City of New York v. Interborough Rapid Transit Co.

53 Misc. 126, 104 N.Y.S. 157
CourtNew York Supreme Court
DecidedFebruary 15, 1907
StatusPublished
Cited by4 cases

This text of 53 Misc. 126 (City of New York v. Interborough Rapid Transit Co.) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
City of New York v. Interborough Rapid Transit Co., 53 Misc. 126, 104 N.Y.S. 157 (N.Y. Super. Ct. 1907).

Opinion

McCall, J.

This action was instituted by the board of rapid transit railroad commissioners in the name of the city of ¡New York for the purpose of restraining and preventing the maintenance of weighing and vending machines in the stations of the railroad owned by the plaintiff and operated by defendant within the city of ¡New York, which railroad is popularly called the “subway:” The board of rapid transit commissioners is a body duly or[127]*127ganized and acting pursuant to the powers conferred upon it hy chapter 4 of the Laws of 1891, and the acts amendatory thereof, commonly known as the “ Bapid Transit Act.” That act was passed by the Legislature of this State to comply with the demand of the people of the city of Bew York for speedy, safe and reliable transportation; and it authorized the said board to lay out routes for railroads and procure them to be built and operated, if not by private enterprise, then the city itself was empowered to build the railroads and lease them for a term of from thirty-five to fifty years upon payment of a rental not less than the interest upon the cost of construction and one per cent, additional. The railroads, if constructed by the city, were to remain its absolute property and to be deemed a part of its system of public streets and highways, to be used and enjoyed by the public upon the payment of such fares and tolls and subject to such reasonable rules and regulations as might be provided and imposed by the said rapid transit board. Sun Printing & Pub. Assn. v. Mayor, 152 N. Y. 257. Pursuant to the Bapid Transit Act a contract was entered into about the 21st day of February, 1900, with John B. McDonald for the construction of an underground railroad according to the plans and specifications submitted by the said board of rapid transit railroad commissioners, which railroad is now in operation, although the road as now operated was not all included in the contract hereinabove referred to. The contract provided that Mr. McDonald should equip the railroad and lease same from the city on the terms referred to above and operate it carefully and skillfully according to the highest known standards of railroad operation. On July 10, 1902, Mr. McDonald assigned his contract, so far as it related to the equipment, lease and operation of the subway, to the defendant company, which has operated the road since its completion about Bovember 1, 1904. The road as operated maintains stations in which it has permitted to be placed automatic weighing machines by which passengers may ascertain their weight by standing upon a small platform and dropping a coin into a slot in the machine; and also certain vending machines whereby [128]*128passengers may obtain chewing gum and candy by inserting a coin in the machine and pressing a lever. The question before this court is whether the city, through its rapid transit board, gave to the defendant the right to maintain these machines in the stations of the subway by the lease of the railroad and its appurtenances. This right is shown upon the trial to be worth $50,000 a year to-the defendant, and it^is strongly urged by the defendant’s counsel that such machines are incidental to the operation of all railways, and that the lease of the subway to the defendant, J being silent-upon that subject, carries with it the rights in- j cidental to the enjoyment of the leased property and all rights which plaintiff itself could enjoy had it operated the railroad instead of leasing it to defendant. Plaintiff’s counsel, on the other hand, has argued with equal persist-ency that the instrument under which defendant operates the subway is a grant or franchise which must be most strictly construed against the grantee (citing Ogden v. Jennings, 62 N. Y. 526), and that, the instrument being silent on the question of right to maintain these machines, no such right can he implied. An application for an injunction pendente lite in this very action was made to my learned colleague Mr. Justice Bischoff (Interborough R. T. Co. v. City of N. Y., 47 Misc. Rep. 221), wherein he said: “The'statute, which empowered the board to make the contract for the construction and leasing of the road, is very broad in its scope, and may well be read as authorizing the lease of the property in such a manner as to afford the lessee every benefit which custom attaches to the operation of a railway, and the contract itself recognizes the right of the lessee to maintain advertising signs upon the stations, since the manner in which the advertising matter shall be displayed is regulated by the contract. * * * Upon the question of custom, in the maintenance of railroad property, enough has been shown to support plaintiff’s case, prima facie, and custom must enter into the inquiry as an important factor in the determination "of the extent of this lessee’s incidental powers of dominion over the property which "is the subject of the lease. It is made to appear that advertising privileges and the mainte[129]*129nance of news stands afford a very extensive revenue which is customarily taken into account as a part of the legitimate earnings of railway property, and that the maintenance of news stands, vending and weighing machines and advertising signs is, as an incident to the operation of railways, practically universal. If this be the fact, as disclosed upon a full hearing, then, presumably, the contract had reference to the custom, and the statute intended the existence of power in the board to contract accordingly, since the maintenance of a railroad, according to the modern standards, was to result from the enterprise undertaken.” Upon the trial had it has been demonstrated that these various privileges are incidental to the operation of a road; that they afford a great source of revenue, and their use and maintenance is practically a universal custom. This court cannot now, in the guise of an action to restrain the maintenance of these machines, reform that contract or make a new one for the parties. The lease gives the plaintiff no right to re-enter the demised premises except upon the violation of the terms of the lease by the defendant; and it is clear that, if the defendant were restrained and prevented from maintaining these machines, the plaintiff could not enter upon the subway, maintain the machines and receive the revenue therefrom; so that the result of preventing their maintenance would be to deprive the defendant of a large revenue flowing from a perfectly legitimate source and based upon an almost universally established custom, without giving plaintiff any corresponding advantage. It is true that the defendant is bound to use the demised property as a railroad, but the instrument by which the defendant is in possession is none the less a lease. It is everywhere referred to as a lease, it partakes of all the qualities of a lease and plaintiff’s position that it is a grant or franchise is untenable. “A lease for years is a contract between \ lessor and lessee for the possession and profits of lands and 1 tenements on the one hand and a recompense by rent or 1 other consideration on the other.” McAdam Land! & Ten., \| 127. “A grant is an absolute conveyance of property by the sovereign, and that conveyance is only defeasible by [130]*130eminent domain upon proper compensation.” Langdon v. Mayor, 93 N. Y. 129. “'A franchise is a special privilege conferred by the government on individuals which does hot belong to the citizens of a country generally by a common right.” Bank of Augusta v. Earle, 13 Pet. 519.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

White v. City of Grand Rapids
244 N.W. 469 (Michigan Supreme Court, 1932)
Inland Waterways Co. v. City of Louisville
13 S.W.2d 283 (Court of Appeals of Kentucky (pre-1976), 1929)
Fifth Avenue Coach Co. v. City of New York
58 Misc. 401 (New York Supreme Court, 1908)
City of New York v. Interborough Rapid Transit Co.
55 Misc. 138 (New York Supreme Court, 1907)

Cite This Page — Counsel Stack

Bluebook (online)
53 Misc. 126, 104 N.Y.S. 157, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-new-york-v-interborough-rapid-transit-co-nysupct-1907.