Opposition Brief — Adirondack Transit Lines, Inc. v. United States
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Octoser Term, 1944
No. 913
ADIRONDACK TRANSIT LINES, INC.
Appellant,
THE UNITED STATES OF AMERICA,
INTERSTATE COMMERCE COMMISSION, er at.
MEMORANDUM IN OPPOSITION TO MOTIONS
TO AFFIRM JUDGMENT OF DISTRICT COURT
AND IN OPPOSITION TO STATEMENTS AGAINST
JURISDICTION
J
Martin J. KE.ty, Jr.,
Counsel for Appellant.
SLARENCE E. Horn, JR.,
Of Counsel.
lupro1aL PRINTING Co., INC., 82 BEEKMAN St., N. Y.—BARCLAY 7—3648-9 <q 182
INDEX
PAGE
Memorandum In Opposition to Motions to Affirm and
In Opposition to Statements against Jurisdiction... 1
Appellant in opposition to the Motion to Affirm filed
by the United States of America and Interstate Com-
merce Commission respectfully states, the following
ee Sr OE i wevedevedtecrceveceees 2
In reply in respect to Defendants-Appellees, United
States of America and Interstate Commerce Com-
Mission second issue..........-seeeeeees ad ag eins 11
In reply with respect to Defendants-Appellees, United
States of America and Interstate Commerce Com-
I napesvaenéeee 17
Conclusion with respect to the Motion to Affirm by
Appellees, United States of America and Interstate
COD SID nhc ccecdcorcccectcssoecess 21
Reply with respect to Motions to Affirm and State-
ments against Jurisdiction filed by Defendants-Inter-
venors-Appellees, Hudson & Manhattan Railroad
Company and Manhattan Coach Line, Inc., et al.... 22
Conclusion with respect to the Motions to Affirm and
Statements against Jurisdiction filed by Defendants-
Intervenors-Appellees, Hudson & Manhattan Rail-
road Company and Manhattan Coach Line, Inc., et al. 24
RC Ga Ge TG en dt gee ededaseeenases 25
rr eee hensdedeeeeereus 26
ii INDEX
TasLe or Cases CITED
PAGE
Alton Railroad Company v. United States, 315 U. 8S.
DD. ncvcccasccdceuncevddeasdatecsdbncetassatenenes 23
Cincinnati, Newport and Covington Rwy. Co., Common
Carrier Application, 30 MCC 423 .........-.+-++5 15
Crescent Express Lines v. The United States, 320 U. S.
GE. condiccedetnedecaeeeeseerdeeeetssedeseeioess 23
Lincoln Tunnel Applications, 12 MCC 184..... 14, 15, 16, 25
Nevin Midland Lines, Common Carrier Application
(MC18975), 4 MCC 547 2.0... .. ee eee eee cece eeees 13, 14
Noble v. United States, 319 U. S. 88 ..........-006-- 23
Pennsylvania Greyhound Lines, Inc., Lincoln Tunnel
‘Route, 30 MCC SEB ....ccccccccccscccccccccevess 23
Union Stockyard v. U. S., 308 U. S. 213 ........... 21
United States v. Maher, 307 U. S. 148 .............- 23
U. S. v. Carolina Freight Carriers Corporation, 315
Oy Bs OE ance 6050 dads dear enensecenaxvesevevenses 23
White Horse Pike Bus Company, Incorporated, Com-
mon Carrier Application (No. MC1973), 2 Motor
Caster Gaeen GP occccacccsevscesessesesvcseoss 12,14
Orner AvTHorITiIES CITED
Interstate Commerce Act (Part II),
Bestia SERS) cccccsccvevesceseveesevecvesse 3, 5, 11
Motor Carrier Act,
| PPOTTTITIETIIT TTT 8,9
United States Code,
I on ic cece ds beuaeesees bneubeaceus 9, 10
SEL GEE bic row snonnscnedévawccensseseceennn 23
I Eg ane when eedihesenshedaenl 23, 24
Supreme Court of the United States
Octoser Term, 1944
No. 913
ADIRONDACK TRANSIT LINES, INC.
Appellant,
vs.
THE UNITED STATES OF AMERICA,
INTERSTATE COMMERCE COMMISSION, er at.
MEMORANDUM IN OPPOSITION TO MOTIONS
TO AFFIRM JUDGMENT OF DISTRICT COURT
AND IN OPPOSITION TO STATEMENTS AGAINST
JURISDICTION
The Plaintiff-Appellant files this brief pursuant to
Rule XII, paragraph ‘‘3’’ and Rule VII, paragraph ‘‘3”’
of the General Rules of this Court.
The United States of America and the Interstate Com-
merce Commission, Defendants-Appellees, filed a joint mo-
tion to affirm the decree of the District Court.
The Defendant-Intervenor-Appellee, Hudson & Man-
hattan Railroad Company has filed a motion to affirm the
order and judgment of the District Court and a Statement
against Jurisdiction.
The Defendants-Intervenors- Appellees, Manhattan
Coach Lines, Inc., Manhattan Transit Company, West-
2
wood Transportation Co., Inc., Westwood Transportation
Lines, Inc., Intercity Transportation Co., Inc., Jersey City
& Lyndhurst Bus Co., Inc. and Mountain Transit Corpora-
tion, have filed a motion to affirm the decree and judgment
of the District Court and a Statement against Jurisdiction.
