Argument that contracts are not required to be filed by the act is without merit. Id., p. 13. The discretion granted the commission by sec. 218 (a) was intended to grant it power to require filing of copies of the contracts if found necessary or desirable. Id., p. 12. riod, terminable on 10 days' notice to either party, in which event the tonnage required to be shipped would be reduced proportionately, imposes specific obligations upon both carrier and shipper over a period sufficiently long and definite to meet requirements of a bilateral contract.-Kappel, 13 M. C. C. 302 (304). 20. Armored-car operators.-Charges of armored-car operators are more or less standard; depend somewhat upon time of day services are rendered. Operations include various services in ad One of the principal distinctions between sec. 217 (a), (c) and sec. 218 (a) is that common carriers shall make no change in their rates upon less than 30 days notice, while contract carriers shall make no reduction in their min-dition to transportation. Articles imum charges upon less than 30 days notice unless in either case the commission permits less notice.-Contract Carriers' Schedules of Minimum Rates, 22 M. C. C. 343 (346). As to both common and contract carriers the commission is authorized to carried are not rated upon a weight basis, and charges depend upon value of the consignment, distance carried, and protective services necessary for safety. Contracts of Contract Carriers, 11 M. C. C. 693*. There being an absence of any comprescribe the form and manner in which petitive element affecting motor common tariffs and schedules shall be published, carriers in transportation of valuables filed, and posted.-Id., p. 346. by armored motor vehicles, reasons for The word "manner" may be consid-requirements in respect to execution and ered as more comprehensive than filing of contracts lose much of their "form," but either as used in the act force.-Id., p. 698. includes the element of time.-Id. p. 347. In addition to sec. 218, the very broad power conferred upon the commission by sec. 204 (a) (6) authorizes it to prescribe such rules or regulations as may be necessary. And it is significant that sec. 218 (a) says nothing as to notice for schedules which do not contain reductions. The commission may and will require all schedules as well as tariffs to be filed, posted, at least 30 days prior to their effective date.-Id. p. 348. A contract which does not impose any obligation on the shipper does not comply with the commission's orders [1 M. C. C. 628].-J & J Refrigerator Service, 4 M. C. C. 719. Contention that applicant's operations were lawful because within the scope of its contract with the Studebaker Corp., not sustained.-Caravans, Inc., 9 M. C. C. 659 (663). Contract carriers engaged in transporting bullion, currency, jewels, and other precious and very valuable articles relieved of requirements of the making and filing copies of bilateral contracts. Schedules of their minimum charges required to be filed.-Id. Whether armored-car operations are common or contract discussed but not determined.-Id. Armored-car operation is common carrier; adequate between New York, New Jersey, Pennsylvania, Delaware, Maryland.-Rucker, 18 M. C. C. 71. Armored-car operation, largely payroll distribution for shippers, between Memphis, Tenn. and points in Crittenden County, Ark. and between Chatta nooga and points in Cataoosa, Walker, Dade Counties, Ga., authorized.-Ar A contract for 6 months, minimum mored Motor Service Co., Inc., 20 M. C. 50,000 pounds of freight during that pe- C. 157. Regulations of the Commission By order of September 19, 1935, the commission extended the effective date of this section until December 1, 1935; by order of Feb. 21, 1936, effective date for filing tariffs extended to March 23, 1936, to be effective April 1, 1936. Order of Jan. 6, 1936, effective Jan. 8, 1936, Tariff Circular MF No. 1, MP No. 2, former canceled by MF No. 2, Nov. 24, 1937, effective Feb. 1, 1938, specifications covering schedules. Tariff Circular MP No. 2 amended Nov. 7, 1936, effective Jan. 1, 1937, duplicate or conflicting rates or charges. Supp. No. 1 to Tariff Circular MF No. 1, Nov. 7, 1936, effective Jan. 1, 1937, applicable to contract carriers. Tariff Circular MF No. 2, Nov. 24, 1937 effective Feb. 1, 1936, canceled Tariff Circular MF No. 1 and Supp. 2 of June 29, 1937, amended, 22 M. C. C. 343. Order Nov. 7, 1936, effective Jan. 1, 1937. Supp. No. 1 to Tariff Circular MP No. 2, amended MP No. 3, June 8, 1937, effective July 23, 1937. [Notice, March 12 1936, operations in a single State, by interstate operator, to be filed, posted, by March 23, 1936, effective April 1, 1936.] Order Jan. 19, 1937, amended Jan. 28, 1937, time for compliance extended to April 15, 1937 by order Feb. 8, 1937, by report MC-9, Filing of Contracts by Contract Carriers, 2 M. C. C. 55, set aside. See n. 15, sec. 218 (a), for further orders. Notice July 7, 1937, to clarify the orders. Order July 21, 1936, covered adoption requirements, changes of names, etc., followed