Shanks v. Watson Bros. Van Lines

115 N.W.2d 441, 173 Neb. 829, 1962 Neb. LEXIS 96
CourtNebraska Supreme Court
DecidedMay 25, 1962
Docket35115
StatusPublished
Cited by10 cases

This text of 115 N.W.2d 441 (Shanks v. Watson Bros. Van Lines) is published on Counsel Stack Legal Research, covering Nebraska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Shanks v. Watson Bros. Van Lines, 115 N.W.2d 441, 173 Neb. 829, 1962 Neb. LEXIS 96 (Neb. 1962).

Opinion

Spencer,. J.

This case involves an application filed October 3, 1960, by appellee, J. M. Shanks, doing business as Construction Specialities, with the Nebraska State Railway Commission, for a certificate of public convenience and necessity, authorizing operations as a common carrier by motor vehicle in Nebraska intrastate commerce. The application is in two parts. Part A covers the transportation of sand, gravel, and road and dam construction material requiring the use of dump trucks between all points- in Nebraska over irregular routes, and will be hereinafter referred to as dump truck authority.- Part B as amended covers heavy machinery, contractors’ equipment, and articles of unusual size and weight on lowboy trailers between points in Nebraska over irregular routes excluding, however, equipment, materials, and supplies used in connection with exploration, discovery, and development in oil and gas, and. will hereinafter be referred to as heavy hauling authority.

The application is protested by Watson Bros. Van Lines & Heavy Hauling Co., LeRoy L. Wade & Sons, Inc., and W. F. Gettel, Inc., who are appellants herein. They will hereafter be referred to as appellants, or individually as Watson Bros., Wade, or Gettel. Watson Bros; and Wade are common carriers holding statewide *831 hauling authority. Gettel holds the same authority in four western counties.

The examiner who conducted the hearing filed a report on March 15, 1961, recommending the granting of the application. The commission, on March 22, 1961, entered an order finding the appellee to be fit, wining, and able properly to perform the services proposed, and that such service was required by present or future public convenience and necessity. Motions for rehearing were overruled June 9, 1961, and appellants perfected this appeal.

The appeal, however, involves only part B, or the heavy hauling authority. Appellants do not protest the granting of the dump truck authority, or part A.' Appellants list six assignments of error, but essentially the issue involved is whether the commission acted within the scope of its authority, and whether the order of the commission is unreasonable, arbitrary, and contrary to law.

The assignments of error are reviewed under the rules that: The Nebraska State Railway Commission has original jurisdiction and sole power to grant, amend, deny, revoke, or transfer common carrier certificates of public convenience and necessity, and such proceedings are administrative and legislative in character. Houk v. Peake, 162 Neb. 717, 77 N. W. 2d 310.

The grant or denial of a certificate of public convenience and necessity by the Nebraska State Railway Commission requires the exercise of administrative and legislative functions and not of judicial powers. In re Application of Petersen & Petersen, Inc., 153 Neb. 517, 45 N. W. 2d 465.

On an appeal to the Supreme Court from an order of the Nebraska State Railway Commission, administrative or legislative in character, the only questions to be determined are whether the commission acted within the scope of its authority and whether the order complained of is reasonable and not arbitrarily made. Preisendorf *832 Transp., Inc. v. Herman Bros., Inc., 169 Neb. 693, 100 N. W. 2d 865.

Courts are without authority to interfere with the findings and orders of the railway commission except where it exceeds its jurisdiction or acts arbitrarily. In re Application of Effenberger, 150 Neb. 13, 33 N. W. 2d 296.

Courts should review or interfere with administrative and legislative action of the Nebraska State Railway Commission only so far as necessary to keep it within its jurisdiction and protect legal and constitutional rights. Houk v. Peake, supra.

With these rules in mind, we come to the sufficiency of the evidence adduced by the appellee to authorize the commission to grant him the authority which it did. Section 75-230, R. R. S. 1943, provides that a certificate may be issued if it is found that applicant is fit, willing, and able properly to perform the service performed and to conform to the provisions of the Motor Carrier Act and the commission’s rules and regulations thereunder, and that the proposed service is or will be required by the present or future public convenience and necessity. The burden is on the applicant for a certificate of public convenience and necessity to show that the proposed service is required by the present or future public convenience or necessity. Miller v. Consolidated Motor Freight, Inc., 168 Neb. 712, 97 N. W. 2d 265.

Has appellee met this burden? He has been in the construction business all of his life, and has had his own business 2 years. When he experienced difficulty getting services of heavy hauling equipment, he purchased five lowboy trailers and three tractors. These were purchased for his own convenience but other contractors soon began leasing or renting his equipment. Over a 9-month period, his heavy hauling operations from the leasing of his equipment amounted to $30,000. During the same period, one of the objectors, Watson Bros., was adding additional equipment. Within the 4-month *833 period preceding the hearing before the examiner, it had added five new units.

It is evident that there was ample evidence from which the commission could conclude that present public convenience and necessity required this additional service. We believe appellants have an erroneous idea of the function of the railway commission. It is apparent they feel that so long as they are not solicited by the public for service, or are willing to put on additional equipment, the commission cannot grant new authority.

As was so well said in the dissent in Edgar v. Wheeler Transport Service, Inc., 157 Neb. 1, 58 N. W. 2d 496: “The purpose of the Nebraska Motor Carrier Act was regulation for the public interest. Its purpose was not to stifle legitimate competition but to foster it. Its purpose was not to create monopolies in the transportation industry but to eliminate discrimination, undue preferences or advantages, and unfair or destructive competitive practices. Legitimate competition is a normal attribute of our free enterprise system. It must be permitted to exist and the law contemplates that it shall.”

In determining public convenience and necessity, the controlling questions are whether the operation will serve some useful purpose responsive to public demand or need; whether this purpose can or will be served as well by existing carriers; and whether it can be served as well by applicant in a specified operation without endangering or impairing the operations of existing carriers contrary to the public interest. Preisendorf Transp., Inc. v. Herman Bros., Inc., 169 Neb. 693, 100 N. W. 2d 865.

It. is the duty of the commission to protect the public interest as well as to protect, within reasonable limits, the investment of certificate holders. It is the prerogative of the commission to determine whether or not a new carrier in the field is required by public convenience and necessity. If the granting of an application will en *834 danger or impair the operation of an existing carrier, certainly that would be contrary to the public interest.

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Bluebook (online)
115 N.W.2d 441, 173 Neb. 829, 1962 Neb. LEXIS 96, Counsel Stack Legal Research, https://law.counselstack.com/opinion/shanks-v-watson-bros-van-lines-neb-1962.