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Title 58 - Public Utilities, Services and Carriers

CHAPTER 17.

THE GENERAL RAILROAD LAW

ARTICLE 1.

GENERAL PROVISIONS

SECTION 58-17-10. Definitions.

In the construction of this chapter except when such meaning would be repugnant to the context or contrary to the manifest intention of the General Assembly:

(1) The phrase "railroads and railways" shall be construed to include all railroads and railways, by whatever motive power they may be operated, except marine railways doing business as common carriers in this State and except street or interurban railroads or railways, whether operated by the corporations owning them or by other corporations or otherwise;

(2) "Railroad" shall be construed to mean a railroad or railway by whatever motive power operated except such railroads and railways as are excepted under item (1) of this section;

(3) "The General Railroad Law" shall mean this chapter; and

(4) The word "person" shall be construed and held to mean an officer, corporation, company, receiver, trustee, lessee, agent or other person acting or engaged in any of the matters and things mentioned in the General Railroad Law.

SECTION 58-17-20. Definitions applicable to all laws.

The terms "railroad corporation" and "railroad company" wherever contained in the law of this State shall be deemed and taken to mean all corporations, companies or individuals owning or operating any railroad in whole or in part in this State.

SECTION 58-17-30. Persons to whom chapter shall apply.

The provisions of the General Railroad Law shall apply to all persons, firms and companies and to all associations, whether incorporated or not, operating as common carriers upon any of the lines of railroads in this State (street railways and express companies excepted) the same as to railroad corporations herein mentioned.

SECTION 58-17-40. Property to which chapter shall apply.

The provisions of the General Railroad Law shall apply to all property, to the receiving, delivery, loading, unloading, handling, storing or carriage of property on one actually or substantially continuous carriage, or as part of such continuous carriage and to the compensation therefor, whether such property be carried wholly on one railroad or partly on several railroads and whether such services are performed or compensation paid by or to one person alone or in connection with another or other persons.

SECTION 58-17-50. Chapter applicable to trustees, receivers and the like.

The provisions of this chapter shall apply to all railroads and railways and to the corporations, trustees, receivers or others owning or operating them.

SECTION 58-17-60. Effect of stock ownership, leases and contracts on application of chapter.

No ownership or shares of the capital stock of one corporation by another corporation, nor any lease, contract or other agreement between corporations or individuals shall operate as a bar to the provisions of the General Railroad Law.

SECTION 58-17-70. Chapter amends charters granted since December 17, 1841.

Railroad corporations established in this State prior to February 9, 1882, whether by special act or in conformity with the provisions of any general law, shall have the powers and privileges and be subject to the duties, liabilities, restrictions and other provisions contained in the General Railroad Law which, so far as inconsistent with charters granted since December 17, 1841, shall be deemed and taken to be in alteration and amendment thereof.

SECTION 58-17-80. Benefit of process or proceedings; restrictions.

Every railroad corporation incorporated under the laws of this State shall have the benefit of every process or proceeding and be subject to all the restrictions which shall or may be provided or imposed by the laws of the State.

SECTION 58-17-90. General powers and duties of railroad companies.

Every railroad company incorporated in this State shall have all the rights, powers and privileges set forth and granted in and by this chapter and be subject to all the duties, liabilities, restrictions, provisions and limitations herein contained and such rights, powers, privileges, liabilities, provisions and limitations shall constitute part and parcel of the charter of every such corporation.

SECTION 58-17-100. Contracts or combinations in violation of chapter shall be void.

Any contract, combination, joint ownership or joint management contrary to the provisions of this chapter shall be null, void, and of no effect.

SECTION 58-17-110. Mandamus to require compliance with law.

If any railroad company neglects or refuses to comply with the provisions of the General Railroad Law or with the rules and regulations prescribed by the commission within the limits of its authority, the company is subject to a writ of mandamus, to be issued by any justice of the Supreme Court or circuit court judge, upon application of the Office of Regulatory Staff, to require compliance with the laws or the rules and regulations and failure to comply with the writ of mandamus shall be punishable as for contempt. And for any wilful violation of any laws or failure to comply with the requirements of the rules or regulations the court may award costs and counsel fees, on the return of the writ and after due deliberation thereon, as may be just.

SECTION 58-17-120. Rules of evidence shall be same as in civil cases.

In all cases under the provisions of the General Railroad Law the rules of evidence shall be the same as in civil actions, except as herein otherwise provided.

SECTION 58-17-130. Disposition of fines.

All fines recovered under the provisions of the General Railroad Law shall be paid one half into the State Treasury, to be used for such purposes as the General Assembly may provide, and the other half into the county treasury of the county in which the case is tried.

SECTION 58-17-140. Annual report of Commission with respect to railroads.

The Office of Regulatory Staff shall make an annual report to the General Assembly of its official acts, including such statements, facts, and explanations as will disclose the actual working of the system of railroad transportation in its bearing upon the business and prosperity of the State, and suggestions as to the general railroad policy of the State or any part thereof or as to the condition, affairs, or conduct of any of the railroad corporations as may seem to it appropriate, with a special report of all accidents, and the causes thereof, for the preceding year. It shall also recommend legislation as in its judgment may be necessary to secure just and reasonable rates for the transportation of passengers and freights and for the prevention of unjust discrimination. The annual report must be transmitted to the President of the Senate and the Speaker of the House of Representatives on or before the second Monday in November in each year.

SECTION 58-17-150. Notification of needed repairs or improvements; legal action to enforce.

