Judges: Strong
Filed Date: 6/25/1866
Status: Precedential
Modified Date: 10/19/2024
The opinion of the court was delivered, June 25th 1866, by
It is of no importance to the present case that we should inquire whether the information, filed as it has been against the Central Passenger Railway Company by its corporate name, admits of record that it is a corporation de jure, for we are all of opinion that the plea sets forth sufficiently its corporate existence.
It is made to appear beyond doubt, that prior to the 28th day of July 1859, there was a corporation, created under the law,
The plea avers the sale to John Loutey, the Enabling Act of 1863, the facts that he did organize the new corporation with the name prescribed by the Act of Assembly, did select a president and a board of directors, and that the corporation thus organized did adopt a corporate seal, determine the amount of the capital stock, and issue certificates therefor to the persons who had united in the purchase with him, the said John Loutey, and for whose account he had purchased to the amount of their respective interests therein, or to such persons as they requested. The plea also avers, that a certificate of the organization was made by the corporation, under its common seal, attested by its president, and transmitted to the secretary of state, to be filed in his office, there to remain of record. This certificate was filed on the 7th day of March, A. D. 1863. It sets forth the date of the organiza
To this plea the Commonwealth has demurred, and several reasons have been assigned why it should be held insufficient. It is to be observed of them all, with perhaps one exception, that they relate to alleged errors in the organization of the new company. They do not touch its corporate existence. And yet the existence of the company, and not its regular organization, is what is called into question by the information. It is obvious that irregularities in the organization of a corporation are not necessarily fatal to its being. Organization is but the creation of an agency by which the corporate body can act. It presupposes the existence of the artificial person. The Act of April 8th 1861, supplemented by the Act of March 14th 1863, created the new corporation. It declares in express terms that the purchasers, or the person or persons for or on whose account a railroad of a corporation, or a canal, turnpike, bridge or plank-road may be purchased, shall be and they are by that act itself constituted a body politic or corporate. Provision is then made for subsequent organization, for adopting a corporate name, a common seal, &c. This case is not, therefore, to he confounded with the case of an original grant of corporate rights, when the grantee must take on the terms on which the franchise is offered. Such a grantee must comply strictly with all the conditions precedent to the taking effect of the grant, and there are usually precedent conditions. But in this case the corporate franchise was in exist- ' ence when the sale was made to John Loutey. As declared by the Act of 1861, the sale did not work its extinguishment, and the Commonwealth did not seize it. On the contrary, that act declares that the franchises shall vest in the purchaser or purchasers, and that he or they shall be a body corporate, and seised of all the rights, powers, privileges and franchises of the corporaItion of whose property they become the purchasers. The directions in regard to subsequent reorganization, therefore, are not conditions of being, as possibly they might be if the purchasers did not take by succession. The utmost effect of not folloiving those directions strictly can be no more than to work a forfeiture, and enable the Commonwealth to retake the franchise. It cannot entitle her to a judgment that the franchise has no existence.
The first objection to the plea is that it alleges John Loutey, the purchaser, became, in virtue of the Acts of Assembly set forth, himself a body politic or corporate. Eor this averment it is contended there is no warrant in the law. When it is considered that the question raised by the information and plea with the demurrer is, whether the defendants have shown that they are of themselves a body politic and corporate, by the name of The Central Passenger Railway Company of the city of Philadelphia,
A second objection to the sufficiency of the plea is that it sets forth that the corporation adopted a common seal and determined the amount of its stock, when, by the Act of Assembly, it was made John Loutey’s duty to do those acts. We do not see how this shows that the corporation was never in being, or that it is a ground of forfeiture. And it is by no means certain that these duties were by the law imposed upon Loutey. By the act, his only duties, as specified, were to organize the corporation and select its officers. Besides these, he was required to “ do and perform all and singular the matters and things in the said act (the Act of April 8th 1861) specified, with like effect as though the sale and conveyance had been made to two or more persons.” The Act of 1861 authorized the person or persons for or on whose account a railroad, &e., had been or might be purchased at a judicial sale to meet and organize the new corporation, and select temporarily a president and hoard of directors. It also required them to adopt a corporate name and seal, and determine the amount of capital stock thereof; and it empowered, but did not require them, to issue certificates for the stock to the purchaser or purchasers to the amount of their respective interests. It also empowered them to issue preferred stock, either then or at any time thereafter, and also to issue bonds and to mortgage the corporate property and franchise.
