Asbury Rapid Transit System v. Railroad Commission

SHENK, J. Absburry Rapid Transit System, a corporation, and City of Los Angeles filed separate petitions to review and annul an order of the Railroad Commission requiring the petitioner, Asbury Rapid Transit System, to cease and desist from certain operations as a common carrier of passengers by motor transportation until it should have obtained a certificate of public convenience and necessity. The issues presented by both petitions and the return to the writ of review issued herein were consolidated for argument and decision.

It appears that in December, 1939, Asbury Rapid Transit System operated several lines of motor vehicle passenger service between Los Angeles and other cities and adjoining unincorporated territory in Los Angeles County as a certificated carrier under the supervision and regulation of the Railroad Commission, pursuant to the Public Utilities Act. During that month and without obtaining a certificate of public convenience and necessity, it inaugurated and began the operation of an additional motor vehicle common carrier passenger service between the downtown and the Highland Park and Garvanza sections of the city of Los Angeles, terminating at a point two blocks within the city limits, and without any transfer privileges to or from any of its other lines. For convenience this additional service is called the Highland Park line. The operation of that line was commenced and conducted pursuant to a permit granted by order of the Board of Public Utilities and Transportation of the city of Los Angeles dated July 14, 1939. Before the commencement of the operation of the Highland Park line and on October 38, 1939, and thereafter in March, 1940, two competing lines, Los Angeles Railway Corporation and Pacific Electric Railway Company, filed complaints before the Railroad Commission protesting the operation by the Asbury Rapid Transit System of its Highland Park line without first obtaining a certificate of public convenience and necessity. The competing companies serve in part the same territory as the Highland Park line, and the Highland Park line also paral[107]lels portions of the service afforded by other lines operated by the Asbury Rapid Transit System. Hearings were had before the commission, which issued its order directing the Asbury System to cease and desist from operating its Highland Park line until it obtained a certificate of public convenience and necessity.

It is contended by the petitioners that the commission has misconstrued and misapplied sections 2¼ (b) and 5014 of the Public Utilities Act [Leering’s Gen. Laws, 1937, Act 6386], and that it has exceeded its powers by taking jurisdiction of a purely intra-city passenger transportation service.