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ANNOTATED

1956 SUPPLEMENT

VOLUME 17

TABLE OF VOLUMES COVERED BY ANNOTATIONS

This Supplement covers the following volumes :

United States Reports, 346 (bal.), 347, 348, 349, 350, 351, 352 (part)
Lawyers' Edition, Supreme Court Reports, 98, 99
Supreme Court Reporter, 74, 75
Federal Reporter (Second Series), 204 (bal.), 205–236, 237 (part)
Federal Supplement (District Courts), 112 (ball.), 113–144
Interstate Commerce Commission Cases, 282 (bal.), 285 (part), 287 (bal.), 288

(bal.), 289 (bal.), 290, 291, 292, 293, 294, 295 (part), 296, 297, 298 (part)
Motor Carrier Cases, 58 (bal.), 59 (bal.), 60, 61 (bal.), 62, 63, 64, 65 (part), 66

(part)
Valuation Reports, 52 (bal.), 53, 54, 55 (part)

1

TABLES, INDEX, INCLUDED

Boreriations, symbols, p. 13837
Federal Precedents Cited, p. 13771
Estory of Cases, see Table of Cases, p. 13779
des, volume 17, p. 13837
Ees of Practice, p. 13741
acus of Cases with History, p. 13779

UNITED STATES
GOVERNMENT PRINTING OFFICE

WASHINGTON : 1956

Library HE

27/0

· Aia

V.17

ACTS, AMENDMENTS, ANNOTATIONS

INCLUDED IN VOLUME 17

NTP.
Part I..
Stabilization Act..
Part II..

8 203 (a) (11).
8 203 (a) (22), (23)
§ 204 (a) (3a).
8 204 (e), (f)-

$ 221 (c)-
Part III.
Part IV.
EA, $ 41.
HS Res., § 55---
Govt. traffic, § 321 (a) (8 65)
Inland Waterways Act----
APA, 5 USC § 1001–8 1011.--- p. 13672
AAA, 7 USC § 1622 (j)----

p. 13139 p. 13148 p. 13268 p. 13489 p. 13494 p. 13499 p. 13507 p. 13527 p. 13628 p. 13633 p. 13654 p. 13667 p. 13669 p. 13670 p. 13671

Bank. Act, 11 USC § 205----

p. 13678 Bank. Act, 11 USC § 208.

p. 13694 Corp. Reorg., Ch. 10.

p. 13695 A-T, 15 USC § 4, § 20, § 26.-

p. 13696 ST, 15 USC § 261..

p. 13699 Explosives, 18 USC § 835.

p. 13700 R. Retirement Tax Act.-

p. 13702 Judicial Code, 28 USC § 1253– $ 2403.-

p. 13701 Fair LS, 29 USC § 213, $ 215.- p. 13721 Ry. Mail, 39 USC § 247–$ 570. p. 13721 SA, 45 USC § 1- $ 16..

p. 13726 Loco. I., 45 USC § 22–8 34.

p. 13732 Acc. R., 45 USC § 40..

p. 13736 HS, 45 USC § 62–$ 64..

p. 13737 Ry. Labor, 45 USC § 151. p. 13738 Rules of Practice...

p. 13741

p. 13677

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For sale by the Superintendent of Documents, U. 8. Government Printing Office

Washington 25, D.O. - Price $3.25

TITLE 49-TRANSPORTATION

INTERSTATE COMMERCE ACT

[See Table of Cases for history of cases indicated by asterisk (*)]

Short title.—This act may be cited as the Interstate Commerce Act. (Sept. 18, 1940, c. 722,8 1,54 Stat. 899.)

National transportation policy.-[Unchanged. See vol. 11, p. 8954.) Historical note, see vol. 11, p. 8954.

Notes of Decisions

Volume 11—p. 8954; Volume 12—p. 10109; Volume 13—p. 10861; Volume 14—p. 11341 ; Volume 15-p. 11887; Volume 16—p. 12513.

2. The Commerce Clause. [Vol. 16]— in all applications for authority to transState taxes in violation of, 8 202 (b), n. port dangerous commodities, and other 5, infra; State weight limits of vehicles, Government traffic.-Riss & Co., Inc., $ 202 (b), n. 6.

