The Richmond Virginian. (Richmond, Va.) 1910-1920, 1917-06-06
COMMISSION REFUSES
DISSOLUTION PETITION
Judge Rhca Dissenting, T. q WIS Re-
quest to Discontinue Service
Is Denied.
PuBLICs RIGHTS UPHELD
Power to Cut On Means Of Communi.
cation Without Notice Denied in
Lengthy Decision Handed Down by
Judge Garnet.


Petition for dissolution of the Tide
water and Western railroad, filed some
time ago with the state corporation
commission. was yesterday denied IN
an order entered by Chairman Chris
TOPPER b. Garnett. In an opinion by
Mr.. Garnett, In which Commissioner
j. Richard wingfield concurred. the
reasons for the denial of the disco
luton certificate were set out. Judge
William r. Rhea dissented from the
opinion of the majority commissioners,
and in an opinion handed down by
him declared that the company should
be granted its petition.
While no indication has been made
by the company as to what action
will be taken In the matter. the only
recourse for the decision OF the cor
poration commission is an appeal to
the supreme court OF appeals or VIZ
ginia. Langbourne NJ. Williams. pres
ident of the Tidewater and Western
railroad, has been named receiver OF
the line by Judge Moncure, OF the
chancery court.
Discontinue May ~.
The Tidewater and Western railroad
made application to the commission
road, stating that the stockholders OF
the line had decided on the dissolution
and that from IL o'clock midnight on
May IL, 1917. the operation OF the
line would be discontinued, Mr.. Gar
nett returned the petition to the COM
pany stating that 1t was not signed
by persons having the right To do So
On May II IL was returned with the
signatures attached. On May IA the
a fS,r ha advised the
ommission that n contract had been
entered into by the company TO sell
the rails and other property OF the
corporation. The compa>1% claimed
that the road was a losing PROPOSE
tion and since In the time a RAD been
under the control of the pyeseat man.
aEement the toss had mounted t4'-a
considerable figure, Its was decided to
dispose OF the property,
Since notice indicating that the op-
Grafton OF the line would he dtSc@n-
sinued was not furnished the COM
mission, and the people served 10y the
road were not given warning thar
their means of communication would
be cut of, It is held by the commits
sion that the corporation has not com
piled with the law IN the case. The
company contended that IL did not
first have to receive the permission
~ the commission to withdraw It's
trains nor notify the patrons or the
line. and that action by the stockhofd-
ers in this regard was the only neees-
sary procedure.
Obliged to Serve Public.
II ~ held by the commission that
the subscriptions OF the town OF Farm
Vile and the counties Of Cumberland
and Powhatan to the company put
duties and Obligations on the road
that are imperative and binding. and
that the property Of such corpora
ficn ~ affected with a public Interest.
Tho obligation In serve the public WAS
voluntarily assumed and once estah-
lishe6. II became subject 10 public
regulation aud Its public duties are
imposed by law. On account of this
obligation due the public. and the
fact that the people along the line
OF the road depended so absolutely on
the Tidewater and Western, the COM
mission believed that IL was not within
the consent of the commission. and
after proper notification 10 tafss ssssaI
irons.
Mr. Garnett, In his opinion. stated
that II a public service corporation.
with the mere consent of majority
of It's stockholders. can relieve itself
of its obligations TO the public. then
the economic structure Of the govern-
mcnt is on a shallow foundation, and
the welfare OF every county and every
municipality which is served by the
public service corporation Is at the
mercy of the within OF such stockhold-
ers The bondholders tot,. would be
denied the security which they were
assured Of when the bonds were taken
by them. To protect the public and
bondholders alike, 1t Is the belief OF
the commission that under the laws of
Virginia IL bears an obligation to in
auire into the facts OF any public SER
vice corporation when II desires to
abandon its service, and that an equal
obligation rests on the corporations TO
apply to the commission for permits |
sion to discontinue.
Although the company has claimed
that it could not operate the roaa
without loss, II is stated by the COM |
mission that no petition has been made /
10 that body fer an increase in rates
since 1914.
In this matter 1t Is the purpose OF
Chairman Garnett to establish a pre- |
cedent for Virginia--that public SER |
vice corporations on which the people |
depend for their commercial. indus
trial and domestic existence. shall not
in the twinkling OF an eye remove |
from the public those facilities which /
are Of such utmost Importance for
their life. In the instance OF the
TidewateF and Western railroad, this I
~ -pupl1G pi&AW2Sv- ana At Sdeh comes +
under governmental control This
point has already been established in |
high courts OF the country. On this
point the opinion OF Mr.. Garnett reads
a. follows:
Must BE Specific.
TT a railroad can be held to be q |
public highway in order to justify the
states interfering upon such a cor
poration's right to avail itself OF the
sovereign power of taxation surety
when such corporation wishes to layl
aside its public duties. the strong pre-
sumption is that the state will pro-
vide some means of protecting the
rights of the public. and when the
argument Is presented that statue
has put In the hands of two-thi~as
of the stockholders the power 10
vest the property Of such ~o;s'
ton of its public nature, wi&scn.
power OF any court or cor,eaass
inquire into the facts and protet-
public, such argument musr Z 4 n1rsd
upon q clear, convincing and unmfs-
taxable expression of intention on the
part of the legislature, and any stat i
ute which has for its purpose the d. Il
vesting of the power of the state cor