Briggs Corporation v. Public Utilities Commission
Briggs Corporation v. Public Utilities Commission
Opinion of the Court
On May 5, 1960, the plaintiff applied to the defendant commission for authority to transport for hire by motor vehicle, as a contract carrier, petroleum, petroleum products, automobile accessories and other commodities generally sold at gaso
Section 16-292 of the General Statutes provides that no motor contract carrier shall operate any motor vehicle for the transportation of property for hire on any highway within this state unless authorized to do so under a permit issued by the public utilities commission. Permits may be issued only after a public hearing. § 16-293. If the applicant is fit, financially responsible and willing and able to perform the service of such a carrier and to conform to the provisions of chapter 285 of the General Statutes, entitled “Motor Carriers of Property for Hire,” and the requirements and regulations of the commission thereunder, and if “the proposed operation is not inconsistent with the public interest,” he is entitled to a permit. § 16-294. The qualifications of the plaintiff in this case and its willingness to comply with all lawful requirements are not challenged. Therefore, the only remaining question is whether the proposed operation is inconsistent with the public interest. The meaning of the phrase “not inconsistent with the public interest” should be determined in connection with the transportation policy of this state and the relation which the
The General Assembly has declared that the business of motor contract carriers is affected with the public interest and that the safety and welfare of the public upon our highways, the preservation and maintenance of those highways, and the proper regulation of motor common carriers require the regulation of motor contract carriers. § 16-291. A motor contract carrier is defined as any person, not a motor common carrier, who operates motor vehicles over the highways of this state in the transportation of property for hire under special and individual contracts. §16-281 (d). In contrast, a motor common carrier means any person who operates motor vehicles over our highways in the transportation of property for hire by the general public. § 16-281 (e). A common carrier must obtain from the commission a certificate of public convenience and necessity. § 16-283. A public hearing must be held on any application for such a certificate. § 16-284. In determining whether a certificate shall be granted, the commission is required to consider the existing motor transportation facilities and the effect upon them of granting the certificate; the public need for the service the applicant proposes to render; his suitability and financial responsibility ; his ability efficiently to perform the service; the condition of the highways involved and the effect upon them; and the safety of the public using them. § 16-286. A certificate shall not be denied solely on the ground that there is an existing service. Ibid. When no motor common carrier service is being supplied over the route applied for, public convenience and necessity shall be presumed to require the service. Ibid. The commission is au
At the time of issuance of a permit to a motor contract carrier, as well as thereafter, the commission has authority to attach conditions to it as the public interest may require. § 16-295. The commission is authorized to prescribe contract carriers’ rates and charges covering operations in competition with motor common carriers. In fixing these rates, the commission must not give to a contract carrier which is in competition with a common carrier any advantage or preference which the commission finds to be undue or inconsistent with the public interest. § 16-296. Any contract carrier having five or more contracts shall, prima facie, be construed to be a common carrier. § 16-297.
From this statutory background, it is evident that the transportation policy of this state seeks to promote sound economic conditions in the motor carrier industry. Because a common carrier is required to serve the general public, legal measures have been taken to safeguard and preserve the continuity of that type of service. A common carrier’s authority to operate is dependent upon the issuance of a certificate of public convenience and necessity. $ 16-283. This means that the benefits to be derived from the operation will not be limited to a few persons in a particular locality. It means benefit to the public generally, and, in the determination of public convenience and necessity, the effect of the commission’s action upon the whole public instead of a small part of it must be considered.
The proof which is required to obtain a certificate
The evidence material to the decision of the commission was as follows: Prior to January, 1960, the Valley Oil Company, hereinafter called Valley, operated a petroleum business with storage facilities at Portland. As a private carrier, it transported petroleum products in its own trucks to gasoline stations owned by it and others in various places in this state. In January, 1960, Valley sold its gasoline stations, distributing business and storage facilities to the shipper. The plaintiff acquired the Valley fuel oil business and is now a tenant of the shipper at the latter’s bulk storage locations. The plaintiff is engaged in the business of distributing fuel oils and heating equipment and proposes to supply, for hire, transportation service to the shipper by using equipment which it acquired from Valley. This equipment consists of a tractor-trailer
Since January, 1960, the shipper has employed the services of a common carrier to make bulk deliveries of its products. The equipment used by this common carrier has been leased to it by the shipper. Accessories and the other incidental items have been transported by general commodity motor common carriers. The shipper claimed that it would be a matter of great convenience to be able to transport gasoline and automobile accessories in the same vehicle. The shipper prefers a contract carrier to a common carrier because the former would become a “house organ” under the direct control of the shipper, in contrast to a common carrier, whose facilities must be available to the public in general. In addition, the shipper also claimed that the con
Five common carriers and one contract carrier appeared in opposition to the plaintiff’s application. Of these, one common carrier had full authority from the commission to transport all of the products and commodities to all of the destination points and was prepared to perform the service. The four remaining common carriers had authority to engage in bulk liquid transportation, which is the primary object of the plaintiff’s application. These four have large tank trucks, and three of them testified to a willingness to acquire the type of equipment necessary to service the shipper’s needs. Two expressed a willingness to apply to the commission, if necessary, for additional authority to transport the accessories and incidental items.