(A) Whenever, in the judgment of the Office of Regulatory Staff, it shall appear that repairs are necessary upon any such railroad or that any addition to the rolling stock or any enlargement of, or improvement in, the stations or station houses, any modification in the rates of fare for transporting freight or passengers or any change in the mode of operating the road and conducting its business is reasonable and expedient in order to promote the security, convenience, and accommodation of the public, the Office of Regulatory Staff shall give information in writing to the corporation of the repairs, additions, improvements, or changes which it adjudges to be proper. If the company shall fail, within sixty days, to adopt the suggestions of the Office of Regulatory Staff, it shall take legal proceedings as it may deem expedient and may call upon the Attorney General to institute and conduct such proceedings. The power herein conferred upon the Office of Regulatory Staff shall be sufficient to require of common carriers the establishment and maintenance of terminal facilities, the extension of pass tracks, sidetracks, and other than industrial tracks and all other improvements and changes which seem reasonable and expedient to the Office of Regulatory Staff.

(B) Any railroad subject to the jurisdiction of the commission may retire any team track within this State upon showing that the track has not been used for at least two years. Before any track is retired for nonuse, the railroad shall give thirty days' written notice to the commission and to the Office of Regulatory Staff. The notice must be accompanied by a fee of fifty dollars and an affidavit of the railroad's agent or employee having personal knowledge of the fact that the track has not been used by the public during the two-year period immediately preceding the retirement date of the track.

SECTION 58-17-160. Railroads shall not remove from towns of more than 500.

In the exercise of the powers and rights conferred in this chapter no railroad shall remove its line of railway from any incorporated town of more than five hundred inhabitants through which it now runs.

SECTION 58-17-170. General supervision of railroads; enforcement of chapter.

The Office of Regulatory Staff shall have the general supervision of all railroads and railways in this State operated by steam and must examine them and keep informed as to their condition and the manner in which they are operated, with reference to the security and accommodation of the public and the compliance of the several corporations with the provisions of their charters and the laws of the State. The Office of Regulatory Staff shall enforce the provisions of this chapter.

SECTION 58-17-180. Notification to railroad of violation of charter or law; suit for mandamus or to restrain continued violations.

Whenever in the judgment of the Office of Regulatory Staff it shall appear that any such corporation has violated any law or neglected, in any respect or particular, to comply with the terms of its charter or with the provisions of any of the laws of the State, especially in regard to connections with other railroads, its rates of toll, or its time schedule, the Office of Regulatory Staff shall give notice thereof in writing to such corporation and if the violation or neglect is continued after such notice, the Office of Regulatory Staff shall make application to a circuit court or a judge thereof in vacation for an injunction to restrain the company complained of from further continuing to violate the law or the terms of its charter or for a writ of mandamus as provided in Section 58-17-110.

SECTION 58-17-190. Investigation of petitions of local governments; notice.

Upon the petition of the mayor and aldermen or council of any city or town or the governing body of any county within which any part of any such railroad is located, the commission shall request the Office of Regulatory Staff to make an examination of the condition and operation thereof. Before proceeding to make the examination, the Office of Regulatory Staff shall give to the petitioner and the railroad corporation reasonable notice, in writing, of the time and place of entering upon it.

SECTION 58-17-200. Notice of railroad to remove cause of petition; report to General Assembly; institution of legal proceedings.

If, upon such examination, it shall appear to the Office of Regulatory Staff that the matter alleged by the petitioner is well founded, it must inform the corporation operating the railroad in the manner provided in Section 58-17-180. If the company fails for sixty days after such notice to remove the cause of the petition, the Office of Regulatory Staff shall make a report to the General Assembly for any action as it may consider expedient or, if there be necessity for prompt action, it may take any legal proceedings as may be proper and the Office of Regulatory Staff shall institute the proceedings.

ARTICLE 3.

INCORPORATION AND OPERATION BY PURCHASER OF RAILROAD

SECTION 58-17-310. Purchaser of railroad shall reorganize and commence operation within sixty days; exceptions.

Any person acquiring any railroad within this State by purchase, foreclosure, or otherwise shall organize under the provisions of this article and put into operation such road within sixty days from the purchase or acquisition thereof.

The provisions of this section do not apply to acquisitions of railroads by merger or consolidation.

SECTION 58-17-320. Penalties for failure to reorganize.

Should any such person mentioned in Section 58-17-310 fail to reorganize such company as provided by said section, within the time therein limited, such person shall pay a penalty of fifty dollars per day for each and every day they shall fail to operate such railroad, this penalty to be collected by the Office of Regulatory Staff. But the penalty herein provided shall not attach when reasonable cause for failure to operate can be shown.

Any person shall, in addition to the penalty above provided, forfeit all of his franchises, powers, and privileges.

SECTION 58-17-330. Reorganization provisions not applicable to certain sidetracks or spur tracks.

The provisions of Section 58-17-310 shall only apply to the main lines and regular branches of railroads and shall not apply to any sidetracks or spur tracks constructed for special or temporary purpose or occasional use.

SECTION 58-17-340. Formation of corporation following purchase of railroad by virtue of mortgage or deed of trust by filing certificate.

In case of the sale of any railroad situated wholly or partly within this State, by virtue of any mortgage or deed of trust, whether under foreclosure or other judicial proceeding or pursuant to any power contained in such mortgage or deed of trust, the purchaser thereof or his survivor representatives or assigns may, together with his associates, if any, form a corporation for the purpose of owning, possessing, maintaining and operating such railroad, or such portion thereof as may be situated within this State, by filing in the office of the Secretary of State a certificate specifying the name and style of such corporation, the number of its directors, the names of its directors and the period of their services, not exceeding one year, the amount of the capital stock of such corporation and the number of shares into which it is to be divided.

But nothing herein contained shall be construed to authorize in any manner the purchase or lease of such railroad by any railroad corporation or steamship company chartered either by this or any other state except as herein provided.

SECTION 58-17-350. Maximum amount of capital stock which may be named in certificate; increase thereof.

