Atchison, T. & S. F. Ry. Co. v. State Corp. Commission

95 P.2d 676, 43 N.M. 503
CourtNew Mexico Supreme Court
DecidedOctober 25, 1939
DocketNo. 4509.
StatusPublished
Cited by12 cases

This text of 95 P.2d 676 (Atchison, T. & S. F. Ry. Co. v. State Corp. Commission) is published on Counsel Stack Legal Research, covering New Mexico Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Atchison, T. & S. F. Ry. Co. v. State Corp. Commission, 95 P.2d 676, 43 N.M. 503 (N.M. 1939).

Opinion

SADLER, Justice.

This case is an echo of efforts over the years to. maintain as a common carrier the short railway line of The Santa Fe, San Juan and Northern Railroad Company, (hereinafter designated as the San Juan road), located in Sandoval County, or perhaps better said, to prevent its complete and final abandonment as a common carrier. See San Juan Coal & Coke Company v. Santa Fe, San Juan & Northern Railroad, 35 N.M. 336, 298 P. 663; Taylor, Receiver of Santa Fe, San Juan & Northern Railroad v. Santa Fe Northwestern Railway Company, 38 N.M. 457, 34 P.2d 1102; Santa Fe, San Juan & Northern Railroad v. Helmick, 36 N.M. 157, 9 P.2d 695. In the last-mentioned case, the prohibition proceeding in this court against the Honorable Milton J. Helmick as Judge of the second judicial district sitting in Sandoval County, arose out of Cause No. 1210 on the civil docket, of said court, entitled Cleary v. Santa Fe, San Juan & Northern Railroad Company, in which a receiver had been appointed pursuant to 1929 Comp. § 116-406, for the limited purpose of determining whether the company could operate as a common carrier without ultimate loss. We held so much of the order appointing the receiver as employed the sweeping injunctiQn authorized by 1929 Comp. § 32-174, incident to the winding up and dissolution of insolvent corporations was beyond the jurisdiction of the court entering a default decree upon the complaint filed in that case and made our alternative writ permanent against enforcement of the injunctive portions of the decree in their existing form.

Within a few days following the filing of our opinion in that case a second receivership proceeding under our corporation insolvency act was instituted in Sandoval County entitled, Yarborough v. Santa Fe, San Juan & Northern Railroad Company, numbered 1230 on the civil docket of the district court of said county. The two causes appear to have been consolidated at some time following institution of the second suit and carried forward as one proceeding. The petitioner here, The Atchison, Topeka and Santa Fe Railway Company, intervened in the separate suits before consolidation or 'in the consolidated suits soon after consolidation, asserting title to the steel rails, angle bars, bolts, spikes, etc., located upon the right of way, claiming title thereto under a contract with Cuba Extension Railroad, to whose rights the San Juan road had succeeded. The district court entered a de - cree in the consolidated cause on June 5, 1939, in petitioner’s favor, adjudging to it “title and right to possession of the materials set out in the petition of intervention”.

Prior thereto and on May 6, 1939, all the assets of the San Juan road had been sold to J. G. Cleary, as trustee. The petitioner herein, The Atchison, Topeka and Santa Fe Railway Company, following the decree in its favor of June 5, 1939, upon its petition of intervention, was about to proceed with the removal from the right of way of the San Juan road of the steel rails and other property to which 'it was adjudged title and right of possession when the proceeding here drawn in question was initiated before the State Corporation Commission, one of the respondents herein.

The New Mexico Portland Cement Company, a New Mexico corporation, through its attorney's, instituted the proceeding before the State Corporation Commission, naming as respondents the Santa Fe, San Juan and Northern Railroad Company and J. G. Cleary, the trustee-purchaser of all its assets. The petition recited many of the factual matters hereinabove related. In addition, it alleged it was organized for the purpose of manufacturing and dealing in cement and other kindred substances, coal and other minerals, and had acquired and was in the process of acquiring certain mines and properties on the line of the former' San Juan road. It further alleged that it was dependent upon the rehabilitation and operation of said railroad in order to ship and market its products, and that the threatened removal from the right of way of said railroad of the steel rails and other property above mentioned, would deny it shipping facilities and adversely affect many citizens of the State of New Mexico.' Finally, petitioner asserted the said Cleary to be a trustee-piirchaser with power in him and his associates to become a corporation and own, operate, exercise and enjoy the properties, franchises and rights formerly belonging, to the San Juan road. Undoubtedly this assertion is based upon 1929 Comp. § 116-501.

Petitioner prayed that the Commission notify the respondents to desist from further efforts to remove said rails and from interfering in any way with the ability of said Cleary, trustee, to operate said railroad in the interests of the public and petitioner; that a hearing upon said petition be held and that upon such hearing a permanent order in conformity to the notice to respondents b^ entered restraining them from removing said rails or contributing in any way to the abandonment of said line of railroad.

In response to the notice served upon it by the Corporation Commission, the petitioner, The Atchison, Topeka and Santa Fe Railway Company, appeared specially at the public hearing on June 16, 1939, for the single purpose of challenging jurisdiction of State Corporation Commission insofar as said hearing related to it. Thereafter on August 28, 1939, the Commission denied petitioner’s plea to the jurisdiction and ordered it and said Cleary, as trustee, to file written answers to the petition on or before September 20, 1939. Thereupon and on September 6, 1939, upon petition of The Atchison, Topeka and Santa Fe Railway Company, one of the respondents before the Commission, we issued our alternative writ of prohibition restraining the Commission and its members from proceeding further with said hearing and citing them to show cause why they should not be permanently thus restrained.

The Attorney General, appearing to said writ for the Commission and its members, has filed in this court a motion to quash the same, setting forth three grounds, viz: (lj that petitioner’s application and the allegations of the writ do not state facts sufficient to warrant issuance of the writ; (2) that petitioner has an adequate remedy at law for removal of the proceeding to the supreme court under Article XI, section 7 of the Constitution, should any action be taken adverse to petitioner; and, (3) that the petition and alternative writ show on their face that State Corporation Commission has jurisdiction of the subject matter set forth in the complaint of Portland Cement Company before it and of the petitioner herein.

Within the scope of the first objection to issuance of the writ, (in its nature a general demurrer), although not urged upon us in the written briefs filed prior to submission, is the question of our original, jurisdiction to entertain a prohibition proceeding against the State Corporation Commission and the members thereof. If we lack such jurisdiction, its absence cannot be waived. Hence, with the aid of supplemental briefs filed by counsel upon this jurisdictional- question, we have given it first consideration. The petitioner, having applied for the writ very naturally affirms original jurisdiction in this court to issue it. The respondents and amici curiae deny that we possess such jurisdiction. We agree with them.

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95 P.2d 676, 43 N.M. 503, Counsel Stack Legal Research, https://law.counselstack.com/opinion/atchison-t-s-f-ry-co-v-state-corp-commission-nm-1939.