by notice, Aug. 10, 1936, same subject. Order Sept. 13, 1937, amended order of Nov. 11, 1936, agents publishing guides or supplements might depart from Rule 7 (b) of Tariff Circular MF No. 1; carriers from Rule 7 (c). Rule 10 was waived Nov. 11, 1936, in part. [Notice, March 9, 1937, posting must be done in time to give notice required by law.] Order Sept. 29, 1938, effective immediately, covered filing, etc., for temporary operations granted under sec. 210a (b). Order Sept. 21, 1940, departure from tariff regulations by supplements, postponing effective date of suspended matter, authorized, amending order of June 29, 1939, as amended Apr. 2, 1940, Sept. 20, 1940. Section 218 (b) [Sec. 318 (b) U. S. Code.] Complaints and investigations; hearings and orders of commission.-Whenever, after hearing upon complaint or its own initiative, the commission finds that any charge of any contract carrier or carriers by motor vehicle, or any rule, regulation, or practice of any such carrier or carriers affecting such charge, or the value of the service thereunder, for the transportation of passengers or property in interstate or foreign commerce, contravenes the policy declared in section 202 (a) of this chapter, the commission may prescribe such minimum charge, or such rule, regulation, or practice as in its judgment may be necessary or desirable in the public interest and to promote the policy declared in said section. Such minimum charge, or such rule, regulation, or practice, so prescribed by the commission, shall give no advantage or preference to any such carrier in competition with any common carrier by motor vehicle subject to this chapter, which the commission may find to be undue or inconsistent with the public interest and the policy declared in said section, and the commission shall give due consideration to the cost of the services rendered by such carriers and to the effect of such minimum charge, or such rules, regulations, or practices, upon the movement of traffic by such carriers. All complaints shall state fully the facts complained of and the reasons for such complaint and shall be made under oath. (Part II, sec. 218, Aug. 9, 1935, c. 498, sec. 1, 49 Stat. 561.) Notes of Decisions 1 25. What considered in determining rea- | round-trip operation, does not justify sonableness. 27. Competition: contract vs. common car- 30. Prescription of minimum charges. 50. Charge not to result in undue advantage 25. What considered in determining reasonableness.-That estimated load of 6,000 pounds of dry ice may be transported with other revenue traffic which would not be injured thereby, considered, in determining proposed rate will be reasonable.-Minimum Charges of Blowers Transfer Co., 1 M. C. C. 586 (588). charges for an individual service which, in and of themselves, are unreasonably low and must be supported by higher charges for hauls in the opposite direction to insure a profit on round trips.Food Products from Pittsburgh, Pa., to Trenton, N. J., 19 M. C. C. 463 (465). Evidence as to property investment, fixed charges, net income of class I railroads in the eastern district for calendar years of 1932 to 1937, inclusive, and first 7 months of 1938, is general in nature and has no substantial relevancy as to proposed minimum charges of motor contract carriers.-Id., p. 465. That less than reasonable minimum 27. Competition; contract vs. comrates, added to those for transporting mon carriers.-See also sec. 209 (a), n. return loads of other commodities for 12. Competitive rates, sec. 216 (b), another shipper, yield a profit on the n. 25. 1 "part" changed to "chapter" by U. S. Code, Sup. I to 1934 edition. The underlying purpose of the Motor erations, but pending final determinaCarrier Act is to promote and protect tion of their status, are extensively enadequate and efficient common-carrier gaged in operations directly competitive service by motor vehicle in the public in- with established common carriers, apterest, and regulation of contract car- plying rates known only to themselves riers is designed with that end in view. and their shippers, and otherwise enFor that reason it differs from common-gaging in practices forbidden to common carrier regulation.-Contracts of Con- carriers.-Filing of Contracts by Contract Carriers, 1 M. C. C. 628 (629)*. tract Carriers, 20 M. C. C. 8 (10)*. Conditions prevailing among contract 30. Prescription of minimum carriers are harmful to contract car-charges.-Information called for in the riers, particularly to small operators commission's interrogatories, requiring without the advantage of efficient or- contract carriers to answer, is relevant, ganization and close relations with large necessary; commission is authorized by shippers, which larger contract oper- the act to require such information of ators have. Rules prescribed as to con- contract carriers; it is not privileged; tracts will eliminate the constant threat answers will not disclose business or to their economic existence.