Extension-Explosives, 64 M. C. O 299 5. National transportation policy, in (349). general.

Competition and rate making: (Vols. Adequate transportation system: The 11-16]-The commission gave adequate commission was required to consider consideration to the national transportawhether the barge and truck lines could tion policy in determining that tanksurvive, whether their survival was truck carriers have an inherent advannecessary for agricultural marketing and tage in costs over rail carriers for shorter national defense, that the Government hauls of petroleum products, while rail has been and is expending millions of carriers have the advantage for longer dollars to improve navigation in the area, hauls.-Ward Transport, Inc. v. United when it issued its order authorizing re States, 125 F. Supp. 363 (368) * ; Petroduced rail rates, and to make findings leum, Colo. and Wyo. to W. T. L. Terriconcerning need for preserving an ade tory, 289 I. C. C. 457 (466)*. quate transportation system by water, The national transportation policy inhighway, rail.--Pacific Inland Tariff cludes consideration of needs of competBureau v. United States, 134 F. Supp. 210 ing forms of transportation; findings (213)

under that policy are basic. [344 US 298 Applications, operating authority: The (314)). A carrier may initiate rates national transportation policy is of vital yielding revenue below that which a importance in any commisison decision public body could compel it to accept, on application for certificate; makes it but such rates must now be in acmandatory on the commission to foster cord with the national transportation sound economic conditions in transporta policy.-Pacific Inland Tariff Bureau v. tion; to carefully weigh the entire rele United States, 129 F. Supp. 472 (477, vant situation, including the issue of 483, 484)*. following the traffic.-Smith & Solomon If downward trend in rail transportaTrucking Co. v. United States, 120 F. tion of petroleum traffic were to continue, Supp. 277 (279)

certain railroads would be entirely elimiThe general purposes of the national nated as carriers thereof, contrary to the transportation policy must be considered national transportation policy and na

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tional defense.-Petroleum in North Pacific Territory, 292 I. C. C. 317 (332) * ; competition is furnished wholly by allwater route ; proposed rates are not lower than necessary to enable respondents fairly to meet all-water competition.Petroleum from Baltimore to Fla, and Ga., 291 I. C. C. 367 (374).

Assuming that proposed rate would be lower than necessary to meet present barge competition, it does not necessarily follow that it would result in unfair and destructive competition, being designed primarily to permit respondents to share in the traffic in competition with private and contract motor carriers, and to meet market competition from other origins.Soybeans, Pensacola, Fla., to New Orleans, La., for Export, 293 I. C. C. 634 (638).

When the commission has required rates of one transport agency to be raised to or near level of rates of another such agency, it has acted to prevent either actual or potential destructive competition, and in accordance with the mandate given it by Congress in the national transportation policy.-Merchandise in Mixed Truckloads—East, 62 M. C. C. 699 (723)*, citing 281 I. C. C. 127.

All-commodity rates of motor carriers are a constant competitive threat to rail carriers; have exerted a deteriorating influence on the all-commodity rate structure of motor common carriers as well ; the relevant factors of the national transportation policy must be considered (321 US 194]. The commission would be derelict in its duty if it failed to take steps not only to check the downward trend in rates of carriers which created the situation, but to elevate them to level which should insure that their operation thereunder will be profitable.—Id., 63 M. C. C. 453 (482-3)*.

The commission does not regard its decisions, including those involving inducement or incentive rates, as holding that motor-carrier rates should be differentially higher than rail rates for the same service, or as preventing motor carriers from establishing rates on a parity

with those of their rail competitors, provided they are just, reasonable, and otherwise lawful.-Iron and Steel between St. Louis and Indianapolis, 62 M. C. C. 213 (219)*.

Establishment of a rate with a high but practicable minimum which is lower than the rate with a lower minimum, does not constitute a destructive competitive practice unless the reduced rate can be said to be below a compensatory level or lower than necessary to meet the competition of another mode of transportation.—Emery Transp. Co. v. Baltimore & O. R. Co., 292 I. C. C. 346 (347).

In view of importance of the traffic to the two short-line railroads, it is more than probable if proposed rates became effective, they would again attempt to restore the existing relation. The situation is potentially destructive of the rate adjustments of motor and rail carriers ; it is the commission's duty to prevent this kind of competition wherever possible.—Aluminum from Badin, N. C., to the East, 62 M. C. C. 485 (491).