Appellant in Opposition to the Motion to Affirm Filed
by the United States of America and the Interstate
Commerce Commission States the Following in
Respect to the First Issue:
The facts of the instant case are not disputed. Only
issues of law are involved.
It is the contention of the Appellant, a common carrier
of passengers by motor vehicle, that its use of the Lincoln
Tunnel, a vehicular tube between and connecting New York
City, N. Y., with Weehawken, N. J., as a route between the
aforesaid municipalities, is not in violation of the certifi-
cate of convenience and necessity issued to it by the Inter-
state Commerce Commission.
The Appellant contends as a matter of law, which con-
tentions are the sole issues herein, that such right or au-
thority to use the tunnel crossing accrued to it by virtue
of the express provisions of its certificate of convenience
and necessity. It also claims such right by virtue of its
filing an application for a change of route with the Inter-
state Commerce Commission, which application specifically
designated the Lincoln Tunnel and adjoining streets as the
route of travel between Weehawken, N. J., and New York
City, N. Y., and the resulting acts of omission and com-
mission of the Interstate Commerce Commission on said
application.
The Appellant’s said certificate designates the Appel-
lant’s route between Saranac Lake, N. Y., and New York
City, N. Y., via routes specified therein from Saranac Lake,
.
N. Y., to the intervening point of New Jersey Highway S5.
Said certificate continues as follows:
3
‘«* * * Thence over New Jersey Highway S 5, New
Jersey Highway 1, and unnumbered roads to Wee-
hawken, N. J., and thence across the Hudson River
to New York and return over the same route.”’
Appellant’s certificate was issued pursuant to Section
206(a) of the Interstate Commerce Act (Part II), col-
loquially known as the ‘‘ grandfather clause.’’ Said ‘‘ grand-
father clause’’ empowered the Interstate Commerce Coin-
mission to grant certificates of convenience and necessity
to interstate motor carriers who were engaged in service
on June 1, 1935, and had continuously thereafter remained
so engaged, subject to certain exceptions or provisions not
pertinent herein.
Appellant’s application for said certificate was made
January 31, 1936, and said certificate was issued by said
Commission, June 4, 1937, effective July 5, 1937. Prior
to the issuance thereof and on January 18, 1937, at an
informal hearing before an Interstate Commerce Commis-
sion representative authorized to conduct the same, an
amendment to the Appellant’s ‘‘grandfather’’ application
was accepted by and filed with the Interstate Commerce
Commission. The record discloses such filing and the Inter-
state Commerce Commission admits it. Almost five months
later said Commission issued said certificate of convenience
and necessity, the portion of which heretofore set forth,
is now in question.
The description of that portion of said certificate, ‘‘ Wee-
hawken, N. J., and thence across the Hudson River to
New York, * * *’’ is admittedly broad in scope. Broad
not in respect to designation of the termini points, but
broad only as to the designation of the manner of traversing
the Hudson River between Weehawken, N. J., and New
York City, N. Y. The Appellees contend and the District
4
Court held that this portion of said certificate is ambiguous,
and that it therefore follows that if said certificate is am-
biguous, then the said Commission has the right and the
power to interpret and construe its own order and cer-
tificate unless such interpretation or construction is erro-
neous or arbitrary. The Appellant agrees that the Com-
mission does have the power to interpret and construe its
own orders and certificates where the same are ambiguous,
and that its interpretation and construction is entitled to
great weight.
However, it logically follows that if said certificate is
not ambiguous, no interpretation or construction by the
Commission is necessary or proper. Appellant contends
said certificate is not ambiguous, and the same is not subject
to interpretation.
The only color of ambiguity that can be attached to
Appellant’s certificate is that it is broad in scope, and a
finding of ambiguity predicated on the ground that no par-
ticular manner or route of traversing the Hudson River
between Weehawken, N. J., and New York City, N. Y.,
has been designated, is unwarranted and illogical.
It is this interpretation of the Court that the Appellant
contends is arbitrary and erroneous. In issuing the cer-
tificate tec the Appellants, the route of the Appellants as
indicated in their original application over several hundred
miles of highway in the States of New York and New
Jersey was meticulously followed. The Commission being
cognizant of the proposed modification in the Appellant’s
routing between Weehawken, N. J., and New York City,
N. Y., issued a certificate which, in this area only, did not
meticulously follow the route specified in the Appellant’s
original ‘‘grandfather’’ application. In this immediate
area only did its certificate broaden the authority granted
to the Appellant. The purpose and intent of such grant
would appear to be obvious and not ambiguous.
g
5
However, although the Appellant denies that its cer-
tificate is ambiguous and thereby subject to the Commis-
sion’s interpretation, Appellant will assume for purpose of
argument that the certificate is ambiguous. Would then
the construction heretofore applied by the District Court
and the Commission be correct. Appellant submits that
such construction is arbitrary and erroneous. Overt acts
and actual conduct of the Commission are such as to compel
the Commission to interpret said certificate as authorizing
the use of the tunnel.
