sions limiting their service on commodities which could be damaged by exremes in temperature when they do not have the equipment to transport them safely. The Commission, in another investigatory rulemaking proceeding,22 enlarged by five percent the operational circuitry reduction that regular route common carriers of property will be allowed when conducting their trucking operations. The carriers may now deviate from their regularly prescribed routes between two points when the mileage savings does not exceed 20 percent of the total. Previously, as a general rule, they could deviate only when the savings did not exceed 15 percent. The Commission noted that the modifications will have a number of significantly beneficial economic and environmental impacts. Allowing regular-route motor common carriers to reduce their over-the-road operating mileages to the extent contemplated by the rule changes will enable them to effect substantial overall economies, including fuel savings, in the services they perform. This will redound ultimately to the benefit of the public in the form of improved and less expensive transportation service. The Common Carrier Conference-Irregular Route sought modification of the Commission's leasing regulations to preclude the trip leasing of equipment (with drivers) by shipper-affiliated motor contract carriers to regulated motor carriers following movements by the former for their shipper affiliates. It was petitioner's position (1) that as a consequence of the Commission's liberal policy toward applications for motor contract carrier authority, such authority was increasingly sought by affiliates of shippers that simply transferred their existing fleets to the new carrier; (2) that many of the nation's private carriage fleets were thus being converted to contract carriage; (3) that such conversions were in many cases prompted only by a desire on the part of private carriers to circumvent the regulation that precludes leasing private carrier equipment for a period of less than 30 days; and (4) that the resulting inequitable situation was becoming more intolerable with each such conversion. In denying the petition the Commission found (a) that regardless of benefits that might be derived from such modification, the country is in a state of uncertainty insofar as energy costs and supplies are concerned and the potential benefits of modification are overshadowed by the public interest in having the equipment of all motor carriers fully utilized at this time; and (b) that adoption of the proposal would merely "Enlargement of Operational Circuity Reduction, 121 M.C.C. 685. forbid carriers from doing that which they now are free to choose not to do, i.e., lease equipment. 23 In another proceeding 24 the issue was whether shipments of fresh fruit made by an exempt agricultural cooperative association on an F.O.B. origin packinghouse basis to nonfarmer consignees such as wholesalers, jobbers, and chainstores constituted "member transportation" within the meaning of that term The Commission found that (1) an association which operates packinghouses at which fresh citrus fruits are cleaned, graded, and packaged for distribution qualifies for membership in an exempt agricultural cooperative association; (2) the effect. of a somewhat parallel decision by the Commission in 1967 (105 M.C.C. 100) was not changed by the Congress when it amended section 203 (b) (5) in 1968; and (3) whether shipments are made on an F.O.B. origin or destination basis is not conclusively determinative as to when the section 203 (b) (5) exemption for "member transportation” applies. General Rules of Practice and Procedure In two Ex Parte proceedings the Commission acted to bring its discovery practices into substantial conformity with the Federal Rules of Civil Procedure (FRCP). In the first proceeding 25 the Commission, while adopting the FRCP as a basic framework, concluded that a variety of administrative considerations necessitated limited modification. To prevent the use of unlimited depositions as a delaying tactic, parties still must seek a procedural order on showing of good cause. Further, FRCP provisions for the mental or physical examination of parties have been eliminated as beyond the scope of Commission proceedings. In what is no doubt the most significant departure from current practices, the use of written interrogatories and requests for admissions will no longer be conditioned on a prior petition and showing of good cause. In the companion rulemaking decision,26 action was taken to buttress the discovery protection mandated in Schaeffer Extension-New York City, 106 M.C.C. 100. Now, certification of additional shippers will not be permitted later than 30 days prior to an oral hearing or, in hearings by modified procedure, not later than 30 days before protestants' evidence must be filed. Further, no applicant will be permitted to utilize more than twice the number of shippers certified with the filing of the application. Lease and Interchange of Vehicles-Contract Carriers, 121 M.C.C. 714. "Sunkist Growers, Inc., Declaratory Order, 121 M.C.C. 448. General Rules of Practice (Discovery Rules), 346 I.C.C. 603. 25 General Rules of Practice-Rule 247, 120 M.C.C. 670. In the same proceeding, the Commission also adopted a rule which prohibits the introduction of restrictive amendments shortly before or during oral hearings. In so doing, the Commission declared that settlement by the parties through the use of such amendments is inimical to the Commission's role as adjudicator of the public interest, necessity, and convenience. Commercial Zones The Commission redefined a commercial zone in Commercial Zones and Terminal Areas (Urban Government of Lexington and Fayette County, Ky.), 119 M.C.C. 853 (1974), and enlarged another in Kansas City, Mo.