State ex rel. Utilities Commission v. Champion Papers, Inc., 460

• Decision Date: 22 May 1963
• Docket Number: No. 460,460
• Citation: 130 S.E.2d 890,259 N.C. 449
• Parties: STATE of North Carolina ex rel. The UTILITIES COMMISSION v. CHAMPION PAPERS, INC.
• Court: North Carolina Supreme Court

Page 890

130 S.E.2d 890

259 N.C. 449

STATE of North Carolina ex rel. The UTILITIES COMMISSION v. CHAMPION PAPERS, INC.

No. 460

Supreme Court of North Carolina.

May 22, 1963

Lake, Boyce & Lake, by I. Beverly Lake, Raleigh, for defendant-appellant.

Joyner & Howison, Maupin, Taylor & Ellis, Simms & Simms, Raleigh, for petitioners-appellees.

HIGGINS, Justice.

By 30 exceptive assignments, the appellant challenges as erroneous the order of the Superior Court affirming the Utilities Commission's findings of fact, its conclusions of law, and its order giving the petitioning railroads authority to increase their tariffs on North Carolina intrastate shipments of freight. The appeal presents these questions of law: (1) Did the Commission exceed its authority by reopening the proceedings after Champion Papers, Inc., had filed its notice of appeal? (2) Are the Commission's findings of fact supported by competent, material, and substantial evidence in view of the entire record? (3) Do the facts found support the conclusions and the order allowing, in part, the requested rate increase?

The appellant's objection to the Commission's action in reopening the proceeding for further hearing is without merit. Although the appellant had given notice of appeal, the Commission's time limit for transmitting the record to the Superior Court had not expired. G.S. § 62-26.4. The statute provides the Commission on motion of any party to the proceeding, or on its own motion, may set the exceptions for further hearing. Surely the authority to reopen carries with it the duty to make such changes in the original record as the Commission concludes the facts and the law warrant in order that the record may speak the truth. Any error in the record, whether discovered by a party or by the Commission itself, may be reconsidered and corrected after proper notice at any time before the record passes from the Commission to the Superior Court by appeal. Consequently the order of December 19, 1961, is not the final order. The original order as amended on August 19, 1962, became the final order. 'Ordinarily, the procedure before the Commission is more or less informal, and is not as strict as in superior court, nor is it confined by technical rules; substance and not form is controlling.' State of N. C. ex rel. Utilities Comm. v. Carolinas Committee etc. Area Development, Inc., 257 N.C. 560, 126 S.E.2d 325.

On the appeal to the Superior Court the Commission's findings of fact are conclusive and binding if they are supported by competent, material, and substantial evidence in view of the entire record. State of N. C. ex rel. Utilities Comm. v. Gulf-Atlantic Towing Corp., 251 N.C. 105, 110 S.E.2d 886; State ex rel. Utilities Comm. v. Atlantic Coast R. R. Co., 238 N.C. 701, 78 S.E.2d 780.

At the further hearing, Mr. Luckett and Mr. Hempel explained the foundation and operation of their formula for separating intrastate from interstate operations. The method of applying the formula to the facts disclosed by the exhibits satisfied the Commission that the formula as so applied fixed with reasonable reliability the fair value of the carriers' property used and useful in conducting their intrastate operations and justified the rate increase allowed.

The combined operations of the four leading railroads doing business in North Carolina--Atlantic Coast Line, Seaboard, Norfolk-Southern, and Southern--for the ten-year period beginning with 1950 showed a net operating income on total investment...