136
The Green Bag
present inhabitants of western Asia have their racial descent so mixed that there are many individuals who cannot safely be assigned by descent to any one race, however comprehensive. . . . "If, however, notwithstanding these con
siderations, we are compelled by statute to classify for the purposes of American naturali zation every man living on the earth as a member of some one race, we shall find that the Armenians have always been classified in the white or Caucasian race, and not in the yellow or Mongolian. . . . “In so far as the test is affected by ‘ideals, standards and aspirations,’ the result is the
same. . . . If the court should inquire. as the United States suggests, concerning Hebrews: May Armenians ‘become westernized and readily adaptable to European standards?’ the answer is, yes. "For all these reasons the Armenians are not to be excluded from naturalization by reason of their race. So far as the test by race is applicable, they are to be classed as Caucasian or white, while the Finns, by ethnological theory, and the Magyar-s, by their known history, are deemed to belong to the Mongolian or yellow race." Public Service Oorporations. Issue of Stocks and Bonds to Meet Lawful Obligations —Limited Power of Public Service Commis sion to Supervise Such Issues. N. Y. An important decision affecting the powers of the New York Public Service Commission with regard to the supervision of stock and bond issues of public service corporations was rendered by the New York Court of Appeals Dec. 7, in People ex rel. Delaware & Hudson Co. v. Stevens (N. Y. Law four. Dec. 16), a case arising on an appeal of the Public Service Commission of the second district. The facts briefly stated are that the Dela ware Hudson Company was indebted to the Hudson Valley Company and other persons for the lawful purchase of an electric railway line and coal lands situated in another state, the purchases having been made before the passage of the New York Public Service Com mission Law. To meet these obligations it had issued short time notes renewable on their expiration. These notes it desired to convert into long time securities at a lower rate of interest. The Commission refused to authorize the issue of bonds for this pur
pose, as in its judgment the price paid for the electric line was excessive and the notes given therefor, as well as for the coal lands, should
be secured by mortgages on the respective properties. The Delaware & Hudson Com pany thereupon obtained a writ of certiorari. which brought up for review by the Court of Appeals the proceedings of the Commission. Haight, _I., who delivered the opinion, said :— "We understand that the paramount pur pose of the enactment of the Public Service Commissions Law was the protection and enforcement of the rights of the public. Pub lic service corporations have been granted valuable franchises to enable them to serve the public, and they are deemed to have un dertaken to render to the public the service for which they were incorporated upon re ceiving a proper and reasonable compensation therefor. It is the duty of railroad corpora tions not only to maintain their equipment, tracks and roadbed in good order, but also
to operate their railroads with safety to the public and afford such service as will supply the reasonable demands of the public. For a generation or more the public has been frequently imposed upon by the issues of stocks and bonds of public service corpora tions for improper purposes, without actual consideration therefor, by company officers seeking to enrich themselves at the expense of innocent and confiding investors. One of the legislative purposes in the enactment of this statute was to correct this evil by ena bling the commission to prevent the issue of such stock and bonds, if upon an investiga~
tion of the facts it is found that they were not for the purposes of ‘the corporation enumer ated by the statute and reasonably required therefor. “We do not think the legislation alluded to was designed to make the commissioners the
financial managers of the corporation, or that it empowered them to substitute their judg ment for that of the board of directors or stockholders of the corporation as to the wisdom of a transaction, but that it was de signed to make the commissioners the guard ians of the public by enabling them to pre vent the issue of stock and bonds for other than the statutory purposes. . . . "While, as we have stated, the ownership
of property ordinarily carries with it the right of management, the duty devolves upon the owner to so manage as not to have it become
