Chicago City Ry. Co. v. City of Chicago

142 F. 844, 1905 U.S. App. LEXIS 4962
CourtU.S. Circuit Court for the Northern District of Illnois
DecidedFebruary 16, 1905
DocketNos. 27,595, 27,596
StatusPublished
Cited by1 cases

This text of 142 F. 844 (Chicago City Ry. Co. v. City of Chicago) is published on Counsel Stack Legal Research, covering U.S. Circuit Court for the Northern District of Illnois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Chicago City Ry. Co. v. City of Chicago, 142 F. 844, 1905 U.S. App. LEXIS 4962 (circtndil 1905).

Opinion

GROSSCUP, Circuit Judge

(orally). I think that for the purposes of the application for temporary injunction, that there need be no further discussion. If this were the case of a public service corporation that had assigned or attempted to assign its franchises and its undertakings to another company without the consent of the power that gave it the franchise, or for whose use the franchise was to be exercised, and this ordinance were passed to hold the two companies to a regulation of the rates as if such attempt had not been made, or having been made was recognized as not being the outgrowth or creation of the municipality or state itself, it might be easily sustained under the decision of the Supreme Court of the state, assuming that decision to be the law that would be applicable to the rights of the parties in such case. But this is not that kind of a case.

Originally the South Side Railroad Company was given a franchise to operate on the West Side as well as the South Side. In accepting that franchise it undertook certain obligations and duties to the public. In a little while, for some reason that need not now be recalled, the South Side Company was ready to abandon the benefits, and to be relieved of the undertaking, so far as the West Side was concerned.

[846]*846The Act of 1861, incorporating the West Division Railway Company, and the Act of 1865, relating to what took place between the companies, clearly manifest to my mind such a purpose upon the South Side Company, a purpose on the part of the West Side Company to take up what the South Side Company was relieved from, and a purpose upon the part of the people of Illinois, through the Legislature, to permit that to be done — to ratify it, to make it a part of the conduct of the State with respect to these two companies. There can be no other construction put upon those two Acts — to carry out the letter and spirit of those two Acts.

The Act of 1865 ratifies “all acts or deeds of transfer of rights, privileges or franchises between the corporations in said several acts named, or any two of them, and all contracts, stipulations, licenses and undertakings made, entered into or given, and as made or amended by and between the said common council and any one or more of the said corporations respecting the location, use or exclusion of railways, in or upon the streets, or any of them,” to be held in force during the life of the Act. I cannot see how, after that Act was passed, and the parties had all acted upon it, its effect was not to completely wipe the slate, at least so far as the public was concerned, of the South Side’s rights, and of course, coincidently, of its undertakings on the West Side. Evidently the purpose of the Act was to-place these companies, with reference to themselves and to the public, as if, instead of having heen organized as a single company for the South and West Sides, they were organized as two companies, one for the South Side, and one for the West Side. ,

From that time on to this the Council has dealt with the West Side without any reference at all to the South Side — as if it were an absolutely independent company. I know of no instance in which the South Side was thought to have even an equity of any kind in the West Side Company. So that I must look — at least upon this application for a temporary injunction, a hearing in its nature more or less cursory and not subject to the minutest argument — on this legislation and these ordinances as a segregation, upon the part of "the State — as the expression of the State’s deliberate purpose — of these two portions of the City for street railway purposes, one of which thereafter should be operated by the West Side Company and one of which thereafter should be operated by the South Side Company, neither having any remnant of right left over upon the other, and reciprocally neither having any obligation left over on the other.

That brings me to the question of what is the right of these companies, as if they had from the beginning been independent companies. I do not think it is necessary to go into the question at the-present time of whether these legislative acts and the ordinances-create a contract right of a five cent fare, that the City may not in the pursuit of reasonable regulations modify or change. The case presented, perhaps, is as strong as the Detroit case,'or as strong as the Cleveland case, but, as suggested by the Corporation Counsel in argument, this is a case under the laws of Illinois, and not under the laws of Michigan and Ohio, and possibly an interpretation of the [847]*847Illinois law would leave without the finality of a contract that which, under the laws of Michigan and Ohio, would make a final contract. If this application for an injunction turned on that question, I would not be willing to say that there was no contract. I simply pass it as not being essential to the determination of the motion. I think this motion will have to be sustained upon the due process clause of the Constitution, and that being sufficient the other can be for the time laid aside.

It is said, and said truly, that even under the due process clause of the Constitution a city may exercise all its constitutional rights of regulation, and- unless the exercise of those rights deprives a party of a property right, it can not be made the basis of an application such as this. Let us see what the City’s right is in that respect. I assume now again that the Supreme Court of the State is right, that the City of Chicago, under these several Acts upon which that decision of the Supreme Court was predicated, has the right of a reasonable regulation; that that right inheres in the contract between the companies and the City, whether that contract is evidenced by the Acts of the Legislature, or whether it is evidenced by the ordinances of the City Council. The whole doctrine, when reduced to its last word, is this: That the particular company which has accepted its charter from the State and City with this reservation upon the part of the City to reasonably regulate its fares shall be subject to the exercise of that regulation; that that particular company, with respect to the property that it has obtained under the contract, when it accepts that contract from the City with the reservation of the right to regulate, must subject the management of its property to the exercise of that regulation.

Now, is that all that this ordinance proposes to do with respect to the property of the South Side Company? The ordinance, if applied —whether in its restricted sense or in its larger sense, taking any passengers who may come from all points over the lines mentioned— is an ordinance that seeks to compel the South Side Company to transport for nothing a man who may happen to have ridden over the lines of another independent company. True it is said that the general outcome of that ordinance will not injure the South Side Company because the transfer of passengers in this way will stimulate new business so that it will get just as many or more nickels than it would have gotten before, and that ordinarily if it carry a passenger into its territory for nothing the passenger will have to pay a nickel to get out of their territory; that street railway traffic is usually not simply a one-way traffic, but is a traffic to and from — from which it might be inferred that at most the effect of this ordinance would be to reduce the fare to one-half, each of these companies getting 2y¡¡ instead of 5 cents for the transportation; and that such regulation might be within the power of the City to enforce, in the absence of proof that it would be unreasonable. But that is not the case.

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Cite This Page — Counsel Stack

Bluebook (online)
142 F. 844, 1905 U.S. App. LEXIS 4962, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chicago-city-ry-co-v-city-of-chicago-circtndil-1905.