The record shows that when the original application
for a certificate of convenience and necessity was made
by the Appellant, pursuant to Section 206(a) of the Inter-
state Commerce Act (Part II), the Appellant’s route across
the Hudson River between Weehawken, N. J., and New
York City, N. Y., on June 1, 1935 was the West Shore
Railroad Ferry, and such route was so specified in the ap-
plication. Almost five months before the issuance of the
certificate, the Appellant filed with the Commission at the
aforementioned informal hearing, an amended ‘‘grand-
father’’ application requesting the use of the tunnel cross-
ing between New York City, N. Y., and Weehawken, N. J.,
on the opening thereof. Prior to the issuance of the cer-
tificate, the Commission had before it the Appellant’s origi-
nal ‘‘grandfather’’ application for a certificate and the
said amended application. The certificate so issued did
not specify the route as set forth in the original applica-
tion, but was couched in the broad language. ‘‘ Weehawken,
N. J. thence across the Hudson River to New York * * *.”’
That such broad description of route was given cannot
be attributed to mistake. The report of Division 5 of the
Interstate Commerce Commission said in respect to the
issuance of the certificate ‘‘Here, there is no question of
fraud, misrepresentation, or a certificate issued in error.’’
At no time has it been contended or held by the Court, the
Commission or the Appellees that there was fraud, mis-
G6
representation or mistake in the issuance of Appellant’s
certificate.
The intent of the Commission is further evidenced by
the fact that one day subsequent to the opening of the
tunnel to public and commercial vehicular use, Appellant
filed with the Interstate Commerce Commission on forms
prescribed by the Commission for such purpose an applica-
tion for change of route. The printed matter on said forms
advised that if application was not granted, applicant would
be sent proper forms in order to apply for a certificate
or a permit to extend operations. It is undisputed that
the Commission never forwarded any forms to Appellant.
The form on which application was made was prepared
by the Commission and furnished to applicants by virtue
of the Commission’s order dated May 17, 1937. Appended
to said form and printed thereon is an explanation. This
explanation contains the following words:
‘If the application is not granted the applicant will
be sent proper forms in order to apply for a cer-
tificate or permit to extend operations.”’
This explanation was, as appears from the record, a part
of the order of the Commission itself approved on the
aforementioned date.
What intent is disclosed by such action or non-action
on the Commission’s part? If the original intent had not
been te authorize the use of the tunnel crossing by the
Appellant’s certificate, the Commission would be obligated
to notify the Appellant to apply for a certificate or permit
to extend operations, particularly when by the wording of
their forms, they charged themselves with the duty of
giving uotice in event said application for change of route
was denied. On December 22, 1937, the day the Lincoln
Tunnel was opened for use, Appellant herein discontinued
its operations between New York City, N. Y., and Wee-
hawken, N. J., via the ferry and routed its operations be-
7
tween the aforesaid municipalities via the tunnel route, and
has operated daily and continuously through the tunnel
since the opening thereof.
The original complaint proceeding out of which the
issues herein arose, was not brought on the motion of the
Commission, but was instituted by some of the intervenors
herein by complaint dated January 15, 1940. While such
inaction on the part of the Commission might ordinarily
not reflect any tangible evidence of intention, viewed in the
light of the open and constant use of the tunnel by the
Appellant accompanied by the foregoing application for
change of route and ‘‘grandfather’’ amendment filed with
the Commission, creating the additional notice of record,
the ostensible acquiescence of the Commission to such opera-
tion, must constitute to a great degree a recognition of
lawful operation.
Further and strong evidence of intention is disclosed
by the following excerpt from the report of Division 5
wherein the following statement appears:
*‘On January 18, defendant (Appellant herein)
filed an amendment to its ‘grandfather’ application
and sought authority to operate through the tunnel
on its completion. On December 23, 1937, after its
certificate was effective, defendant filed a change-of-
route application in which it sought the right to cross
the Hudson River through the tunnel instead of by
using the ferry. Since the certificate theretofore
granted did not specify the means of crossing the
Hudson River, the use of the tunnel was not con-
sidered a violation of the terms of the certificate and
no action was taken on the application.’’ (Parentheses
and italics supplied.)
The Appellant contends the interpretation and construc-
tion of the Appellant’s certificate by the full Commission
in its opinion of June 6, 1944, which construction and inter-
pretation was affirmed by the District Court, is so violently
8
opposed to each and every overt act of the Commission, as
heretofore mentioned, that such construction and inter-
pretation is erroneous and arbitrary. The Appellant is not
alone in contending that the interpretation which it has
put on the certificate issued to it and the subsequent action
of the Commission with respect to the amendment of route
authorized its service via the tunnel is the proper one. It
should be significant at this point to call the Court’s atten-
tion to the fact that the Examiner before whom the matter
was tried considered the operation justified under the facts
and that he was supported in this conclusion by Division 5
of the Commission to which Division the matter was sub-
mitted on exceptions to the report and that on the full
Commission’s decision, four Commissioners dissented from
the Commission’s order overruling Division 5.
