CARRIERS - MOTOR CARRIER ACT - CONTRACT CARRIER PERMITS UNDER THE "GRANDFATHER CLAUSE"

The Rosenblum Truck Lines and Manhattan Truck Lines applied to the Interstate Commerce Commission for contract carrier permits under the so-called "grandfather clause" of the Motor Carrier Act of 1935. Prior to July 1, 1935, the applicants hauled only for common carriers by motor vehicle and, in each case, principally for a single common carrier. The freight so handled was always solicited by a common carrier and accumulated at its terminal. The applicants carried only the overflow freight, employing their own insurance and paying their own operating and maintenance costs.

The Interstate Commerce Commission's finding that the applicants' equipment was operated under the direction and control of the common carriers was held to be unsupported by the evidence in the lower court. Held, applicants are not entitled to permits because they are not contract carriers within the meaning of the act. United States v. N. E. Rosenblum Truck Lines, 315 U.S. 50, 62 S. Ct. 445 (1942).