Railroad Gazette/Volume 38/Number 5/Railroad Law
Railroad Law.
The following abstracts are taken from recent decisions of the Supreme Court and the Federal Circuit Courts in railroad cases:
Connecting Carriers—A special contract by a railroad company to transport a through shipment by a vessel of a connecting carrier sailing on a designated day will be deduced from the acceptance of a through rate for shipment “to be forwarded” via such a steamer, which rate was quoted with notice that it was of vital importance that the shipment should be transported promptly to enable the shipper to fulfill a contract for the sale of the goods at destination which required prompt delivery, and such a contract is binding though entered into by “a general eastern agent” of the receiver in control of the contracting carrier. (Sup. Ct. U. S.) Northern Pacific Ry. Co, vs, American Trading Co., 25 Sup. Ct. 84.
Exercise of Eminent Domain by Lessee of Franchise—The lessee of a telegraph company cannot as such lessee exercise the right of eminent domain possessed by its lessor. (Sup. Ct. U. S.) Western Union Telegraph Co. vs. Pennsylvania Ry. Co., 25 Sup. Ct. 150.
Relationship as Disqualification of Receiver—When the appointment of a person as one of the receivers of a railroad company in foreclosure proceedings is asked by the trustees in the mortgages and other creditors and favored by practically all of the parties in interest and is opposed by only a small minority of the bondholders who make no charge against his integrity or ability and he is specially fitted for the position by reason of his familiarity with the property and its operation the appointment will not be refused because of his relationship to certain of the large stockholders and bondholders nor because he had been an officer and director of the company. (U. S. Cir, Ct. Va.) Bowling Green Trust Co. vs. Virginia Passenger & Power Co., 133 Fed. Rep. 186.
Telegraph Company's Entry on Railroad Right of Way—Telegraph companies were not granted a right to enter upon and occupy railroad rights of way without consent by acts of Congress giving telegraph companies the right to construct, maintain and operate telegraph lines through and over the public domains and “over and along any of the military or post roads of the United States”; the purpose of that act being to withdraw interstate commerce by telegraph from state interference. (Sup. Ct. U. S.) Western Union Telegraph Co. vs. Pennsylvania R. R. Co., 25 Sup. Ct., Rep. 183.