City of Norfolk v. Chesapeake & Ohio Railway Co.

67 S.E.2d 99, 192 Va. 828, 1951 Va. LEXIS 231
CourtSupreme Court of Virginia
DecidedOctober 8, 1951
DocketRecord No. 3850
StatusPublished
Cited by5 cases

This text of 67 S.E.2d 99 (City of Norfolk v. Chesapeake & Ohio Railway Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
City of Norfolk v. Chesapeake & Ohio Railway Co., 67 S.E.2d 99, 192 Va. 828, 1951 Va. LEXIS 231 (Va. 1951).

Opinions

Whittle, J.,

delivered the opinion of the court.

This is an appeal of right taken by the city of Norfolk, Virginia and Dr. L. Eay Temple from an order of the State Corporation Commission of Virginia, which grants the Chesapeake and Ohio Eailway Company authority to suspend the operation of transfer service by ferryboat for passengers between Newport News, Norfolk and Portsmouth, Virginia, and to provide in lieu thereof transfer service by motor bus for passengers using its trains into'and out of Newport News.

On May 24, 1950 appellee filed its petition stating that passenger service "over the route had substantially decreased, that the transfer service by ferryboat'was not efficient and economical and that substantial losses had been incurred, placing an undue burden upon appellee, that reasonable and adequate transfer service by motor bus for passengers could be provided under an arrangement with Eichmond-Greyhound Lines, Inc., a Virginia corporation holding a certificate of public convenience and necessity as a common carrier of passengers between the points involved.

It was alleged by appellee that the change in transfer service from ferryboat to bus would enable it to make a saving in direct operating expenses of approximately $200,000 per year.

At the request of appellee the commission entered an order on May 25, 1950 based upon facts alleged in the petition and the facts and circumstances before it, authorizing appellee to suspend temporarily the operation by ferryboat and in lieu thereof to provide the service by motor bus in the manner outlined for a period of ninety days from June 5, 1950. The order also provided that appellee could suspend the ferryboat service permanently after the expiration of ninety days and in lieu thereof provide such service by motor bus, unless the commission determined within the period that the suspension should not be made permanent and, by further order, the permanent suspension stayed.

[831]*831On June 8, 1950, the commission entered a further order in response to a petition filed by Dr. L. Ray Temple of Norfolk, permitting him to intervene in the proceeding, and the case was set for public hearing before the commission on July 27, 1950. At this hearing appellee was required to produce such testimony and evidence as it deemed necessary to justify the permanent substitution of motor bus transfer service in lieu of the ferryboat service theretofore performed.

After the publication and posting of notices as prescribed by law the hearing was held on July 27, 1950, at which time appellant, city of Norfolk, was permitted to intervene in the case. The hearing was not concluded at that time and a further hearing was had on October 19, 1950 at which time the evidence was concluded.

Pending the decision of the case the temporary substitute transfer service by motor bus was continued.

Briefs and reply briefs were filed with the commission by both appellants and appellee, and on December 13,1950, the commission unanimously entered a final order granting a continuance of the substitute service, which is the order here complained of.

The evidence on behalf of appellee developed at the public hearings in this matter shows that its railroad tracks run to the ■city of Newport News, they do not run across Hampton Roads to Norfolk and Portsmouth. In order to provide service to these two cities appellee operated a ferryboat transfer service for passengers and baggage to and from these points. This service handled both local passengers and passengers using the main line trains of appellee into and out of Newport News.

Prior to the order.this transfer service was maintained by the use of two ferryboats, the “Virginia” and “Wauketa”, built in 1902 and 1908, respectively. Each boat had a carrying-capacity in excess of 800 passengers.

Since the entry of the temporary order on May 25, 1950 appellee, in compliance with the order, has used modern motor buses in this transfer service. This bus service is operated under a contract between appellee and the Richmond-Greyhound Lines, Inc. These buses operate between the passenger stations of appellee in Newport News, Norfolk and Portsmouth and make the same train connections as made by the boats.

The record shows and the commission found as a fact that [832]*832appellee’s passenger traffic in this territory and over its system as a whole had rapidly declined and at the same time operating-expenses had rapidly increased.

In 1945 the over-all passenger deficit of appellee was $3,250,-000, and it progressively increased until it éxceeded $20,000,000 in 1949.

In Virginia the record shows that appellee’s passenger losses were as follows: In 1947 $4,561,358; in 1948 $5,661,704; in 1949 $4,537,339, and revenue passenger miles handled on appellee’s road in Virginia decreased from 500,000,000 in 1944 to less than 100,000,000 in 1949.

While the financial loss to the company is not the controlling factor in a case of this kind, the table of figures set out below has a direct bearing upon the use of the service by the public and clearly indicates that the public is not using the ferryboat transfer service to any appreciable extent.

It is disclosed that the operation of transfer service by boat between Newport News, Norfolk and Portsmouth has been conducted at a great loss to appellee. Exhibit 23 filed by appellee shows the following:

Tear Revenues Expenses Losses
1947 $65,057 $465,806 $400,749
1948 57,446 499,785 442,339
1949 45,151 348,673 303,522
1950 (5 mos.) 8,332 105,433 97,101

The commission finds as a fact that substantial savings can be effected by changing the ferryboat transfer service to the bus service. Appellee produced evidence to show that the minimum direct operating expense for the ferry service would be $385,542 per year while the service by motor bus can be furnished under its contract with the Greyhound company for a total of $149,107 per year, resulting in a net annual saving to appellee of $236,435.

Appellee introduced the contract with the Greyhound company dated May 23, 1950, dealing with the substitute transfer service. This contract provides that Greyhound shall furnish, subject to appellee’s direction, as many as twelve buses for use in this service. Each of these buses has a seating capacity for 37 passengers, and has three baggage compartments for 86 pieces of normal-size baggage. The buses are described as being the most modern coaches manufactured today, having deluxe seats and are air conditioned and comfortable. Norfolk is a division [833]*833point for the company where a large number of buses are maintained and ample buses are available to comply with the contract.

Dr. L. Ray Temple, one of the appellants, and the witnesses appearing before the commission in his behalf failed to present a public need for the ferryboat transfer service for local passengers.

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Related

Southern Railway Co. v. Commonwealth
86 S.E.2d 839 (Supreme Court of Virginia, 1955)
Norfolk v. C. & O. RY. CO.
192 Va. 828 (Supreme Court of Virginia, 1951)

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Bluebook (online)
67 S.E.2d 99, 192 Va. 828, 1951 Va. LEXIS 231, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-norfolk-v-chesapeake-ohio-railway-co-va-1951.