State ex rel. Churchill Truck Lines, Inc. v. Public Service Commission of the State

734 S.W.2d 586, 1987 Mo. App. LEXIS 4449
CourtMissouri Court of Appeals
DecidedJuly 28, 1987
DocketNo. WD 38779
StatusPublished
Cited by4 cases

This text of 734 S.W.2d 586 (State ex rel. Churchill Truck Lines, Inc. v. Public Service Commission of the State) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State ex rel. Churchill Truck Lines, Inc. v. Public Service Commission of the State, 734 S.W.2d 586, 1987 Mo. App. LEXIS 4449 (Mo. Ct. App. 1987).

Opinion

PRITCHARD, Judge.

Public Service Commission (PSC) granted intrastate carrier authority to respondents by Report and Order, and the Circuit Court of Cole County, Missouri, affirmed.

In 1983 Orscheln Express, Inc., terminated its Missouri intrastate trucking operations. Appellant, Churchill, thereafter filed an application for intrastate authority over certain described routes and points of origin and destination. Beaufort Transfer Company also filed an application for intrastate authority, and PSC granted authority to it and Churchill. The four respondents, American, Graves, Hyman and Next Day also filed for intrastate authorities, which were granted. Churchill and Beaufort filed petitions for review in the Circuit Court as to the grant of the American, Graves, Hyman and Next Day authorities.

The trial court found that the order of PSC with respect to the four latter carriers was lawful, reasonable and supported by substantial and competent evidence on the whole record, with the exception of a portion of Next Day’s authority which was remanded to PSC, and which is not here involved. Churchill alone appeals from the trial court’s judgment.

Orscheln Express, Inc., a successor to Orscheln Bros. Truck Lines, Inc., late in 1983 terminated its intrastate trucking authority in Missouri, and Churchill, followed by Beaufort, then applied for further intrastate authority, they having possessed broad Missouri intrastate trucking rights acquired over a long period of time prior to 1983. The four respondent truck lines also applied for authority, and the six cases were consolidated by PSC’s order, the propriety of which is one of the points on this appeal.

The extensive grants by PSC of intrastate authority to the six applicants are somewhat overlapping and duplicative. Generally, Churchill and Beaufort, in addition to their prior authority, were granted routes and points of origin and destination in northern Missouri. American was granted north Missouri authority from Hannibal to St. Joseph over U.S. 36; over 1-70 from St. Louis to Kansas City, and extensive routes in south Missouri. Graves was granted authorities for service in north Missouri, and certain routes in south Missouri. Hyman was granted intrastate regular route authority over much of Missouri. Next Day was granted irregular route authority over much of Missouri. Irregular route authority for transportation of general commodities was granted to the four respondent carriers “irrespective of the location of such points on the route or routes of regular route carriers”.

PSC received testimony from representatives of intrastate shippers. Central Hardware of Bridgeton, Missouri receives merchandise from several Missouri points. Central supported the applications of American, Hyman and Next Day. Its Director of Transportation, James Keithley, was dissatisfied with transit time on intrastate shipments and existing truckload rates. He gave as an example of rate differences a $365 cost of shipping 17,000 pounds by railroad piggyback as compared to two intrastate truck costs of $439 for 9,500 pounds and one for 5,500 pounds at $401, both higher than the piggyback cost. Central uses private carriage to pick up full truckloads at Sweet Springs because Missouri intrastate rates are so high at that point that Central can afford to run one way empty and return with a load.

John Johnson is Regional Traffic Manager for Purex Corporation, which manufactures and distributes household cleaning and food-line products. Purex supported Churchill and Graves in these proceedings. Johnson testified that relaxation of interstate entry controls [deregulation] has saved his company about $12 million in the last three years, and attributed the savings to greater competition which also generated improvements in service. He opined that selection of Missouri intrastate carri[589]*589ers was not satisfactory, and complaint to the regulatory agency was no substitute for competition. As an example, Purex can ship interstate to Kansas City, Kansas, from St. Louis for $284 as compared to an intrastate shipment within Missouri for $448.

St. Louis Lever Brothers Company’s Traffic Manager, Carl Siboda, testified that Lever Brothers, which supported Hyman, at one time benefitted from attractive intrastate rates to Springfield and Joplin, which rates were subsequently dropped. Siboda noted that in a PSC hearing on a 1984 application by Churchill for broad grants of authority in southwest and southeast Missouri, he learned that a protestant, Beaufort, would provide Lever Brothers with a lower commodity rate, which solicited Lever Brothers truckload business thereafter.

Hyman’s application was supported by Bennie Abbott, who was in charge of McGraw-Edison shipments from North Kansas City. In Abbott’s experience, discounted interstate rates were less than those prescribed for Missouri intrastate rates. Hyman and American were supported by Keith Lohr, Distribution Manager for Pfizer, Inc., of Lee’s Summit. Lohr indicated that general commodity trucking on the interstate level is more competitive than intrastate in Missouri, a premium being paid for the latter shipments. Interstate discounts are had of about 35% for long haul and 30% for short haul. Graves Truck Line’s Fred Koup testified that any discount in excess of 25% on the interstate level would be less than the prescribed Missouri intrastate rates.

Farmland Industries of St. Joseph projected $34 million worth of freight for 1984, and its Purchasing Supervisor, Hubbard, estimated 15 to 20% would be shipped intrastate in Missouri. Farmland had experienced billing problems and lost shipments in Missouri intrastate movements, and it supported American because it sought better service and more competitive pricing in the state. In Hubbard’s experience, carrier rates intrastate were higher than rates he could get interstate.

Allis Chalmers Manager of Transportation Services, Lou B. Miller, testified that both intrastate service in Illinois and interstate service in Missouri are superior to Missouri’s intrastate level. Allis Chalmers had negotiated consistent 40% discounts from interstate major carriers, and it had received no discount rates from Missouri intrastate carriers.

Kansas City’s PBI Gordon Corporation manufactures chemicals, herbicides and pesticides. According to its Transportation Manager, Williams, the company was receiving about 47% interstate competitive discounts, with some increases to 57%. No Missouri intrastate carrier gave discounts and none offered any. PBI Gordon had used special drop-offs by interstate carriers because costs of general commodity intrastate carriers such as Churchill and Beaufort were too high. Williams supported Next Day’s application because Churchill declined to provide him with a 40% intrastate discount rate.

William J. Hartwell of A.P. Green Refractories in Mexico, Missouri, appeared in support of all six applications. He testified that freight rates for the company’s products would be lower as a result of competition. It had received interstate discounts ranging from 15 to 30%. No discounts were received on Missouri intrastate moves, and none had been offered.

With respect to the public need for improvement in the quality of service by intrastate carriers, Donald Salenger, Department Manager of Distribution and Traffic for UARCO, in Kennett, Missouri, which manufactures custom-printed forms, computing machine paper, pressure-sensitive labels, preprinted envelopes and supplies for the printing industry, testified: The company ships between 2 and 3 million pounds per year from Kennett to 70 or 80 Missouri cities.

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Bluebook (online)
734 S.W.2d 586, 1987 Mo. App. LEXIS 4449, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-churchill-truck-lines-inc-v-public-service-commission-of-moctapp-1987.