The capital stock to be named in the certificate aforesaid shall in no case be greater than the amount of the capital stock specified in the original charter of the railroad so sold and any amendment or amendments thereto. Nothing herein contained, however, shall be construed to prevent an increase of capital stock to such additional amount as may be needed to convert any bonds or other indebtedness of the original corporation into stock and the corporation so formed may divide its capital stock into common and preferred stock upon such terms and with such conditions as may be prescribed.

SECTION 58-17-360. Persons signing certificate shall be body corporate; powers.

The persons signing such certificate and their successors shall be a body corporate and politic, by the name specified in such certificate, with power to sue and be sued, contract and be contracted with and to own, possess, maintain and operate the railroad referred to in such certificate and to transact all business connected therewith.

SECTION 58-17-370. Powers, rights and the like of corporation organized under article.

Any corporation organized under the provisions of this article shall possess all the powers, rights, immunities, privileges and franchises in respect to such railroad, or the part thereof included in such certificate, and in respect to the real and personal property appertaining to it, which were possessed or enjoyed by the corporation which owned or held such railroad previous to such sale, under or by virtue of its charter and any amendments thereto and of other laws of this State or the laws of any other state in which any part of such railroad may have been situated, not inconsistent with the laws of this State.

SECTION 58-17-380. Adoption of bylaws, rules and regulations by corporation.

Any such corporation may make bylaws, rules and regulations in relation to its business, the number of its directors and the times and places of holding meetings of the stockholders and directors and may alter and change such bylaws as may be deemed expedient; provided, that such bylaws, rules and regulations shall conform to the laws of this State.

SECTION 58-17-390. Amount of capital stock corporation may issue.

Any such corporation may issue capital stock to such an aggregate amount as may be deemed necessary, not exceeding the amount named in its certificate of organization.

SECTION 58-17-400. Issuance and sale of bonds; execution of mortgage or deed of trust to secure payment of bonds.

Any such corporation may make and issue bonds bearing such rate of interest, not exceeding seven per cent per annum, payable at such times and places and in such amount or amounts as it may deem expedient and may sell and dispose of such bonds at such prices and in such manner as it may deem proper and secure the payment of such bonds by mortgage or deeds of trust on its railroad or any part thereof and its real and personal property and franchises. And all of the property and franchises of such corporation embraced or intended to be embodied in any such mortgage or deed of trust, whether then held or thereafter acquired, shall be subject to the lien and operation of such mortgage or deed of trust and, in case of sale under it, shall pass to and become vested in the purchaser thereof so as to enable him to form a new corporation in the manner herein prescribed and to vest in such new corporation all the faculties, rights, immunities, privileges and franchises possessed by its predecessor or conferred by this chapter.

SECTION 58-17-410. Sinking fund.

Any such corporation may so establish sinking funds for the payment of its liabilities.

SECTION 58-17-420. Charter subject to amendment, alteration or repeal by State.

Any railroad corporation formed under the provisions of this article shall be subject, as to the charter of such corporation, to the provisions of Section 12-401 of the Code of Laws of South Carolina, 1962, any provision in the original charter of the company which owned or held such railroad previous to such sale or any amendment thereto to the contrary notwithstanding.

SECTION 58-17-430. Certificate as evidence of incorporation.

A copy of such certificate, attested by the Secretary of State or his deputy, shall, in all courts and places, be evidence of the due organization and existence of such corporation and of the matters specified in such certificate.

ARTICLE 5.

CONSOLIDATION OR ACQUISITION OF RAILROAD COMPANIES OR INTERESTS THEREIN

SECTION 58-17-610. Merger or consolidation with continuous or connected railroad authorized.

Any railroad company organized under the laws of this State and operating a railroad, whether wholly within or partly within and partly without this State, under the authority of this State, or of this State and any adjoining state, may consolidate its capital stock, franchises, and property with those of any other railroad company organized and operated under the laws of this or any other state so as to form a new consolidated corporation, or either of such companies may merge or be merged into the other when two or more railroads of the companies proposed to be consolidated or merged are continuous or are connected either directly with each other or by means of any intervening railroad. Railroads terminating on the banks of any river which are or may be connected by ferry or otherwise shall be considered continuous within the meaning of this article. Any consolidation of railroad companies shall be carried out by each railroad company according to the provisions of this article. Any merger of railroad companies shall be carried out by each railroad company according to and with the effects stated in Title 33, Chapter 11, and in such a merger, dissenting stockholders' rights shall be determined in accordance with Title 33, Chapter 13.

SECTION 58-17-620. Procedure for consolidation.

Any consolidation of railroad companies must be made under the conditions, provisions, and restrictions and with the powers in this article mentioned and contained, that is to say:

(1) The directors of the several corporations proposing to consolidate may enter into a joint agreement, under the corporate seal of each company, for the consolidation of such companies and railroads and prescribing the terms and conditions of them, the mode of carrying it into effect, the name of the new corporation, the number and names of the directors and other officers of it who shall be the first directors and officers and their places of residence, the number of shares of the capital stock, the amount of par value of each share, the manner of converting the capital stock of each of the companies into that of the new corporation and how and when directors and officers must be chosen, with such other details as they shall consider necessary to perfect such new organization and the consolidation of such companies;

(2) Such agreement must be submitted to the stockholders of each of the companies at a meeting thereof, called separately, for the purpose of taking it into consideration; due notice of the time and place of holding such meeting and the object of it must be given by a general notice published in some newspaper in the city, town, or county in which the company has its principal office or place of business; at the meeting of stockholders the agreement of the directors must be considered and a vote, by ballot, taken for the adoption or rejection of it, each share entitling the holder of it to one vote; the ballots must be cast in person or by proxy; if a majority of all the votes of all the stockholders are for the adoption of the agreement that fact must be certified thereon by the secretary of the respective companies, under the seal of it; and the agreement so adopted, or a certified copy of it, must be filed in the office of the Secretary of State, and must from thence be deemed and taken to be the agreement and the act of consolidation of the companies and a copy of the agreement and act of consolidation, duly certified by the Secretary of State under the seal of it, must be evidence of the existence of such new corporation.

