New York Central & Hudson River Railroad v. City of New York
New York Central & Hudson River Railroad v. City of New York
Opinion of the Court
This suit is the outcome of a notice served by the municipal authorities of the city of
The New York Central and Hudson River Railroad Company came into existence in 1869, by virtue of a consolidation between two pre-existing railroad corporations, the New York Central Railroad Company and the Hudson River Railroad Company, pursuant to the provisions of chapter 917 of the Laws of 1869, entitled “An act to authorize the consolidation of certain railroad companies.” The agreement of consolidation provided that the new corporation should continue for the term of five hundred years. This provision appears to have been authorized by the statute cited, which empowered the directors of the companies proposing to consolidate to enter into a joint agreement for the purpose, “prescribing the terms and conditions thereof.” The act of 1869 also provided that all the provisions of the General Railroad Act of 1850 “shall be applicable to the new corporation so to be formed as aforesaid, so far as the same are now applicable to the railroad companies of this State, which may be consolidated with any other company or companies by virtue of this act.” (Section 8.) The General. Railroad Act provided that articles of association thereunder should state the number of years during which a railroad company, should continue (Laws of 1850, ch. 140, § 1), and this provision having thus been made applicable to a con
The right or franchise to occupy the streets in controversy in this action was conferred upon the Hudson Eiver Eailroad Company by the act cited, under which it was organized, and it is the contention of the appellants that the duration of the franchise was limited to the term in which that statute authorized it to carry passengers and property, to wit, fifty years. If this fifty years’ limitation did apply to the franchise, under a correct construction of chapter 216 of the Laws of 1846 the franchise could not be extended by any action taken by the grantee, either alone or in the process of consolidating with the New York Central Eailroad Company; and, so far as any of the opinions below intimate a contrary view, we are unable to agree with them. We are satisfied, however, that the duration of the franchise was not thus limited, but that the limitation applied to the corporate existence of the Hudson Eiver Eailroad Company only (which might be extended) and not at all to the location of its tracks in the streets of New York.
The act incorporating the Hudson Eiver Eailroad Company was passed on May 12, 1846, and is entitled “An act to authorize the construction of a railroad from New York to Albany.” The first section reads as follows :
“ Section 1. All persons who shall become stockholders pursuant to this act, shall be and they are hereby constituted a body politic and corporate, by the name of ‘ The
The legislature has not exercised its reserved power to repeal, up to the time of the argument before'us.
The assent of the corporation of the city of New York to the location of the tracks of the Hudson River Railroad Company on the streets in controversy was duly given by ordinance approved by the mayor on May 6, 1847, and subsequent ordinances. The assent of the city did not
As has already been intimated, we think no such limitation of the franchise is to be found in the charter of the Hudson River Railroad Company.
A strong reason for regarding the fifty years’ limitation as applicable only to the life of the corporation is furnished by the forms of legislation in reference to the organization of railroad companies which prevailed before and at the period when this statute was enacted. Railroad companies were then incorporated by special and not under general laws; and the common practice was at. the beginning of the statute to prescribe the duration of the life of the corporation — which was usually fifty years. Such limitations are to be found in the charters of the Saratoga & Schenectady Railroad Company (Laws of 1831, ch. 43), Rensselaer & Saratoga Railroad Company (Id. ch. 131), Watertown & Rome Railroad Company (Id. ch. 113), Lake Champlain & Ogdensburg Railroad Company (Id. ch. 205), Long Island Railroad Company (Laws of 1834, ch. 118), Auburn & Syracuse Railroad Company (Id. ch. 228), Hudson & Delaware Railroad Company (Laws of 1835, ch. 126), and the Rochester & Lockport Railroad Company (Laws of 1831, ch. 421), and many more examples might be cited.
The street franchise is granted in a different section of the statute, quite dissociated from the time limit. The language leaves the duration of the franchise wholly indefinite and undetermined. It was unquestiona bly in existence, however, and in the lawful enjoyment of the Hudson River Railroad Company when that corporation was merged with the New York Central in 1869. The consolidation act of that year provided that upon the consummation of the acts necessary to consolidate the constituent companies “all and singular the rights, privileges, exemptions and franchises of each of said corporations, parties to the same, and all the property,
That franchise, it must be borne in mind, proceeded from the state and not from the city. At that time, the authority of the legislature over the streets of a municipality was not subject to the constitutional restrictions which now exist. The legislature chose to make the location of the tracks in the streets of New York dependent upon the assent of the municipal corporation, but it was not under any legal obligation to do so; and the fact that it did so, gave the city no authority to withdraw or cancel the franchise after it had once been made effective by the city’s consent. Assuming the existence of that power in any one, it belonged and still belongs to the legislature and not to the. corporation of the city of New York. (See City of New York v. Bryan, 196 N. Y. 158) The learned counsel for the respondent, relying upon the case of People v. O'Brien (111 N. Y. 1) argues that “the grant to the Hudson River Railroad
In granting a franchise of this character, indefinite as to its duration, the legislature evidently contemplated that it should be enjoyed by the successor or successors of the immediate grantee, if that grantee should cease to operate the railroad between Albany and New York, either in consequence of ceasing' to be a corporation or for any other reason. But, as Judge Earl said in Miner v. N. Y. C. & H. R. R. R. Co. (123 N. Y. 242, 249): “While the life of the corporation was limited to fifty years, it could not have been expected that it should really cease to exist at the end of that period. While the legislature reserved the right to cut its life-short, it also had the power to extend it. It is the experience of mankind that such quasi public corporations never come to an end by mere effluxion of time. A railroad corporation which had, during fifty years, rendered a valuable public service and properly discharged its corporate functions would, with the passage of years, become more and more useful and more and more a necessity.” In the case at bar the legislature did not in express terms extend the life of the corporation upon which the franchise in question was bestowed, but it provided for the continuance of that life by means of its merger into a corporation which should live 500 years. At the same time the interests of the public in the other direction were protected by the
It follows that the judgment appealed from must be affirmed, with costs.
Concurring Opinion
. I concur in the opinion of Judge Willard Bartlett and also in the expression of his personal view as to the power of the legislature to modify or regulate the franchise given by the state for the location of the plaintiff’s railroad in the city of New York. There is this marked distinction between the present case and that of People v. O'Brien (111 N. Y. 1). There the franchise granted was that of a street surface railroad, and the repeal of the right to maintain a road in the street was destructive of the franchise. There is no franchise in this case to do the business of a street railroad, and the permission to occupy the street was solely as a means for running from one terminus of the road to the other; nor did the franchise to maintain the road include an unqualified right to maintain it on the surface. The “power reserved to the legislature to alter, amend or repeal a charter authorizes it to make any alteration or amendment of a charter granted subject to it, which
Cullen, Oh. J., Gray, Haight, Vann, Werner and Chase, JJ., concur with Willard Bartlett, J.; Gray, Haight, Vann, Werner, Willard Bartlett and Chase, JJ., concur with Cullen, Ch. J.
Judgment affirmed.
Reference
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- New York Central and Hudson River Railroad Company v. The City of New York
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