and against each other.-Contracts of common instead of a contract carrier.Contract Carriers, 1 M. C. C. 628 (631)*. | Montandon, 8 M. C. C. 145. Destructive competition Congress That a particular point has adequate sought to abate is intensified by con- rail service is not a sufficient reason for tract carrier practices, particularly as denial of a certificate; communities are common carriers must publish their entitled to adequate service by motor rates, making them open targets. Ulti-vehicle as well as by rail. [Some of mately such conditions are detrimen- the following cases state also that it is tal to shippers, public safety, em- not necessary to analyze rail carriers' ployees. Id., p. 631. testimony].-Bowles, 1 M. C. C. 589 A contract carrier has certain in- (591); Maine-New Hampshire Stages, herent advantages. The common car-2 M. C. C. 297 (302); Petroleum Transit rier must serve all, without unjust dis- Corp., 3 M. C. C. 607; Maas, 4 M. C. C. crimination, and adhere to published 65; Northland-Greyhound Lines, Inc., rates, while contract carrier is free to 8 M. C. C. 612, 17 M. C. C. 525; Interpick and choose among shippers, and mountain Transp. Co., 8 M. C. C. 410, may discriminate in its service; its 9 M. C. C. 15; L & N Moving & Storage charges may be questioned only if Co., 9 M. C. C. 130; Brooks-Gillespie found to fall below a reasonable mini- Motors, Inc., 10 M. C. C. 151*, Intercity mum level. Id., p. 630; Keystone Trucking Co., 4 M. C. C. 155; Jossy & Transp., 19 M. C. C. 475 (491). Livingston, 8 M. C. C. 143; Murphy Transfer Co., 9 M. C. C. 361; War Eagle Oil Co., 10 M. C. C. 710; Edwards Motor Transit Co., 12 M. C. C. 502; White Circle Line, 16 M. C. C. 516 (519)*; Wm. F. Crossett, Inc., 14 M. C. C. 363; Clemans Truck Line, Inc., 16 M. C. C. 235; Clark Extension, 16 M. C. C. 535; Reeser Extension, 16 M. C. C. 663; Swanson, 17 M. C. C. 251. Contract carriers are recognized, and to a certain extent, protected by the act, and the fact that advantages of their operations do not accrue to the general public cannot be taken as establishing that such operations are not consistent with the public interest. Gibbon, 17 M. C. C. 727 (729); Junge Extension-Portland, 19 M. C. C. 521; Barton-Robison Convoy Co., Inc.,-Extension-Moffett, Okla., 19 M. C. C. 629 (635). See sec. 1 (18), n. 59-70, rail carriers authorized to abandon service. Diverson from rail carriers will reWhen interests of common carriers sult from authorization. It is not necesperforming services beneficial to the sary to analyze testimony of rail carpublic at large, rather than to one or riers; shippers and consignees are ena few shippers, are necessarily affected titled to adequate service by motor veadversely by contract carriers render-hicle as well as by railroad.-Petroleum ing services at rates which may not be compensatory even to the latter, maintenance of common carriers in healthful economic condition is more impor tant.-Teter, 18 M. C. C. 153 (157). The contract carrier is not compelled to serve, and a shipper is entitled to dependable motor-carrier service which is not subject to the contingency of negotiating a satisfactory agreement for contract carriage or the burden of assuming the obligations of such a relationship.-Rayfield, 21 M. C. C. 214. Transit Corp. Extension, 11 M. C. C. 164. That rail carriers maintain service and facilities in the territory, and need additional traffic, affords no sufficient basis for denial of certificate to applicant.-Heartz, 10 M. C. C. 634 (636). Inherent advantages of, and necessity for, bus transportation, notwithstanding existence of adequate rail service, have frequently been recognized by the commission.-Black Hills Stages, Inc.,-Purchase, 25 M. C. C. 171 (177)*. Protestant rail lines are entitled to Stabilization of rates and service will result from applicant's service as a | have existing motor-carrier services con sidered on any application for authority | yond which carriers' fares cannot be to institute new service or extend an projected profitably, and a standard of old one, even though the carriers fur- service below which carriers dare not nishing such services are not repre- fall. And, regulatory commissions may sented.-Cantlay & Tanzola, Inc., 10 at any time authorize another operaM. C. C. 743 (751). tion.