Lake Shore Motor Coach Lines, Inc. v. Bennett

333 P.2d 1061, 8 Utah 2d 293, 1958 Utah LEXIS 224
CourtUtah Supreme Court
DecidedOctober 14, 1958
Docket8861, 8863
StatusPublished
Cited by24 cases

This text of 333 P.2d 1061 (Lake Shore Motor Coach Lines, Inc. v. Bennett) is published on Counsel Stack Legal Research, covering Utah Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lake Shore Motor Coach Lines, Inc. v. Bennett, 333 P.2d 1061, 8 Utah 2d 293, 1958 Utah LEXIS 224 (Utah 1958).

Opinions

CROCKETT, Justice.

Review of an order of the Public Service Commission granting Wycoff Company, Inc. increased authority as a common carrier to transport small express shipments [295]*295in areas already receiving such service from the plaintiffs.

Wycoff has for many years rendered a specialized carrier service from Salt Lake City to all principal points in the State, carrying newspapers and motion picture films. It has a schedule leaving Salt Lake City about midnight for distribution of morning papers, and another leaving about noon for delivery of afternoon papers. In connection with these trips it has heretofore been granted authority to carry confections, cut flowers and certain other articles requiring fast delivery. In the instant application Wycoff sought to eliminate limitations to particular commodities and to haul commodities generally in shipments up to 100 pounds. Inasmuch as this application covered the whole State and threatened encroachment upon many carriers, numerous truck lines and bus companies appeared as protestants to the application.

After the presentation of the applicant’s evidence, a stipulation was entered into limiting its request as follows: It would not carry more than 500 pounds on any one trip; shipments would not be separated for the purpose of avoiding the 100-pound limit; the hauling would only be on presently existing schedules, and other minor ones not necessary to detail here. As a result of the stipulation all but seven protesting carriers withdrew their protests. Only the two plaintiffs, Lakeshore Motor Coach Lines and Lewis Bros. Stages, here challenge the order finally made. Accordingly, we are concerned only with the order insofar as it affects them and the areas they serve.

Plaintiffs contend that the action of the Commission in removing the limits from Wycoff’s authority is capricious and arbitrary. They aver that there is no support in the record for a finding that public convenience and necessity require such additional service; but to the contrary, its effect will be against the public interest because it will tend to impair transportation service by undermining the economic well-being of the entirely adequate services presently in operation.

It is well to have in mind the principles underlying the regulation of common carriers by the Public Service Commission. Generally speaking, competition is a good thing because it tends to control excesses and abuses, and to produce the best goods and services at the lowest prices. It thus serves as a vital and stimulating force in our economic and industrial life and is sometimes said to be the life of commerce. An exception to this generality exists in services providing gas, telephone, electricity, transportation and certain others1 where competition would result in duplication of expensive facilities which the pub-[296]*296lie would have to pay for in the long run and thus he inimical to its interest. In order to eliminate such wasteful duplication of facilities and services, businesses of that type are granted monopoly franchises. As a condition to such privilege, the utilities are obliged to submit to regulation by public authority, which takes the place of the controls usually enforced by competition.

The Public Service Commission is charged with the duty of seeing that the public receives the most efficient and economical service possible. This requires consideration of all aspects of the public interest.2 When a carrier applies to institute a new carrying service, the Commission must take into account, not only the immediate advantage to some members of the public in increased service, and to the applying carrier in permitting him to enlarge the scope of his business, but must plan long-range for the protection and conservation of carrier service so that there will be economic stability and continuity of service. This obviously cannot be done unless existing carriers have a reasonable degree of protection in the operations they are maintaining.3

These considerations of policy are, of course,' primarily the responsibility of the Commission. If the record contains support of any substance for its findings and determination, its order must stand.4 However, a review by this Court is provided for, and it is undoubtedly intended to amount to something more than a mere rubber stamping of any action the Commission might take by placing some control upon extremes of arbitrary action by the Commission. It cannot go so far as to base an order creating new carrier authority, which in effect takes business away from existing carriers, upon a showing which under scrutiny is so ephemeral as to practically vanish. To do so would constitute the Commission as an autocratic authority with arbitrary power which would render the foundations of the business of existing carriers so insecure as to make operations and planning hazardous and render all attempts to defend their authority futile.

In proposing a new express carrier service in the area which was being served by the plaintiffs in a reasonably competent and satisfactory manner the burden was upon Wycoff to show, among other things, that public convenience and necessity would be served by the granting of its application.5 This does not mean that there cannot be parallel transportation services. Many exist and will continue to do so because sometimes carriers, parallel in one area, diverge into others; and [297]*297existing carriers, although rendering good service, may not he sufficient for the existing business or its potential. Proving that public convenience and necessity would .be served by granting additional carrier authority means something more than showing the mere generality that some members of the public would like and on occasion use such type of transportation service.6 In any populous area it is easy enough to procure witnesses who will say that they would like to see more frequent and cheaper service. That alone does not prove that public convenience and necessity so require. Our understanding of the statute is that there should be a showing that existing services are in some measure inadequate, or that public need as to the potential of business is such that there is some reasonable basis in the evidence to believe that public convenience and necessity justify the additional proposed service. For the rule to be otherwise would ignore the provisions of the statute; and also would make meaningless the holding of formal hearings to make such determinations and render futile efforts of existing carriers to defend their operating rights.

The record is voluminous, containing 2,284 pages of transcript. Forty-two witnesses testified for applicant and 102 for the protestants. It is obviously impractical to do anything other than characterize the testimony generally in this opinion. It is important to focus attention on the fact that applicant’s evidence as presented related to the original application before the stipulation restricting it as to quantities to be hauled and to its present schedules; also that for the most part it pertained generally to the State, rather than being pointed directly at the three areas served by the plaintiffs. What the witnesses would have said under such limitations is not before us. The import of applicant’s witnesses was that it would be convenient and desirable to them to have another carrier available for quick transportation service, including pickup and delivery.

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Lake Shore Motor Coach Lines, Inc. v. Bennett
333 P.2d 1061 (Utah Supreme Court, 1958)

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Bluebook (online)
333 P.2d 1061, 8 Utah 2d 293, 1958 Utah LEXIS 224, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lake-shore-motor-coach-lines-inc-v-bennett-utah-1958.