Jefferson Trucking Co. v. ALA. PUB. SERV. COM.

347 So. 2d 372
CourtSupreme Court of Alabama
DecidedJune 3, 1977
StatusPublished
Cited by4 cases

This text of 347 So. 2d 372 (Jefferson Trucking Co. v. ALA. PUB. SERV. COM.) is published on Counsel Stack Legal Research, covering Supreme Court of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jefferson Trucking Co. v. ALA. PUB. SERV. COM., 347 So. 2d 372 (Ala. 1977).

Opinion

347 So.2d 372 (1977)

JEFFERSON TRUCKING COMPANY, a corporation
v.
ALABAMA PUBLIC SERVICE COMMISSION et al.

SC 2091.

Supreme Court of Alabama.

June 3, 1977.
Rehearing Denied July 8, 1977.

John W. Cooper, of Cooper & Huey, Birmingham, for appellant.

William K. Martin, Montgomery, for appellees Ross Neely Express Inc. and Baggett Transp. Co.

Carl L. Evans and Jerry L. Weidler, Montgomery, for appellees Alabama Public Service Commission and its members.

ALMON, Justice.

Jefferson Trucking Company, appellant, applied to the Alabama Public Service Commission to obtain a contract carrier permit (as opposed to a common carrier certificate). The Commission accepted the report of the examiner who heard the case and denied the application. Jefferson appealed to circuit court, which affirmed the Commission.

Jefferson presently serves National Gypsum Company as a contract carrier on an exclusive basis over interstate routes. National Gypsum has 62 manufacturing facilities, warehouses, and supply centers with sales exceeding $584,000,000. The appellant, Jefferson, has maintenance facilities located at National plant sites in National City, Michigan; Lorraine, Ohio; and Shoals, Indiana. Jefferson presently hauls interstate between National plants at Anniston, Alabama; and Shoals, Indiana. The Shoals, Indiana, plant manufactures gypsum board, which Jefferson hauls to various buyers in Alabama. The Anniston plant is a paper mill which manufactures gypsum board paper. Jefferson, by return trip, carries the gypsum board paper to the Shoals, Indiana, plant for use in its manufacturing process.

*373 By way of Jefferson's intrastate contract carrier application, it seeks to make more efficient use of its truck routes. The raw material for the Anniston plant is 240 tons per day waste paper derived partially (24%) from sources throughout Alabama, including Boy Scouts and church groups. Presently, all the waste paper moving intrastate is by National's trucks (52%) or the vendors' trucks (48%). Jefferson proposes to fill its empty trucks with waste paper on the route between its designation point for a load of gypsum board from Indiana and the Anniston plant where it would receive a load of gypsum board paper for its return trip to Indiana.

Jefferson's application was opposed by two common carriers, Ross Neely Express, Inc. (RNX) and Baggett Transportation Company (Baggett). Neither RNX nor Baggett are currently hauling waste paper for National, though National admits it has not attempted to use common carriers. A witness for National stated that an assured supply of paper has to be coordinated with production requirements, and that over the years, common carriers have not proven satisfactory.

RNX and Baggett testified they are in need of the additional freight, as each has recently laid off personnel for lack of business, and are quite capable of handling the waste paper. RNX has handled a number of shipments of scrap paper, though not for National. Baggett hauled waste paper to the Anniston plant when it first opened in 1956, but lost the business when National started using its own fleet.

The examiner, in concluding that to grant the permit would not be consistent with public interest (Tit. 48, § 301(11)(B), Code of Alabama 1940, Recompiled 1958), made the following findings:

"The Examiner finds from the testimony and the record that both common carriers protesting this application hold what amounts to practically statewide authority from this Commission, that both carriers have terminals located throughout the State of Alabama, and each has a terminal located close by the shipper's facilities outside of Anniston, Alabama. Both carriers have from time-to-time transported shipments of waste paper in the State of Alabama. Due to a decline of business, the carriers are not now utilizing their equipment to the fullest extent and have been forced to lay off employees. The Examiner is of the opinion that the Applicant has failed to show that it would be consistent with the public interest for a grant of this application and is of the opinion that the movement of paper could be adequately handled by common carriers. The Examiner is of the further opinion that the Applicant has failed to show any special need, such as a complete dedication of equipment or any other need, that could not be handled adequately by the existing common carriers. Existing authorized common carriers can provide all of the service which National's witness testified National needs. The common carriers have expenses which must be met and obligations which they must fulfill under the terms of their certificates such as serving small shippers on LTL freight and outlying areas in the State of Alabama where there is very little existing service. In order for the common carriers to maintain the existing level of service and possibly seek to improve the level of service and to render a needed service to the public of the State of Alabama, they should be given the opportunity to transport truckload business, such as the waste paper testified to in this case. Existing authorized common carriers should be given a reasonable opportunity to provide the service needed by National before new authority is granted to Jefferson. The record in this case is clear that National has not attempted to give authorized common carriers a reasonable opportunity to handle National's intrastate shipments of waste and scrap paper in Alabama."

Tit. 48, § 82, Code, supra, provides that the commission's order shall be taken as prima facie just and reasonable, but that the circuit court shall set aside the order if the Commission "erred to the prejudice of *374 appellant's substantial rights in its application of the law," as Jefferson contends it has. We review the order of the Commission as if it were on direct appeal to us, without any presumption as to the correctness of the judgment of the circuit court. A.P.S.C. v. Consolidated Transport Co., 286 Ala. 323, 239 So.2d 753 (1970), and cases cited therein.

Appellant Jefferson Trucking Co. brings to our attention the United States Supreme Court case of I.C.C. v. J-T Transport Co., 368 U.S. 81, 82 S.Ct. 204, 7 L.Ed.2d 147 (1961), and cases following J-T Transport: Meatpackers Express, Inc. v. U. S. et al., 244 F.Supp. 642 (D.C., Neb., 1965); Continental Contract Carrier Corp. v. U. S., D.C., 311 F.Supp. 390 (1970); Joe Jones, 103 M.C.C. 934 (1967); Service Transport, Inc., 115 M.C.C. 29 (1972). J-T Transport examined the effect of 1957 amendments to Interstate Commerce Act, Part II (49 U.S. C.A., § 301 et seq.). The amendments were precipitated by the case of U. S. v. Contract Steel Carriers, 350 U.S. 409, 76 S.Ct. 461, 100 L.Ed. 482 (1956) which "held that a contract carrier, rendering a specialized service in the sense that it hauled only a limited group of commodities over irregular routes, did not become a common carrier because it searched for new business within the limits of its license." J-T Transport Co., supra, 368 U.S. at 85-86, 82 S.Ct. at 207. To prevent contract carriers from being able to handle many contracts over its given routes and thereby becoming in the nature of a common carrier, Congress amended the definition of contract carrier in § 203(a)(15) (49 U.S.C.A., § 303(a)(15)) and specified certain considerations in § 209(b) (49 U.S.C.A., § 309(b)).

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