-Northland Greyhound Lines, Inc.,Doubt as to financial success of a Purchase-Liederbach, 25 M. C. C. 109 proposed operation which appears other-| (112) *. wise justified is not ground for denying The court takes notice that Boise City authority when applicant is financially and vicinity with respect to San Fran responsible and capable of sustaining cisco Bay district are at great disad any probable loss without jeopardizing vantage in distance, time, and probably its remaining service.-Id., p. 752. freight rates, in competition with prodCompetition can be as dangerous as ucts of Twin Falls territory over the monopoly, dissenting opinion, 18 M. C. C. round-about highway used by plaintiff.— 785. Consolidated Freightways, Inc., V. United States, Fed. Supp. Competition is the best known spur to experimentation as to service offered. Congress did not intend to eliminate it in the motorbus field any more than in the railroad field. It should not be unlimited and allowed to run riot. It is the commission's duty under the act to prevent "unfair or destructive competitive practices".-Pan-American Bus Lines Operation, 1 M. C. C. 190 (208). Transportation is not suffering from any scarcity of competition. In many situations it has gone beyond reasonable bounds and is both wasteful and de structive in its results. One of the most important present duties of public regulation is to bring transportation competition under proper control.—Missouri Pac. Transp. Co. Extension, 9 M. C. C. 712 (717)*; Consolidated Motor Lines, Inc., 18 M. C. C. 35. Operator over irregular routes credited with more prompt delivery than regular-route operators.-Burton, 6 M. C. C. 759. paragraph; sec. 209 (a), n. 28. Common carriers expected to maintain regular service in whatever quantities offered to and from all points on specified routes cannot operate economically if other carriers invade such routes to handle the cream of the traffic in so-called irregular route service.Powell Bros. Truck Lines, Inc., 9 M. C. C. 785 (791). Unless permits for contract carriers of general commodities over irregular routes in a territory are restricted to the particular type of service engaged Carrier from whom applicant with-in, to prevent evolution from specialized drew its business operates 52 trucks, 14 terminals, shows revenue loss about equal to applicant's gain. Another competitor owns 20 trucks, another 29, at least two others operate between the points. One railroad operates 4 to 12 trains daily between two of the points. Competition is keen enough to amply protect the public interest.-System Arizona Exp. Service, Inc., 4 M. C. C. 129 (138). When rail carriers provided the sole passenger service, public interest was best protected by competition. The automotive era has imposed a ceiling be to general service, serious injury to motor common carriers will result.Keystone Transp. Co., 19 M. C. C. 475 (494); Jones Extension, 21 M. C. C. 470; De Merchant, 21 M. C. C. 585; Stepanek, 21 M. C. C. 612; Marianelli, 22 M. C. C. 142. Operation as a carrier for hire by a private carrier is not consistent with the public interest because such operation would create unfair competition for carriers engaged exclusively in for-hire operations. But transportation by applicant of a commodity not handled by him in his private business will not be competitive.-Wood, 10 M. C. C. 389 should be permitted to perform the (392). relatively unimportant regular-route service proposed to protect its investment in the sightseeing operations.Smoky Mountain Tours Co., 10 M. C. C. 127 (133). See also n. 25, this paragraph, Operation in connection with other business. If the success of proposed operation depends on diversion of patrons from existing motor operators, it cannot be considered in the public necessity.-petitors of motor common carriers or Speirs, 1 M. C. C. 555 (557). Sound economic conditions in the industry require that existing motor carriers should normally have the right to transport all traffic they can handle adequately, efficiently, economically in territories they serve, without added competition of a new operation.-Justice, 2 M. C. C. 699; Doyle, 3 M. C. C. 436 (439); Lake Champlain Transport Lines, 4 M. C. C. 125; Smoky Mountain Tours Co., 10 M. C. C. 127 (137); Clark, 1 M. O. C. 445; Reymers Extension, 11 M. O. C. 434; Kinney, 11 M. C. C. 61; Brundage, 11 M. C. C. 187*. Granting of application will not create any competition which does not exist at the present time.