SECTION 58-17-630. Consolidation fees.

Upon the consolidation of any railroad company there shall be paid to the Secretary of State a fee upon the capital stock of the combined company as in the organization of a new company; provided, that credit shall be given thereon for any charter fees paid by companies forming the consolidated company.

SECTION 58-17-640. New charter shall be issued to consolidated company; no additional fee shall be charged.

When railroad companies are consolidated under the provisions of this article a charter of incorporation for the new company so formed by such consolidation shall be issued to the owners and stockholders of the companies so consolidating or to such of them as the stockholders of each of such companies shall designate. Only the fees provided by law for consolidation shall be charged and no additional fee shall be charged for any such charter.

SECTION 58-17-650. Procedure for assessment of damages of dissenting stockholder.

Any stockholder of any company hereby authorized to consolidate with any other who shall refuse to convert his stock into the stock of the consolidated company may, at any time within thirty days after the adoption of the agreement of consolidation by the stockholders, as in this article provided, apply, by petition, to the court of common pleas of the county in which the chief office of the company may be kept or to a judge of such court in vacation, if no such court sits within such period, on reasonable notice to the company, to appoint three disinterested persons to estimate the damage, if any, done to such stockholder by the proposed consolidation and whose award, or that of a majority of them, when confirmed by the court, shall be final and conclusive. The persons so appointed shall also appraise the stock of any such stockholder at the full market value thereof, without regard to any depreciation or appreciation in consequence of such consolidation and the company may, at its election, either pay to the stockholder the amount of damages so found and awarded, if any, or the value of the stock so ascertained and determined. And upon the payment of the value of the stock, as aforesaid, the stockholder shall transfer the stock so held by him to the company, to be disposed of by the directors of the company or to be retained for the benefit of the remaining stockholders. In case the value of the stock, as aforesaid, is not paid within thirty days from the filing of the award and confirmation thereof by the court and notice to the company, the damages so found and confirmed shall be a judgment against the company and collected as other judgments in such court are by law recoverable.

SECTION 58-17-660. Rights, duties and the like of consolidated corporation.

Upon the making and perfecting the agreement and act of consolidation, as provided in Section 58-17-620, and filing it, or a copy, with the Secretary of State as aforesaid, the several corporations parties thereto shall be deemed and taken to be one corporation by the name provided in such agreement and act, possessing within this State all the rights, privileges and franchises and subject to all the restrictions, disabilities and duties of each of such corporations so consolidated.

SECTION 58-17-670. Transfer of rights, liabilities and the like to consolidated corporation.

Upon the consummation of the act of consolidation all and singular the rights, privileges and franchises of each of such corporations, parties to such consolidation and all the property, real, personal and mixed, and all debts due on whatever account, as well as all stocks, subscriptions and other things in action belonging to each of such corporations, shall be taken and deemed to be transferred to, and vested in, such new corporation, without further act or deed and all property and rights of way and every other interest shall be as effectually the property of the new corporation as they were of the former corporations, parties to such agreement. The title to real estate, either by deed or otherwise, under the laws of this State vested in either of such corporations shall not be deemed to revert or be in any way impaired by reason of this chapter. But all rights of creditors and all liens upon the property of such corporations shall be preserved unimpaired and the respective corporations may be deemed to continue in existence to preserve them and all debts, liabilities and duties of either of such companies shall thenceforth attach to the new corporation and be enforced against it to the same extent as if such debts, liabilities and duties had been incurred or contracted by it.

SECTION 58-17-680. Consolidated corporation shall not acquire greater rights than those of consolidating corporations.

No new consolidated corporation coming into existence under this article shall thereby acquire any extraordinary rights, privileges and exemptions not enjoyed by one or more of the companies consolidating under their respective charters.

SECTION 58-17-690. Consolidated corporation shall establish offices.

Such new company shall, as soon as convenient after such consolidation, establish such offices as may be desirable, one of which shall be at some point in this State, on the line of its road, and may change them at pleasure, giving public notice thereof in some newspaper published on the line of the road.

SECTION 58-17-700. Liability of consolidated corporation to suits.

Suits may be brought and maintained against such new company in any of the courts of this State for all causes of action in the same manner as against other railroad companies therein.

SECTION 58-17-710. Property of consolidated corporation subject to taxation.

The portion of the road of such consolidated company in this State and all its real estate and other property theretofore subject to taxation shall be subject to like taxation and assessed in the same manner, and with like effect, as the property of other railroad companies in this State.

SECTION 58-17-720. Consolidations and the like of competing railroads prohibited.

No corporations owning and controlling lines of railroad which can compete as set forth in Section 58-17-740 shall make any consolidation, amalgamation or merger of stocks or franchises or of railroads or interests and any contract or agreement for the same shall be null and void.

SECTION 58-17-730. Certain consolidations with companies of other states not authorized.

Nothing in this article contained shall be taken to authorize the consolidation of any company of this State with any company of any other state whose laws shall not also authorize such consolidation.

SECTION 58-17-740. Purchase of connecting railroad sold under mortgage, deed of trust or judicial process.

When any railroad shall be sold and conveyed by virtue of any mortgage or deed of trust or under and by virtue of any process or decree of any court of this State or of the circuit court of the United States, any company with which such railroad connects may purchase and pay for such railroad, may issue its own stock for such an amount as the purchasers may deem the full and fair value thereof and may hold and enjoy the railroad so purchased with all the rights, privileges and franchises and with the same rights to charge for tolls, transportation and car services and subject to the same restrictions as were held, enjoyed and limited by and in respect to the company of which the road may be so sold. But no person shall purchase or lease any railroad lying in whole or in part within this State, or any interest therein or shall operate any such railroad when such purchaser or lessee already owns, operates or is interested in a line or lines of railroad which, either alone or in conjunction with other connecting railroads lying within or without this State, can compete between any two or more points within this State and any such purchase, lease or acquisition is hereby declared to be null and void. Nor shall any person owning or exercising a controlling interest in any such competing company or companies, either directly or indirectly, purchase or lease, in whole or in part, any such railroad. Any incorporators or individuals so offending by making any such acquisition shall also forfeit any franchise or license which they may hold from this State to operate or hold the competing road which they own, operate or are interested in and the company owning the railroad so to be controlled shall forfeit its charter, franchise or license to own and operate such railroad.

