes
for benefit of particular shippers at no greater compensation than via direct
routes, or incurrence of extra expense for one shipper without reasonable com-
pensation. Rules of Mich. and Nebr. Transit Co.. 269 (274);
-But while intermediate stops by such carriers should be restricted to preclude
unreasonable out-of-line hauls, limitation to points on routes not over 7.5 per
cent circuitous would be unduly restrictive when it would afford scant leeway
for stops at points not on short-line routes, and line-haul rates presumably re-
flected some out-of-line mileage. Restriction to points on routes not over 12.5
percent longer than most direct route via paved highways to final destination
would be reasonable. Id. (275).
RADIAL VS. NONRADIAL: "On the one hand" and "on the other" are words
of extremity in both common and legal parlance and are used in certificates
solely to denote radial operations between a base point and points in a described
area, as distinguished from unlimited nonradial operation. Gay's Exp., Inc., ®.
Haigis and Nichols, 277 (279).
Authority for radial operation is limited to service to and from a base, and
while it does not restrict interchange with other carriers at the base or at other
points in the authorized area, a carrier having only radial authority may not
render service between other points via the base point under fiction of inter-
change with itself at that point. Gay's Exp.. Inc., v. Haigis and Nichols, 277
(279, 280); G. & M. Motor Transfer Co., Inc., Com. Car. Applic., 497 (500);
-Such interpretation of radial authority would amount to creation of a new
operating right. G. & M. Motor Transfer Co., Inc., Com. Car. Applic., 497 (501);
-To permit cross hauls via the base point would eliminate distinction between
radial and nonradial carriers and place all irregular-route carriers in the same
category, except that those restricted to a base point would be compelled to per-
form a circuitous and uneconomical operation. It would confuse the motor-
carrier industry and undermine value of many operations, contrary to public
interest and the national transportation policy. Id. (504);
-Certificate for operation from two N. C. points to a wide territory and from
that territory to N. C. conformed to pattern of applicant's "grandfather" oper-
ations, defined applicant's rights without ambiguity by use of "to" and "from,"
and did not authorize enlargement by interpreting "to" and "from" a point to
mean through it. Id. (500);
Whether radial operation authorized was economically feasible or otherwise
reasonable was pertinent only in proceeding on the "grandfather" application,
and was beyond issues raised by complaint alleging unlawful performance of
nonradial service. Gay's Exp., Inc., v. Haigis and Nichols, 277 (281).
REGULAR VS. IRREGULAR: See also INTERMEDIATE RULE. Legality of appli-
cant's operation under purchased irregular-route rights having been attacked,
application for regular-route authority between same termini was granted, as
successful operation over irregular routes between points only 38 miles apart
would differ little from regular-route service, and the line of demarcation, for
that distance, was difficult to define. Babcock Ext. of Operations-Regular
Route, 142.
Extension authority was limited to irregular routes when "grandfather"
operation of which it was claimed to be a continuance or expansion was of that
type. no terminals or operating schedules were maintained, and irregular routes
were sought in same territory as proposed regular routes. without showing of dif-
ference in services. Interstate Truck Service Inc., Com. Car Applic. 375 (383).
Interpretation in 42 M. C. C. 123 of "unnumbered roads," in bus line's "grand-
father" certificate, as limiting operation only to reasonably direct roads. would
make that term equivalent to "irregular routes" and would permit carrier to
change its route at will, within undefined circuity limits, and to use highways and
serve intermediate points not within its "grandfather" operation. Under sec.
207, certificates for common carriers of passengers must be limited to regular
routes, and in "grandfather" certificates "unnumbered roads" has generally
been used to mean the specific roads used in the past and detailed in the applica-
tion and evidence, though not assigned a designation by the governing authorities.
Manhattan Coach Lines, Inc., v. Adirondack Transit Lines, Inc., 477 (480).
As proposed sedan service was a special operation such as is customarily per-
formed over most convenient highways, irregular-route authority was granted
although regular route had been applied for. Greenfield Com. Car. Applic., 555
(562).
Transportation performed solely on shippers' demands, by contract carrier
who rendered specialized service between certain mill centers and numerous
consuming points, and who must use all available highways to render efficient
service, was an irregular-route operation. Longshore Ext.-Salem-Youngstown,
Ohio, 755 (760).
SCOPE OF OPERATION: See also SAVING CLAUSES. "Territory" is not a word of
art, and characteristics of the service involved, as well as geographical area served,
are relevant to determination of scope of territorial authority, which may include
permission to serve all points in the area, or only designated points, or all points
in one part and selected points in another. G. & M. Motor Transfer Co., Inc.,
Com. Car. Applic., 497 (500); Deaton Truck Lines, Inc., Com. Car. Applic., 585
(590).
Although all other authority between N. J. counties and seaboard States was
revoked, carrier was permitted to continue local operation between Essex County
and New York commercial zone, notwithstanding it had hauled no such ship-
ments during 6 weeks preceding filing of compliance affidavit, when that operation
was in a class with its local intrastate service. Aero Mayflower Transit Co. v.
William Schafer & Son, Inc., 657 (660).
SUBSTITUTION OR CHANGE: See also CONVENIENCE AND NECESSITY (Extension
of Operation). “Grandfather" certificate for operation over "unnumbered roads
to Weehawken *
* thence across the Hudson River to New York"
limited service to roads. highways, and streets and to method of crossing the
river (ferry) used on the "grandfather" date, and did not authorize subsequent
departure from that route to use the Lincoln Tunnel when opened, serving new
intermediate points. Manhattan Coach Lines, Inc., v. Adirondack Transit
Lines. Inc., 477 (482).
