State ex rel. Orscheln Bros. Truck Lines, Inc. v. Public Service Commission

433 S.W.2d 596, 1968 Mo. App. LEXIS 693
CourtMissouri Court of Appeals
DecidedJune 3, 1968
DocketNo. 24864
StatusPublished
Cited by6 cases

This text of 433 S.W.2d 596 (State ex rel. Orscheln Bros. Truck Lines, Inc. v. Public Service Commission) 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. Orscheln Bros. Truck Lines, Inc. v. Public Service Commission, 433 S.W.2d 596, 1968 Mo. App. LEXIS 693 (Mo. Ct. App. 1968).

Opinion

HOWARD, Presiding Judge.

This proceeding began with the application of Railway Express Agency, Incorporated, to the Missouri Public Service Commission for a certificate of public conven[597]*597ience and necessity to operate as a common carrier by motor vehicle pursuant to the requirements of Chapter 390, RSMo 1959. (Unless otherwise specified, all statutory references are to RSMo 1959, V.A.M.S.) By this application Railway Express Agency, Incorporated (hereinafter referred to as REA) applied for authority for the intrastate transportation of general commodities moving in express service between Kansas City and St. Louis, Missouri, over a described route (generally U. S. Highways 40 and 50) and serving the intermediate and off-route points of St. Charles, O’Fallon, Wentzville, Truesdale, Jones-burg, Montgomery City, Columbia, Moberly, Jefferson City, Sedalia, Knob Noster, Warrensburg, Odessa, Blue Springs, Boon-ville, Mexico, Centraba, Auxvasse and Fulton. This application was opposed by six truck lines holding certificates as intrastate common carriers of freight to some or all of the points involved and by two bus lines whose certificates authorized them to transport express to some of the points involved. These protestants were allowed to intervene and appealed the decision of the Public Service Commission granting the certificate to REA to the Circuit Court of Cole County, Missouri, which affirmed the action of the Commission. Protestants have duly appealed to this court.

REA has for many years conducted an express business throughout Missouri and throughout the United States and internationally. Until the recent past, its express operation has been conducted in conjunction with the operation of railroad passenger trains. In State ex rel. Railway Express Agency, Inc., v. Public Service Commission, 237 Mo.App. 420, 169 S.W.2d 88, REA’s organization and operation was described as follows:

“Appellant is engaged in the transportation of property by express throughout the continental United States, and is subject to the regulations of the Inter-State Commerce Commission, as to inter-state express operations, and to the regulations of the Missouri Public Service Commission, as to express operations in this state. It is a corporation organized under the laws of the State of Delaware and was organized in accordance with the plan designated as ‘Report and Plan for Future Conduct of Express Business’, dated June 21, 1928, which had as its objective to provide for the future conduct of the express business through a separate agency, but in effect a joint agency or facility of the railroads, controlled by them through stock ownership, which agency, after deductions required for its expenses in carrying on the business, would distribute all revenues received by it among its principals on the basis of the express business transacted on their respective lines. It became the exclusive agent for substantially all the railroads in the United States for the conduct of the express transportation business. It was not organized for the purpose of making a profit for itself, and can have no net income and may not pay dividends.
“The transportation service provided by express companies has always included, within certain designated zones, the collection of shipments by vehicle from the residence or place of business of the shipper and the delivery thereof by vehicle to the residence or place of business of the consignee without additional charge. This was the practice of appellant’s predecessor companies and has been and is the practice of appellant. * * ⅜»

After the express was collected from the shippers, it was transported to the railway station where REA shipped the goods in express cars attached to passenger trains. REA did not perform line-haul service itself but relied primarily on the railroads, and in some few instances other common carriers, to perform the line-haul transportation service for it. The overwhelming portion of REA’s business was conducted by passenger train as contrasted to freight trains and other carriers. Dur[598]*598ing the last ten years, the number of passenger trains operated in Missouri has steadily declined and we judicially know they have continued to decline since the hearing of this case before the Public Service Commission. As the result of this decline REA has fewer and fewer passenger trains on which to ship its express. With fewer trains to haul all of the express, the volume on each train increased and REA found that the trains did not stop at the stations along the way for a long enough period of time to permit it to load and unload all of its express. When there was not sufficient time to unload all of the express, that which was not unloaded was carried beyond its destination until REA was able to unload it at a station farther down the line where it was then held and shipped back to its destination on a later train going in the opposite direction. Likewise, express was delayed because there was not time to load all of the express on the train which would normally he expected to haul it and the express would therefore have to wait until there was an opportunity to load it on a later train. This resulted in delayed service and increased expense. REA complained about this situation to the railroads but got no relief. It was explained that if the trains were stopped for a longer period of time at intermediate stations to permit loading and unloading, they would miss connections at the gateway points of St. Louis and Kansas City. REA finally concluded that a different method of handling its express was necessary. Its witness testified that an attempt had been made to use freight trains but that this had proved unsatisfactory. It was then determined that REA would have to haul its own express by its own trucks. The present application was made in order to initiate this truck service over this route for intrastate operation in Missouri. A similar application for interstate operation on this same route was made to and approved by the Interstate Commerce Commission,

The appealing protesting truck and bus lines maintain that they can give adequate service to the points in question and that if the certificate is granted to REA it will adversely affect each of the protestants by taking business away from each of them. The bus lines point to their recent earning records showing that their passenger revenue has been failing and that their express revenue has been increasing as demonstrating the importance to them of this express business. The truck lines indicated that REA had not been a significant competitor in the past but that they expected that it would be in the future if this motor carrier certificate was granted. None of the witnesses for the protestants indicated how they expected this increased competition to come about except one of them based it on the newly aggressive attitude of REA.

In showing the need for the service REA produced testimony and exhibits showing the history of declining passenger train service and the inadequacies of existing service as heretofore summarized and the shipments actually received or originated at the points in question (except Kansas City and St. Louis) during the period, March 1 to March 31, 1965. The company witness testified that the company would save approximately $8,000.00 per month if it were permitted this truck operation as to both intrastate and interstate commerce.

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Cite This Page — Counsel Stack

Bluebook (online)
433 S.W.2d 596, 1968 Mo. App. LEXIS 693, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-orscheln-bros-truck-lines-inc-v-public-service-commission-moctapp-1968.