Thanks for visiting! Welcome to a new way to research case law. You are viewing a free summary from Descrybe.ai. For citation and good law / bad law checking, legal issue analysis, and other advanced tools, explore our Legal Research Toolkit — not free, but close.
United States v. Contract Steel Carriers, Inc.
Citations: 100 L. Ed. 2d 482; 76 S. Ct. 461; 350 U.S. 409; 1956 U.S. LEXIS 1665Docket: 102
Court: Supreme Court of the United States; March 12, 1956; Federal Supreme Court; Federal Appellate Court
The Interstate Commerce Commission (ICC) appeals a district court decision that reversed its order to cease operations against Contract Steel Carriers, which operates as a common carrier by motor vehicle. The appellee has licenses for transport services around Chicago, Houston, and St. Louis, primarily for steel articles and materials used in highway construction, excluding cement, rock, sand, and gravel. Between 1951 and 1954, Contract Steel Carriers secured 69 contracts to serve shippers, all filed with the ICC, with no allegations of violating license restrictions or contract terms. However, the ICC found the company had presented itself as a common carrier through advertising that failed to clarify the nature of its services, which was discontinued after the ICC's scrutiny. The Commission cited aggressive sales tactics and a dedicated employee for traffic solicitation as evidence of the company holding itself out to the public. The ICC concluded that the rapid expansion of contracts indicated a pattern of indiscriminate solicitation, which contravened the standards for contract carriers, defined as needing to provide specialized services under individual contracts. The court found that, despite aggressive solicitation, the company operated within license limits and specialized in transporting limited types of steel products under ongoing contracts with a small number of shippers. The court affirmed the district court's ruling, stating that the ICC's order lacked evidential support and misapplied the definitions of contract and common carriers as outlined in 49 U.S.C. § 303. It clarified that a common carrier is one that offers services to the general public, while a contract carrier operates under individual agreements. The ruling allows contract carriers the freedom to seek new business within their licensed scope without being classified as common carriers.