The Glenwood post., 1918-12-14
Supreme Court Reverses Judge
Sheafor's Junking Order
Passes to Utilities Com.
OUTLOOK IS HOPEFUL

The state public utilities commission
was authorized last Saturday by the
supreme court to decide the issue as to
whether the Colorado Midland railway
shall resume operations between Colo
rado Springs and Grand Junction or
allow the receiver, A. f. Carlton, to
dismantle the property.
The Midland suspended operations
Aug. 1, following an order granted the
receiver July 3 by Judge John W,
Sheafor of FL Paso county, and the
receiver was prevented from disman-
ting the property through stay of
execution issued Aug. by the supreme
court.
shippers in Park county protested
the discontinuance of service, and the
utilities commission ruled that it had
original jurisdiction. The receiver
elected to recognize the district court
and prepared to dismantle the road.
The commissions position was support.
ed in the supreme courts opinion, writ
ten by Justice Garrigues
The opinion reversed the Judgment
of the lower court relating to discpn-
tinuance of service and dismantling Of
the property. 1t recognized the lower
court s authority to appoint the receiv-
er and to entertain the foreclosure suit
instituted by the Colorado Title and
Trust company.
The road has been idle since mid
night, Aug. 4. Shippers sought to keep
the road open, but the stay granted by
the supreme court did not come until
twelve hours after operations had been
suspended. For that reason the stay
only affected the dismantling.
Owners of the road decided to dis
mantle the road when it became evil
dent that the United States railroad
administration would refuse to pay
what they considered an adequate re-
muneration during the war period, and
losses were being suffered through the
Encouragement of through freight ship
ments ordered by Washington officials.
Counsel for the railroad owners and
for the received contended that the
utilities commission had equal author
ity with the district court, hut that the
district court had been elected as the
, proper tribunal. The shippers main
tanned that jurisdiction lay with the
utilities commission.
The court at Colorado Springs re-
fused to extend the time for hearing
of the commission s position, or for the
shippers to present further evidence,
, and both parties took an appeal to the
+, supreme court.
The supreme court opinion not only
established the commission s. jurisdic-
ton but touched on the constitutions
, ality of the act creating it, holding
that the commission did the proper
, thing when it refrained from making
an order after the district court had
F.. attempted to assume jurisdiction.
, Justice Garrigues says:
"The act tutilities) confers upon the
; commission sufficient authority, when
] the public interest requires that no
{ change should he made, to prevent a
. railroad from ceasing service upon and
. dismantling the road without the CON
/ sent of the commission
o On the constitutional objection
raised the court said:
"The legislature may prescribe the
method for the administration of public
! service corporations. The stavc has in
hercnt power to regulate and control
r ppt'ic utilities within .he sta,c, ar, to
e this end it is well settled the legisla'
, ture may create a commission to which
it nay delegate governmental authority
; and supervision
; "Whcthe, "a, commission has juris'
=, dicrion over the eeasing Of service
; upon and the dismantling Of a railroad
is a judicial question for the conrt, but
the exercise of that jurisdiction by thu
commission is the exercia Of admins
!. trative power delegated to tho eommis
d sion by the, Legislature t
!. CONTINUED On paes .