The Eureka sentinel. [volume] (Eureka, Nev.) 1902-current, 1913-09-20

OF the COutTOSefsy nov Pcu1luA Oe"SN
the parties should be reached at the
earliest date possible.
The main points to be considered are t:
First The rehabilitation and opera
ton Of the Eureka Nevada Railways
entire property
Second What lie a Just and reason
] able rate TO cover tbe movement OF ore
over the line Of the Eureka.Nevada Rail
way.
Rehabilitation and Operation
The Eureka-Nevada Railway Com
pany is q corporation under the Laws OF
the State of Utah. chartered to perform
the services CT q common carrier between
| the towns of Palisade, Nevada. and
Ruby Hill. Nevada; therefore 10 the
exercise of its contract it cannot, with
out the consent OF the Legislature.
abandon the operation of q part Of its
line and consent tarender public service
over only a particular portion thereof.
The raDgemeu by which the Eo
reka-Nevada Railway 90. undertakes TO
lease that portion of its property be-
tween Eureka and Palissde, for opera
ton, TO the Nevada Transportation Com
pany and abandons that portion OF the
property between Eureka and Ruby
| Hill, defeats the provisions Of its charter
which requires the operation OF the en-
tire line between Palisade and Ruby
| Hill, and il is therefore clearly unreason-
| able aud void.
This is seen to be especially true when
1t is considered that on the basis of the
traffic carried for the iscal year ending
June 80, 1909, when the road was oper-
sted at its full capacity. the ore tonnage
originating at Ruby Hill and moved
over the line to Palisade, Nevada. con.
stituted 90 per cent of the entire traffic
and IS per cent Of the entire revenue Of
the road.
An implied condition attaches TO all
Legislative grants of corporate powers
hat are conferred not merely as the
privilege of the recipient to be used at
It's discretion, but as a quasi trust to be
| exercised for the benefit of the public
as well. Consequently, any contract of
a corporation by which it disables itself
from performing its duties to the public
or subordinates to its private interest
the rights.an conveniences il implicitly
undertakes to secure to the community,
8 beyond the lawful power of the cor.
| poration. Such a contract is contrary
o public policy and is invalid on that
ground also.
The lease contract conveying the prop
erty of the Eureka. Nevada Railway. be-
tween Eureka and Palisade, to the Ne
vada Transportation Company. for oper-
alton, provides that al annual rental
amounting to five per cent on the CAPT.
al stock, or S25 900 per annum. shall be
paid by the Lessee to the Lessor. This
arrangement is legal only insofar as it
does not interfere with the performance
Of any duty or obligation imposed by
The charter and the rendering Of an ad.
| equate service to the public at reason
able com pensation therefor.
Our conclusions are that the facts in
this case and the law applicable thereto
do not justify the defendant railway
company in tearing mp that portion OF
is line between Eureka and Ruby Hill
and refusing to perform service there
upon for the complainant mining COM
pany. Upon the contrary. we are of the
opinion that the defendant railway com
pany should reconstruct that portion OF
the said line which has been torn up, re-
habilita.e the entire line for heavy traf'
hc. and at the e~srliest possible date fur
nish service covering the movement Of
ores. materials and supplies between
Palisade and Ruby. Hill.
Reasonableness of Rates
1t now remains to find a reasonable
rate for the movement of MIN dollar orr
between Ruby Hill aud Palisade.
AS before stated, there is in sight a
the present time approximately 300. 0O'
tons of ore in the Richmond oreki
mines at Ruby Hill. and the mining
company is dssirous of shipping to thu
Salt Lake smelters at the rate of 2O
tons Of this ore per day.
1t is also quite probable that furthe'
development of this and other MINING
properties in the vicinity of Eureka viii
Ec~onsiderably augment the 100000 ton
mentioned above. The Commission
will not undertake to express an oplnioI
as to the ultimate life Of the Eureka
thinning district for the reason that NJ
one can say. 10 advance of actual de
velopment work. what amount of new
ore may be discovered or how much th'
values thereof may be increased. W.
do know, however, that the mines a