Opinion ID: 1494647
Heading Depth: 1
Heading Rank: 6

Heading: marlene k. smith's appeal

Text: Marlene K. Smith, a resident of the city of Woonsocket who is employed in the city of Providence, prosecutes her appeal under authority of G.L.1956, § 39-5-1. She raises the question of whether that portion of sec.7(a) which provides that the administrator may allow the company to reduce bus miles operated on nonprofitable routes or any portion thereof confers jurisdiction on him to permit an abandonment of all operations within the Woonsocket division and on three suburban lines within the Elmwood division. Her contention is that the power to allow a reduction in mileage operated on nonprofitable routes is sufficent only to permit a decrease in the volume on those routes or a diminution of the number of runs thereon. She argues that the administrator exceeded the legitimate bounds of his authority under se.7(a) when he permitted the Company to terminate all operations on these routes. The legislature, in amending the charter of the Company by enacting chap, 144, declared that it was essential of the public welfare that the Company continue in existence to the end that the citizens of thos state might continue to enjoy the essential public transportation services which it provided. Recognizing that a financial healthy company is a prerequisite to the accomplished of the declared purposes, the legislature further provided the means whereby through administrative action the Company might be assured, under sec. 7, of a net operating income and, under sec. 8 of chap. 144, of an unimpaired credit. Here the Company, finding itself unable to maintain its net operating income at the minimum level contemplated by the legislature as being necessary for survival, petitioned for relief under sec. 7(a). On the establishment of the condition precedent the administrator was mandated to allow either a fare revision, or a reduction in miles operated on unprofitable routes or portions thereof, or a combination of fare revisions and mileage reductions. Upon a different showing, the Company could have proceeded under sec. 8. That section in pertinent part vests the administrator with authority to permit the Company to curtail, eliminate or abandon any scheduled route or run or separable portion thereof when the revenue collected therefrom does not substantially equal the out-of-pocket operating costs incurred with respect to such route or run or portion thereof, and is causing an unwarranted impairment of the company's credit   . The differences in secs. 7 and 8 as to the conditions which must obtain before the administrator may act and the manner of relief within his power to permit are not without significance, particularly when considered in the framework of the declared legislative purpose and objective of insuring a continued operation of the public transportation system for the benefit of the citizens of this state. To allow an abandonment of all operations on a route is to deny the benefits of public transportation to some of our citizens. It is drastic relief. It may be allowed only when specifically authorized. It is permitted under sec. 8 upon the establishment of the condition precedent therein provided. To read a power to permit an abandonment into that portion of sec. 7 which allows a reduction of mileage operated on a nonprofitable route is to extend arbitrarily the plain meaning of the words to reduce and to defeat the clearly defined legislative plan. This we will not do. Carlson v. McLyman, 77 R.I. 177, 74 A.2d 853. For the foregoing reasons, we hold that the administrator acted in excess of the jurisdiction conferred on him under sec. 7 when he allowed the Company to abandon all operations within the Woonsocket division and on three suburban lines within the Elmwood division.