Considering values of the commodities, their physical characteristics, longer transit time by water, movement by rail during periods of closed navigation, and economies which could result from more efficient methods of handling in connection with water movement, a greater spread between rail and water costs than would result from rate proposed is necessary for competition that is not unfair or destructive.-Aluminum Articles from Texas to Ill. and Ia., 293 I. C. C. 467 (472).

It is the commission's duty to prevent or terminate rate wars between competing carriers wherein rates have been or are proposed to be reduced below a just and reasonable level, but in so doing the low-cost carrier may not be deprived of an inherent advantage.—Manufactured Tobacco from Ky., N. C., and Va. to the South, 292 I. C. C. 427 (438).

Protestants have invaded traffic of carriers having certain inherent advantages; admonition in the national transportation policy does not place upon the

commission the duty of securing to lesser suited form of transportation a monopoly of the traffic by denying the better suited form opportunity to meet the going rates. — Various Commodities-Mid-Atlantic and New England, 63 M. C. C. 584 (586).

The commission would be remiss in its duty in administering the national transportation policy if it failed to consider the effect grant of the application would have on existing, authorized carriers to which grain traffic is of vital importance.—Commercial Barge Lines, Inc., Extension, 285 I. C. C. 549 (557).

If proposed rate were permitted to take effect, a corresponding reduction in the transcontinental rail rate could be anticipated so as to maintain relation between water and rail rates approved in 289 ICO 384; situation thus created would be directly contrary to the national transportation policy to discourage destructive competitive practices.-Tinplate from Atlantic to Pacific Coast Ports, 293 I. C. C. 157 (165).

Healthy competition is in the public interest, but when carried to the point where the service is performed at a loss, it tends to undermine the financial stability of the transport agencies, thereby to lessen their ability to furnish adequate, efficient service; may not be countenanced.-Clipper Carloading Co., Inc. v. Acme Fast Freight, Inc., 293 I. C. C. 641 (643).

Considering the facts, to refuse to permit respondents to maintain rates on same levels as rail-carrier protestants, but subject to higher minimum weight now proposed, would approach, if not actually constitute, attempt by the commission to apportion the traffic artificially and thereby eliminate normal, healthy competition.-Fabrics, Ga. and N. C. to Okla. and Tex., 63 M. C. C. 430 (434).

To require rail carriers to refrain from publishing rates reasonable and otherwise lawful so that a water carrier may retain substantially all the shipper's traffic, would be unfair to carriers and

shippers alike. Rail carriers cannot be required to maintain rates competitively too high for fear that through change to a lower basis they may cut into profits of other modes of transportation.-Cigarboxes from Newark, N. J., to Selma, Ala., 296 I. C. C. 68 (69, 70)* ; Scrap Tobacco from Newark, N. J., to Selma, Ala., 297 I. C. C. 424 (425).

Inevitably the shipping public as a whole pays for unduly low rates accorded to certain traffic or points by rates on other traffic or from and to other points which are higher than could otherwise be maintained, and by deterioration in transportation services. The commission's duty under the national transportation policy includes taking of appropriate action to prevent recurrence of practices in violation of that policy.-Motor Carrier Rates New York City Area-New England, 62 M. C. C. 427 (441)*.

Despite contention that since pig iron has moved by water between the points as a port-to-port movement, water carriers cannot continue to live if such traffic should be diverted to rail carriers to deny rail carriers opportunity to compete fairly with water carriers would be inconsistent with the national transportation policy.-Pig Iron from Buffalo Group, N. Y., to Saginaw, Mich., 296 I. C. C. 547 (549).

National transportation policy does not require that transportation agency have ing inherent advantage must maintain its rates at level which will enable other forms to compete successfully. Pronouncement in Mechling case, 330 US 567 (579, 580) has application also where rail carriers provide the low-cost transportation even when same rates may not be profitable for motor carriers.-Compressors from Tecumseh, Mich., to Springfield, Mass., 297 I. C. C. 797 (799–800).

To permit respondents to make further reductions in rail rates, tank-truck operators proposing to make similar reductions, would merely produce an unjustifiable depletion of revenues, would be inconsistent with the national transportation policy and constitute a destructive

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