SECTION 58-17-750. Purchase or guarantee of bonds and stock of other companies; purchase, use or lease of other roads.

Except as prohibited in Section 58-17-770 and in sections 7 and 20 of article 9 of the Constitution of 1895, any railroad company created by and existing under the laws of this State may from time to time, purchase and hold the stocks or bonds of any other railroad company chartered by or of which the road is authorized to extend into this State. And except as prohibited in Section 58-17-770 and in sections 7 and 20 of article 9 of the Constitution of 1895, any railroad company may enter into a contract for the purchase, use or lease of any other railroad, upon such terms as may be agreed upon with the company owning it and may run, use and operate such road in accordance with such contract or lease; provided, the roads of the companies so contracting or leasing shall be directly, or by means of intervening railroads, connected with each other. Any railroad corporation organized under the laws of this State may guarantee the bonds, stocks or dividends of any other railroad corporation, whenever the roads of such corporations shall connect with each other or shall form a continuous line or railroad directly or by means of any connecting railroad or by steamboat or steamship line, such guaranty to be upon such terms and conditions as may be agreed upon by the stockholders of the corporations making it.

But all such agreements and all parts of them shall, at all times, be subject to amendment, alteration or repeal by the General Assembly.

SECTION 58-17-760. Ownership of stock or bonds of connecting railroad or steamboat company.

A railroad corporation may aid in the construction of any branch or connecting railroad within the limits of this State, whether connecting by railroad or steamboat lines, by subscribing for shares of stock in such corporation or of any steamship line connecting the terminus of such railroad company with any port of the United States or by taking its notes or bonds, to be secured by mortgage or otherwise, as the parties may agree, and shall be entitled to vote on all shares of stock so subscribed for and held.

SECTION 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.

SECTION 58-17-780. Penalty for owning, leasing or operating competing lines.

Any railroad company owning, leasing or operating competing railroad lines within this State in violation of law shall be subject to a penalty of one hundred dollars for every day that such competing lines are owned, leased or operated, such penalty to be recovered in any court of competent jurisdiction in any county through which either of such competing lines may pass by any citizen thereof who may sue for it, one half of such penalty to go to the person suing therefor and the other half to the State. But the provisions of this section shall be without prejudice to any remedy which the State may be entitled to in its own behalf.

ARTICLE 7.

STOCK AND STOCKHOLDERS

SECTION 58-17-910. Stock subscriptions.

For the purpose of raising the capital stock of any railroad company incorporated in this State it shall be lawful to open books of subscription at such times and places and under the direction of such persons as the incorporators may appoint. Such subscriptions to the capital stock may be made in land, money, bonds, machinery, materials and work, at such rates as may be agreed upon with the company.

SECTION 58-17-920. Time within which proxy must be executed.

No proxy executed by a stockholder of any railroad company shall be valid unless executed and dated within six months previous to the meeting at which it is issued.

SECTION 58-17-930. Access to lists of stockholders.

The Office of Regulatory Staff shall have, at all times, access to the list of stockholders of every corporation operating a railroad and may, in its discretion, at any time, cause the list to be copied, in whole or in part, for its own information or for the information of persons owning stock in such corporation.

SECTION 58-17-940. Application for examination of books.

On the application in writing of a director or of any person or persons owning one-fiftieth part of the entire paid-in capital stock of any corporation operating a railroad or the bonds or other evidences of indebtedness of the corporation equal in amount to one-fiftieth part of its paid-in capital stock, the Office of Regulatory Staff must make an examination into the books of the corporation.

SECTION 58-17-950. Liability of stockholders of certain corporations.

Every stockholder in a railroad corporation, created under the Constitution of 1868 and prior to the adoption of the Constitution of 1895, shall be jointly and severally liable to the creditors thereof in an amount, besides the value of his share or shares therein, not exceeding five per cent of the par value of the share or shares held by him at the time the obligation held by or the debt due the creditor was created; provided, that such obligation or debt shall have been payable within one year after it was created or incurred, and that proceedings to hold such stockholder liable therefor shall be commenced whilst he remains a stockholder therein or within two years after he shall have ceased to be such stockholder.

Persons holding stock in such company as executors, administrators or by way of collateral security shall not be personally subject to the liabilities of the stockholders under the foregoing provisions, but the persons pledging such stock shall be liable as a stockholder and the estates and funds in the hands of such executors or administrators shall be liable in their hands in like manner and to the same extent as the deceased testator or intestate or the ward or person interested in such trust fund would have been if they had respectively been living and competent to act and hold the stock in their own names.

ARTICLE 9.

GENERAL POWERS OF RAILROADS

SECTION 58-17-1110. Powers and authority conferred by chapter additional.

The powers and authority conferred by this chapter are in addition to the powers and authority which any such railroad company may have by virtue of its charter or by virtue of the general laws of this State.

SECTION 58-17-1120. General corporate powers.

Every such corporation may make such bylaws for its regulation and government in any and all matters whatsoever, not inconsistent with the Constitution and laws of the United States and of this State, as may be deemed necessary and may add to, alter or amend them from time to time as may be desired; may appoint all necessary officers and prescribe their duties; may sue and be sued and plead and be impleaded in any court in this State or in the United States; may accept, purchase, hold, lease or otherwise acquire any property, real or personal, necessary or convenient to, and for the purposes of, the corporation and may use, sell, convey and dispose of such property as the interest of the company may require; may make contracts; may have and use a common seal; and may do all other lawful acts properly incident to and connected with such corporation and necessary and convenient for the control and transaction of its business.

