Clifton Forge-Waynesboro Telephone Co. v. Commonwealth

181 S.E. 439, 165 Va. 38, 1935 Va. LEXIS 269
CourtSupreme Court of Virginia
DecidedSeptember 19, 1935
StatusPublished
Cited by6 cases

This text of 181 S.E. 439 (Clifton Forge-Waynesboro Telephone Co. v. Commonwealth) 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
Clifton Forge-Waynesboro Telephone Co. v. Commonwealth, 181 S.E. 439, 165 Va. 38, 1935 Va. LEXIS 269 (Va. 1935).

Opinion

Browning, J.,

delivered the opinion of the court.

This is' an appeal from an order of the State Corporation Commission of Virginia entered on May 25, 1934. The certification required hy law was made on Oct. 24, 1934.

The pertinent parts of the order which are elucidative of the questions which were at issue are- as follows:

“1. It appearing from the evidence that the Roanoke and Botetourt Telephone Company has had an established telephone pole line from Clifton Forge by way of Eagle Rock and Fincastle to a point near Roanoke for more than thirty years, and over which calls from Fincastle or Eagle Rock and terminating in Clifton Forge or Covington and vice versa are made, although such calls are admitted not to be entirely satisfactory, and that said line is, and has been for a number of years, practically paralleled by the [40]*40Chesapeake and Potomac Telephone Company of Virginia, which renders long distance service from Roanoke to Covington. And it further appearing that the Roanoke and Botetourt Telephone Company has leased said pole line to W. W. Gibbs for a period of twenty-five years from the 9th day of September, 1932, the Commission is of the opinion that it is without jurisdiction to prevent the Roanoke and Botetourt Telephone Company or the lessee thereof from making such improvements in this line as may he essential to adequately give the service now being rendered;

“It is therefore ordered, That the request of The Chesapeake and Potomac Telephone Company of Virginia, that W. W. Gibbs, lessee, be prohibited from making improvements essential to adequately give the service now being rendered by the said line be, and the same is denied;

“2. It appearing from the evidence that the defendants in this case propose to connect the Clifton Forge and Lexington Exchanges by a toll circuit or circuits by way of Long Dale, which will in fact duplicate the service now being rendered over present circuits of The Chesapeake and Potomac Telephone Company of Virginia, the Commission is of the opinion that there is no need for duplication of the present service at this time:

“It is therefore ordered, That the defendants in this case be and hereby are prohibited from making the said connection between the Clifton Forge and Lexington Exchanges:

“3. It further appearing that the defendants propose to connect the Lexington and Waynesboro Exchanges with a toll circuit or circuits which will parallel, for a considerable distance, the present long distance circuits of The Chesapeake and Potomac Telephone Company of Virginia, and will in' fact duplicate the service now being rendered by the latter company, the Commission is of the opinion that the present service should not be duplicated.”

The Clifton Forge-Waynesboro Telephone Co., Lexington Telephone Co., Natural Bridge Mutual Telephone [41]*41Company, Roanoke and Botetourt Telephone Company and W. W. Gibhs notified the Chesapeake and Potomac Telephone Company of Virginia by letter of the said W. W. Gibhs, as president of the telephone companies controlling the telephone service in Waynesboro, Lexington, Buena Vista, Natural Bridge, Clifton Forge, Covington, and, through lease, the connecting lines of the Roanoke and Botetourt Telephone Company between Clifton Forge, Eagle Rock, Fincastle, Troutville, connecting with the lines of the C. and P. Company just outside of Roanoke, of their intention of making direct connection between the several lines and towns and controlling those towns by long distance circuits.

The reasons for this contemplated action were that the distance would be shortened, more efficient service would be secured through direct handling, the toll charges would be lessened and a material saving would be had to their subscribers as well as to themselves.

Thereafter the C. and P. Company filed a petition before the State Corporation Commission praying that the said telephone companies and W. W. Gibbs be enjoined and restrained from prosecuting their purpose as set forth.

The case was heard by the Commission upon the petition and answer of the defendants, and upon the testimony of witnesses for the petitioner and the defendants and numerous exhibits which were filed, and arguments and briefs of counsel.

The Commission granted the prayer of the petitioner, except as to the Roanoke and Botetourt Telephone Company, in which case the prayer was denied. Such action is shown by the above quoted portions of the order.

The Commission delivered its opinion through Hooker, chairman, and Commissioner Ozlin filed a dissenting opinion.

The assignments of error filed by the defendants are as follows:

“1. The action of the State Corporation Commission in assuming jurisdiction of the case, and, in entering the [42]*42order prohibiting, your petitioners from connecting their several local telephone exchanges.

“2. The action of the State Corporation Commission in refusing to recognize that the petitioners already occupied the same territory claimed to be occupied by the Chesapeake and Potomac Telephone Co., and that the petitioners are entitled to grow and to increase their telephone facilities with needs of the communities they serve.

“3. The action of the State Corporation Commission in trying to qualify its order with reference to the Roanoke and Botetourt Telephone Company so as to restrain your petitioners from improving said line and its service, notwithstanding the holding of the Commission that it was without jurisdiction so far as related to the Roanoke and Botetourt Telephone Company and its lessee, W. W. Gibbs.

“4. The action of the State Corporation Commission in confiscating petitioners’ property for the benefit of a private corporation, namely, The Chesapeake and Potomac Telephone Company.

“5. The action of the State Corporation Commission in prohibiting petitioners from connecting their Clifton Forge and Lexington exchanges.

“6. The action of the State Corporation Commission in prohibiting petitioners from connecting their Lexington and Waynesboro exchanges.

“7. That the several actions of the State Corporation Commission above complained of have the effect of depriving these petitioners of their property without due process of law, in violation of the Fourteenth Amendment to the Federal Constitution.

“8. That the several actions of the State Corporation •Commission above complained of have the effect of depriving these petitioners of the equal protection of the law, in violation of the Fourteenth Amendment to the Federal Constitution.”

We will not discuss these assignments seriatin. The [43]*43general observations which follow will make clear our conclusions.

The Commission has heen held by this court to possess no inherent power, hut all of its powers are derivative and must be based either on the Constitution, or upon statutes passed pursuant thereto.

Upon an inspection of section 156 (b) of the Constitution of Virginia, we find the source of the general powers of the Commission:

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Bluebook (online)
181 S.E. 439, 165 Va. 38, 1935 Va. LEXIS 269, Counsel Stack Legal Research, https://law.counselstack.com/opinion/clifton-forge-waynesboro-telephone-co-v-commonwealth-va-1935.