Adirondack Railway Co. v. New York State

176 U.S. 335, 20 S. Ct. 460, 44 L. Ed. 492, 1900 U.S. LEXIS 1741
CourtSupreme Court of the United States
DecidedFebruary 26, 1900
Docket439
StatusPublished
Cited by114 cases

This text of 176 U.S. 335 (Adirondack Railway Co. v. New York State) is published on Counsel Stack Legal Research, covering Supreme Court of the United States primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Adirondack Railway Co. v. New York State, 176 U.S. 335, 20 S. Ct. 460, 44 L. Ed. 492, 1900 U.S. LEXIS 1741 (1900).

Opinion

*342 Mr. Chief Justice Fuller,

after making the above statement, delivered the opinion of the court.

The Court of Appeals ruled that on the record it must be presumed that all the facts warranted by the evidence and necessary to support the judgment were found by the. courts below; that it was to be assumed that the condemnation ■proceedings' instituted by the forest preserve board were fully completed as required by the statute of 1897 before proceedings to condemn on its part were commenced by the railroad' company; and that, thereby, if the condemnation act under which the board proceeded was valid, title to the strip. of land in question passed to the State, became a part of the forest preserve, and the railroad company was forbidden by the Constitution to take it. The court sustained the validity of the law, and, without discussing “ whether the State became the equitable owner through contract, possession and performance,’,’ held that “ it became the legal owner through the power of eminent domain.”

Plaintiff in error contends, in substance: that it possessed by contract, a vested right to construct its road over the six-rod strip in question, and to take that strip by the exercise of the power of eminent domain, and that the condemnation features of the act of 1897, as construed by the Court of Appeals, are - void because impairing-the obligation of the contract; that the condemnation features of the act as construed to confer authority on the State to acquire, by the proceedings in question, title to the six-rod strip are unconstitutional and void in that they authorize the taking from plaintiff in error its vested property right to construct, maintain and operate its railroad over said strip, “ without any notice whatsoever of opportunity to be heard, and without the making of any compensation therefor; ” that the proceedings authorized by the act of 1897 do not constitute due process of law.

Section 1 of Article YIII of the constitution of New York authorized the formation of corporations under general laws, and by special act (for municipal purposes and) in cases where in the judgment of the legislature the objects of the corpora *343 tion could not be attained under general laws, but provided that “all general laws and special acts passed pursuant to this section may be altered from time to time or repealed.”

The Adirondack company was organized in 1863 under the general railroad law of New York of April 2, 1850, which reserved the right of the legislature to “ at any time annul or dissolve any incorporation formed under this act.”

The Revised Statutes, in force from 1829 to 1882, provided: “The charter of every corporation- that shall hereafter be granted by the legislature, shall be subject to alteration, suspension and repeal, in the discretion of the legislature.”

By an act of March 31,1865, the Adirondack, company was authorized to “amend its articles of association so as to enable it, under the general law, to extend its railroad to some point on Lake Ontario or river St. Lawrence.”

April 25, 1867, the railroad law of April- 2, 1850, was amended so as to provide that if corporations formed under the act should not within five years after the filing and recording of its articles of association commence construction or finish its road and put it in operation within ten years, its corporate existence and powers should cease.

In 1882 the railroad of the Adirondack company extended, from Saratoga Springs to North Creek, and in -that year the Adirondack railway company acquired all the rights of the Adirondack company, and, under the reorganization laws of New York, organized itself with a'life of a thousand years;

The eighty-third section of the railroad law of June 7, 1890, provided as follows: “ A railroad corporation, reorganized under the provisions of law, relating to the formation of new or reorganized corporations upon the sale of their property or franchise, shall not be compelled or required to extend its road beyond the portion thereof constructed, at .the time the new or reorganized corporation acquired title to such railroad property and franchise, provided the board of railroad commissioners of the State shall, certify that in their opinion the public interests under all the circumstances do not require such extension. If such board shall so certify’ and shall file in their office such certificate, which certificate *344 shall be irreversible by such board, such corporation shall not be .deemed to have incurred any obligation so to extend its road, and such certificate shall be a bar to any proceedings to compel it to make such extension, or to annul its existence for failure so to do, and shall be final and conclusive in. all courts and proceedings whatever. This section shall not authorize the abandonment of any portion of a railroad which has been constructed or operated or apply to Kings County.”

On the ninth of May, 1892, on the application of the Adirondack railway company, the board of railroad commissioners issued its certificate, certifying that in its opinion the. public interests, under all the circumstances, did not require the extension p.f the road of the Adirondack railway company beyond the. portion thereof constructed at the time the said company acquired title to said railroad property and franchises, namely, beyond North Creek, in the county of Warren.

Counsel argue that the contract with- the State was that plaintiff in error should avail itself of the grant and complete the road within ten years from the filing of its articles of association, or forfeit its existence and powers; that this was one of the conditions of the contract; that it was perfectly competent for the State to release the other party from the fulfilment of. such condition without in any way withdrawing its own grant if it chose to do so; and that this was the sole effect of the application for and the obtaining of the certificate. In other words, that the Adirondack railway company was released from the obligation to extend its road, but retained the right to do so at any time within nine hundred and ninety years, and that although the company still possessed and operated the road so far as constructed, and had asked and received a dispensation from carrying its enterprise further except as it might choose during the passage of centuries, the State was bound by contract not to withdraw the bare right, notwithstanding the contract, according to its express terms, might be changed or abrogated.

Undoubtedly the power to amend or repeal cannot be availed of to take away property already acquired or to deprive a cor *345 poration. of the fruits already reduced to possession of contracts lawfully made. But the capacity to acquire land by condemnation for the construction of a railroad attends the franchise to be a railroad corporation, and when unexecuted cannot bé held to be in itself a vested right surviving the existence of the franchise or an authorized circumscription of its scope. People v. Cook, 148 U. S. 397; Pearsall v. Great Northern Railway Co.,

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Cite This Page — Counsel Stack

Bluebook (online)
176 U.S. 335, 20 S. Ct. 460, 44 L. Ed. 492, 1900 U.S. LEXIS 1741, Counsel Stack Legal Research, https://law.counselstack.com/opinion/adirondack-railway-co-v-new-york-state-scotus-1900.