SECTION 58-17-1130. Execution of mortgages; issuance of bonds.

Any such company may mortgage its property and franchises and issue bonds on such terms and conditions and for such purposes and uses of the corporation as the company may from time to time deem necessary.

SECTION 58-17-1140. Certain mortgages shall secure certain previous bonds and other debts.

No railroad corporation which has previously issued bonds shall subsequently make or execute any mortgage upon its road, equipment and franchises, or any of its property, real or personal, without including in and securing by such mortgage all bonds previously issued and all pre-existing debts and liabilities of the corporation. But nothing in this section contained shall apply to a mortgage for the purchase money of any such road, equipment, franchise or property, real or personal, or to a mortgage made or executed for the purpose, in whole or in part, of building, extending, improving or equipping such railroad, or any part thereof, or any other railroad, the greater part of whose stock is held by it, or to any pledge or hypothecation of any choses in action or other securities held or owned by it. Nor shall this section require that a mortgage executed by a corporation shall secure the payment of previously issued bonds or pre-existing debts and liabilities of the corporation when the bonds to be issued under the mortgage are intended, in whole or in part, to take up, by funding or otherwise, such previously issued bonds or pre-existing debts and liabilities or when such previously issued bonds or pre-existing debts and liabilities are secured by a pre-existing mortgage or other lien.

SECTION 58-17-1150. Acquisition of land and rights of way.

Every railroad company shall have every right, power and privilege necessary for the purpose of acquiring such lands or rights of way as it may require for the location or construction of such railway, for the erection or location of depots, warehouses, stations and other necessary and convenient establishments or for extending or altering them.

SECTION 58-17-1160. Acquisition of rights of way around tracks.

Railroad corporations organized under the provisions of this chapter may acquire rights of way, not exceeding seventy-five feet from the center of their track in each direction, and additional land necessary for deep cuts, high fills, borrow pits, streams and highway changes made necessary by the construction of the railroad; provided, that in no case shall the right of way acquired exceed one hundred and fifty feet from the center of the track in each direction. And such corporations may exercise the same powers with relation to such tracks and their depots and crossing other railroads, highways and streams as railroads chartered by the General Assembly.

SECTION 58-17-1170. Crossing or connecting with other railroads; purchase, sale, lease or consolidation of property and franchises.

Every such company may connect with or cross any other railroad on its line and may purchase, lease or consolidate with, or sell or lease its property and franchises to, any other railroad in or out of this State, in such manner and upon such terms as may be agreed between such railroad companies not inconsistent with laws of this State or of the United States.

SECTION 58-17-1180. Extension of lines and construction and extension of branches; rights and restrictions in acquiring rights of way.

It shall be lawful for any railroad or railway corporation chartered by this State, and it shall be taken as the exercise of powers conferred by its charter, to continue or extend the main track or line of such railroad or any extension thereof or to build or extend branch roads from such main track or line to any point or points in the vicinity thereof whenever it may be deemed advisable by such corporation so to do; but such extension or branch shall not exceed five miles in length. For the purpose of acquiring a right of way for any such extension or branch track, such railroad or railway corporation shall have and be entitled to all the rights and privileges and be subject to all the restrictions contained in the General Railroad Law in reference to the manner of acquiring the right of way.

SECTION 58-17-1190. Relocation of lines and other changes in tracks and facilities.

Any railroad company owning or operating a railroad, or any part thereof, in this State, under authority of the laws of this State, may reconstruct its lines, tracks or any part of them, relocate or straighten any line or lines or portion of a line or lines, build embankments for the purpose of avoiding trestles, bridges or other openings upon which such railroad may be constructed, change the grade of a track or tracks, widen cuts or embankments when necessary for proper construction or maintenance, build such additional main line or lines, track or tracks, turnouts, switches, spur tracks, sidetracks, depots, depot facilities, yards, terminal facilities, water facilities, storage facilities and other such additional tracks, buildings, facilities, ways and appliances as may be necessary for the proper accommodation of the public business of such railroad company and build cutoff lines, branch lines and other lines for the purpose of the better and more expeditious handling of the public business.

SECTION 58-17-1200. Acquisition of real estate for relocation of lines and other changes in tracks and facilities.

For the purposes mentioned in Section 58-17-1190 any railroad company may acquire by purchase or gift and hold real estate necessary, and if the real estate is not acquired by purchase or gift, the railroad company may acquire it by condemnation.

SECTION 58-17-1210. Operation of sections of road completed or acquired.

Every such company may also forthwith, upon the completion or acquirement by purchase, lease or consolidation of any portion or section of its railroad between any points through which it may run under its charter, operate and maintain such portion or section, with all the rights, powers and privileges hereby granted to the company.

ARTICLE 11.

RAILROAD CROSSINGS

SECTION 58-17-1310. Commission shall regulate crossings and culverts.

The Public Service Commission shall regulate and control by special order in each case the manner in which any street, street railway or other railroad track may cross any railroad track and the manner of constructing culverts under any railroad so as to effect proper drainage of adjacent territory.

SECTION 58-17-1320. Consent of Office of Regulatory Staff to one railroad crossing another at same grade.

A railroad shall not be constructed to cross another railroad at the same level or across navigable or tidewaters without the consent, in writing, of the Office of Regulatory Staff, in the manner as the Office of Regulatory Staff prescribes. It is unlawful for any corporation to construct a branch or extension or otherwise to take any proceedings contemplating a new crossing of one railroad with another, at the same level, unless the crossing has been approved, in advance and in writing, by the Office of Regulatory Staff. Preliminary approval of any crossing plan is subject to revision by the Office of Regulatory Staff. The court of common pleas shall have full equity jurisdiction of the provisions of this section.

