Brooklyn City Railroad v. Whalen

14 Misc. 348
New York Supreme Court·Decided March 15, 1920·Published

Opinion

Cropsey, J.

The plaintiff owns and operates lines of surface cars in the city of New York. It seeks an injunction restraining the defendant from operating certain automobile bus lines that are now being maintained. The operation of the bus lines was authorized by the board of estimate of the city of New York. They run virtually parallel with certain of the car lines operated by the plaintiff. That they are directly in competition with the plaintiff is apparent.

Plaintiff seeks the injunction alleging that the bus lines are operated without authority of law and that the provisions of statute have not been complied with. The plaintiff contends no bus line can be operated except under the provisions of sections 24, 25 and 26 of the Transportation Corporations Law and upon compliance with the provisions of section 74 of the [350] Greater New York charter. The provisions of the Transportation Corporations Law mentioned bring the owners and operators of a bus line within the definition of the term “ common carrier,” as used in the Public Service Commissions Law, and require that a certificate of public convenience and necessity be obtained after the consent of the local authorities of the city has been Secured following a public notice and hearing. Section 74 of the charter prescribes the length of notice, time within which the application must be acted upon, and other requirements, including the necessity for the separate and additional approval of the mayor besides that of the board of estimate to any contract or resolution authorizing such operation. Section 53 of the Public Service Commissions Law requires the obtaining of a certificate of public convenience and necessity before any railroad may be constructed or operated. And as has been noted, this provision is made applicable to the operation of bus lines.

The defendant in effect concedes he has not complied with any of the provisions of statute above referred to. He admits that no certificate of public convenience and necessity has been obtained from the Public Service Commission, that the right to operate the bus lines has not been granted after public hearing, and that none of the other requirements has been followed. His contention is that none of the provisions referred to is applicable, that the city of New York has the right to maintain the bus lines without-complying with any of the provisions of the statutes mentioned. The defendant’s claim in that regard i.s twofold. First, that an emergency existed which justified the city in taking prompt action, and, second, that under the terms of the so-called Home Rule Act (Gen. City Law, art. 2-a, added by Laws of 1913, chap. 247) [351] the city has the power to operate bus lines or street railways or other railways for the convenience, comfort, health or happiness of its inhabitants.

The complaint in this action alleges that the defendant is operating the bus lines. This is true in the sense that acting under the resolutions of the board of estimate he made arrangements for their operation and in some respects is supervising it. But the papers in the case show that the operation is not conducted by the city. On the contrary, the buses are operated wholly by their individual owners and solely for their profit. The bus owners pay nothing to the city for their franchise or right to operate over the city streets, nor for their wear and tear thereof, nor for the use of the squares and public places which serve as their stations or terminals. The men who operate the buses are not city employees. They are either the owners of the buses or the employees of those owners. Not only does the city derive no benefit from their operation, but it is actually expending large sums of money in connection therewith. These bus owners are permitted by the defendant to run their cars and the defendant attempts to regulate to some extent their operation. He endeavors to see that they leave their various terminals regularly and are operated in accordance with some general regulations which he has prescribed. In this endeavor the defendant is employing a large number of men at the expense of the taxpayer which, at the present rate, will amount to over $85,000 a year. The bus owners and operators collect and keep all the fares. This was admitted by the corporation counsel upon the argument. They do not account to the city for any of their receipts. In other words, the buses are maintained for the sole profit of their owners and are in no sense maintained or operated by the city of New York. The bus owners [352] are not even required to carry liability insurance to protect pedestrians or others who may be injured through their careless operation. The bus owners are under no obligation to continue their operation. They may stop running on their route at any time and leave the state taking their buses with them. Their operation under such conditions is a menace to the public.

Bus lines maintained and operated by private individuals or corporations come within the provisions of the Transportation Corporations Law and the Public Service Commissions Law already mentioned. They cannot be operated without obtaining the certificate of public convenience and necessity and complying with the other requirements. This is held in an unbroken line of decisions. Public Service Commission v. Booth, 170 App. Div. 590; Public Service Commission v. Hurtgan, 91 Misc. Rep. 432; Public Service Commission v. Fox, 96 id. 283; Public Service Comm. v. Mt. Vernon Taxicab Co., 101 id. 497; Niagara Gorge R. R. Co. v. Gaiser, 109 id. 38. As the buslines in question here are owned and operated by private interests the above authorities are controlling and decisive.

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Brooklyn City Railroad v. Whalen, 14 Misc. 348 (N.Y. Super. Ct. 1920).

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