Citations
- 221 F. Supp. 809
Full opinion text
CRAVEN, Chief Judge.
Pursuant to 28 U.S.C.A. § 2325, a three-judge court was convened in accordance with 28 U.S.C.A. § 2284 to hear and determine this action to permanently enjoin, set aside, or annul certain orders of the Interstate Commerce Commission.
Youngblood Truck Lines, Inc. (hereinafter referred to as “Youngblood”) is a common carrier by motor vehicle of property in interstate commerce pursuant to duly issued certificates of operating authority. Common Carrier Conference— Irregular "Route, Inc., is a non-profit organization of which Youngblood is a member.
Involved in this proceeding are three separate and distinct grants of authority held by Youngblood which allow it to operate over irregular routes between the following points respectively:
I. Between points in Georgia on and north of a line beginning at the Alabama-Georgia state line and extending along Georgia Highway 20 to U. S. Highway 41, thence along U. S. Highway 41 to Atlanta, Georgia, thence along U. S. Highway 29 to Athens, Georgia, and thence along U. S. Highway 78 to the Georgia-South Carolina state line (hereinafter referred to as “North Georgia”), on the one hand; and, on the other, points in Buncombe, Graham, Haywood, and Henderson Counties in North Carolina.
II. Between points in North Caroline on and west of U. S. Highway 1, on the one hand,-, and, on the other, all points in South Carolina.
III. Between Tryon, North Carolina, and points in North Carolina within ten miles of Tryon (which includes part of Henderson County), on the one hand; and, on the other, points in North Carolina on and west of U. S. Highway 1.
By “tacking” (combining) these separate grants of authority, Youngblood is permitted to perform the following services: (1) by “tacking” authorities numbered I and II at a point in Henderson County, North Carolina, Youngblood can operate (through a commonly contiguous “gateway” point) between North Georgia, on the one hand; and, on the other, all points in South Carolina; (2) by “tacking” the authorities numbered I and III at a point in Henderson County within ten miles of Tryon, North Carolina, Youngblood can operate between North Georgia, on the one hand; and, on the other, points in North Carolina on and west of U. S. Highway 1.
Under the above grants of authority, Youngblood cannot provide direct line service between North Georgia, on the one hand, and, on the other, points in North Carolina on and west of U. S. Highway 1 and points in South Carolina, but must follow a circuitous route through a “gateway” in Henderson County, North Carolina.
By application filed July 20, 1960, with the Interstate Commerce Commission, Youngblood sought a certificate of public convenience and necessity authorizing direct line operations between North Georgia, on the one hand, and, on the other, fifteen specified counties in northwestern South Carolina. The purpose of Young-blood’s application was two-fold:. (1) elimination of the Henderson County “gateway” requirement relative to service between North Georgia and the designated fifteen counties in South Carolina; and, (2) elimination of the observation of a “gateway” at a point in Henderson County within ten miles of Tryon, North Carolina, in operations between North Georgia and that part of North Carolina on and west of U. S. Highway 1, this latter gateway elimination to be achieved by tacking the authority that would be derived from (1). Were Youngblood’s application granted, the following mileage savings, among others, would result:
BETWEEN AND MILEAGE SAVINGS
Greer, S. C. Atlanta, Ga. 21 to 23%'
Charlotte, N. C. Rabun Gap, Ga. 16%
Charlotte, N. C. Dahlonega, Ga. 19 to 20%
Kernersville, N. C. Elberton, Ga. 15%'
Atlanta, Ga. Anderson, S. C. 44%
Athens, Ga. Anderson, S. C. 70%'
Gainesville, Ga. Anderson, S. C. 55%
Atlanta, Ga. Newberry, S. C. 29%'
Athens, Ga. Newberry, S. C. 50%'
Gainesville, Ga. Newberry, S. C. 32%
Atlanta, Ga. Rock Hill, S. C. 21%.
Athens, Ga. Rock Hill, S. C. 29%
Gainesville, Ga. Rock Hill, S. C. 22%
Atlanta, Ga. Seneca, S. C. 50%
Athens, Ga. Walhalla, S. C. 40%'
Gainesville, Ga. Seneca, S. C. 30%
Atlanta, Ga. Abbeville, S. C. 71%.
Gainesville, Ga. Abbeville, S. C. '55%
Youngblood calculates that its average •cost of operating an over-the-road tractor-trailer unit is 26.964 cents per mile; that under the new route authority sought by this application, it would save approximately 1,400 miles a week in its movements; that its annual dollar savings in operating expenses would exceed $20,000.00.
Since the authority sought involved less than three states, it was mandatory that the matter be referred to a Joint Board consisting of representatives of the states involved. 49 U.S.C.A. § 305 (a). Five competing motor carriers protested the application and appeared before the Board at its hearing. Young-blood’s only witness at the hearing was its President and General Manager, Mr. J. C. Youngblood.
An exhaustive statement of facts is included in the Joint Board’s Report. The Commission adopted the same facts as its own. Since Youngblood makes no contention that the facts are otherwise, this court likewise adopts them as the evidence upon which this case must turn. The scope of judicial review of an Interstate Commerce Commission order includes consideration of whether the ultimate conclusions of the Commission are supported by substantial evidence on the record considered as a whole, are free from errors of law, and are not so arbitrary or capricious as to-constitute an abuse of discretion. Administrative Procedure Act, Section 10 (e) (5 U.S.C.A. § 1009(e) ); Universal Camera Corp. v. N. L. R. B., 340 U.S. 474, 71 S.Ct. 456, 95 L.Ed. 456 (1950); State of North Carolina v. United States, D.C., 210 F.Supp. 675 (1962). If the court is affirmatively satisfied that the Commission’s order does not depart from these standards, then the court must sustain the order, notwithstanding that we might have adopted a different point of view upon the same facts and law. United States v. Pierce Auto Freight Lines, Inc., 327 U.S. 515, 66 S.Ct. 687, 90 L.Ed. 821 (1946).