—Champlin, 13 M. C. C. 567; Reliable Van & Storage Co., Inc., 20 M. C. C. 122. While the commission has declined to grant certificate when present facilities were adequate, applicant has been in business for several years and his operation is not new competition.-Dehoff, 6 M. C. C. 771 (773); Lagrosa, 3 M. C. C. 401 (403). That applicant has been able to obtain traffic is not conclusive proof proposed operation is required. Applicant's past operations are some evidence of public need therefor, but much of this business was secured to the detriment of existing carriers.—American Stevedore Co. Extension, 14 M. C. C. 61. 25. Armored-car operators are not com the ordinary contract carrier. They compete with other operators of armored motor vehicles and the Railway Exp. Agency.-Contracts of Contract Carriers, 11 M. C. C. 693 (697)*. Coordinated rail-truck service by applicant will not divert traffic from other agencies other than what may come about as a result of the offering of an improved service to the shipping public.-Illinois Central R. Co., 12 M. C. C. 485 (491). Barge lines propose to enter into joint water-truck rates. Water service considered cheaper, but maintenance throughout the year is uncertain, and movement between terminals is someDela. Extension, 4 M. C. C. 787 (791–2). times required.—Arrow Transp. Co. of Because applicant would compete with other common carriers, water lines are in difficult financial condition, does not mean the commission may presume such competition will materially impair efficient operation of other carriers.— Clark Extension, 16 M. C. C. 535 (539). Livestock haulers are in keen competition among themselves, and as a class, are in poor financial condition.— Rockne Bros.-Commodities, 19 M. C. C. 739 (740). Argument that it is more convenient Further statements to this effect, n. to deal with one carrier to do all of a shipper's hauling than with several, not persuasive.-Lundstrom, 13 M. O. C. 491 (499). The question of priority in filing an application is of minor importance.Oregon Motor Stages, 18 M. C. C. 732 (736); Smart's Auto Freight Co., Inc., 10 M. C. C. 7. Initiation of competition for tourist business by the Stages Co. would inJure the Tours Co. materially; latter That applicant's service would enable residents to obtain through service without transfer is insufficient to warrant authorization of a new service.-Pennsylvania Greyhound Lines, Inc., Extension, 20 M. C. C. 1 (3). ways System, association of independent bus companies, transporting passengers over 32,000 miles of highway, was formed, having for its purpose establishment of a unified, coordinated bus system capable of effectively competing with the national Greyhound system.Santa Fe Trail Stages, Inc., 21 M. C. a. 725 (729). Applicant's is a low-fare operation. In February 1936 the National TrailMeals, pillows, are included without additional charge. Tickets are surrendered at beginning of the trip, eliminating annoyance and possibility of loss. Baggage is checked, aiding passengers in event of misplacement. The service is especially adapted to appeal to former patrons of wildcat operators.-All American Bus Lines, Inc., 18 M. C. C. 755 (763). That the through business over Pacific Greyhound increased, in spite of the number of passengers handled in through traffic over the route by applicant, tends to support applicant's contention that it has developed new bus traffic.-Id., p. 778. The commission has not hesitated to grant certificates when advantages to those of the public using the proposed service outweigh the disadvantages, real or potential, to existing services that may result.-Id., p. 777. There is no showing that railroad affiliation of the operating bus companies have tended to throttle competition.-Id., p. 776. Assuming there is public need for Regulated monopoly is not a complete substitute for competition.—Id., p. 748. Where there is ample traffic a dominant existing service without any effective competition is not all that experience has taught that the public needs for its best interests, consequently is not an adequate service.-Id., p. 748; competition from within motor carrier field, without, compared, p. 749. Added service, especially competitive service, always tends to increase patronage.—Id., p. 751. It is questionable whether air services or even the more expensive train services are real contenders for bus patronage. Id., p. 749. Application, involving an agreement probably made to stifle competition, applicant not being a common carrier, hav second-class reduced-fare service, there ing no equipment, not intending for or Preference for bus service over private automobile transportation noted.