State ex rel. Associated Transports, Inc. v. Burton, No. 23530

• Court: Court of Appeal of Missouri (US)
• Writing for the Court: CROSS
• 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.
• Docket Number: No. 23530
• Decision Date: 02 April 1962

Page 115

356 S.W.2d 115 44 P.U.R.3d 98 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. No. 23530. Kansas City Court of Appeals, Missouri. April 2, 1962.

Page 116

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.

CROSS, Judge.

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,

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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, 'If I had gone and used them (Associated) I would have been locked in with them. I would have never had a chance to get another carrier'.

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...