Youngblood seeks, by this application, a grant of territorial authority covering a part of Georgia and a part of South Carolina that will enable it to directly traverse that territory and will, at the same time, permit it to utilize that part of South Carolina involved (fifteen northwestern counties) as a gateway between North Georgia and authorized points in North Carolina, eliminating the Henderson County, North Carolina, gateway.
Exhibits tendered by Youngblood at the Joint Board hearing indicate that it conducted the following operating activity between North Georgia and South Carolina via the gateway in North Carolina during the period from January 1, 1958, through June 30,1960:
TOTAL WEIGHT OF FREIGHT MOVED TOTAL NUMBER OF SHIPMENTS MOVED
South Carolina to Georgia 8,750,244 lbs. 18,814
Georgia to South Carolina 4,844,253 lbs. 4,883
During the same period of time, Youngblood handled freight traffic between North Georgia and North Carolina as is indicated by the following chart. (Note: “S” refers to points in the four North Carolina counties of Buncombe, Graham, Haywood, and Henderson, the North Carolina points authorized in the grant of authority numbered I; “NS” refers to other points in North Carolina covered by other certificates of authority.)
North Carolina to Georgia Total Total Number Weight Shipments
“NS” 42,180,290 17,064
“S” 13,774,030 7,707
Georgia to North Carolina
“NS” 42,855,247 19,445
“S” 19,932,253 7,713
Relative to shipments between North Georgia and South Carolina through the gateway, shipments were transported from or to all of the fifteen northwestern South Carolina counties involved in Youngblood’s application. As to movements from the fifteen-county area to North Georgia, the largest volume was shipped from Greer and substantial volumes were shipped from such points as Carlisle, Catawba, Clinton, Flint Hill, Gaffney, Grace, Greenville, Landrum, Laurens, Lyman, Mohawk, Pickens, Rock Hill, Spartanburg, Startex, Taylors, Union, Whitney, and Winnsboro. Traffic from North Georgia to South Carolina points originated in Atlanta, Chamblee, Dahlonega, Decatur, East Point, Gaines-ville, and Rabun Gap with the greatest volume moving from Atlanta, Chamblee, and East Point.
Movements from North Carolina “NS” involved 73 points of origin, with the greatest volume moving from Charlotte, High Point, Pisgah Forest, and Spindale and substantial volume moving from Gastonia, Hickory, Marion, Old Fort, and Statesville. From North Carolina “S” to North Georgia, shipments originated at 20 points, with the greatest volume moving from Asheville, Biltmore, Canton, Fletcher, Hendersonville, and Robbins-ville. Movements from North Georgia to all North Carolina points (“NS” and “S”) originated in Atlanta, Chamblee, Dahlonega, Decatur, East Point, Rabun Gap, Scottsdale, and Gainesville. Note that with the exception of Scottsdale the North Georgia origin points of shipments to North Carolina are the same as those of shipments to the fifteen-county South Carolina area.
Protesting carriers operate as follows:
(1) New Dixie Lines, Inc.: As pertinent to Youngblood’s application, New Dixie has authority to transport general commodities over irregular routes between Atlanta, Georgia, and points within fifteen miles thereof, on the one hand, and, on the other, points in North and South Carolina. It moves an average of two truckloads a day in each direction between the Atlanta area and Greenville and Spartanburg, South Carolina. It has extensive service in the South Carolina areas of Greenville, Anderson, and Laurens, and toward Columbia operating peddle runs out of Greenville. It has experienced no competition from Young-blood in service between Atlanta and the northwestern sector of South Carolina.
(2) Overnite Transportation Company : Relative to this proceeding, Overnite has authority to transport general commodities between High Point, North Carolina, and Atlanta, Georgia, serving all intermediate points, over regular routes from High Point to Charlotte, North Carolina, thence over these regular routes to Atlanta: (a) from Charlotte over U. S. Highway 29 to Greenville, South Carolina, thence over U. S. Highway 123 to Cordelia, Georgia, thence over U. S. Highway 23 to Atlanta; (b) from Charlotte to Greenville, South Carolina, thence over U. S. Highway 29 to Athens, Georgia, thence to Atlanta; (c) from Charlotte to Columbia, South Carolina, thence to Augusta, Georgia, thence to Atlanta. Additionally, it operates over irregular routes between points on the regular routes running between High Point and Atlanta, on the one hand, and, on the other, points in South Carolina and in North Carolina on and west of U. S. Highway 301. It has similar authority in eastern North Carolina, parts of Georgia and all of South Carolina. Hence, to the extent that Overnite does not serve Georgia and South Carolina under its regular route authority, it does so under irregular route authority or by utilizing gateways in certain of its contigous grants of authority.
Overnite. is opposing Youngblood’s application insofar as it affects traffic between Georgia and South Carolina; it does not consider Youngblood currently competitive to a very great extent. The basis for Ovemite’s opposition to Young-blood’s application for authority to operate directly between North Georgia and the fifteen-county South Carolina area is clearly illustrated by a comparison of their respective mileages between designated South Carolina and Georgia points under their existing respective authorities, with Youngblood moving through its gateway in North Carolina. The following chart is representative of some of the mileage differences. “0” represents Overnite; “Y” represents Youngblood.
HIGHWAY MILES BETWEEN
SOUTH CAROLINA And GEORGIA
Athens Atlanta Gainesville
“O” «Y” “O” «Y” “O” <