North Carolina Corp. Commission v. Atlantic Coast Line R. Co.

Decision Date13 December 1904
Citation49 S.E. 191,137 N.C. 1
PartiesNORTH CAROLINA CORPORATION COMMISSION v. ATLANTIC COAST LINE R. CO.
CourtNorth Carolina Supreme Court

Appeal from Superior Court, Wake County; Brown, Judge.

Proceedings by the state, on the relation of the North Carolina Corporation Commission, against the Atlantic Coast Line Railroad Company. From a judgment for defendant on appeal from an order of the commission, the commission appeals. Reversed.

It appears from the record that for some 10 years prior to 11th October, 1903, the passenger traffic from a large portion of eastern North Carolina to Raleigh and the adjacent central part of the state was made by the defendant, Atlantic Coast Line Railroad Company, connecting with the Southern Railway at Selma at 2:50 p. m. daily. For a year or two prior to that day the connection became very irregular, to the great inconvenience of the traveling public; passengers frequently being compelled to lie over at Selma till 11 o'clock at night, and then forced to take a mixed train, with uncomfortable accommodations, to go westward. The Southern Railway finding its time between Goldsboro and Greensboro (38 miles per hour) dangerous, on account of the condition of its track, had also lately changed its schedule to leave Goldsboro 30 minutes earlier. The matter being called to the attention of the Corporation Commission, it attempted to remedy the evil. After much correspondence with the officials of both roads, the commission on 8th December, 1903, made the following order: "Whereas, the convenience of the traveling public requires that close connection be made between the passenger trains on the Atlantic Coast Line Railroad and the Southern Railway at Selma daily in the afternoon of each day; and whereas, it appears that such close connection is practicable: It is ordered that the Atlantic Coast Line Railroad arrange its schedule so that the train will arrive at Selma at 2:25 p. m. each day, instead of 2:50 p. m., as the schedule now stands. It is further ordered that if the Atlantic Coast Line trains have passengers en route for the Southern Railway, and are delayed, notice shall be given to the Southern Railway, and that the Southern Railway shall wait 15 minutes for such delayed trains upon receipt of such notice. This order shall take effect December 20, 1903. By order of the commission. Franklin McNeill Chairman. H. C. Brown, Clerk." This order quickened the arrival time of the Atlantic Coast Line train at Selma 25 minutes, but, as it required the Southern to wait at that point 15 minutes for delayed trains, it more than divided the time between the roads; exacting only 10 minutes' advance of time on the part of the defendant to procure this convenience to the traveling public. On 18th December, 1903 on the application of counsel for the defendant, the order was suspended, and both companies were notified to appear before the Corporation Commission at Raleigh on 12th January 1904, that "the matter of the connection at Selma of the Atlantic Coast Line going south with that of the Southern Railway going west in the afternoon" might be heard, and asking both companies to have representatives present. The defendant appeared by its superintendent and its general counsel, and the other company was also represented. After hearing both sides, "the situation being thoroughly discussed," the commission took the matter under advisement. On 16th January, 1904, the commission rendered a full finding of the facts, concluding with this judgment "And it is therefore ordered that the Atlantic Coast Line Railroad Company furnish transportation for passengers from Rocky Mount to Selma after 12:50 and by and before 2:25 p. m. each day. It is further ordered that the Southern Railway hold its train No. 135 at Selma 15 minutes if for any reason the Atlantic Coast Line train connecting at that point is delayed." It was further ordered that the order should take effect 26th January, 1904. To this judgment the Southern Railway Company did not except. The Atlantic Coast Line filed five exceptions: (1) That it was not practicable to make the connection at Selma by extending the run of either its Plymouth or its Springhope train to Selma; (2) that it would be unprofitable and a loss for it to make the connection by putting on an additional train from Rocky Mount to Selma; (3) the commission has no power to require it to put on extra trains; (4) that it is not practicable to make the connection without putting on an extra train, which the commission has no power to do; (5) that the order is unreasonable, because passengers from Rocky Mount can make connection at Goldsboro at 6:50 a. m., or at Selma by night train over the Southern, or they could go up to Weldon and go over the Seaboard Railroad. A letter in the record from the transportation department of the defendant company, dated 23d January, 1904, states that prior to the breaking of connection at Selma the defendant's 2:50 p. m. train transported on an average 12 passengers daily for the Southern at Selma, while since the average was only two. This shows 3,650 passengers annually inconvenienced by the failure to connect at that point. There is evidence elsewhere in the record that it was a very much larger number. On 2d February, 1904, the exceptions were heard by the commission upon the testimony of witnesses offered by the defendant and other evidence. Upon all the evidence, and after argument by counsel for the defendant, the commission, on 13th February, 1904, made a fuller finding of fact, in the course of which it is recited, inter alia, that, by the connection at Selma at 2:50 p. m. between the Atlantic Coast Line train No. 39 (south bound) and the Southern train No. 135 (west bound), "the greater portion of the section of the country reached by the said branch roads was for years furnished the nearest and cheapest route of travel to Raleigh and other Southern Railway points. The greater portion of the travel between the Atlantic Coast Line territory and the Southern Railway points was by this route. It is admitted in the correspondence of the Atlantic Coast Line in this matter that this was the most important connection, being the principal outlet for passengers en route from eastern Carolina territory to Raleigh and other Southern Railway points. There seems to have been no complaint about the failure of these railroad companies to keep this schedule and make this connection until about the year 1900. The Atlantic Coast Line informs the commission that 'this matter has been a frequent source of correspondence between this company and the Southern Railway Company since 1900, and that during this time frequent complaints have been made to this company by the Southern Railway Company of its failure to make schedule time at Selma." D"