The Appellees contend that this is not a proceeding to
suspend, change or revoke a certificate as contemplated by
Section 212(a) of the Motor Carrier Act. But of what
moment is this argument when the effect of the order is
tantamount to a partial revocation, modification and
suspension of the authority granted to the Appellant by
the Commission’s certificate. The order of the Commission
construing the section of the certificate under consideration
here has stated that they will construe it to mean ‘‘from
Fairview over Fairview Avenue to North Bergen; thence
over Park Avenue; thence over Boulevard East to its inter-
section with Pershing Road (in Weehawken) ; thence over
Pershing Road to the 42nd Street Ferry of the West Shore
Railroad (in Weehawken) ; thence by ferry to New York.’’
This is certainly not the route specified in the certificate;
it is not the route specified in the application; it is not the
route specified in the amendment to the application. It is
in effect an attempt to restrict the Appellant’s routing in
an area where the Appellant enjoys a broader certificated
authority. It is not contended that the certificate issued by
the Commission to the Appellant was procured by fraud
9
or misrepresentation or issued by mistake. In the absence
of these faets the certificate itself should constitute the
Appellant’s authority. That which the Appellant is author-
ized by the certificate to do it should be able to do. That
which it may not do pursuant to the terms of the certificate
it is precluded from doing. The only authority for suspen-
sion, termination, revocation or amendment of a certificate
issued by the Interstate Commerce Commission is contained
in Section 312 of the United States Code (Section 212 of
the Motor Carrier Act):
**In the case of Smith Brothers, John C. Sandidge,
Receiver, Revocation of Certificate (MC 16670),
Vol. 33 Motor Carrier Cases 465, at page 472, the
Commission states as follows:
‘In our opinion, the language of the foregoing
section (Section 212 of the Motor Carrier Act) is
clear and definite and unmistakably shows that Con-
gress intended that a certificate, once effective, may
be terminated by us only on the conditions, and
according to the procedure, therein specifically pro-
vided. We may issue decision upon decision, and
order upon order, on an application for a certificate
so long as sufficient reason therefor appears and
until all controversy is determined, but once a cer-
tificate, duly and regularly issued, becomes effective,
our authority to terminate it is expressly marked off
and limited. Al! the antecedent decisions and orders
are essentially procedural in character, and may be
set aside, modified, or vacated, but the certificate
marks the end of the proceeding, just as the entry
of a final judgment or decree marks the end of a
court proceeding.’’ (Parentheses supplied.)
In issuing its cease and desist order here on appeal the
Commission has disregarded the express authority granted
by it to the Appellant. It has by such order attempted to
amend its pre-existing certificate. In effect, the theory
followed by the Commission has been to take the position
that the authority granted should not have been granted
10
and to take the position that despite the wording of the
authority contained in the certificate, the Commission would
effectively amend the same by its cease and desist order
and require the Appellant to return to the route followed
by it in its service on June 1, 1935. The cease and desist
order is an attempt to effect an amendment of the Appel-
lant’s certificate without fulfilling the requirements of Sec-
tion 312 of the United States Code. With what security
ean the public deal thereafter with a certificate. The
Appellant’s certificate plainly does not specify the ferry
and does not require the reversion by the Appellant to the
ferry as a means of crossing the Hudson River between
Weehawken and New York. Such a crossing is not speci- —
fied in the certificate. A stranger to the former service of
the Appellant upon reading the certificate could not realize
that any such limitation of street routings in Weehawken
as proposed by the Commission in its cease and desist order
was applicable to the Appellant’s certificate. If the de-
cision of the Commission is sustained, then the wording of
a certificate is of no moment since the determination of the
rights therein contained cannot be gleaned from the word-
ing thereof. Recourse must be had to history although the
certificate puts nobody on notice that it is not self-contained
and self-descriptive.
The Appellant’s certificate is most certainly not re-
stricted by its words to the highway and river crossing
used by the Appellant on June 1, 1935. This, however,
would be the effect of the enforcement of the cease and
desist order.
The Court’s decision in upholding the Commission’s
action which in this manner amends, suspends, terminates
and revokes in part the authority contained in the Appel-
lant’s certificate is inequitable and erroneous.
11
In Reply With Respect to Defendants-Appellees, United
States of America and Interstate Commerce Commis-
sion, Second Issue:
The Appellees urge that the Commission by virtue of
Section 206(a) of the Interstate Commerce Act is em-
powered to issue a certificate under that clause to a carrier
only if ‘‘any such carrier or predecessor in interest was
in bona fide operation as a common carrier on June 1,
1935, over the route or routes or within the territory for
which application is made and has so operated since that
time’’; and that since Appellant did not and could not
operate via the Lincoln Tunnel during the grandfather
period the Commission was not authorized under the
‘*erandfather’’ clause to grant operating rights over such
route.
However, the Commission does not subscribe to the
theory that the ‘‘grandfather’’ clause froze all activities
of interstate carriers to the exact route the carrier was
operating on the crucial day, June 1, 1935. The Appellant
strongly urges that the Commission has recognized the
distinction between an actual change in route and a devi-
ation or modification wholly within municipalities.
In making its change from the Ferry crossing to the
Lincoln Tunnel crossing of the Hudson River, the plain-
tiff was required to extend its route approximately seven-
tenths of a mile. This extension was wholly within the
Town of Weehawken, N. J. into which town the plaintiff
had received authority to operate.
