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Vehicles Engaged in Transportation for Hire

The highways of a state are public property; their primary and preferred use is for private purposes and their use for purposes of gain is special and extraordinary[i].

The right of a citizen to travel upon the highway and transport his/her property thereon, in the ordinary course of life and business, differs radically and obviously from that of one who makes the highway his/her place of business and uses it for private gain, in the running of a stage-coach or omnibus[ii].

The right to travel upon highway in the ordinary course is a usual and ordinary right of a citizen, a common right, a right common to all.  However, using the highway for private gain is special, unusual, and extraordinary.  As to the former, the extent of legislative power is that of regulation, but as to the latter its power is broader.  The right may be wholly denied or it may be permitted to some and denied to others, because of its extraordinary nature.

It is essential to the proper use of highways and to secure adequate service to the public, that the business of motor transportation for hire should be regulated and those who avail themselves of the regulations and observe them must be protected from unfair competition.

The use of public highways for purposes of private gain may be restrained, prohibited, or conditioned as legislative power may prescribe without violating any provisions of the state or federal constitution.

At common law there is a public right to operate a motor bus on the public streets for the transportation of passengers for hire[iii].  Further, a person has a right under the federal constitution to travel and transport property upon highways by motor vehicle.

However, a person has no right to make the highway his/her place of business by using them as a common carrier for hire[iv].  A common carrier of property for compensation or hire can operate over the highways only after first obtaining a certificate of public convenience and necessity.

Under some jurisdictions, the railroad commission has authority to supervise and regulate the transportation of property for compensation or hire by motor vehicle on any public highway of the state[v].

Further, a state may, in the exercise of its power to regulate the use of its highways, authorize its public service commission to fix the minimum rates of private contract motor vehicle carriers operating in competition with common carriers which should not be less than the rates prescribed for common carriers for substantially the same service.

A statute regulating the use of the highways of the state by motor carriers for hire will not be regarded as denying the equal protection of the laws because it authorizes the issue of special permits to persons engaged in the business of transporting certain named commodities upon such terms, conditions, and restrictions as the statutory authority may deem proper[vi].

[i] Parlett Co-operative v. Tidewater Lines, Inc., 164 Md. 405 (Md. 1933).

[ii] Cummins v. Jones, 79 Ore. 276 (Or. 1916).

[iii] St. Paul v. Twin City Motor Bus Co., 187 Minn. 212 (Minn. 1932).

[iv] Slusher v. Safety Coach Transit Co., 229 Ky. 731 (Ky. 1929).

[v] Stephenson v. Binford, 287 U.S. 251 (U.S. 1932).

[vi] Id.


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