Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-12-07
VICTORY FOR VIRGINIA.
Supreme Court Upholds Validity of
CORPORATION Commission.

RICHMOND, Va, December THE sl-
preme court handed down an opinion yes
terday UNFOLDING the validity of the con-
stitutional provisions and laws subsequent
ly passed by the legislature creating and
prescribing the duties of the state corpora
ton commission. The case was that OF
the Winchester and Strasburg Railroa
Company against the commonwealth. Judge
Harrison handed down the opinion and
Judge Keith a concurring opinion.
Since the commission was organized the
railroads have questioned the validity of
the laws from which it derived its exist
ence, and this was one of the points raised
in the proceeding now pending before the
commission having in view the adoption in
Virginia of a classification and rates on
freight formulated by the commission. The
question, however. has been squarely raised
before the supreme court, and has never
been dealt with by 1t in deciding appeals
from the judgment of the corporation COM
mission. Had the points raised by the
railroad companies In this case been sus-
tanned the state corporation commission
would have been declared to have had no
existence. and all Of its acts would have
become of no effect. Concluding the dis
cussion of the legitimacy of the tribunal,
the court says:
State Has Inherent Power.
THAT the state has the inherent power
of regulating and controlling public service
corporations operating within her borders,
and of prescribing the facilities and con-
veniences which shall be furnished by them.
is no longer an open question In this coun-
try. The just regulation and control of
such companies has been a difficult prob
lem for many years. The Virginia corpora
ton commission as created and defined by
article IL Of the constitution was devised
as a solution of that problem. The exigen-
Giles of the situation made it necessary
that the commission should be clothed to
some extent with legislative, executive and
judicial functions, and in view of what has
been said. and in the light Of the authorities
cited. We are of the opinion that the Sec
lions OF the state constitution and the
statutes enacted In effectuation thereof.
from which the state corporation COM
mission derives Its existence and Its powers
violate no provision of the federal consti-
tuition and are in conflict with no principle
essential to the preservation OF liberty It
follows. therefore, that the corporation
commission is a legitimate and valid trl-
bunal. with full power to determine the
subject matter Of controversy preserved by
this proceeding"
Trains Into Strasburg.
The Judgment Of the corporation COM
mission in the particular case before the
court is reversed. 1t was sought in the
proceedings to require the Winchester and
Strasburg Railroad Company and the Bal
ttmore and OHIO Railroad Company, as its
lessee, to comply with the terms of the
charter of the f1rst-named company as mod
flied. and operate its trains into Strasburg
The court holds that the Baltimore and
Ohio Railroad Company, as lessee has
undertaken to perform and carry out the
public legal obligations of the Winchester
and Strasburg Railroad Company and is.
therefore, legally bound to do so: that the
obligation imposed by the modified char
ter was accepted by the companies, and
they cannot now be permitted to disre-
gard that obligation because they find 1t
onerous and Improbable, and that the de-
nying Of writ of mandamus by the su-
preme court, by which 1t was attempted to
compel the companies to make provision for
operating their trains to Strasburg. was
not such judgment as precludes further
inquiry as to the grounds on which the
writ was sought.
The conclusion reached by the corpora
ton commission that the companies are
bound to operate their trains into Stras-
burg is held to be free from error, but that
the form of order was erroneous, as 1t af-
fected the rights of the Southern Railway
Company when that company had not been
made a party to the proceedings. It Is
further held to have been error to require
the companies to adopt the mode provided
by the amendment to the charter as a
means Of reaching Strasburg and that the
order should have required the companies
in the town of Strasburg. within given
two ways they would adopt.