New York, Philadelphia & Norfolk Railroad Ferry Co. v. County of Northampton

83 S.E.2d 773, 196 Va. 412, 1954 Va. LEXIS 235
CourtSupreme Court of Virginia
DecidedOctober 11, 1954
DocketRecord 4211
StatusPublished
Cited by1 cases

This text of 83 S.E.2d 773 (New York, Philadelphia & Norfolk Railroad Ferry Co. v. County of Northampton) 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
New York, Philadelphia & Norfolk Railroad Ferry Co. v. County of Northampton, 83 S.E.2d 773, 196 Va. 412, 1954 Va. LEXIS 235 (Va. 1954).

Opinion

Hudgins, C.J.,

delivered the opinion of the court.

The New York, Philadelphia and Norfolk Railroad Ferry Company, hereinafter designated the Railroad Ferry Company, in this appeal challenges the power or authority of the circuit court of Northampton county to compel it to continue indefinitely the ferry service it was rendering on February 25, 1953, between Cape Charles, Old Point Comfort and Norfolk, Virginia.

The historical background of this controversy is substantially as follows:

The New York, Philadelphia and Norfolk Railroad Company (not the Railroad Ferry Company) was chartered by the General Assembly of Virginia (Acts of 1871-2, p. 265; 1874, p. 87; 1881-2, p. 110; 1883-4, p. 115; 1899-1900, p. 325) to operate a railroad from the Maryland-Virginia line in Accomack county to some point in Northampton county, Virginia, and by ferry across the Chesapeake Bay to Norfolk. The railroad was completed to Cape Charles, Northampton county, in 1884 and transportation, including *414 ferry service via Old Point Comfort to Norfolk, began that year. The ferry across the Chesapeake Bay was operated by the New York, Philadelphia and Norfolk Railroad Company or one of its subsidiaries continuously without substantial interruption from 1884 to the first day of March, 1953.

The operation of the railroad and the ferry was taken over by the Pennsylvania Railroad Company, under a 999 year lease bearing date December 14, 1920. In addition, the Pennsylvania Railroad Company owned all the stock of the New York, Philadelphia and Norfolk Railroad Company.

The Railroad Ferry Company was granted a charter by the State Corporation Commission of Virginia on November 2, 1934. It was stated in the charter that the object of the corporation was to operate a ferry over and across the Elizabeth River, Hampton Roads, Chesapeake Bay, Little Creek and adjacent connecting waters from and to various places in Virginia, including Cape Charles, Old Point Comfort and Norfolk, when so authorized by law. The maximum authorized capital stock was $5,000, of which only $2,500 was issued, and this is owned by the New York, Philadelphia and Norfolk Railroad Company.

The Railroad Ferry Company in due course applied to the circuit court of Northampton county for a franchise to operate a ferry between the points named. On May 25, 1935, the franchise was granted by an order of the court, in which order the ferry company was required to comply with certain regulations imposed by the court, as authorized by code sections 33-186, 33-187, 33-188, and other pertinent sections.

The Railroad Ferry Company leased from the Pennsylvania Railroad Company three vessels, “Virginia Lee”, “Pennsylvania”, and “Maryland”. It also leased from the Pennsylvania Railroad Company terminal facilities at Cape Charles and at Brook Avenue in Norfolk, and acquired a right to use the terminal at Old Point Comfort under permit from the United States Government, and continued to operate the ferry from September 1, 1935, until March 1, 1953.

*415 The “Virginia Lee” was commandeered in 1942 by the United States Government for use in World War II. The “Pennsylvania” and the “Maryland” were sold in or prior to 1950. The Railroad Ferry Company in 1943 chartered the “Elisha Lee” from the United States Maritime Commission and used it in its ferry operations. This charter expired in 1948 and was renewed for an additional 5-year period, that is until November, 1953. For several years prior to March 1, 1953, the “Elisha Lee” was used to make two round trips daily in the ferry service. Its schedule was fixed to connect with the Pennsylvania Railroad trains at Cape Charles, transporting passengers and automobiles, and also freight in less than carload lots. Under the terms of the charter agreement, the Railroad Ferry Company agreed to pay $6,000 a year for use of the “Elisha Lee” and to maintain it. It appears from the evidence that due to the age of the “Elisha Lee” and damages sustained in stormy weather, the Railroad Ferry Company had been compelled to spend large sums in its efforts to keep the vessel seaworthy and to pass the annual Coast Guard inspections required by law.

In 1933, another company, the Virginia Ferry Corporation, was organized to operate a ferry across the Chesapeake Bay from Cape Charles to Little Creek in Princess Anne county. It leased from the Pennsylvania Railroad Company terminal facilities at each place. In 1949 the terminal at Cape Charles was moved to Kiptopeke, several miles south of Cape Charles in Northampton county.. Four of the eight directors of the Virginia Ferry Corporation are directors of the Railroad Ferry Company. The vessels owned by the Virginia Ferry Corporation are covered by a mortgage held by a corporation which is wholly owned by the Pennsylvania Railroad Company. The terminal at Kiptopeke owned by the Virginia Ferry Corporation is covered by a mortgage held by a wholly owned subsidiary of the Pennsylvania Railroad Company.

Prior to the time this controversy arose, when it became necessary for the “Elisha Lee” to be taken out of ferry *416 service for repairs or for annual inspection by the United States Coast Guard, the Railroad Ferry Company had leased from the Virginia Ferry Corporation a boat for use as a substitute for the “Elisha Lee”. The Railroad Ferry Company knew that on March 1, 1953, under the maritime law, the “Elisha Lee” would have to be inspected by the United States Coast Guard for its seaworthiness for further use in the ferry service. Some time prior to this date it began negotiations with the Virginia Ferry Corporation for the temporary use of one of its ferry boats with which to carry on its operation. The Virginia Ferry Corporation at that time refused to lease any of its boats to the Railroad Ferry Company because, it claimed, each of the five boats owned or leased by it was needed in its own operation. The Railroad Ferry Company also alleged that it was unable to acquire a suitable ferry boat from any other source.

The Railroad Ferry Company on February 10, 1953, posted notice at the county seat of Northampton county and other places stating that on the 25th day of February, 1953, it would apply to the circuit court of Northampton county for an order granting it leave to suspend indefinitely ferry service between Cape Charles, Old Point Comfort and Norfolk.

On February 13, 1953, notice was posted on the “Elisha Lee” and in the Railroad Ferry Company’s terminals in Cape Charles, Old Point Comfort and Norfolk, signed by both the Pennsylvania Railroad Company and the Railroad Ferry Company, notifying the public that “effective March 1, 1953, ferry service between Cape Charles, Old Point Comfort and Norfolk” would be suspended. Prior to the 25th day of February, 1953, the Pennsylvania Railroad Company and the Railroad Ferry Company notified their ticket agents and various other employees that suspension of service would become effective on March 1, 1953.

Pursuant to notice given the public, the Railroad Ferry Company, on February 25, 1953, filed its petition in the court praying for leave to suspend indefinitely ferry *417 service between the points named.

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Bluebook (online)
83 S.E.2d 773, 196 Va. 412, 1954 Va. LEXIS 235, Counsel Stack Legal Research, https://law.counselstack.com/opinion/new-york-philadelphia-norfolk-railroad-ferry-co-v-county-of-va-1954.