Saia Motor Freight Line, Inc. v. Louisiana Public Service Commission
| Citation | 248 La. 1,176 So.2d 408 |
| Decision Date | 07 June 1965 |
| Docket Number | No. 47630,47630 |
| Parties | SAIA MOTOR FREIGHT LINE, INC. v. LOUISIANA PUBLIC SERVICE COMMISSION et al. |
| Court | Louisiana Supreme Court |
Theo F. Cangelosi, John Schwab, Robert L. Cangelosi, O. Romaine Russell, Baton Rouge, Jerry W. Millican, New Orleans, Douglas A. Allen, Metairie, Joseph H. Kavanaugh, Baton Rouge, for defendant-appellant and intervenor-appellant.
Joseph L. Waitz, O'Neal & Waitz, Houma, for plaintiff-appellee.
Plaintiff, Saia Motor Freight Line, Inc., a Louisiana corporation holding a certificate of public convenience and necessity as a common carrier of general commodities within the southeastern section of Louisiana, instituted this suit against the Louisiana Public Service Commission seeking annulment of the Commission's Order No. 8903. This order granted to Earl Guillory, doing business as Ozone Motor Line and operating as a common carrier of general commodities by motor, an amendment to his certificate No. 275--F which authorized Ozone Motor Line open- door transportation between Baton Rouge and the Louisiana Florida Parishes with the proviso that no local traffic is to be handled between Baton Rouge proper and points located on U.S. Highway No. 61 and Louisiana Highways Nos. 19 and 67 and no shipments are to be transported between Baton Rouge and New Orleans.
From a judgment of the district court decreeing the assailed order void, the Louisiana Public Service Commission and Guillory, who intervened below in defense of the Commission's order, have appealed. The record reveals the following facts:
Earl Guillory, doing business as Ozone Motor Line, applied to Louisiana Public Service Commission seeking an amendment to Certificate No. 275--F to authorize intermediate service from and to Baton Rouge connecting with and in addition to routes otherwise certified to him. Specifically, he sought removal of closed-door service between Hammond, Louisiana and the intersection of U.S. Highway No. 61 with La. Highway No. 964 near Zee, Louisiana, with service to and from intermediate points prohibited. The authority requested would have permitted Ozone to operate between Baton Rouge and points otherwise certified to it, except that no service would be performed between Baton Rouge and points located on U.S. Highway No. 61 and La. Highways Nos. 19 and 67. The request would have also included open- door service between New Orleans and Baton Rouge.
Considerable opposition was offered to the granting of this application, especially from those carriers holding certificates for open-door service between Baton Rouge and New Orleans. Among the protestants was plaintiff herein.
Following a hearing, the application was denied by a two-to-one vote of the Commission. Guillory then filed a petition for rehearing or reconsideration of his application, pointing out therein that public convenience and necessity was shown at the original hearing for open-door service between Baton Rouge and points in the Florida Parishes already under certificate to him and that the main opposition was not directed to this part of the application but was aimed at preventing the granting of an extension of the certificate to include operations between Baton Rouge and New Orleans.
Saia objected to the application for reconsideration, which was subsequently granted. Before the matter was heard on rehearing, Guillory sought and was granted, over the objections of Saia, an amendment to his petition deleting from his original application the request for authority to furnish service between Baton Rouge and New Orleans and limiting consideration to his request for authority to serve points in the Florida Parishes (Slidell, Bogalusa, Kentwood, etc.) with open-door transportation to and from Baton Rouge. When this amendment was permitted, all opponents other than Saia and B & R Truck Line (which had an application pending for the same route) withdrew their protests.
At the trial on rehearing, several witnesses were called and permitted to testify, over the objection of Saia that their evidence was cumulative. After considering the additional evidence the Commission, by a two-to-one vote, issued its Order No. 8903, now under attack, which authorizes Guillory to give open-door service between Baton Rouge and points in the Florida Parishes already certificated to him.
At the first hearing before the Commission nine witnesses testified for Guillory and the opponents produced five. The testimony of Guillory's witnesses was to the effect that there was a need for direct service, while the opponents testified that Saia is already furnishing this service. Upon interrogation, many of Guillory's witnesses stated that they were not apprised that Saia was offering direct service.
On rehearing, after amendment of the application to limit the request to the furnishing of open-door service between Baton Rouge and points in the Florida Parishes, Guillory produced witnesses who stated that there was a definite need for this additional service.
Mr. Tom Savage, Sales Manager for Fraenkel Wholesale Furniture Co. in Baton Rouge, testified that 70% Of his business is done out of town and some in the Florida Parishes. He stated that he had shipped by Saia in the past two weeks and requested direct service but that Saia went through New Orleans, where the goods were interchanged, that is, unloaded from one carrier to another. In addition, he stated that goods sent by his company to Franklinton were shipped by Saia out of Baton Rouge with a connecting carrier. He testified that there is a need for direct service to Slidell and Franklinton and that he has lost business in Franklinton because he is not able to obtain direct delivery. This witness explained that interchange in the shipment of furniture is not desirable since there is more risk of damage than if the shipment is direct without the use of a connecting carrier.
Mr. Joe McGowan, Area Manager of Gulf Supply Co. in Baton Rouge, engaged in the business of handling pipe valves, fittings, etc. for the chemical, oil and paper allied industries, testified that freight is transported to Bogalusa via New Orleans and there is no direct service to Slidell by Saia. The bulk of McGowan's business is freight to Bogalusa with 20 to 25% Going to Slidell, Hammond and Franklinton. His company services Crown Zellerbach in Bogalusa and he has been unable to secure business at the NASA complex at Slidell because he is at a competitive disadvantage by not being able to ship directly to Slidell from Baton Rouge. Since there is no direct service, his company carries shipments in its own trucks during emergencies.
Mr. L. E. Watson, District Traffic Manager of Crown Zellerbach Corporation, Bogalusa, testified that, at present, shipments are routed over Ozone (Guillory) to New Orleans and by Ryder Truck Line to Baton Rouge. His competitors enjoy direct service to Baton Rouge and it would be beneficial to his company to have the same direct service from its plant. Goods purchased in Baton Rouge by his plant now come through New Orleans by common carrier truck line by means of interchange. During the period from January 2, 1963 to March 15, 1963, his company had 35 shipments from Bogalusa to Baton Rouge and these shipments were sent by common carriers to New Orleans and then to Baton Rouge.
Roy Yarborough, Hammond, the Traffic Sales Manager for Ozone, corroborated the foregoing evidence as to the necessity for the issuance of the amendment to the certificate of Guillory.
On the other hand, John L. Saia, of plaintiff motor freight line, testified that his company gives overnight service to Hammond, Slidell and Covington from Baton Rouge, but admitted that he does not give direct service from Baton Rouge to Franklinton and Bogalusa. This can be accomplished only by interchange at New Orleans or Hammond with Southeastern Motor Lines, Ozone or B. & R. When asked to explain certain freight bills introduced in evidence,...
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