It did not direct whether all these acts should he done by them as individuals or as a corporation, of which they are at first exclusively the corporators. In either event, the determination of the amount of the stock and the adoption of the corporate seal are
A third objection is that the plea avers certificates of stock were issued, not exclusively to the persons for whose account the road had been purchased, but to them, or to such persons as they requested. Eor this it is said there ’is no authority of law. Yet, if this was all wrong, it does not militate against the existence of the corporate body. We think, however, it was a compliance with the Act of Assembly, and that it would be a narrow construction to hold otherwise. Issue of the certificates to the appointees of the purchasers was a substantial issue to the purchasers themselves.
And we see nothing substantial in the fourth objection to the plea, which is that it is defective in not setting forth the names of the persons for or on whose account the railway and franchises were purchased, and in not stating the amount at which the capital stock was determined, and the amount of the respective interests of the parties. These particulars have no bearing upon the question the defendants are by the- writ required to answer, and they are not essential to anything involved in this case. And if they were, the defendants would be allowed to amend by pleading with greater particularity.
The objection most pressed against the plea of the defendants is that the amount of the capital stock was unlawfully determined at $500,000, as it appears by the certificate filed of record in the office of the secretary of state, which certificate is pleaded. It is insisted that the statutory direction to “ determine the amount of the capital stock” means to “ ascertain the actual cash value put in by the purchasers of the property and franchises which form the capital stock,” and this it is said was in the present case either -the purchase-money paid by John Loutey (§21,000), or $100,000, the amount of the mortgage under which the property was sold. Such we think, however, is not the meaning of the act. Had such been the intention of the legislature, it is probable they would have said the capital stock of the new company
Following the course of the argument, we pass now to consider the defendants’ plea to the 4th count of the information, and we are of opinion that the plea shows no sufficient authority “ to use portions of artificial roads, to wit, graded and paved streets in the city of Philadelphia, for purposes other than crossing the same, without first obtaining the consent of the parties owning the same.” The Act of March 14th 1863, one of the acts which the plea vouches as conferring such a franchise,contains the following proviso: “ Provided also, that said Central Passenger Railway Company of the City of Philadelphia shall not have the right to use any portion of any railroad, turnpike or artificial road, except for the purpose of crossing the same, without first obtaining the consent of the company or parties owning the same.” The same prohibition is found in the subsequent Act of April 12th 1864. None of the other Acts of Assembly incorporated into the plea relieve the defendant from this prohibition. That graded and paved streets of the city are artificial roads admits of no question. These are as much so as are turnpikes, which are but graded roads covered with gravel or stone. In a loose sense, most roads are artificial roads, but there are in our legislation many instances in which a distinction seems to have been made between the common country road and the streets of a city, and the fact that artificial roads are coupled with railroads and turnpikes, evidences that the legislature had in ¡view something ejusdem generis; something of the same nature as turnpikes. It is manifest that the phrase artificial roads was used to express more than was expressed by the words railroads and turnpikes. It is of larger significance. They are mentioned, and in addition to them a more comprehensive description of roads, to wit, artificial roads. What are these if not streets of the city graded and paved ? Nothing else than such streets seems to meet the added description, unless it be plank-roads, and if such alone were intended, it would have been natural to have named them with railroads and turnpikes, rather than to have used a more comprehensive term. We are not informed whether there were any plank-roads, not belonging to the defendants, between the termini of their proposed railway at the time when the acts were passed. If there were not, it is quite unlikely that the legislature had such roads in view exclusively when they prohibited the use of artificial except upon conditions. In looking for the intention of the legislature we cannot be unmindful of the fact that the defendants are a private corporation, claiming franchises against public rights. They must show clearly that they are entitled to what they claim. If their charter leaves their right doubtful, the doubt must be resolved in favour of the Commonwealth. And such is the magnitude of the fran
Nor can we lose sight of the fact that in very many cases, nearly all, indeed, in which charters have been granted for passenger railways in the city, the grantees have been required to obtain the consent of the city councils prior to their taking possession of the streets along the line of their authorized routes. We should naturally expect to find such a requirement in the charter of the defendants, and when we find a clause that may bear such a construction, the legislative policy exhibited by the usage in other cases is a reasonable guide to the meaning of that clause. The Act of April 9th 1858, under which the defendants claim their rights in part, it being the act which first empowered The North Philadelphia Plank Road Company to build a passenger railway, by its 8d section required obtaining the consent of the city councils to the occupation of the streets. It required also conformity to the grades of the streets and to the city ordinances. This section was repealed, it is true, with many others in that act, and in other acts, by a sweeping clause contained in the Act of 1863. But the proviso in the Act of 1863, as well as the provision in the Act of 1864, appear to have been intended to supply the place of so much of the 3d section of the Act of 1858, as required the consent of the city councils to occupation of the streets.
