Railway Express Agency, Inc. v. Commonwealth, ex rel. State Corp. Commission

150 S.E. 419, 153 Va. 498, 1929 Va. LEXIS 281
CourtSupreme Court of Virginia
DecidedNovember 14, 1929
StatusPublished
Cited by7 cases

This text of 150 S.E. 419 (Railway Express Agency, Inc. v. Commonwealth, ex rel. State Corp. Commission) 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
Railway Express Agency, Inc. v. Commonwealth, ex rel. State Corp. Commission, 150 S.E. 419, 153 Va. 498, 1929 Va. LEXIS 281 (Va. 1929).

Opinion

Campbell, J.,

delivered the opinion of the court.

This is an appeal from an order of the Corporation Commission denying the plaintiff in error, a foreign corporation, a certificate of authority to engage in [502]*502intrastate express business in this State. Pursuant to section 156 of the Constitution 1902, the facts are certified by the Chairman of the Corporation Commission.

Plaintiff in error is a corporation chartered under the laws of the State of Delaware. Under its certificate of incorporation, plaintiff is not only empowered to engage in interstate, intrastate and international express business, but to own, construct, purchase, lease, or otherwise acquire, and to • use, equip, repair, supply and maintain railway ears, rolling stock and machinery •of all kinds, wagons, trucks, motor vehicles, air planes and all other means and instrumentalities, ice houses, ice factories, refrigerating plants, warehouses and storage plants, garages, stables, hangars, etc.; to buy and hold personal property of every character and description “without restriction or limit as to amount”; to acquire and dispose of real property without limitation as to location or jurisdiction; to engage in manufacturing business and to acquire and develop manufacturing plants; to acquire and deal in copyrights, trade marks, patent rights, patent processes, etc.; to acquire and hold for investment or otherwise the shares of the capital stock or bonds, etc., of any corporation or corporations wherever organized, and also the bonds of the United States, or of any State in its political subdivisions. It is further authorized to .organize subsidiary corporations to accomplish the purpose or objects for which it was incorporated; to loan money and to carry on any other lawful business “whatsoever which may seem to the board of directors of this corporation appropriate to be carried on in connection with the above purposes or calculated directly or indirectly to promote the interest of this •corporation or enhance the value of its properties.”

[503]*503It is then provided:' “The foregoing clauses shall be construed both as objects and powers; and it is hereby expressly provided that the foregoing enumeration of specific powers shall not be held to limit or restrict in any manner the powers of this corporation.” No question of the right of plaintiff in error to do an interstate express business in this State is involved in this appeal. Under the plain provisions of the interstate commerce clause of the Federal Constitution, the State has no power to prohibit plaintiff from engaging in interstate commerce. The refusal of Ghe Corporation Commission to grant the certificate of authority applied for is based solely on the alleged prohibition contained in section 163 of the State Constitution, which reads as follows:

“No foreign corporation shall be authorized to carry on, in this State, the business, or to exercise any of the powers or functions, of a public service corporation, or be permitted to do anything which domestic corporations are prohibited from doing, or be relieved from compliance with any of the requirements made of similar domestic corporations by the Constitution and laws of this State, where the same can be made applicable to such foreign corporation without discriminating against it. But this section shall not affect any public service corporation whose line or route extends across the boundary of this Commonwealth, nor prevent any foreign corporation from continuing in such lawful business as it may be actually engaged in withiñ this State, when this Constitution goes into effect; but any such foreign public service corporation, so engaged, shall not, without first becoming incorporated under the laws of this State, be authorized to acquire, lease, use or operate, within this State, any public or muni[504]*504cipal franchise or franchises in addition to such as it may own, lease, use or operate, when this Constitution goes into effect.”

It is the contention of the plaintiff in error that while it is a corporation chartered by the State of Delaware, it is in fact a joint facility of the railroads now doing a freight business in the State, and that this being true, a certificate of authority to it to do an express business would be merely granting authority to those railroads doing business in the State which come within the provisions of section 163.

It appears from the statement of facts certified by the Commission pursuant to the provisions of section 156 of the Constitution 1902, that plaintiff in error received its charter in 1928, and while it has acquired certain rights and property of the American Railway Express Agency which was incorporated in 1918, and has acquired by agreement the right to operate over designated lines of railroads in Virginia which were in existence in 1902 when the Constitution became effective, it does not appear that plaintiff in error is the corporate successor of any of those railroads whose line or route extended across the boundary of the Commonwealth in 1902.

The fact that plaintiff in error did not have a line or route extending across the boundary of the State when the Constitution became effective is conclusive that it must come within the provisions of section 163, as a corporate successor of those corporations operating under that section. Unless we can construe the word “corporation,” as used in section 163, to mean “business,” then the facts are against the contention of plaintiff in error.

The word “corporation,” as employed in the Constitution, is employed in a technical sense and does [505]*505not fall within the general classification of the term “business.” In order to become the corporate successor of the railroads, plaintiff in error must “stand in the shoes” of those corporations, and while accepting the benefits as such successor, it must also bear the burdens imposed by the State statutes.

Plaintiff in error, in our view, is a separate and distinct corporation from the agreeing railroad companies. Under the broad scope of the delegated powers contained in its certificate of incorporation, if once it should gain the privilege of doing an express business, without incorporating under the State law, it, under its charter, is empowered to engage in the sale of real and personal property, to “engage in any kind of manufacturing business,” to acquire and sell mortgages, stocks and bonds, to acquire and deal in copyrights, trade marks, patent rights and to loan money. Such powers are not consonant with the powers generally accorded to common carriers of either interstate or intrastate commerce, and the exercise by the plaintiff in error of such powers under the guise of engaging in the express business as an agency of the railway companies, without being amenable to the statutes regulating similar corporations, would afford it an unwarrantable advantage.

It is a further contention of plaintiff in error that in any event it is entitled to a certificate of authority to do an intrastate express business because it is a corporation which has recently acquired the right to operate over lines and routes of railroads which extend across the boundary of the Commonwealth, and, therefore, is excepted from the operation of the provisions of section 163 of the Constitution 1902, by virtue of this language: “But this section shall not affect any public service corporation whose line or route extends [506]

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282 U.S. 440 (Supreme Court, 1931)

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Bluebook (online)
150 S.E. 419, 153 Va. 498, 1929 Va. LEXIS 281, Counsel Stack Legal Research, https://law.counselstack.com/opinion/railway-express-agency-inc-v-commonwealth-ex-rel-state-corp-va-1929.