New York & Pennsylvania Railway Co. v. Public Service Commission

72 Pa. Super. 523, 1919 Pa. Super. LEXIS 359
CourtSuperior Court of Pennsylvania
DecidedJuly 17, 1919
DocketAppeal, No. 127
StatusPublished
Cited by8 cases

This text of 72 Pa. Super. 523 (New York & Pennsylvania Railway Co. v. Public Service Commission) is published on Counsel Stack Legal Research, covering Superior Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
New York & Pennsylvania Railway Co. v. Public Service Commission, 72 Pa. Super. 523, 1919 Pa. Super. LEXIS 359 (Pa. Ct. App. 1919).

Opinion

Opinion by

Keller, J.,

The appellant is a corporation formed by the merger and consolidation of a Pennsylvania corporation with two New York corporations, and owns and operates a [526]*526steam railroad from a point in one state to a point in the other.

The intervening appellee is a corporation of this State, having a plant located along the line of the appellant’s railroad in Pennsylvania.

On February 17, 1919, the intervening appellee made complaint to the Public Service Commission of this Commonwealth that the appellant was about to discontinue ' the operation of its railroad, and prayed that an order be issued directing it to continue rendering service to the public.

The appellant answered and admitted that it was about to discontinue operations, but averred that it purposed doing so under authority of a decree of the Court of Common Pleas of Potter County, duly entered in proceedings had under the Act of April 9,1856, P. L. 298, granting it permission to surrender any and all powers to operate a railroad as contained in its charter.

The order of the Public Service Commission was that the appellant continue rendering its public service until such time as it shall have applied to and obtained from the commission permission to abandon such service.

The question for our consideration, therefore, is: Has the court of common pleas of the proper county jurisdiction to permit a public service corporation to surrender its chartered powers, or must a certificate of the Public Service Commission, that such decree may be entered without prejudice to the public welfare, first be obtained?

The authorities cited by the able counsel for the intervening appellee, to the effect that the consent of the State must be obtained before a public service corporation may withdraw from serving the public and cease operations, are not in point here; the appellant admits the necessity of such consent. Whatever may be the rule in other states, in Pennsylvania, since 1856, at least, the consent of the Commonwealth, evidenced by a decree of the court of common pleas of the proper county, entered in accordance with the provisions of the Act of April 9, 1856, is [527]*527necessary before a corporation can surrender its chartered powers or be dissolved; and such a decree the appellant has obtained. But the appellees further contend that the Act of 1856 is so far repealed or modified by the Public Service Company Law (Act of July 26,1913, P. L. 1371) as to require the commission first to determine whether a decree in accordance with said act may be entered without prejudice to the public welfare, before the court of common pleas can take action in the matter. It is admitted that there is no express repeal or modification of the Act of 1856, but it is urged that such power is impliedly lodged in the commission from the fact that the Public Service Company Law makes it the duty of a public service corporation to furnish and maintain its service in conformity with such reasonable orders or regulations as may be made by the commission.

The decisions of the Supreme Court of this State, cited by the appellees, sustain no such contention. The rulings in all of them were based on the fact that the power of the Public Service Commission to act in the premises was expressly (not impliedly) committed to the commission by the Public Service Company Law. The fixing of rates, their reasonableness, etc., the adequacy of service, the prevention of discrimination, and kindred matters, are specifically entrusted to the commission, and the law expressly requires the approval of the commission to the Requisition by a municipality of the plant of a water company [Art. Ill, Sec. 3 (d)]. But while the act expressly requires the consent of the Public Service Commission to the incorporation of public service companies and gives it power and authority to supervise and regulate all such companies “doing business within this Commonwealth” [Art. V, Sec. 1], it is absolutely silent on the subject of the dissolution of such corporations. Considering the care with which the act was drawn and the particularity with which the powers of the commission are enumerated, such an important matter would scarcely have been overlooked if any action by the commission [528]*528bad been contemplated with respect to it. Tbe reasonable explanation is that it was omitted because it bad already been fully and satisfactorily committed to tbe court of common pleas and no satisfactory reason was apparent for interfering with tbe exercise of that authority. Tbe jurisdiction attaching to a court will not be diminished by implication in order that tbe powers of an administrative commission may be enlarged.

Tbe industry of counsel for tbe intervening appellee has furnished us an abundance of decisions of tbe courts and public utilities commissions of other states, to tbe effect that such commissions have tbe power to regulate tbe extent of the service and operation of a public utilities company and may order it to refrain from abandoning such service in part or even wholly. But in none of them does it appear that tbe corporation was desirous of surrendering tbe powers granted it in its charter, or that any other jurisdiction bad been authorized by law to pass upon tbe propriety of tbe surrender of such powers or tbe dissolution of such corporation. On tbe other band, similar commissions in other states have denied their jurisdiction to pass upon tbe absolute and entire withdrawal from operation of such corporations and ruled that their regulatory powers applied only so long as such companies continued to operate and serve tbe public: Re Lake Erie B. G. & N. R. Co., P. U. R. 1916, F. 553 (Ohio) ; In re Lima-Honeoye E. L. & R. Co., P. U. R. 1915, C. 871 (N. Y.). Tbe decisions of this court cited by tbe appellees point tbe same way. In Glen Rock Motor Club v. York & M. L. Turnpike Co., 64 Pa. Superior Ct. 147, Judge Henderson said: “But while it continues in tbe exercise of its franchise, it is under obligation to maintain a highway • of tbe character which it contracted to maintain” p. 154; and in P. & R. Ry. Co. v. Public Service Commission, 67 Pa. Superior Ct. 604, Judge Kephart said: “The duty of furnishing adequate service for the accommodation of tbe public follows tbe continued enjoyment or partial use of such franchises.” Tbe irresistible conclusion is [529]*529that if the corporation gives up its franchise and surrenders the powers given it by its charter, in the manner prescribed by law, the duty and obligation of furnishing the public service is terminated and the regulatory power of the Public Service Commission over it is at an end. The same thought was expressed by the Supreme Court of the United States in Mo. Pac. R. R. Co. v. Kansas, 216 U. S. 262

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Cite This Page — Counsel Stack

Bluebook (online)
72 Pa. Super. 523, 1919 Pa. Super. LEXIS 359, Counsel Stack Legal Research, https://law.counselstack.com/opinion/new-york-pennsylvania-railway-co-v-public-service-commission-pasuperct-1919.