The Commission’s general rule with respect to devia-
tions of routes by a carrier within a municipality is that
it is not concerned with such deviations. Only in excep-
tional cases where the deviations of routes within a munic-
12
ipality goes to the essence of the operation itself are they
concerned. In issuing the certificate to the Appellant they
did so without foreknowledge that approximately two years
thereafter they would make a determination that excep-
tional circumstances prevailed in the New Jersey area
adjacent to the Lincoln Tunnel. The Appellant’s certifi-
cate, therefore, should be considered as having been granted
under the provisions of the Commission’s general rule. It
is the Appellant’s contention that this is exactly what hap-
pened. No question of convenience and necessity in the
use of the Lincoln Tunnel was involved at the time of the
issuance of the certificate to the Appellant nor at the time
of the commencement of service by the Appellant through
the Lincoln Tunnel at the opening thereof. No specified
authority was required by the Appellant to make this
change from the ferry crossing to the tunnel crossing be-
tween Weehawken, New Jersey and New York City, New
York. As long as the Appellant had the authority to
cross the Hudson River from Weehawken, N. J. to New
York City, N. Y., it could use any river crossing which
travelled between said two points.
In White Horse Pike Bus Company, Incorporated, Com-
mon Carrier Application (No, MC 1973) 2 Motor Carrier
Cases 79 at page 80, Division 5 in granting a certificate to
an interstate bus line, stated as follows:
‘*Various streets within Philadelphia, Camden,
Absecon, Pleasantville, and Atlantic City are in-
cluded in the description of regular routes in the
application. We are not concerned here with the
routes traversed within municipalities or with the
routes over which applicant operates between ad-
joining municipalities. Camden adjoins Philadel-
phia, Absecon adjoins Pleasantville, and Pleasant-
ville adjoins Atlantic City. The routes between
Camden and Philadelphia, Absecon and Pleasant-
ville and Pleasantville and Atlantic City need not
be specified in any certificate granted herein.’’
13
In the foregoing case a certificate not limited as to street
routings within large cities such as Philadelphia, Pa.,
Camden, N. J. and Atlantie City, N. J. was granted for a
bus operation under a ‘‘grandfather’’ application. This
case was submitted March 6, 1937 and decided May 26,
1937.
It is significant to note that even though the applicant
here specified in the description in its application streets
within Philadelphia, Pa., and Camden, N. J., two very
large communities, one of which is the third largest city
in the United States, the Commission as of the date of
this petition between such points did not concern itself
with the street routings.
In Nevin Midland Lines, Common Carrier Application
(MC 18975), 4 MCC 547, Division 5 in issuing a certificate
on the ‘‘grandfather’’ application for an omnibus carrier,
stated:
‘*We have considered the record and find that
the examiner adequately stated that facts in the
following report which accompanied his recommended
order, although we take occasion to add that his
statement of the doctrine that the Commission is
not concerned with routes traversed within munici-
palities must be read in the light of the routes here
considered and is therefore not to be accepted as a
precedent for use in any case in which the routes
within municipalities constitute the very essence of
the operation or at least assume greater importance
than here. We express no opinion as to what our
decision might be in those circumstances.’’
The statement of the Examiner referred to as to the
Commission’s doctrine with respect to routes traversed
within municipalities, 4 MCC 550, is as follows:
‘*Various streets in the cities on the claimed
routes are described in the application, as amended.
The Commission is not concerned with routes tra-
versed within municipalities, and such streets need
not be specified in any certificate granted herein.’’
14
Some of the cities involved in the application passed
upon were New York, N. Y., Washington, D. C., Jersey
City, N. J., Newark, N. J., Elizabeth, N. J., Trenton, N. J.,
Philadelphia, Pa., Baltimore, Md., New Brunswick, N. J.,
and Pittsburgh, Pa.
The Nevin Midland Lines case was submitted Decem-
ber 24, 1937, decided February 28, 1938, and it is significant
to note that the operations included service between New
York City, N. Y., and Jersey City, N. J., through the
Holland Tunnel. As of such date, therefore, the Commis-
sion did not consider the delineation of streets within a
large New Jersey City connected by tunnel with New York
City, as a necessary part of the certificate.
The certificate of the Appellant was issued June 5,
1937, effective July 5, 1937. We, therefore, see that in
May, 1937, a few months prior to the issuance of the cer-
tificate to the Appellant the delineation of street routes
between the large communities of Philadelphia, Pa., and
Camden, N. J., was not considered of sufficient importance
to be included (White Horse Pike Bus Company, Incor-
porated) and as of a date a year and a half after the cer-
tificate was issued to the Appellant, the Commission was
still of the opinion that the delineation of streets in a cer-
tificate authorizing service between New York City, N. Y.,
and Jersey City, N. J., was not of its concern (Nevin Mid-
land Line).
Even in the case of Lincoln Tunnel Applications, sub-
mitted December 8, 1938, decided March 10, 1939, 12 Motor
Carriers Cases 184, at page 198, in referring to the service
within the Borough of Manhattan, City of New York, in
connection with applications for the use of the Lincoln
Tunnel between New Jersey and New York, Division 5
stated:
**It becomes relatively unimportant, therefore, as
to which routes the operators traverse within the
bE =e
15
terminal area in Manhattan, and in view of the fact
that there is a measure of control by the city over
the use of its streets, there appears to be no necessity
for designating the routes within Manhattan.”’
