United States v. Texas & Pacific Motor Transp. Co., 340 U.S. 450 (1951)

United States v. Texas & Pacific Motor Transport Co.

No. 38

Argued November 7-8, 1950
Decided February 26, 1951 *
340 U.S. 450

APPEAL FROM THE UNITED STATES DISTRICT COURT

FOR THE NORTHERN DISTRICT OF TEXAS

Syllabus

Under § 213 (now § 5) of the Interstate Commerce Act, providing for the acquisition of operating rights from other carriers, and under § 207, providing for new operations, the Interstate Commerce Commission had issued certificates of convenience and necessity to a motor carrier affiliate of a railroad. In each of the certificates, the Commission reserved the right to impose further restrictions to confine the motor carrier’s operations to service "auxiliary to, or supplemental of, rail service."

Held: the Commission had power, in subsequent proceedings, to modify the certificates so as, in substance, to bar the motor carrier from issuing its own bills of lading or performing all-motor service under all-motor local rates or all-motor joint rates with connecting motor carriers, from substituting rail service for motor service, and from participating in motor-carrier tariffs. United States v. Rock Island Motor Transit Co., ante p. 419. Pp. 451-458.

1. The action of the Commission in thus modifying the certificates was not invalid as in conflict with § 216 of the Transportation Act of 1940, nor invalid as not complying with the revocation procedure prescribed by § 212 of the Interstate Commerce Act; nor unconstitutional as confiscatory. Pp. 457-458.

2. In a certificate issued to a motor carrier affiliate of a railroad, the Commission may reserve the right to impose further restrictions to confine the motor carrier’s operations to service which is auxiliary to, and supplemental of, rail service, whether the certificate be issued under § 207 for a new operation or in acquisition proceedings under §§ 5 and 213. Pp. 458-459.

3. The order of the Commission was not without support in the evidence. Pp. 459-460.

4. In the hearing by the Commission, the motor carrier was not denied procedural due process. Pp. 460-461.

87 F.Supp. 107, reversed.

In a proceeding to set aside two orders of the Interstate Commerce Commission, the three-judge District Court set aside the orders and entered a permanent injunction. 87 F.Supp. 107. The United States and the Interstate Commerce Commission (No. 38) and an intervenor (No. 39) appealed. Reversed, p. 461.