Patton v. Administrator of Civil Aeronautics

• Decision Date: 17 June 1953
• Docket Number: No. 7252.,7252.
• Citation: 112 F. Supp. 817
• Parties: PATTON v. ADMINISTRATOR OF CIVIL AERONAUTICS et al.
• Court: U.S. District Court — District of Alaska

112 F. Supp. 817

PATTON v. ADMINISTRATOR OF CIVIL AERONAUTICS et al.

No. 7252.

District Court, Alaska Fourth Division, Fairbanks.

June 17, 1953.

Maurice T. Johnson, Fairbanks, Alaska, for plaintiff.

Robert J. McNealy, U. S. Atty., Fairbanks, Alaska, for defendants.

PRATT, District Judge.

(a)(1) This is an action of a civil nature, brought to enjoin the enforcement of a regulation issued by the Administrator of Civil Aeronautics and filed December 11, 1951, which regulations are contained in Title 14, Civil Aviation, Chapter II, Civil Aeronautics Administration, Department of Commerce, Part 580, Anchorage Airport and Fairbanks Airport, and which regulation was published in the Federal Register December 12, 1951, Volume 16, No. 240, on page 12497.

This action arises under, and involves the interpretation of, Section 580.13 of said regulation, which regulation was issued on the basis of Sections 4 and 8 of the Alaska Airports Act, 62 Statutes 278, 48 U.S.C.A. § 485 et seq., and the said Section 580.13 dealing with taxicabs is in words and figures as follows:

"Sec. 580.13 Taxicabs. (a) Except as otherwise expressly permitted by the Administrator, no person shall operate any taxicab or other vehicle carrying passengers for hire from the airport unless he is the holder of an appropriate permit issued by the Airport Manager.

"(b) Except as otherwise permitted by the Airport Manager, no person shall park on the airport any taxicab or other vehicle used for the purpose of carrying passengers for hire, except for the purpose of discharging passengers, unless he is the holder of an appropriate permit issued by the Airport Manager.

"(c) No person shall, within the boundary of the airport, solicit or invite persons to ride in any taxicab or other vehicle used for the purpose of carrying passengers for hire, by driving slowly past loading entrances to airport buildings, by committing other acts, or by uttering words which are calculated to induce persons to engage such taxicab or other vehicle, unless such activity is carried on with the express approval of the Airport Manager and under such terms and conditions as he may prescribe.

"(d) Any person desiring the approval of the Airport Manager to operate on the airport a taxicab or other vehicle used for the purpose of carrying passengers for hire, shall file a written application with the Airport Manager for a permit. Such Application shall contain the following information:

"(1) Applicant's name and address;

"(2) Make, model and license number of the vehicle the applicant desires to operate on the airport;

"(3) Description of all permits and licenses applicant holds governing the operation of the vehicle, with the serial or other identification numbers of such permits;

"(4) A list of all the public liability insurance policies carried by the applicant, with their serial or other identification numbers of the policies, the names of the insurance companies who issued them, and their expiration dates.

"Upon receipt of such an application, the Airport Manager may issue a permit authorizing the holder thereof to operate a taxicab or other passenger-carrying vehicle for hire on the airport. Such permits shall be revocable at any time in the sole discretion of the Airport Manager."

The plaintiff is engaged in the operation of a bus service for the benefit of tourists who come to Alaska, and who arrive at the Fairbanks International Airport with bus transportation paid for at various places in the United States where the tourists buy their original tickets. The transportation on the plaintiff's busses and limousines is sold weeks and months ahead of time and is contracted for at many points throughout the United States wherever tourist tickets are sold. These tours include Arctic Coast Tour, of Wien Alaska Airlines, Arctic Alaska Tours, Yukon Valley Tours of Wien Alaska Airlines, and the like. Consequently the services of the plaintiff as operator of bus transportation and limousine service to and from the Fairbanks International Airport is all contracted for ahead of time and constitutes part of a general tourist service.

On or about the 5th day of August, 1952, the plaintiff received from U. M. Culver as Director of the Alaska Air Terminals Division, one of the defendants herein, a letter which is in words and figures as follows:

"Department of Commerce "Civil Aeronautics Administration "P. O. Box 440 "Anchorage, Alaska "August 5, 1952 "Mr. E. Patton "c/o Arctic Alaska Travel Service "Fairbanks, Alaska

"Dear Mr. Patton:

"We are quite concerned with the operations of your company that are in violation of existing rules and regulations for the operation of the Fairbanks International Airport.