It is said, however, the city councils are not owners of the streets, and that only such artificial roads are intended as have owners. It is true the councils are only in a subordinate sense .owners of the streets of the city. Yet the city does own the paving-stones which make the streets. The councils are the legal custodian having power to alter grades and to change the kind of pavements at pleasure, and it is their duty to hold the streets for the public in good order at all times. It is, therefore,no stretch of language to speak of the city as a party owning the streets. As already remarked, it has often been recognised by the legislature as having a right in the streets so far as to make the consent of councils a prerequisite to their appropriation to the uses of individuals and private corporations. This is conceding to the city the rights of ownership. Besides, in common understanding, the streets belong to the city. They are thus spoken of. This may not be technically correct, but the words used by the legislature have no technical meaning. Another
The next question is whether the defendants have shown a right to construct a railway or railways of any other gauge than five feet two inches. We think they have. It is enough for this that the Act of April 12th 1864 enacts that they shall have, exercise and enjoy all and every the rights, powers, liberties, privileges, franchises and immunities mentioned in the general act regulating railroad companies, approved the 19th day of April, A. D. 1849, and conferred upon other railroad companies by said general act by an act approved the 11th of February 1853, and any other general act relating to railroad companies then in force in this Commonwealth. The Act of 1853, referred to, authorized every railroad company then chartered, or that might thereafter be chartered, to construct or change their gauge or gauges of road to such a width as the directors of such railroad company may deem expedient. Thus this power to use any gauge was conferred upon the defendants. We do not see that it is at all material that they are a railway company.
The demurrer to the 6th plea is sustained. Beyond doubt the defendants were incorporated as a passenger railway company, and nothing more. Nothing in any Act of Assembly indicates an
At most the steam passenger cars which they may use must be such as can be used upon what are commonly understood to be passenger railways. There is still no authority to construct a railroad. The defendants can have no greater rights than such as enable them to carry out the purposes of their creation, which were to make and use a passenger railway, unless such greater rights have been expressly granted. It follows that with powers to build passenger railways only, they must use a rail appropriate to' such structures. It is notorious that a rail suitable for the transport of freight, or for the purpose of burden trains, is a much greater public inconvenience in a street than is a rail usually employed for passenger transportation on street railways. A power to subject the public to a slight inconvenience cannot be used to cause a greater.
We find nothing in any of the Acts of Assembly referred to in this plea, which gives to the defendant a right to construct a railroad suitable for burden and freight trains drawn by locomotives,
The only remaining question that needs consideration is, whether the defendants have a right to adopt and use steam passenger cars for the purpose of drawing and propelling their cars. No other warrant for their claim to such a right is averred than an Act of Assembly, never approved by the governor, but presented to him on the 9th of April 1861, and not returned within ten days (Sundays excepted) after it had been presented to him. It was certified by the clerks of the House of Representatives and of the Senate on the 16th day of May 1861. Its title was, “ An Act supplementary to an act to incorporate the North Philadelphia Passenger Railway Company.” The 1st section authorized the said company to adopt and use for the purpose of drawing and propelling their cars, steam passenger cars, with a proviso that no cars propelled by steam should be permitted to run south of Columbia avenue.
