Chicago & Western Indiana Railroad v. Chicago & Eastern Illinois Railroad

260 Ill. 246
CourtIllinois Supreme Court
DecidedOctober 28, 1913
StatusPublished
Cited by2 cases

This text of 260 Ill. 246 (Chicago & Western Indiana Railroad v. Chicago & Eastern Illinois Railroad) is published on Counsel Stack Legal Research, covering Illinois Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Chicago & Western Indiana Railroad v. Chicago & Eastern Illinois Railroad, 260 Ill. 246 (Ill. 1913).

Opinion

Mr. Justice Vickers

delivered the opinion of the court:

The Chicago and Western Indiana Railroad Company filed its bill in the circuit court of Cook county against the Chicago and Eastern Illinois Railroad Company for an injunction to prevent the said Eastern Illinois Company from diverting its passenger trains from Dearborn street station and the tracks of the complainant company, and for an accounting for damages alleged to have been sustained by the complainant by reason of such diversion. A demurrer was sustained to the amended bill, and complainant below electing to stand by said bill, a decree dismissing the same for want of equity was entered. The decree of the circuit court was affirmed by the Appellate Court for the First District. (Chicago and Western Indiana Railroad Co. v. Chicago and Eastern Illinois Railroad Co. 172 Ill. App. 156.) The Appellate Court granted a certificate of importance, and the complainant below has perfected a further appeal to this court.

The bill alleges that by diverting all of the Eastern Illinois passenger trains at Seventy-ninth street and running them into the LaSalle street station, at VanBuren street, appellee is violating the terms of certain contracts made with appellant, and is thereby avoiding the payment of its proportion of the working expenses of the appellant’s line between Seventy-ninth street and Dearborn station which otherwise would be chargeable against appellee. It is alleged in the bill that appellee’s proportion of the working expenses of appellant’s line would be about $85,000 per annum. Appellee abandoned the use of appellant’s station and tracks for passenger business in August, 1904. If appellee is liable according to the allegations of the bill, the amount involved is approximately $750,000. The bill is, in effect, a bill for the specific performance of certain contracts entered into between the parties by enjoining the violation of the terms thereof. Since the rights of the parties grow out of their contractual relations and depend upon the construction and validity of these agreements it will be necessary to state the substance of several of these contracts.

In May, 1879, and prior-thereto, appellee owned and operated a line of railway from Danville, Illinois, to Dolton, which is thirteen miles south of the city limits of the city of Chicago. At Dolton the trains of appellee were diverted to the tracks of the Cincinnati, Pittsburg and St. Louis Railroad Company and entered the city of Chicago on the west side. In May, 1879, appellee, in order to obtain terminal facilities on the south side of the city, entered into a contract with J. B. Brown, which provided that said Brown would organize a railroad company for the purpose of securing to the appellee an independent and perpetual railway entrance into the city of Chicago. This contract obligated appellee to enter into possession of, and use, maintain and operate for the term of 999 years, the tracks and terminal properties that were to be constructed by the company to be organized by Brown. By this contract it was contemplated that appellee would assume all of the obligations of the contemplated company and would conduct and develop the local passenger and freight business and pay $3000 per annum on account of taxes on the main line of road during the entire term. The contemplated company was to have the right to admit other railroad companies to the use of its tracks and terminal facilities, subject to the exclusive right of appellee to handle the local passenger and freight business. It was also provided that in case other tenants were admitted to the use of the property of the contemplated company such other companies should share in the payment of the operating and maintenance expenses upon a wheelage basis. The appellee agreed to guarantee the payment of $800,000 of bonds of the contemplated company, and to provide for the payment of interest and to create a sinking fund to pay the principal of said bonds. After the payment of said bonds and all interest appellee was to be discharged from the payment of rentals except for repairs, renewals, and the like. In July, 1879, Brown organized the appellant, the Chicago and Western Indiana Railroad Company, and he became its first president. The Brown contract was assigned by him to appellant. Appellant was incorporated to build a terminal system, and was authorized to construct a line of road from the Indiana State line and from Dolton into the city of Chicago, and to construct terminal facilities in the city of Chicago for as many roads as might become its lessees. With the proceeds of the guarantee bonds the appellant built the road from D'olton to Fourteenth street, and appellee commenced using it early in 1880. Shortly afterward the State line division was built, and the Grand Trunk Western Railway Company, the Chicago and Erie Railroad Company, the Chicago, Indianapolis and Louisville Railway Company and the Wabash Railroad Company each obtained leases from appellant and entered into the use of the Dearborn street station and certain portions of the railroad tracks. Originally the appellant was an independent company, but in 1882 its five tenant companies above named became the owners, in equal portions, of all of its stock, and since that time it has been controlled entirely through a board of directors, one of whom was named by each of the so-called tenant companies. From 1880 until 1904 appellee used appellant’s railroad as an entrance to Chicago and operated its passenger trains to and from the Dearborn street station. The five tenant companies each held leases from appellant which granted the right to use different parts of the main line of appellant, as follows: To appellee, from Dolton to the northern terminus; to the Wabash, from Seventy-sixth street to the northern terminus; to the Grand Trunk, from Forty-ninth street to the •northern terminus; and to the Erie and the Monon, from the State line to the'northern terminus. All of the property of appellant was acquired from the proceeds of bonds, the principal and interest of which were assumed by the five tenants above named, and the amount of the annual contributions of each tenant was denominated “rentals” in the contracts.

The relation of appellant and appellee was originally created by a contract dated October 24, 1879, which is known and referred to in this record as the “original lease.” This contract was intended to supersede the Brown contract, which had been previously assigned to appellant by Brown. This contract is a very long instrument and has many provisions. It will only be necessary to state some of its most important terms. It purports to grant, demise and lease to appellee “the right and privilege” of using and running cars over the main tracks of appellant between D'olton and the terminus in Chicago and from said terminus to Dolton. Under this agreement appellee had the right and privilege of using the passenger depot of appellant in the city of Chicago when the same should be constructed, and also the freight buildings, engine houses, repair shops and other property, and it gave appellee the exclusive “right and privilege” of using certain freight buildings, switch yards, dock property, etc. It provides that the “right and privilege” of using the property demised should be exercised in common with appellant and such other company or companies as might, «from time to time, obtain similar rights and privileges. Certain freight buildings, engine houses, switch yards and dock property were for the exclusive use of appellee, while the tracks, passenger depot and other premises were to be used in common with appellant and other tenant companies.

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Bluebook (online)
260 Ill. 246, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chicago-western-indiana-railroad-v-chicago-eastern-illinois-railroad-ill-1913.