State ex rel. Associated Transports, Inc. v. Burton
| Decision Date | 02 April 1962 |
| Docket Number | No. 23530,23530 |
| Citation | 356 S.W.2d 115 |
| Parties | STATE of Missouri, on the Relation of ASSOCIATED TRANSPORTS, INC., Appellant, v. Tyre BURTON, E. L. McClintock, D. D. McDonald, William Barton, and Frank luen, Members of and Comprising the Public Service Commission of the State of Missouri, Respondents. |
| Court | Missouri Court of Appeals |
James W. Wrape, Memphis, Tenn., Charles H. Howard, Jefferson City, Wilbur F. Daniels, Fayette, for appellant.
Glenn D. Evans, Gen. Counsel, Thomas J. Downey, Asst. Gen. Counsel, Jefferson City, for respondents.
This appeal is from a judgment of the Circuit Court of Cole County, Missouri, in certiorari proceedings, affirming an order of respondent Public Service Commission of Missouri granting additional authority to applicant Speedway Transports, Inc., a common carrier, under its existing certificate of convenience and necessity. The additional authority afforded by the order permits Speedway to transport automobiles and trucks, by the driveaway and truckaway method, between the Chrysler Corporation Assembly Plant in Valley Park, Missouri, and all points in Missouri.
Two hearings were had before the Commission. At the second hearing the Chrysler Corporation and the Chamber of Commerce of metropolitan St. Louis intervened in support of Speedway's application and introduced evidence on Speedway's behalf. Appellant Associated Transports, Inc., a competing motor carrier, appeared at both hearings as a protestant in opposition to Speedway's application. This cause, as it affects direct financial interests, is essentially a contest between Speedway and Associated. The prize contended for is the business afforded by Chrysler in intrastate transportation of automobiles manufactured at its Valley Park Assembly Plant.
The relative positions occupied by Speedway and Associated in this controversy are unique. Speedway, as an applicant for authority, has transported the entire production of Chrysler destined to points in Missouri from Valley Park ever since the plant was established (with the exception of certain deliveries within metropolitan St. Louis). Associated, as a protestant, has never transported Chrysler products from Valley Park, although it has certificate authority extending to all points intrastate. It is admitted by Associated that it has not hauled anything for Chrysler Corporation since 1938.
Chrysler formerly operated an assembly plant in Evansville, Indiana. In September, 1959, after closing the Evansville plant, Chrysler constructed an assembly plant near Valley Park, approximately nine miles southwest of the city limits of St. Louis, but located within the commercial zone of St. Louis. The Valley Park assembly plant is devoted to manufacture of Plymouth, Dart and Valiant automobiles. Those products are shipped to various points in Missouri and other states by the driveaway and truckaway method.
When the Valley Park plant began production, (and at the time of the two hearings), Speedway was authorized to transport automobiles and trucks, both in interstate and intrastate commerce. It had previously hauled interstate for Chrysler. Speedway's authority included the right to operate intrastate between St. Louis and all points in Missouri. In September, 1959, relying upon the sufficiency of its authority and at Chrysler's solicitation, Speedway began to transport all Valley Park production for intrastate delivery. Speedway continued that service until the Commission issued its citation order on November 19, 1959, stating that Speedway's certificate authority did not include the commercial zone of St. Louis and requiring Speedway to show cause why it has rendered unauthorized service from that area. Speedway complied with the order and ceased hauling directly from Valley Park.
On December 22, 1959, Speedway filed its application with the Commission requesting in the alternative, either (1) that the Commission interpret its existing certificate authority as including the right to transport intrastate from Valley Park, or (2) that the Commission issue a certificate of convenience and necessity granting such authority.
Thereafter, Chrysler engaged Cassens Transport Company to deliver the shipments from Valley Park to a terminal in St. Louis. Speedway picked up the cargoes at the terminal and completed the transportation from St. Louis to the designated points in Missouri. At the time of the hearings all of Chrysler's shipments moving intrastate had been so handled since Speedway ceased hauling directly from Valley Park. (Subsequently, in a separate proceeding, the Commission determined that the described two-stage method of moving Valley Park production intrastate was unauthorized.)