-Kansas City, Kans. Commercial Zone, 120 M.C.C. 556 (1974), during the past year. Evidence Several recent decisions have concerned an applicant's presentation and the evidence needed to meet its burden of proving a public need for a proposed service. The Commission found 27 that where the applicant has failed to (1) indicate the volume of shipments, (2) specify the portion of shipments which would be tendered to applicant, (3) indicate the carriers which the shippers are presently using in these operations, or (4) submit information concerning service deficiencies by these carriers, then the applicant has failed to establish a prima facie case for a grant of authority. In the area of the relevance of, and degree of weight to be given to, the evidence presented, there have been several recent rulings. It was held that the ethnic origin of parties to Commission proceedings is not relevant to the issue of whether the public convenience and necessity require approval of a service proposal.28 In the Acme case, supra, shipper testimony concerning intrastate service needs was found entitled to little weight. However, evidence of intrastate service needs was considered where a grant would enable a carrier to meet both inter- and intrastate requirements.29 Also in the Kain case, supra, some weight was accorded the possibility that increased carrier competition as a result of a grant might bring about an improvement in service. The Commission reaffirmed the general principle that shipper expressions of a mere desire for additional service are entitled to little weight absent a showing of inadequacy of existing service.30 28 Acme Cartage Company, Extension-General Commodities, 120 M.C.C. 262. O-J Transport Company, Com. Car. Applic., 120 M.C.C. 699. 20 Kain's Motor Service Corp., Ext.-Walton, Inc., 120 M.C.C. 160. 30 P. C. White Truck Line, Inc., Ext.-Atlanta, Ga., 120 M.C.C. 824. MOTOR CARRIERS OF In contrast to strong fiscal and calendar 1974 performance, fiscal 1975 reflected the combined impacts of inflation and the general economic recession on the intercity bus industry. In the first quarter of calendar 1975, traffic of the largest class I carriers was off substantially, about 12 percent, for both regular route and charter services, and revenues were down appoximately 2 percent. Uncertainty with guarded optimism marks the outlook for fiscal 1976. In addition to the uncertain direction of the economy in general, threats of another fuel shortage, and the potential impact of bicentennial activities on traffic, there are several areas of recent and/or pending legislation which could also affect the industry. Some examples include recent Amtrak funding, excise tax reductions and increased investment tax credits, establishment by the Urban Mass Transportation Administration (UMTA) of guidelines for provision of charter service by Federally financed 'transit operators, proposed rural transportation improvement measures, possible rescinding of "Monday holidays," and "intermodal terminal" demonstration projects. However, recent upturns in several general economic indicators, potential bicentennial travel, and an apparent slight increase in bus traffic in the last few weeks of fiscal 1975 provided some basis for optimism for the year ahead. Rates 31 A number of investigations were pending at the end of the fiscal year regarding increased passenger fares for intercity commuter bus operations. In order to properly develop the records in these proceedings the Commission has made its Bureau of Enforcement a party to the investigations. The rules and regulations adopted in Adequate Notice and Furnishing of Data to the Public of Proposed General Increases in Freight "No. 36025, Commutation Fares, Rockland Coaches, Inc. and No. 35976, Commutation Fares, Hudson Transit Lines, Inc. Both of these cases are pending before the Commission on exceptions filed to the initial decisions by Administrative Law Judges. Rates and Passenger Fares, supra, include the following provisions: required posting of notices in two conspicuous places in each vehicle; justification statements must be available to riders; the number of copies of protests filed with the Commission reduced from seven to one; and broader dissemination of notice and justification statements to communities served by the carrier. These rules along with the Commission's policy of closely scrutinizing passenger fare increases should improve the Commission's regulation of passenger fares through broader public participation in the regulatory process. Operating Rights The Commission's new regulations concerning limitations on free baggage allowances by motor passenger carriers became effective June 2, 1975. Under these regulations, no motor passenger carrier may limit its liability for loss or damage to checked baggage to an amount less than $250 per adult ticket. In order to aid carriers in recovery of lost baggage and to minimize the extent to which they may realize increased costs as a result of this higher minimum liability limitation, the regulations also require that all checked baggage be identified by the passenger with a luggage tag indicating a name and address to which the baggage should be forwarded if it should be lost and subsequently recovered. Also, the regulations require that reasonable notice of the liability limitations and the identification requirement be afforded to passengers by the posting of signs in appropriate locations and that all passengers have a reasonable opportunity to declare excess valuation on their baggage at the time baggage is checked.32 As a related matter in a separate complaint proceeding, two complaints against the pre-existing liability limitations were dismissed because the new regulations effectively dispose of all the future relief sought, the considerations regarding the identification requirement militate against retrospective application of the higher minimum liability limitation, and the Commission is without jurisdiction to adjudicate loss and damage claims on their merits.33 In the latter connection, it was noted that the Commission's legislative recommendations in Loss and Damage Claims, 340 I.C.C. 515, 577 (1972), have not yet been accorded favorable action in Congress. Another major rulemaking development deals with the operations and practices of passenger brokers which are affiliated with motor carriers. The fundamental issues have been before the Commission for some time in connection with certain applications by carriers involved in such 32 Limitation of Free Baggage Allowance-Greyhound, 120 M.C.C. 719. 33 Herrera v. Greyhound Lines, Inc., 121 M.C.C. 73. |