The Eureka sentinel. [volume] (Eureka, Nev.) 1902-current, 1922-04-08
BEFORE THE PUBLIC SERVICE
COMMISSION OF NEVADA
CONTINUED From Page one)

(COntlnueQ from rage One)
telegram for immediate action on be
half Of the railway company to put
on necessary work trains, men ant
material and reestablish service ths
following kilograms were received:
San Francisco. Calf, March IT.
"Mr. Whittell is Ill with flu and
your telegram has been referred to
Mr.. Sexton who is going right up"
(Signed) w. w. McNAIR.
Sacramento, Calf, March IS.
Received your wires to Whit
tell and myself"
(Signed) j. E. SEXTON.
On March goth the Commission
wired vice-President Sexton for def
mite advice as to whether it's formal
request of March 18th to make re.
pairs to line and reestablish service
was being complied with. to which
the following answer was received:
ION account of washouts and
partial destruction of three most
important bridges on line of Eu-
reka-Nevada Railway Company
hereby give notice that service will
be indefinitely suspended"
1t will thus be noted that 1t has
been impossible to secure a definite
statement from Vice-President Sex
ton or to receive any assurance that
work of repairing line and reestab-
fishing service will be adequately
prosecuted.
The action taken by the Eureka
Nevada Railway in thus discharging
its train, engine and track employees
(instead of largely ~augmenting these
forces to meet the emergency, and
disseminating and ~neglecting to re-
establish service without notice is
clearly in violation of the spirit and
intent of Section 36h of the Public
Service Commission Act, Statutes of
1919, p. 1913. wherein it is provided:
ut shall be unlawful for any pub
lie utility to discontinue, modify or
restrict service to any city, town,
municipality, community or territory
heretofore served by 1t, except upon
twenty (20) days notice filed with
the Commission, specifying in detail
the character and nature of the dis
continuance, OF restriction of the SER
vice intended, and upon order of the
Commission made after hearing, per-
hitting such discontinuance, modifi-
cation or restriction of service"
The action is also in violation OF
the company's charter obligation to
the public. The corporate powers
granted are conferred not merely as
the privilege of the recipient to be
used at its discretion, but as a quasi
trust to be exercised for the benefit
Of the public as well.
AS said by Moore on Carriers
pp. 1895:
"A corporation which under
takes to operate a railroad fran
chise assumes all the duties which
spring by law from the character
of it's business and from customs
incident to it, and it tenders a con-
tinuing offer to the general public
that 1t will perform those duties
for the benefit of each of them
when demanded, which obligation
is an enforceable contract.
Railroad companies invested
with important powers and fran
chises by the State become to acer-
tain extent public agencies, and in
the exercise of their calling they
are held to a strict performance of
the public duties enjoined upon
them as consideration for the rights
and powers thus granted" (See
also M. p. r. r. ". Larabee Mill Co.
211 U. S. 612)
The Eureka-Nevada Railway Com
pany IL a Utah corporation with a
capitalization of $500, 900. The char
ter thereof is on file in the Secretary
of States Office of Nevada and among
other things provides that the cor
poration is organized and formed for
the purpose of operating a railroad
described as follows:
"First-A line of railway from
Palisade, Eureka County, Nevada,
to Eureka. in said County and
State, a distance OF "a miles.
Second line of railway from
Eureka, in said county and State,
to Ruby Hill. in said county and
State, a distance Of Az miles; Cor
q total distance between Palisade
and Ruby Hill of Ssh miles,.
The earning ability of the Eureka
Nevada Railway Company to repair
its line and re-estabiish service to
the public is made clear by the state
ment Of its gross earnings, expenses.
taxes and net earnings for the years
1920 and 1921. which is set forth be-
low:
1920 1921
Gross Earnings --.$147,ss7 $ss,7S4
Operating EXP. - ss.1z1 1884
Taxes --------- 1900 6,3S4
Net Earnings ----- 41,526 1916
1t clearly appear from the history