§ 58-17-770 — Ownership of stock or company controlling stock of competing railroad prohibited; dissolution.

No person owning or operating directly or indirectly any railroad lying in whole or in part within this State or owning or controlling at the time, either solely or in connection with others, a majority of the stock of a corporation owning or controlling, by stock, ownership or otherwise, any such railroad shall own or be interested in the stock of any corporation chartered by this State which owns or leases, in whole or in part, or is otherwise interested in any railroad which competes in the manner set forth in Section 58-17-720 with the railroad or railroads so owned or operated by such person. A purchase or acquisition of the stock of a company controlling such last-named company by stock ownership is likewise prohibited. In the event of such acquisition of such stock, or an interest therein, by any such person first in this section above named, the charter of the corporation of this State last mentioned owning such railroad shall be forfeited and its franchises are ipso facto withdrawn and all railroad charters hereafter accepted are declared to be granted subject to this condition. And the Attorney General of this State shall proceed at once, in the name of the State, to have such dissolution decreed by a court of competent jurisdiction and to dispose of the property of such corporation and distribute its assets to its creditors and stockholders according to law. The Attorney General shall see to the observance of this section and shall proceed by action, or other appropriate proceedings, legal or equitable, to inquire into, restrain or terminate the unlawful exercise of any franchise or disobedience to the terms hereof.

Legislative History

HISTORY: 1962 Code SECTION 58-936; 1952 Code SECTION 58-936; 1942 Code SECTION 8292-4; 1932 Code SECTION 8241; Civ. C. '22 SECTION 4805; Civ. C. '12 SECTION 3136; Civ. C. '02 SECTION 2061; 1894 (21) 811.