River Lines, Inc. v. Public Utilities Commission

MOSK, J. Three Northern California barge lines engaged in hauling petroleum and other commodities commenced these proceedings before the Public Utilities Commission against the Southern Pacific Company (hereinafter referred to as Southern Pacific) and its wholly-owned subsidiary, Southern Pacific Pipe Lines, Inc. (hereinafter referred to as Pipe Lines). The barge lines claimed that Pipe Lines was charging unreasonably low rates for transporting petroleum products from San Francisco Bay Area refining points to Stockton, Sacramento, and Chico.

The commission found that the rates charged by Pipe Lines were not unreasonable and denied the barge lines any relief. By petition for writ of review, the barge lines claim that the commission erred in determining that section 727 of the Public Utilities Code1 had no application to the instant proceedings2 and that the commission abused its discretion in failing to establish minimum rates under section 726.

Section 726 provides: . . In any rate proceeding where more than one type or class of carrier, as defined in this part [§§201-2113, known as the Public Utilities Act], or in the Highway Carriers’ Act [§§ 3501-3812], is involved, the commission shall consider all such types or classes of carriers, and, pursuant to the provisions of this part or the Highway Carriers’ Act, fix as minimum, rates applicable to all such types or classes of carriers the lowest of the lawful rates so determined for any such type or class of carrier. This provision does not prevent the commission from granting to carriers [247]by water such differentials in rates as are permitted under other provisions of law.” (Italics added.)

Section 727 states: “It is the policy of the State that the use of all waterways, ports, and harbors of this State shall be encouraged, and to that end the commission is ¿Erected in the establishment of rates for water carriers applying to business moving between points within this State to fix those rates at such a differential under the rates of competing land carriers that the water carriers shall be able fairly to compete for such business. In fixing the rates there shall be taken into consideration quality and regularity of service and class and speed of vessels. ‘Competing land carriers’ includes all land carriers as defined in this part, and includes a highway contract carrier and a radial highway common carrier as defined in the Highway Carriers’ Act.” (Italics added.)

Notwithstanding the assumption in sections 726 and 727 that the Public Utilities Act or the Highway Carriers’ Act contains definitions for the terms “carriers” and “land carriers, ’ ’ definitions are not found in either of the acts. That omission, however, does not require us to ignore the terms. Unless effect is given to them, section 726, which relates solely to ‘1 carriers, ’ ’ would be rendered totally inoperative, an intent we cannot reasonably attribute to the Legislature. Accordingly, the term “carriers” as used in section 726 should be interpreted in accordance with applicable principles of statutory construction. It is obvious that the provisions of section 727 are directly related to those of section 726, and the term “carriers” should be given the same meaning in both sections.