"The violations are in regard to the picking up of tourists traveling by airplane and arriving at the Fairbanks International Airport. Sometime ago I personally talked with Mr. Coble, who, I understand, at one time either owned a company or was a partner in a company that originally sponsored the business of providing transportation of tourists in Fairbanks who were traveling on a conducted tour program or a group plan. At sometime, no doubt, this company or your company must have advised Travel Agencies selling transportation tickets for such tours of the transportation costs at Fairbanks. Such costs were probably based on Weeks Field operation, but now that that field has been closed and air traffic arrives at the Fairbanks International Airport, a different situation exists. The Government has entered into a contract with the Yellow Cab Company of Fairbanks to provide adequate taxicab, limousine, and bus transportation from the Fairbanks International Airport and which contract provides Yellow Cab Company of Fairbanks with the exclusive right to pick up at this airport all passengers `for hire' transportation.

"Our Airport Manager, Mr. Frank Gray, has advised you that it would be necessary for your company to make arrangements with Yellow Cab Company for your pick up of tour passengers in order to avoid violation of existing rules and regulations regarding for hire transportation from the airport. However, I understand that you have not done so and still pick up such passengers at the airport terminal building.

"We feel that your company has had ample time to advise Travel Agencies with whom you deal, that a transportation concessionaire exists at Fairbanks International Airport as well as the advertized rates which would enable tickets to be sold including such costs. If you have already done this, then we do not understand why you have not contacted the Yellow Cab Company of Fairbanks to either arrange for this company to transport these passengers to downtown Fairbanks or make proper arrangements with the Yellow Cab Company to pick up these passengers directly, permitting the Yellow Cab Company to report the number of these travelers and to pay to the Government the contract percentage for such transportation.

"We would like to know just what steps your company has taken in regard to this matter and how soon will such tour tickets sold by companies working with your company include cost of our transportation concessionaire's services. Violations by your company will be held in suspense pending your reply to this letter.

"Sincerely yours "/s/ U. M. Culver "U. M. Culver "Director, Alaska Air Terminals Division"

Upon receipt of the foregoing letter, the plaintiff made application to Mr. Frank Gray as Manager of the Fairbanks International Airport, a defendant above named, for a permit to operate on the Fairbanks International Airport in accordance with the provisions of said Section 580.13 of the regulation quoted above. This application is in words and figures as follows:

"Application for Permit to Operate on Fairbanks International Airport

"To: Mr. Frank Gray, Manager "Fairbanks International Airport "Fairbanks, Alaska

"Application is hereby made to operate on the Fairbanks International Airport for the purpose of Carrying Passengers For Hire by the undersigned on the following described vehicles:

"(a) One 1949 Model Eight (8) passenger Chrysler Windsor Sedan Serial No. 70787416 Motor No. C-38218599 Alaska license—1952 For Hire 0194 City license—1952 627 Insurance: Maryland Casualty Insurance Policy No. 311656, 5-20-5 Public Liability and Property Damage "(b) One 1946 Beck Mainliner Thirty-three (33) passenger bus Alaska title No. D-12100 Serial No. 8632 Motor No. Red-450-10175 Alaska License—1952 For Hire 59077 City License—1952 628 Insurance: Maryland Casualty Company Insurance Policy No 311657, 5-20-5, Public Liability and Property Damage "Dated at Fairbanks, Alaska, this 16th day of August, 1952. "E. W. Patton Company "/s/ Everett W. Patton "Owner-Applicant"

Subsequently, on or about the 21st day of August, 1952, the plaintiff received from Frank Gray, as Airport Manager of the Fairbanks International Airport, one of the defendants above named, a letter stating that the plaintiff's application had been denied for the reason that the Yellow Cab Company had been given an exclusive permit to operate on the Fairbanks International Airport; this letter is in words and figures as follows:

"Department of Commerce "Civil Aeronautics Administration "P. O. Box 1270 "Fairbanks, Alaska "August 21, 1952 "Mr. Everett W. Patton "P. O. Box 783 "Fairbanks, Alaska

"Dear Sir:

"This will acknowledge your application for permit to operate for hire passenger carrying vehicles on the Fairbanks International Airport dated August 16, 1952.

"Inasmuch as the Government has entered into an operating agreement with the Yellow Cab Company for such services, and since these services are satisfactory to the Government and meet the demand for such service, I regret that I am unable to issue the requested permit.

"This however does not deny the right to discharge passengers at designated areas on the Airport Reserve as set forth in the Code of

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