City of Covington v. South Covington & Cincinnati Street Railway Co.

144 S.W. 17, 147 Ky. 326, 1912 Ky. LEXIS 233
CourtCourt of Appeals of Kentucky
DecidedMarch 5, 1912
StatusPublished
Cited by8 cases

This text of 144 S.W. 17 (City of Covington v. South Covington & Cincinnati Street Railway Co.) is published on Counsel Stack Legal Research, covering Court of Appeals of Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
City of Covington v. South Covington & Cincinnati Street Railway Co., 144 S.W. 17, 147 Ky. 326, 1912 Ky. LEXIS 233 (Ky. Ct. App. 1912).

Opinion

Opinion op the Court by

Chiep Justice Hobson —

-Affirming.

Tlie City of Covington by an ordinance of December 15, 1864, provided for tbe granting of the franchise for street railways, and prescribed how the franchise should be exercised. Among other things it was provided that all contracts made under the provisions of the ordinance should be for a term of twenty-five years, and that the company that would pay into the city treasury the ■ largest bonus should have the franchise. Under this ordinance the bid of the Covington Street Bailway Company was accepted on February 3, 1865, that company agreeing, to - pay into the city treasury the sum of $250 a year as -a bonus. By an ordinance of December 13, 1869, the city- granted to E. F. Abbott and his associates the right to construct and-operate a street railway on certain streets of the city not. occupied by the Covington Street Bailway Company. One of the conditions upon which this .grant was- made, was that the grantees would pay into the treasury of the city on the first day o.f January in each year the sum of' $25 as a license tax for every car run on its road; Abbott and his associates deeded their property to the Covington & Cincinnati - Street Bailway Company on May 1, 1875; and it deeded the ■ property • to - the South Covington and Cincinnati Street Bail-way Company on- December 20, 1.876. -About the-year 1882, the Covington Street Bailway Company failed. Its property was sold, at a foreclosure sale and purchased by the South Covington and Cincinnati Street Bailway Company. It was provided .in both the franchises referred to that the grantees should pay for certain repairs of streets, and what this amounted to annually gave rise to some disputes between the- city and the company.. On July 7, 1887, the city passed an ordi[328]*328nance which was accepted by the company, providing in part as follows:

“Said company shall not be required to repair or pay for the repair of streets, but in lieu thereof it shall pay into the city treasury of Covington annually, the sum of $2,600.00 payable in equal installments, two in number, between the first (1st) and fifteenth (15th) day of June and December of each year, provided that said company shall not be relieved from its obligations to repair and renew the streets of Covington, as in the ordinance provided, until the extensions herein named are made and in actual operation.”

The franchise which had been granted the Covington Street Eailway Company being for twenty-five years expired in the year 1890. It was insisted by the South Covington and Cincinnati Street Eailway Company that its franchise under the Abbott grant, was perpetual and the city controverting this view, a suit was brought by the company in the United States Circuit Court to obtain a judgment that it held a perpetual franchise. In this condition of things, an agreement was made between the city and the company on October 7, 1892, section 9 of which is in these words:

“The «aid company shall pay to the said city of Covington each year during the first five years of the period of this contract the sum of $2,600.00 and each year during the second five years of the period of this contract the sum of $4,000.00; and each year during the third five years of the period of this contract the sum of $5,000.00; and each year during the fourth five years of the period of this contract the sum of $6,000.00; which yearly payments shall be in lieu of any and all car license or bonus. ’ ’

The agreement also required the company to do a number of things in addition to what it had done. The contract contained among others these provisions:

“The said street railway company shall, at its own expense lay such foundation under its tracks, over which cars are operated by electricity as aforesaid, as have been recently under and along Madison avenue, from Fourth to State streets, and the work shall be done to the entire satisfaction of common council, and the said company shall put back any street from which its tracks are removed, or on which its tracks may be laid, in as good condition as the rest of the street. The city reserves the right to change the grade of the streets over which said [329]*329railway routes are located, both as to curve and crown of the same, and the said railway company shall defray the expense, at any time the council may direct, of lowering or elevating such tracks so as to conform to said change of grade, and place a foundation such as is hereinbefore provided for.”

“That the said street railway company shall release the city of Covington from any and all claims for damages, loss or expense incurred by it for or on account of the said street railway company in removing or relaying its tracks on the streets in the city of Covington, now being or hereafter to be made with asphalt, under the provisions of a resolution passed by the common council of the said city on the fifteenth day of October, 1891, requiring said improvements to be made by said street railway company, and the said street railway company shall continue to remove and relay its tracks and place the foundation as required, at its own expense, under and over, the streets now ordered to be improved with asphalt until the said work is complete.

“In consideration of the said street railway company removing its tracks from Scott street, Powell street, Seventeenth street, Cooper street, Banklick street, and Fifteenth street, and double tracking Greenup street and State streets, as hereinbefore provided, the said city of Covington agrees and covenants with the said South Covington and Cincinnati Street Eailway Company, its successors and assigns, that it will not grant to any other company or companies, corporation or corporations, association or associations, individual or individuals, any right, privilege or franchise to lay, maintain or operate its street railroad or street railroad track, or any other system of passenger traffic, on or over the streets so abandoned without giving to the said street railway company the same rights and privileges that are enjoyed by any other company, corporation, association or individual pn the said streets, or any of them.

“The right to tear up the tracks, or have the same done, for the purpose of improving or repairing sewers or laying gas or water pipes, or repairing the same, or making house connections with the same, or making any improvements, or doing any work which necessitates the tearing up ef tracks, or displacements of wire, or removing of poles, is reserved to said city, and may bfe exercised by it after a reasonable notice to said company, and [330]*330the said company shall at its own cost, replace said tracks, wires, poles, etc.

“The said'street railway company shall, before this ordinance takes effect and before said company acquires any rights under this ordinance, file with the city clerk a bond, to be approved by the common council, with resident State sureties, in the sum of $25,000.00, that it will save the city harmless from any and all loss or damage^ or cost to' persons or property by reason of the construction and operation of said railway, and also conditioned for the faithful performance and carrying out of all the provisions of this ordinance.”

After the making of this contract the company paid the city for five years annually $2,600.00, and for the next five years, $4,000.00; in the third five years $5,000.00, with the exception of one payment of $2,500.00, which will be noticed later.

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Cite This Page — Counsel Stack

Bluebook (online)
144 S.W. 17, 147 Ky. 326, 1912 Ky. LEXIS 233, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-covington-v-south-covington-cincinnati-street-railway-co-kyctapp-1912.