-Id., p. 633. trade secrets; disclosure will not inflict The purpose of the act regulating con- legal injury. Order was lawful; intract carriers was to promote adequate junction denied.—United States Gypsum and efficient common-carrier service. Co. v. United States, N. Dist., Ill., It is the commission's duty to watch E. D. *. carefully any situation potentially capable of obstructing that purpose, and to prevent or remove any such obstacle.-Acme Fast Freight, Inc., 2 M. C. C. 415 (432)*. The commission is authorized to prescribe minimum charges for contract carriers, but not maximum charges. No need exists as to such carriers for protecting the public against exorbitant Under sec. 218 (b) respondent com- charges, because contracting shippers mon carrier, or the Conference, may file are well able to protect their own ina complaint against the contract car-terests in this respect. The patent obrier, and if it be found that its mini-ject of Congress is to protect common mum charge is unreasonably low, it will carriers against cut-throat competibe required to establish a reasonably tion.-Contracts of Contract Carriers, compensatory minimum charge. Modi1 M. C. C. 628 (629)*. fication of previous order to permit common carrier to establish a rate to meet competition of the contract carrier denied.-New England Motor Carrier Rates, 11 M. C. C. 325 (357)*. Advantage over common carriers in volume of traffic which enhanced the economy of their operation is a fortuitous advantage which would be lost if the competitors or any group thereof, were permitted to make similar reductions. It is an advantage which rests on no inherent difference in transport conditions; is undue.-Petroleum, Providence, R. I., Worcester, Mass., 17 M. C. C. 637 (640). One of the most important means the commission has of correcting unfair and destructive competitive practices of contract carriers as against common carriers is through its power to fix minimum charges of contract carriers.-Id., p. 631; Acme Fast Freight, Inc., 2 M. C. C. 415 (431)*. It is necessary to establish a uniform basis for common carrier rates before it is possible to attack the similar prob lem of contract carrier rates. Issuance of a minimum rate order with respect to common carriers alone will not prejudice them unduly in favor of contract carriers, railroads or forwarders.-Mo Many self-styled contract carriers are not in fact contract carriers, offer notor Carrier Rates in Central Territory, specialized services typical of such op- 8 M. C. C. 233*. Contract requirements, sec. 218 (a), As a jurisdictional prerequisite to the exercise of its power to determine rea- n. 15. sonable minimum charges of contract 50. Charge not to result in undue carriers, the public interest and attain-advantage or preference. Although ment of the policy of the act requires that the commission deal with actual rates rather than with minimum rates, since the latter may be, and in many cases admittedly are, mere paper rates.-Filing of Contracts by Contract Carriers, 20 M. C. C. 8 (17) *. Use of "minimum charge" in par. (a) and (b) of sec. 218 construed together; the careful selection of apposite language was deliberate and intentional.— Id., p. 16. there is no prohibition against discrimination or preference by a contract carrier among his patrons, concealment of his actual charges not only discriminates against common carriers, compelled to compete with published rates with contract carriers with concealed rates, but by this very fact promotes rate wars, other unfair and destructive competitive practices among common carriers as well as between common and contract carriers.-Filing of Contracts by Contract Carriers, 20 M. C. C. 8 (15)*. 35. Prescription of rules, regulations, practices.-The commission has the power to establish general rules and regIn absence of any evidence that motor ulations with which contract carriers common carriers now transport dry ice must conform. Such power is not un-between points concerned, there is no limited, may not be arbitrarily exer- basis for a finding that application on cised, but permits requirements which that commodity of proposed minimum will aid in practical administration, and charge will give any undue advantage or furtherance of the purpose to promote preference to respondent in competition and protect adequate, efficient motor with any motor common carrier.-Mincommon-carrier service in the public in- imum Charges of Blowers Transfer Co., terest.-Contracts of Contract Carriers, 1 M. C. C. 586 (588). 1 M. C. C. 628 (632)*. If unrestrained in his relations with contract carriers, the broker would be Written contracts required need not cover long periods of time or fixed amounts of traffic. They will be capable able to magnify and increase the unjust discriminations, undue preference and of ready readjustment to changing conditions, and rates need not be fixed in-advantages, and unfair and destructive flexibly but must be capable of definite competitive practices which the statute ascertainment from terms of the con- condemns.-Acme Fast Freight, Inc., 2 tract.-Id., p. 633. M. C. C. 415 (431)*. |