The commission found (giving its reasons) that passengers ought neither to be required to go a much longer distance around by Weldon, nor to make connection at unreasonable hours at Goldsboro (6:50 a. m.), nor to take a night train (11 p. m.) connection at Selma, when a few minutes quickened time would maintain the connection which had been made at Selma, in the early afternoon, for more than 10 years. The commission also found that the defendant could make the connection, if it chose, by extending the run of its Springhope train, which, coming down 19 miles from that place, reached Rocky Mount at 12:10, where it lay over until 4 p. m. before returning to Springhope, during which four hours it could easily be run 41 miles and back, making this connection. It thus concludes its judgment: "There is within the territory served by these branch lines approximately 400,000 inhabitants. The report of the Atlantic Coast Line to this commission for the fiscal year ending 30th June, 1903, shows net earnings from operation in North Carolina amounting to $1,943,116.63, and that there was a surplus of $1,293,983.54 after paying interest on its debts and 5% dividends on its stock, both common and preferred, from the net earnings of the company's entire line. On a mileage basis, this will show that there was a surplus of net earnings in North Carolina for that year of approximately $324,493. The commission is of the opinion that the facilities given heretofore by the Atlantic Coast Line to the traveling public should not be lessened; that the connection furnished passengers from the Washington Branch, the Norfolk & Carolina Branch, the Plymouth Branch, and the Nashville Branch with No. 135 Southern Railway passenger train at Selma, and also for all points between Rocky Mount and Selma for nearly 10 years, should be restored; that if this cannot be done by the Atlantic Coast Line train No. 39, as formerly, on account of this train being heavier, containing usually one or more express cars, and, in all, usually ten or more cars, and on account of increase in business between Richmond and Selma, which necessitates longer stops, then other facilities should be furnished by the Atlantic Coast Line Company; that this connection, which was the principal outlet for passengers from Eastern Carolina to Selma and other Southern Railway points for the last ten years, instead of being abandoned, should be made permanent and certain; and that this result be accomplished by carrying out the order heretofore made in this court. It is ordered, therefore, that the exceptions be, and they are hereby, overruled. Franklin McNeill, Chairman."

From this order, thus repeated the third time, and after the fullest investigation occupying several months, the defendant appealed to the superior court. In that court the following issues were submitted, the Corporation Commission excepting:

"(1) Is it practicable for train No. 39 of the Atlantic Coast Line, due to
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