The Commission in the Lincoln Tunnel Applications,
however, found it necessary to make a complete designa-
tion of routes within the New Jersey territory involved
therein. It is, therefore, only as a result of a determination
made a year and a half subsequent to the effective date of
the Appellant’s certificate that the Commission made a
determination that street routings in the New Jersey ter-
ritory specified in the Lincoln Tunnel Application case was
a matter with which they were concerned.
It does not appear plausible nor equitable, therefore,
that the Appellant’s certificate which had been in effect
since July 5, 1937, should be subject to the subsequent ex-
ceptional determination requiring street routings in such
New Jersey territory.
See also:
Cincinnati, Newport and Covington Rwy. Co., Com-
mon Carrier Application, 30 M. C. C. 423 at
page 440 et seq.
Therefore, the change made by the Appellant from the
ferry to the tunnel, was, in the light of the foregoing cases
a deviation or modification of route, and not a change of
route repugnant to the ‘‘grandfather’’ clause according to
the rulings of the Commission which deviations were of no
concern to the Commission. Any attempt to apply the
findings of the Lincoln Tunnel Applications, is tantamount
to affecting a retroactive determination inconsistent and
contrary to the existing law at the time of the opening of
the Lincoln Tunnel to vehicular traffic and the use thereof
by the Appellant’s omnibuses.
16
The Appellees advance a lesser argument that the
**District Court observed that the Appellant’s certificate
did not authorize transportation under, but merely ‘across’
the river.’’ Webster’s Unabridged Dictionary defines
‘facross’’ as follows: ‘‘From side to side; opposed to
along; crosswise; transversely from one side to another.’’
From the aforegoing definition it is obvious that ‘‘across’’
is extremely broad in meaning. It is difficult to contend
that a sufficient limitation of meaning can be attached to
this word so as to determine the manner by which the Appel-
lant may traverse the Hudson River.
It is significant to note in this respect also that the
Commission itself in referring to the Lincoln Tunnel refers
to it as a river crossing. The Court states in its opinion
that the certificate authorizes transportation ‘‘merely
across the river’’ and indicates that this does not, in their
opinion, authorize service across via the tunnel. Would
their contention likewise be that the George Washington
Bridge does not go across the river? The Commission
itself in Lincoln Tunnel Applications, 12 M. C. C. 184 at
page 187 states as follows:
**In 1937 the Holland Tunnel and George Wash-
ington Bridge, port authority crossings handled ap-
proximately 13,000,000 and 8,000,000 vehicles respec-
tively and the ferries carried over 13,000,000"’
(Italics ours.)
and again on the same page:
‘tin 1937 there were nearly 1,000,000 bus crossings
of the George Washington Bridge and Holland
Tunnel and it was estimated that there would be
300,000 bus crossings of the Lincoln Tunnel in 1938,”’
(Italics ours.)
It, therefore, appears that the Commission finds the bridge,
the tunnel, and the ferries as all river crossings.
aa eae
17
In Reply With Respect to Defendants-Appellees United
States of America and Interstate Commerce Com-
mission, Third Issue:
Appellees’ third issue deals with the change-of-route
application filed by the Appellant with the Interstate Com-
merce Commission on December 23, 1937, on forms pre-
scribed by the Commission, which filing was made one day
subsequent to the opening of the tunnel.
A true copy of said application is as follows:
B. M. C. 70 M. C.
INTERSTATE COMMERCE COMMISSION
Bureau or Moror Carriers
APPLICATION FOR CHANGE OF ROUTE
Name Aprronpack Transit Lines, Inc. dba
Address, 241 W. 42nd Street, New York City, N. Y.
O.p Route: Between Weehawken, N. J. and New York
City, N. Y. as follows: via 42nd Street Ferry.
New Route: Between Weehawken, N. J. and New York
City, N. Y. as follows: via Lincoln Tunnel.
Nore. The only modification in route applied for herein
concerns the manner of traversing the Hudson River be-
tween New York and New Jersey and a slight alteration
of street routes within the limits of Weehawken, N. J. and
New York City, N. Y. There is no substantial change in
service between the terminal points or to and from inter-
mediate and off route points, and no question of public con-
venience and necessity as set out in Section 207 of the Motor
Carrier Act or consistency with the public interest and
18
policy as set out in Section 209B of said Act. No additional
towns, cities or villages are served under the amended
and none are deprived of service by reason of said amend-
ment. The motor carrier’s application for certification
stated its intention to use the Lincoln Tunnel upon its
completion.
No map, specifically outlining both routes, is submitted
with this application by reason of the foregoing.
A copy of this application was served, in person or by
registered mail, upon all known direct competitors by
motor vehicle, rail, or water as follows:
None.
A copy of this application was filed with the following
State Boards having jurisdiction over motor-carrier oper-
ations along the old and new route:
Public Service Commission, State Office Building, Albany,
Board of Public Utility Commissioners, Trenton, N. J.