Speedway owns and leases a total of 188 tractors and 192 trailers, all in good, serviceable condition. This equipment is shown to be suitable for the transportation of motor vehicles as proposed in the application. The evidence shows that Speedway is financially able to obtain necessary additional equipment and render efficient service to the public under the authority applied for. Speedway maintains terminal facilities immediately adjacent to the Valley Park plant. Speedway's drivers are especially trained and familiar with the methods of tying down, transporting and delivering Chrysler vehicles to the various dealers in Missouri. Speedway has transported all of Valley Park production destined intrastate, to the satisfaction of Chrysler.
Chrysler Corporation's director of traffic was a witness on behalf of Chrysler to support the application of Speedway. He testified that approximately 4,000 to 5,000 people are employed at the Valley Park plant, which has a capacity of 960 vehicles per day. The motor industry is highly competitive. It is essential that when automobiles are produced they must be shipped for fast delivery to the customers. Speedway's service has been very satisfactory to Chrysler. They have good equipment. Chrysler definitely needs the service of Speedway. Chrysler is entitled to a competitive situation. A choice of carriers helps in the peaks and valleys of manufacturing and gives the manufacturer protection in case of work stoppage by one carrier. Chrysler is entitled to a choice of carriers--as it has in all its other plants. Chrysler has never used Associated's service although Associated has solicited the Valley Park business. The witness for Chrysler stated, .
The Chamber of Commerce of metropolitan St. Louis was represented by its commissioner of transportation. The commissioner testified in support of Speedway's application to the following effect: Each of the 'Big Three' automobile producers has a plant located in the St. Louis area. The competitive situation among these producers is well known. Chrysler is at a distinct and crippling disadvantage transportation wise because it must rely on only one automobile transporter for its intrastate needs when each of its competitors has at least two carriers upon which to rely. The building of the Chrysler plant at Valley Park has had material effect on the economic life of the community. It has created 4100 new jobs in the St. Louis area, with an estimated annual payroll of $24,000,000.00. It has generated an additional 3,000 jobs of all kinds, increased bank deposits by $11,000,000.00 and retail sales by more than $14,000,000.00 annually. In a situation where a manufacturer is limited to one carrier, any 'breakdown' of transportation service, whether from labor trouble or any other reason, would halt the entire plant operation and cause a complete layoff of employees and result in general economic loss. Chrysler Corporation has only one specific carrier authorized to serve intrastate--Associated. Mercury Division of Ford has two such carriers and Chevrolet has three.
S. J. Cento, President of Associated, testified on its behalf essentially as follows Associated holds intrastate authority issued in 1936 which permitted it to operate in the trade territory contiguous to St. Louis and from this territory to all points in Missouri. Later, on Associated's application, the Commission held that Associated's authority included the area within 19 miles of St. Louis. Associated owns and leases a total of 356 tractors and 456 trailers. Some of its equipment has been leased from Speedway. This equipment is suitable and adequate for transportation of the Chrysler products made at Valley Park. Associated has solicited this traffic from Chrysler but has never been given any of the business. Associated is primarily a hauler for Ford. The 'majority' of its business is transporting Ford products. Associated also hauls some Chevrolet products. Associated owns no tractors manufactured by Chrysler. It has no terminal at Valley Park, but maintains one at Hazelwood, 20 miles from Valley Park. Automobile manufacturers, including Chrysler, desire and request that equipment of their own manufacture be used in transporting their products. Associated owns no trucks manufactured by Chrysler, but uses Ford equipment exclusively. The witness didn't know whether Ford would allow Associated to transport Ford products using other than Ford tractors. He stated, 'I don't know; I haven't tried it'. He also stated that if Associated is favored with Valley Park traffic, it would buy Dodge trucks and would build a terminal near the Valley Park plant. The authorization of Speedway to serve the Valley Park plant would not entitle it to serve the Ford plant. Such authority in Speedway would not deprive Associated of any Ford traffic. Speedway's right to serve the Valley Park plant would not affect the present service rendered by Associated in any way. It would, however, 'deny the additional revenue to be derived from operating at * * * the Chrysler plant'. The granting of the...
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