-TriState Transit Co. of La., Inc., Exten Expansion of barge line operations on Even if rates of other carriers are too the Columbia River, effect on motor carhigh, that fact alone does not justify riers at The Dalles, Umatilla, Attilia, issuance of certificate to additional car-see-Arrow Transp. Co., 16 M. C. C. riers; remedy exists for correction of unreasonable rates.-Youngblood, 8 M. O. C. 193; Johnson, 18 M. C. C. 194. Danger of subjecting competing motor line to competition of bus line under rail | control is shown by applicant's cumulative deficit, operation made possible by liberal advances of railroad. Competing motor line has no similar financial support.-Missouri Pac. Transp. Co. Extension, 2 M. C. C. 556 (560). 447; loss of large percent of former business, see-Petroleum Transp. Co., 19 M. C. C. 637. 13,000 rail cars are available to move automobiles, equipped with improved devices; expedited service maintained. Most of applicant's employees would be laid off during winter months if its application were denied.-Metropolitan Convoy Corp. Extension, 10 M. C. C. 629 (632-3). wise fit, willing, and able Disadvantages of rail transport of Applicants found financially and otherautomobiles; advantages of motor movement, see-Commercial Carriers, Inc., Extension, 12 M. C. C. 479 (482). Applicant has been discharged from any claim filed in receivership; financial condition and willingness to comply with regulations indicate that he is fit, Rail protestants are badly in need of revenue, many operating at a loss. To retain automobile traffic, they have expended substantial sums for loading de-able.-Turner Extension, 7 M. C. C. 766. vices, which enable them to utilize more fully their car capacities. The situation does not permit these facts to outweigh public convenience and necessity. -Id., p. 484. Services of rail, motor, carriers, compared, sec. 202 (a), n. 15. For years it has been customary to extend express service to adjacent towns and nearby communities, some of which are not on a railroad. At present 1,200 communities near rail-express terminal points are served.-Railway Exp. Agency, Inc., Determination of Status, 21 M. C. C. 161 (171). Is established operator, owns ample Net worth $6,723.37; received $2,415.50 in 1936 from trucking, expenses were $930.-Kastl, 3 M. C. C. 469. Is a building contractor; truck operations profitable.-Hines Extension, 9 M. C. C. 43. Assets $1000; proposes to buy new equipment.-Jacobowitz, 11 M. C. C. 778. 8. Financial ability to conduct operClaimed net worth $7,325, including ations; equipment available. — Fitness tractor and trailer and an interest in in general, lack of adequate capital, non-real property.-Miller Extension, 8 M. compliance with requirements, n. 25, C. C. 697. this paragraph. On such an important question as the financial ability of an applicant the public is entitled to have the statute implemented by a regulation setting out clearly and concisely just what the commission regards as a minimum standard of financial ability.-Heitmeyer v. Federal Communications Comm., 95 Fed. (2d) 91. Financial position of the three applicants sound; while operations not now profitable, have been in the past.— Commercial Carriers, Inc. Extension, 12 M. C. C. 479 (481). Equipment adequate; although sustained a loss first two years, financially and otherwise fit.-Boise-Winnemucca Stages, 7 M. C. C. 565. For 10 months of 1936 applicant's business was operated at slight profit, ex monthly income first 3 months of 1936 was $462, seven months thereafter $1,903. Total investment in land, storage buildings, equipment, $125,000.A. L. Reed Co., Inc., 3 M. C. C. 449 (450). It is essential that applicants prove their financial ability to conduct opera-clusive of depreciation charges; average tions proposed.-Ritz Arrow Lines, Inc., 1 M. C. C. 339; Speirs, 1 M. C. C. 555. Although applicant's working capital is small in comparison with the operation proposed, the fact that he has operated successfully for years with apparently no greater capital indicates that he is able to carry on proposed operation.-Peters, 23 M. C. C. 611 (617). Profit in excess of $4,000 from Feb. 1, 1935 to March 1, 1936, including some revenue from operation of mail routes. Claims net worth in excess of $19,000.— |