(Verified December 21st, 1937)
(Signed) Martin J. Kerry, Jr.,
Secretary.
ORDER
At a Session of the Interstate Commerce Commission, Di-
vision 5, held at its office in Washington, D. C., on the
17th day of May, A.D. 1937.
Iw toe Marrer or Appiications ror CHANGE oF
AvuTHoRIzED Route
The matter of applications under the above title being
under consideration :
Ir 1s orperED, That applications for change of route au-
thorized under the Motor Carrier Act, 1935, shall be in the
19
form and contain the information called for in the form of
application attached hereto and made part hereof.
Ir 18 FURTHER ORDERED, That the verified original appli-
cation and one copy thereof shall be filed with this Com-
mission, and that one copy shall be delivered in person or
sent by registered mail to the Board, Commission, or official
of each State in which applicant operates (or to the Gov-
ernor where there is no Board, Commission, or official)
having authority to grant or approve certificates or per-
mits authorizing motor carrier operations in intrastate
commerce, and that one copy shall be served, in person or
by registered mail, upon each motor carrier and each car-
rier by rail or water, known to the applicant, with whose
service the operations described in such application are or
will be directly competitive.
By the Commission, Division 5.
W. P. Barret,
(Seal) Secretary.
EXPLANATION
A motor carrier engaged in transportation requiring a
certificate or permit from this Commission may secure
permission to make a change of route without complying
with section 207 or section 209(b), and without the formal-
ity of a hearing, if the change of route satisfies the follow-
ing two requirements:
(1) The change in use of highways must not amount
to any substantial change in service between the
terminal points, or to and from intermediate and
off-route points.
(2) The change in route must not involve any question
of public convenience and necessity as set out in
20
section 207, or consistency with the public inter-
est and policy as set out in section 209(b).
If the application is not granted, the applicant will be
sent proper forms in order to apply for a certificate or per-
mit to extend operations.
Appellant stated in said application that no question
of public convenience and necessity or consistency with the
public interest and policy was involved. This statement
was true since the Appellant was making a deviation in
the route traversed by it within the scope of authority
contained in its certificate. It was filed pursuant to the
provisions of the order of the Commission dated May 17,
1937, heretofore set forth in its entirety.
The attention of the Court is directed to the last para-
graph of the ‘‘Explanation’’ wherein the following is
stated:
‘If the application is not granted, the applicant
will be sent proper forms in order to apply for a
certificate or permit to extend operations.’’
As recited in the Appellees’ brief the Commission never
took any action with respect to this application. No forms
were ever sent to the Appellant. Did the admitted non-
action on the part of the Commission convey any rights
to the Appellant? It would logically follow that if the
Appellant already had the right to use the tunnel, such
application, if effective, could not grant a right already
vested in the Appellant. If, however, the Appellant had
not acquired a right to use the tunnel by December 23,
1937, it is the Appellant’s claim that the right to use the
tunnel was given to the Appellant by virtue of the filing
of said application with the Commission. The Appellant
has made a diligent search for legal precedent pertinent
to this issue, but believes that none exist. The Appellant
, amas
respectfully urges that Union Stockyard v. U. S., 308 U. 8.
213, cited by Appellees is not applicable here.
21
The Commission saw fit to make a declaration whereby
it succinetly informed the public that in the event that the
application was not granted, applicant would be sent proper
forms.
By such explanation the Commission made known the
manner by which it would administer the disposition of
applications for change-of-route. It is submitted that the
Commission saw fit to adopt a particular method for the
granting or denying of this application, and that by reason
thereof, its silence or inaction was its manner of granting
said application. This is the only equitable construction
that can be given.
Conclusion With Respect to the Motion to Affirm by
Appellees United States of America and Interstate
Commerce Commission:
Appellant in conclusion respectfully submits that it has
the right or authority to use the Lincoln Tunnel as a
means of travel between Weehawken, New Jersey, and
New York City, New York; that such authority was granted
by the certificate of convenience and necessity issued to it
by the Interstate Commerce Commission. That the in-
terpretation and construction given to its certificate by the
Commission and the District Court were arbitrary and
erroneous. That in the alternative, if the authority for
such means of travel is not granted by its certificate, then
it can be found that the Appellant’s change to the tunnel
crossing was a deviation not tantamount to a change of
route in violation of its certificate but was a deviation
which the Commission was not concerned with, or in the
further alternative, that if it be found that the Appellant
had no authority or right to use the tunnel crossing, then
22
such right was granted by the Commission to the Appellant
by reason of the filing of the application for a change of
route.
No statement against jurisdiction was made by the De-
fendants-Appellees, United States of America or Interstate
Commerce Commission.
With the exception of the statements against jurisdic-
tion, made by the Intervenors-Appellees—the issues and
contentions respectively raised and advanced are substan-
tially the same as those covered in the brief of the United
States of America and the Interstate Commerce Commis-
sion and a further discussion of the same would be merely
repetition and would serve no purpose.