The defendants claim that they are entitled to the privilege given by this section to the North Philadelphia Passenger Railway Company, and that the proviso has been stricken out. By the 2d section of the Act of March 14th 1863, the Central Passenger Railway Company was made subject to the provisions of certain public Acts of Assembly, and to parts of certain private acts relating to the North Philadelphia Plank Road Company, and all other acts or parts of acts relating to said company were repealed. Among the parts of acts referred to as those to which the defendants were “ made subject,” is one described as follows: “ The 1st section, except the proviso thereto, of a further supplement, passed the 9th day of April, Anno Domini one thousand eight hundred and sixty-one.”
The doubt is to what this description applies. Does it unmistakeably apply to the Act of 1861, which gave power to the North Philadelphia Plank Road Company, or the North Philadelphia Passenger Railway Company, to use steam passenger cars ? Does it save that act from the effect of the clause which repealed all acts and parts of acts relating to that company that were not expressly continued ? This is a question of legislative intention, not of pleading. The legislature calls the .act intended to be saved from repeal “ a further supplement” (that is, a further supplement to the act incorporating the North Philadelphia Plank Road Company).
Such, however, is not the title of the act relating to steam passenger cars, nor is it any part of the title. Its real title is, “ An Act supplementary to an Act to incorporate the North Philadelphia Passenger Railway Company.”
Again, the legislature describes the act saved from repeal, as
It is identified then by none of the usual indicia, neither by date nor title nor subject-matter. We may conjecture that the act certified May 16th 1861 was intended; but in a matter which involves the grant of a franchise to a private corporation, conjecture is not sufficient. The defendants must show a clear and indubitable right to every franchise which they claim. In some cases, it is true, courts will hold that a misreeital of an Act of Assembly in another act may be cured. Effect will be given to a statute repealing a former statute, though the former be incorrectly described. But still there must be something which points to it, and leaves no doubt what statute was intended. In Regina v. Wilcock, 7 A. & E. N. S. 317, where the question was, whether a statute, 17 Geo. 3, ch. 56, had been repealed, the court held that it had, though the repealing act described it as passed in the 13th year of George the 3d. There was a mistake of the date, but the act held to be repealed was also described by a recitation of its title, and that title was the title of the Act of 17 Geo. 3d. The title was correctly recited. Here the date does not point to the act alleged to have been preserved from repeal, and its title is not given.
It is remarkable that the language used in the 2d section of the Act of March 14th 1863 is sadly inappropriate, if the intention was to incorporate into the defendants’ charter the act giving a right to use steam passenger carsi The section declares that the defendants shall “be subject” to the provisions of certain acts, and subject to parts of other acts, among which is enumerated “ the 1st section, except the proviso thereto, of a further supplement, passed the 9th day of April 1861.” If this points to the act certified May 16th 1861, privileges are granted instead of burdens imposed. Striking out the proviso of the 1st section of that act, nothing remains but the gift of a right — nothing to which the defendants can be servient. Can it be that the legislature intended to confer a right bywords that import subjection to burdens ? Did they intend by such words to enlarge power, and especially to grant a right so affecting the public as does the right
Too much, however, must not be made of this. Some of the other acts, clearly described, to which the defendants are declared subject, confer rights as well as define restrictions, and these rights must be held to have been granted. Yet grant of power by such language is unusual; and it is dangerous. It enables adventurers to secure rights which the legislature may never have intended to give, and which would have been refused had the grant asked been clothed in appropriate language. Those, therefore, who claim under such grants, have no cause to complain if they are held to the strictest certainty in every particular.
With such reasons for doubt as to the intention of the legislature, we are not prepared to hold that the Act of 1863 excepted out of its repealing clause the Act giving to the North Philadelphia Passenger Railway Company the right to use steam passenger cars. The defendants have not shown, with that certainty to which they ought to he held when they claim corporate rights against the Commonwealth, that the portion of the Act of 1861 upon which they rely is in force.
The demurrer to the 2d and 3d pleas were not pressed in the argument, and our opinion of them will be sufficiently expressed by our judgment.
Judgment for the defendant on the demurrer to the pleas to the 1st, 2d, 3d and 5th counts of the information; and judgment for the Commonwealth on the demurrer to the pleas to the 4th, 6th, 7th, 8th, 9th and 10th counts ; and judgment of ouster accordingly.