Thomson v. Iowa State Commerce Commission

15 N.W.2d 603, 235 Iowa 469, 1944 Iowa Sup. LEXIS 457
Supreme Court of Iowa·Decided September 19, 1944·No. No. 46487.·Published·Cited by 12 cases

Opinion

Miller, J.

On September 5, 1942, Charles M. Thomson, trustee for the Chicago and North Western Bailway Company, filed an application with the Iowa State Commerce Commission for a certificate of public convenience and necessity to operate as a motor carrier of freight over ten specified routes between fixed termini. Public hearings were had at Des Moines and Sioux City, following which, on December 29, 1942, the application was denied by a written decision of Commissioner Bichardson, with which Commissioner Beed concurred specially and from which Commissioner Keshlear dissented.

The decision of Commissioner Bichardson pointed out that the application proposed that the railroad would substantially parallel its existing lines with motor transportation in northwest Iowa and between Anamosa and Clinton in eastern Iowa; that seventy-two witnesses from thirty-one points testified that the service would be beneficial to them as shippers or receivers of freight, in addition to which seventeen letters from various places, four telegrams, and eleven petitions which had signatures from one hundred sixty-five places, and resolutions from five civic bodies supported the application; but, on the other hand, nearly all existing motor carriers resisted the application asserting that what is proposed can be accomplished by those now holding operating rights; and concluded as follows:

“We have carefully reviewed the entire record, considered the existing transportation facilities; what is proposed by the applicant; what conditions are now with reference to rail transportation and also with a forcible realization of the national transportation conditions, we are unable to find, pursuant to the Law which governs the disposition of these matters that the establishment of -the proposed service would promote public convenience and necessity, therefore, the authority here sought is denied.”

*471 Commissioner Reed’s concurring opinion stated: '

“In my opinion the evidence in this case is not sufficient to take the case out of the rule established in Docket H-2858. Therefore, I concur in the denial of the present application.”

Commissioner Keshlear stated:

“While not retracting from my conclusion, asi stated in my dissenting opinion in Docket No. 2858; in view of the opinion of the majority of the Commission to abide by the decision in that case, I have concluded not to file a dissenting opinion herein.”

The" decision in Docket H-2858 related to an application of the North Western Railway in 1940, and was cited and relied upon by Commissioner Richardson in his opinion herein.

The railroad, through its trustee, appealed to the district court of Polk county. The various truck operators who had resisted the application before the Commission intervened, asserting again that the proposed service would be a duplication of that which they are presently providing. The court recognized, in a written statement of findings and conclusions, that the ease centers on the question of the sufficiency of the evidence to support the decision of the Commission and whether it was unreasonable and arbitrary. The court further stated:

“The record established without dispute that the applicant and appellant under its present set-up and restrictions on the railway lines involved is not rendering prompt freight service of its LCL [less than carload lot] shipments; that freight that should be delivered in one or two days is in many instances taking from four to twelve days delivery time;_ that the authority requested would materially expedite the movement and" delivery of freight so that it would be delivered in one or two days from the time of receipt; that a large number of shippers and consignees of freight, also municipal public bodies are favorable to and believe that such expedited service will be of great benefit to them and that they prefer such railway service.”

The court approved the following as a statement of the proposed service:

*472 “Applicant merely proposes to improve an existing service through the utilization of motor vehicles in rendering a service which will be auxiliary to, supplemental of, and coordinate with the rail service. Applicant does not propose to invade territory of any other carrier. All of the points are stations on the rail line which applicant has served for years and is under obligation to continue to serve. Applicant merely proposes to improve that service in an endeavor to retain existing patrons, offering them a service more in keeping with their requirements under existing merchandising methods. To say that such service will adversely affect the operations of existing motor carriers is to admit superiority of the proposed service which protestants strongly deny.”

The court further stated:

“It is the opinion of this court that there was a failure of any substantial proof by intervenors to the effecjt that the establishment of the proposed service would not promote the public convenience and necessity; that there was an abundance of proof that it would. ” .

The court specifically found as follows:

“1. That the appellant has established by an abundance of evidence the public convenience and necessity for the operations and service which it proposes to render.
“2. That the intervenors failed to meet the burden of proof presented by the appellant and that there is not sufficient competent evidence in the record on which the commission could base its decision.
“Therefore, it is the conclusion of this court, as a matter of law, that the action of the commission was without proper support in the evidence and therefore their action was unreasonable and arbitrary and their order will be reversed.”

Pursuant, to the foregoing, judgment was entered reversing and setting aside the order of the Commission and remanding the cause for further proceedings not inconsistent therewith. The Commission and the interveners have appealed to this court.

I. At the outset, we undertake to briefly state the over *473 all picture of the controversy which we are here called upon to decide. Regulation of public utilities and common carriers by administrative bodies, such as the Commerce Commission herein, is a very necessary and well-established practice. The necessity therefor arises out of the fact that the businesses- so regulated are in many ways analogous to monopolies. Over a century and a half ago, Adam Smith, in his “Wealth"of Nations,” pointed out that monopolies, if left to their own devices, are detrimental to the public welfare because they seek to. take advantage of their favorable situation and exact from the public exorbitant charges for indifferent service. Administrative regulation is therefore necessary to insure fair and reasonable charges for efficient and adequate service. No tariff rates are involved herein. The Commission’s specific concern was what should constitute efficient and. adequate service to the public under the facts shown by the record.

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Thomson v. Iowa State Commerce Commission, 15 N.W.2d 603, 235 Iowa 469, 1944 Iowa Sup. LEXIS 457 (iowa 1944).

15 N.W.2d 603 (Thomson v. Iowa State Commerce Commission) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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