Change of route in N. J., with service at all intermediate points, by bus line
already furnishing intrastate service on proposed route, authorized when it would
permit passengers from that area to reach Manhattan without transfer and would
not cause curtailment of any existing service, since applicant served no inter-
mediate points on the old route. Public Serv. Interstate Transp. Co.-Bergen
Turnpike, 599 (610, 611).
RULES AND PRACTICES OF CARRIERS. See BULKY ARTICLES; LESS
THAN TRUCKLOAD; TRANSIT.
SALARIES AND WAGES. A general rate increase which would permit
respondents to recover out of future earnings what they had been required to
pay employees under retroactive wage awards by National War Labor Board
was not justified. Increased Com. Car. Truck Rates in New England, 13 (22).
SAVING CLAUSES. See also CONVENIENCE AND NECESSITY.
APPLICATIONS. AMENDMENT: Amendment of "grandfather" application to
eliminate certain commodities and territory should not be so narrowly construed
as to preclude grant of any authority justified by the evidence. Deaton Truck
Lines. Inc., Com. Car. Applic., 585 (587).
APPLICATIONS. COMMON CARRIER: Denial: Liberty Motor Frt. Lines, Inc.,
Com. Car. Applic.. 446; Moore Com. Car. Applic., 91; Robinson Stor. Corp.
Com. Car. Applic.. 159; Southeastern Motor Lines., Inc., Com. Car Applic., 37.
Grant: Bekins Van & Stor. Co. Com. Car Applic.. 401; Loraine Transfer Co.,
Inc., Com. Car. Applic., 569; Railway Exp. Agency, Inc., Com. Car. Applic.,
463; Taylor Com. Car. Applic., 44.
Partial Grant: Bianchi Com. Car. Applic., 26; Campus Travel, Inc., Com. Car.
Applic., 421: Carolina Frt. Carriers Corp. Com. Car. Applic., 221; Deaton Truck
Lines, Inc., Com. Car. Applic., 585; Derr Contr. Car. Applic., 437; Elders Trans-
fer Co., Inc., Com. Car. Applic., 63; McMaken Com. Car. Applic., 55; National
Trucking Co., Inc., Com. Car. Applic., 489; Newkirk Contr. Car. Applic., 85;
Shawmut Transp. Co., Inc., Com. Car. Applic.. 6; Sullivan, Long & Hagerty,
Inc., Com. Car. Applic.. 203; Wallace Com. Car. Applic., 307.
APPLICATIONS CONTRACT CARRIER: Grant: Bonner Hauling Co., Inc., Com.
Car. Applic., 563; Zimmerman Trucking Service, Inc., Contr. Car. Applic., 33.
Partial Grant: Derr Contr. Car. Applic., 437 (440).
BONA FIDE OPERATION: A holding out to supply or arrange for transportation
does not establish carrier status, since a forwarder or broker would do as much.
Applicant must show that he actually performed such transportation in equip-
ment owned by him or operated under his direction, control, and responsibility.
Moore Com. Car. Applic., 91 (100);
-No "grandfather" rights accrued from transportation in equipment of
others under alleged leases, when drivers were hired and paid by the owners and
applicant's control did not go beyond instructions as to time and place of delivery,
nor did he bear cost of operation, maintenance, insurance, State permits, or
drivers' fines. Though some vehicles bore his name, none was reserved for his
exclusive use, and owners also conducted independent operations. Id. (101);
-Nor did operation with owned equipment on the "grandfather" date estab-
lish his claim, when during several subsequent years he owned no vehicles. Id.
(100).
COMMODITIES, SCOPE: See also RETURN LOADING. The test of a general-
commodity right is whether actual operations were consistent with such a broad
holding out. Elders Transfer Co., Inc., Com. Car Applic., 63 (66);
-Holding out to transport all commodities suited to applicant's equipment
was disregarded when all shipments but a few were limited to three special
classes, volume of which utilized capacity of all vehicles operated on the "grand-
father" date; shipments of other articles, although available at larger points,
were not shown to have been solicited; and only 5 of 1,300 recent shipments con-
sisted of other commodities. Carolina Frt. Carriers Corp. Com. Car Applic.,
221 (227);
-General-commodity authority was denied when documentary evidence
showed service restricted to a few, according to direction and States served.
Since the destination States included important cities, it was inconceivable that
applicant could not have obtained more varied return loads. Wallace Com. Car.
Applic.. 307 (311);
-When out-bound shipments, which far exceeded those in-bound in volume
and variety, were limited to heavy and bulky articles and in-bound operations to
such articles as were readily transported in flat-bed or open-top equipment, and
applicant admittedly solicited truckloads and did not handle package freight.
Deaton Truck Lines, Inc., Com. Car. Applic., 585 (593).
Protestants who withdrew objections in reliance on applicant's stipulation that
it would limit "grandfather" claim to operations specified in amended application
were not prejudiced by consideration of evidence respecting commodities within
the classes therein claimed. Id. (586, 587).
Applicant was not entitled to transport cotton-factory products when service
restricted to Ala prior to the "grandfather" date had been discontinued. Trans-
portation to or from points outside Ala. after that date was an unauthorized new
operation. Id. (590).
Authority was granted for every commodity which could reasonably be con-
sidered in same class as those transported in the past with sufficient regularity and
volume to constitute a bona fide operation. Id. (591);
-But authority for commodities not previously carried, although in a broad
class with those transported in the past, would permit applicant to invade the
field of other carriers with a new operation, and would be improper without proof
of convenience and necessity. Id. (591);
—Authority for plumbing and heating supplies, which comprise a recognized
trade group. would embrace many articles not shown to have been carried in the
past. But past transportation of such supplies did not entitle applicant to carry
every other commodity used in building construction. Authority for hardware,
building, and roofing materials, which are independent trade groups, denied.
Id. (591).
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