The commission could properly find, as it did, that the available common carrier service was adequate to meet the transportation needs of the shipper. This was true even though every precise requirement of the shipper could not be met immediately. The commission could also find that the proposed contract carrier service would supplant rather than supplement the existing common carrier service and that it Avould have an adverse effect on common carriers.
The commission concluded that the proposed operation would be inconsistent with the public interest and denied the plaintiff’s application.
We cannot say that the commission was not justified in reaching the conclusion it did. There was evidence to support its findings, and the weight to be given to the evidence was for it to decide. It was required to consider not only the needs of the individual shipper but also the effect of the proposed operations on the public interest in all aspects which related to the problem. Even if the commission found that private interests would be promoted by the issuance of the permit, the commission would be justified in concluding that those interests must be subordinated to the larger public interest. Under all the circumstances, the trial court did not err in concluding that the plaintiff had not sustained the burden of proving that the commission acted illegally or in excess of its authority.
There is no error.
In this opinion Baldwin, C. J., King and Bordon, Js., concurred.
Dissenting Opinion
(dissenting). In the second paragraph of the majority opinion, it is conceded that the plaintiff met all of the formal requirements of General Statutes § 1.6-294 for the granting of a motor contract carrier’s permit and that “the only remaining question is whether the proposed operation is inconsistent with the public interest.” I have studied the opinion, as well as the finding of the commission, and fail to ascertain from either that the interest of the general public would be affected in the slightest degree if the permit were issued.
The majority opinion states that one of the common carriers who opposed the plaintiff’s application had the necessary certificates to transport the shipper’s products and was prepared to do so. While that carrier had the certificates, its president admitted on cross-examination that it did not have the equipment which was needed to service the shipper’s needs. It lacked meters, flow lines and tanks. Four other carriers had certificates for petroleum transportation but not for general commodities. At least three were willing to take on the business if the contract was of sufficient duration to warrant the investment in the necessary equipment. In other words, the common carriers were willing, but not one of them was able, to handle the business at the time of the hearing.
The majority opinion, near the end, states that the plaintiff contends that the commission imposed upon it the burden of proving that its services
The trial court, in its memorandum of decision, stated that the commission denied the plaintiff a permit for contract carriage because it would supplant common carriage and thus be inconsistent with the public interest. As none of the opposing carriers had the necessary equipment as well as the
The finding of the commission is destitute of any facts. If attempts to summarize testimony and does not state the facts found from the evidence. Other than documents submitted by the plaintiff, the record consists of the transcript of the evidence before the examiner who conducted the hearing. It does not include the report of the examiner and his associates to the commission or any recommendations made therein. Nor does it contain any reference to the action of the commission in connection with the examiner’s report. As the transcript does not indicate that any of the members of the commission participated in the hearing upon this application but rather that the hearing was conducted by members of the commission’s staff, who are re
The only interest which would have been affected by the granting of the permit was the interest of certain common carriers in acquiring the business of transporting the shipper’s products. By no stretch of the imagination could it be said that the interest of the general public would suffer. Public interest means something in which the public, the community at large, has some pecuniary interest, or some interest by which its legal rights or liabilities are affected. State ex rel. Glenn v. Crockett, 86 Okla. 124, 126, 206 P. 816. The term “public interest” has application to the interests of the public as a whole and not to the private interests of competitors. In re Application of Paulson, 249 Minn. 236, 245, 81 N.W.2d 875. Fear that the granting of a motor contract carrier permit might undermine common carriage is pure speculation and is unsupported by the record in this case.
Either the action of the commission should be reversed on the record before us or the case should be remanded to the trial court with direction to refer it back to the commission for submission of
Reference
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- The Briggs Corporation v. Public Utilities Commission Et Al.
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