SECTION 58-17-1330. Railroad shall not obstruct highways at crossings.

When a railroad is laid out across a highway or other way it shall be constructed so as not to obstruct such way.

SECTION 58-17-1340. Altering course of highway.

A railroad corporation may alter the course of a highway or other way, other than a street in any incorporated city or town, for the purpose of facilitating the crossing of it by its road, or permitting its road to pass at the side thereof without crossing, upon obtaining a decree of the governing body of the county prescribing the manner and time of such alteration. The corporation shall pay all damages occasioned to private property by the alteration, as in the case of land taken for its road.

SECTION 58-17-1350. Crossing on level shall be protected.

A railroad corporation whose road is crossed by a highway or other way within the corporate limits of any city or town on a level therewith, shall, at its own expense, so guard or protect its rails by plank, timber or otherwise as to secure a safe and easy passage across its road and if, in the opinion of the proper municipal authorities thereof, any subsequent alteration of the highway or other way, or any additional safeguards, are required at the crossing they may order the corporation to establish the same.

SECTION 58-17-1360. County may authorize highway or town way to cross railroad.

A highway or town way may be laid out across a railroad previously constructed when the governing body of the county adjudge that the public convenience and necessity require it and, in such case, after due notice to the railroad corporation and hearing all parties interested, such body may thus lay out a highway across a railroad or may authorize a city or town, on the petition of the mayor and aldermen thereof, to lay out a way across a railroad in such manner as not to injure or obstruct the railroad.

SECTION 58-17-1370. Stock guards or cattle gaps shall be constructed.

Each railroad company whose line of road lies wholly or partly in this State shall construct and keep in repair an adequate stock guard or cattle gap at every point where the line of railroad of any such company crosses the line of any fence in this State. For every violation of this section the railroad company so violating it shall pay to the owner of the fence upon the line of which such stock guard or cattle gap should have been constructed and kept in repair the sum of one hundred dollars, to be recovered by action in the court of common pleas for the county in which such stock guard or cattle gap should have been constructed and kept in repair.

SECTION 58-17-1380. Trains shall stop at crossings of railroad lines; exceptions.

Whenever lines of two steam railroads cross each other on the same grade in this State, every train on either shall be brought to a full stop before reaching the crossing. But this section shall not apply when the crossing is equipped with interlocking devices, signal lights, semaphores or other safety appliances which shall indicate that the train may cross in safety or when a flagman or watchman is stationed at the crossing and he signals that the train may cross in safety.

SECTION 58-17-1390. Signs shall be maintained at crossings with public roads.

Every railroad corporation shall cause signs to be placed and constantly maintained alongside of each public road or street where it is crossed by the railroad on the same level. Each such sign shall be elevated so as to be easily seen by travelers and on each side of it shall be printed in large letters the words "Railroad Crossing" unless the railroad corporation elects to place two of such signs at each crossing, one on each side of the track in which case each of such signs may have thereon in large letters, only on the side facing the traffic approaching the crossing, the words "Railroad Crossing." But this section shall not apply to streets in cities, towns and villages unless the corporation be required to put up such sign by the officers having charge of such streets.

SECTION 58-17-1400. Repealed by 1988 Act No. 319, Section 2, eff upon approval of the Governor (approved February 24, 1988).

SECTION 58-17-1410. Commission may require flagman to be stationed at important crossings.

The Public Service Commission may, upon the application of a county supervisor, if it deem it necessary, require any railroad corporation to have a stationary flagman at any crossing the importance of which may demand it.

SECTION 58-17-1420. Appeal from Commission order requiring flagman; appointment of civil engineer to decide matter.

Any such railroad company, after receiving such notice, may, within ten days after such receipt, apply to the circuit court of the circuit in which such crossing is situated, or to a judge thereof if the court be not in session, and claim a re-examination of the locality and a revision of the action of the Commission. The court or judge, as the case may be, shall appoint forthwith some civil engineer, not connected with any railroad, to examine into the matter forthwith and he may either affirm the demand of the Commission or modify it and his determination shall be final.

SECTION 58-17-1430. Railroad shall comply with orders as to crossings or flagmen.

Every railroad company shall, within the time indicated by the Commission or county supervisor, as the case may be, or within the time given by the civil engineer to such corporation upon re-examination, maintain and construct such crossing in the manner demanded of it by the Commission or county supervisor, as the case may be, or civil engineer, or station a flagman, if such should be required, at the locality where it has been found necessary, as aforesaid.

SECTION 58-17-1440. Penalty and damages for injury at crossing not having required signals.

If a person is injured in his person or property by collision with the engine or any car of a railroad corporation at a crossing and it appears that the corporation neglected to give the signals required by the General Railroad Law and that such neglect contributed to the injury, the corporation shall be liable for all damages caused by the collision or to a fine recoverable by indictment, unless it is shown that in addition to a mere want of ordinary care the person injured or the person having charge of his person or property was at the time of the collision guilty of gross or wilful negligence or was acting in violation of the law and that such gross or wilful negligence or unlawful act contributed to the injury.

SECTION 58-17-1450. Railroad crossing safety requirements.