However, the brief of the intervenors attacks the juris-
diction of the Court. The Appellant will stand on the
substantiality of the questions involved herein as now
set forth in its jurisdictional statement. However, for a
further but brief comment on the question herein, it is
respectfully submitted that in the Appellant’s opinion, al-
though numerous citations and decisions of this Court are
set forth, not one is controlling. That the questions in-
volved are novel and highly debatable is best illustrated
by a concise history of the matter. The Examiner before
whom the original proceeding was instituted, found the
Appellant’s use of the tunnel was lawful; Division 5
affirmed; and the full Commission, on reconsideration, re-
versed the finding as to the tunnel operation with four
Commissioners dissenting. The statutory Court although
a per curiam decision, did not cite one case in support of
its decision.
Selanne
23
The purported authorities cited by the Appellees in
their motion to affirm are inapplicable or in instances where
they have any application to the issues involved herein are
more helpful to the Appellant than to the Appellees. The
case of Noble v. United States, 319 U. S. 88; Crescent Ex-
press Lines v. The United States, 320 U. S. 401; United
States v. Maher, 307 U.S. 148 are decisions of this Court
upholding the action of the Interstate Commerce Commis-
sion in imposing terms and conditions on the granting of
a certificate or denying application for a certificate. The
Appellant does not contend that the Commission lacks the
power to restrict or deny an application but this is not a
proceeding to acquire a certificate. This is a proceeding
to utilize a certificate in accordance with its terms. The
eases of Alton Railroad Company v. United States, 315
U. 8. 15 and United States v. Carolina Freight Carriers
Corporation, 315 U. 8. 475 are more helpful to the Appel-
lant than to the Appellees. For each of these cases in
fact hold, at least in part, that the Commission may au-
thorize a greater authority under a ‘‘grandfather’’ appli-
eation than the activity on the effective ‘‘grandfather’’
date would have justified. The Lincoln Tunnel Application
case itself, 12 M. C. C, 184, was an instance in which certain
operators sought certificates. The Commission could and
did require before the granting of such certificates the
establishment of the requisite proof warranting the issue
thereof. Pennsylvania Greyhound Lines, Inc., Lincoln
Tunnel Route, 30 M. C. C. 333, was wholly inapplicable as
the change of route in this case required the carrier to
traverse communities not theretofore served.
The Appellant’s certificate was granted to it pursuant
to Section 306 of the United States Code. There is no
provision in this section which requires a certificate to
specify by specific routing the authority granted to a pas-
senger carrier by motor vehicle. It is true that Section 307
which is not pertinent to this ‘‘grandfather’’ application
24
has such a requirement. The Appellant’s certificate was
not issued pursuant to Section 307. Authority is therefore
existent for a certificate on a ‘‘grandfather’’ application
for passenger carriers in which the specific routing might
not be specified provided the territory is set forth. No
new or different communities are involved in the Appel-
lant’s operation through the tunnel than were involved in
their operation via the ferry. Insofar as a ‘‘grandfather’’
certificated operator may be required to submit to the Com-
mission proof of public convenience and necessity before
the Commission may be authorized to grant authority for
service other than that in which the applicant was spe-
cifically engaged on the effective date of the ‘‘grandfather’’
clause, the Commission in this case was not lacking in such
proof.
At the informal conference called by the Interstate
Commerce Commission in support of the Appellant’s ap-
plication for a ‘‘grandfather”’’ certificate the Appellant’s
president stated that the use of the Lincoln Tunnel would
afford a quicker, safer route for crossing the Hudson River.
This could constitute sufficient evidence of public con-
venience and necessity to justify any extension of authority
by the Commission to the Appellant.
Conclusion With Respect to the Motions to Affirm and
Statements Against Jurisdiction Filed by Defend-
ants-Intervenors-Appellees—Hudson & Manhattan
Railroad and Manhattan Coach Line, Inc., Et AL:
Appellant adopts the conclusion heretofore stated in
respect to the Defendants-Appellees, United States of
America and Interstate Commerce Commission and urges
that this Court find that the questions involved herein are
substantial.
—
29
-
CONCLUSION
Wherefore, Appellant Respectfully Prays That the Mo-
tions Filed by Appellees Herein Be Denied and That
the Statements Against Jurisdiction Be Dismissed.
Respectfully submitted,
Martin J. Kewty, Jk.,
Counsel for Appellant,
Office and Post Office Address,
70 Pine Street,
Borough of Manhattan,
City of New York.
Cianence E. Horny, Jr.,
Of Counsel.
26
Certificate of Service
I hereby certify that I have this day served a copy of
the foregoing document upon the following attorneys of
record in this proceeding by mailing by first class mail a
copy thereof properly addressed to each of said following
attorneys:
Ne.tson THomas,
Interstate Commerce Commission,
Office of Chief Counsel,
Washington 25, D. C.
Henry P. Goipstern,
1450 Broadway,
New York 18, N. Y.
Joun F. Friyyerry,
120 Broadway,
New York 5, N. Y.
LeLanp TALIAFERRO,
80 Park Place,
Newark, New Jersey.
Joun F. X. McGouey,
United States Attorney,
United States Courthouse,
New York, N. Y.
Epwarp DumBaLp,
Special Assistant to the Attorney General,
Department of Justice,
Washington 25, D. C.
Dated at New York, N. Y., this 20th day of February,
1945.
Martin J. Ketty, Jr.,
Counsel for Appellant,
Adirondack Transit Lines, Inc.
This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.