All railroad crossings on public highways must be inspected for conditions which unsafely obstruct a motorist's view of approaching trains, for the presence of crossbucks prescribed by Section 58-17-1390, and for the presence of stop signs authorized by law to be placed at railroad crossings. The Department of Transportation hereinafter referred to as the department, is responsible for inspecting railroad crossings on state maintained highways, the governing body of each county is responsible for inspecting railroad crossings on county maintained roads, and the governing body of each municipality is responsible for inspecting railroad crossings on road and street rights-of-way maintained by municipalities. The department shall inform counties and municipalities of the railroad crossings they are responsible for inspecting. By January 1, 1989, the governing body of each county and municipality must notify the department of the office and public official to whom the governing body has assigned responsibility for performing the inspections. If the person inspecting a railroad crossing finds that the required crossbucks are not in place, properly in place or maintained, or finds that a motorist's view of approaching trains is unsafely obstructed by vegetation, growth, or objects not permanently affixed to realty which are within the right-of-way of the railway, the person inspecting the crossing must immediately notify the Deputy Director of Engineering within the Department of Transportation of the hazard. The notice must identify the crossing and describe the hazard. The inspector in the notice shall also inform the State Highway Engineer whether or not there is a stop sign at the crossing and, if not, whether or not in his opinion one should be added. Upon receipt of notice from the person inspecting the crossing, the department must give written notice of the hazard immediately by certified mail to any officer or registered agent of the railroad within the State. Notice from the department shall direct the railroad to cut or remove the vegetation, growth, and objects not permanently affixed to realty that are obstructing a motorist's view or to erect, maintain, or properly situate crossbucks.

The department must also notify the governing body of any county or municipality which maintains the highways or roadways at the crossing that the inspector stated in his opinion that a stop sign should be added at the crossing.

Removal and elimination of obstructions must be made by the responsible railroad within sixty days of receipt of notification from the department. Measures to assure that crossbucks are properly in place and maintained must be taken by the responsible railroad within thirty days of receipt of notification from the department; however, if crossbucks are not present or have been removed, then the railroad has ten days from the notification to erect new crossbucks. Failure of the railroad company to remove or eliminate the obstruction within the railroad's right-of-way and to erect or properly place and maintain crossbucks within the specified time period subjects the railroad company to a civil penalty of not less than one hundred dollars nor more than five hundred dollars. The railroad company is subject to an additional civil penalty of one hundred dollars a day for each day obstructions remain after the specified period and for each day crossbucks are not erected or properly placed and maintained after the specified period.

The person initially inspecting the railroad crossing is responsible for inspecting the crossing at appropriate intervals after notice to the railroad of the hazard to determine if obstructions have been eliminated and crossbucks properly placed and serviced within the period allowed before civil penalties may be assessed.

If the person inspecting the railroad crossing finds that a motorist's view of approaching trains is obstructed by vegetation, growth, or objects not permanently affixed to realty that lie outside the right-of-way of the railroad but within right-of-way of highways and roads maintained by the State, county, or municipality, the person inspecting the railroad crossing must immediately give written notice of the hazard to the appropriate department of the State, county, or municipality, upon whose right-of-way the obstruction exists. If the obstruction is on the right-of-way maintained by a county or municipality, the person inspecting the crossing must also give immediate written notice of the hazard to the Deputy Director of Engineering within the Department of Transportation.

The department, counties, and municipalities have sixty days from issuance of the written notice by the person inspecting the crossing to eliminate the obstructions within their respective rights-of-way.

The person initially inspecting the railroad crossing is responsible for inspecting the crossing after notice of the hazard has been given and reporting to the department the date upon which obstructions are eliminated. If counties or municipalities do not eliminate the obstructions within sixty days of receipt of notification, the department must remove or eliminate the obstructions. Counties and municipalities must reimburse the Department of Transportation for the department's cost in eliminating the obstructions.

If the person inspecting the railroad crossing finds that motorists' view of approaching trains is obstructed by vegetation, growth, or objects not permanently affixed to realty that lie on private property outside the right-of-way of the railroad and outside the highway or road right-of-way of the State, county, or municipality, he must immediately give written notice of the hazard to the owner of the property and to the appropriate agency of the State, county, or municipality which maintains that highway or roadway. The owner of the property has sixty days after receipt of the notice to eliminate the obstructions and the inspector shall reinspect the crossing after this sixty-day period has expired to determine if the obstructions have been eliminated.

By January first of each year, counties and municipalities must report all railroad crossings that were inspected during the preceding year and at which no obstructions were found to the department. The department must make an annual report of inspections conducted during the preceding year. The annual report must be provided to the Senate Transportation Committee and the Education and Public Works Committee of the House of Representatives.

SECTIONS 58-17-1460 to 58-17-1500. Repealed by 1988 Act No. 319, Section 2, eff upon approval of the Governor (approved February 24, 1988).

ARTICLE 13.

REPORTS AND INVESTIGATIONS GENERALLY

SECTION 58-17-1610. Filing of annual schedule and report.

Each railroad company chartered by this State is required to file in the Office of Regulatory Staff, on or before the thirty-first day of March in each year, a full and detailed schedule and report of the condition and operations of the road for the current year ending on the thirty-first day of December then immediately preceding. The schedule and report must be made in accordance with the following rules and form:

(1) All liabilities, including interest accrued on funded debt, must be entered upon the books in the month when they were incurred, without reference to the date of payment.

(2) Expenses must be charged each month with such supplies, materials, and similar articles as have been used during that month, without reference to the time when they were purchased or paid for.

(3) No expenditure must be charged to property accounts except for actual interest during construction, equipment, or other property, unless it is made on old work in such a way as clearly to increase the value of the property over and above the cost of renewing the old work and in such cases only the amount of increased cost must be charged, and the amount allowed on account of the old work must be stated.

(4) Mileage of passenger and freight trains must include only the miles shown to be run by distances between stations and allowances made to passenger or freight trains for switching and all mileage of switch engines, computed on a basis of eight miles per hour for the time of actual service, must be stated separately.

(5) Season ticket passengers must be computed on the basis of twelve passengers per week for the time of each ticket.

(6) Local traffic must include all passengers carried on local tickets and all freight carried at local tariff or special local rates and all other traffic must be considered through.

These rules are subject to any changes as may be made upon petition by the Office of Regulatory Staff by the Public Service Commission under the authority conferred on it by