Cleveland Electric Ry. Co. v. City of Cleveland

137 F. 111, 14 Ohio F. Dec. 513, 1905 U.S. App. LEXIS 5206
U.S. Circuit Court for the District of Northern Ohio·Decided April 24, 1905·No. No. 6,851·Published·Cited by 3 cases

Opinion

TAYLFR, District Judge

(after stating the facts). The complainant bases its claim to relief on several grounds, which are, I think, fairly stated as follows:

First. (1) That since, prior to the act of 1878, the Legislature had not delegated to the municipality the right to limit the term of a street railroad franchise, and as the Legislature has not since that time withdrawn from any street railroad company enfranchised prior to. 1878 the rights it had thus acquired, the act of the city council and of the council of the village of East Cleveland in limit[117] ing the term of the complainant’s predecessor’s rights to 20 years was invalid, and that the franchise of the company’s “main line” is unlimited. (2) That, for the same reason, since the trustees of East Cleveland township gave an unlimited and original franchise to the East Cleveland Railroad Company, that franchise still endures. (3) That since, as claimed, the right to operate the Garden street (Central avenue) line, or at least a part of it, is made to expire with the expiration of the franchise on the “main line,” such right is now held in perpetuity or for an unlimited period.
Second. That by reason of the consolidation of the companies, and the creation of a “system” over which there is a right to ride for one fare for a continuous passage, however long, with certain transfer rights, the system must be considered as a unit, with a period of expiration fixed at the date of the last expiring franchise.
Third. That, because of the obligations imposed by the Willson avenue ordinance—especially by section 6, requiring transfers at the intersection of the Central avenue and the Willson avenue lines —a right arises corresponding to the duty imposed; and since the Willson avenue franchise will last until 1914, and the duty to transfer at Central avenue continues until that time, the right to operate the Central avenue line is extended, by implication, to that date.
Fourth. (1) That the original Garden street (Central avenue) grant was for an “extension,” and not a new route, and that the granting of the right to operate the several “extensions” thereto “in connection with the main line,” or “in connection with the Central avenue branch,” to a time beyond the expiration of the right previously given to the “main line” or to the Central avenue branch, operated to extend the time of expiration of the franchise of the main line and of the branch, and that this is true whether by “main line” is meant either the Euclid avenue line, or what is called the “Garden street branch.” (2) That some of the Garden street ordinances—some for “extensions” and some for laying additional tracks—provide for an expiration the same as for the “main line,” and that, as to the ordinance for double-tracking on Quincy street east of Lincoln avenue, it is explicitly provided that the grant should be valid until “the expiration of the grants for said company’s tracks on said Quincy street east of Lincoln avenue, to wit, July 13, 1913,” and that, by the clear implication of the language, we must conclude that not only does the right to operate the line east of Lincoln avenue run until 1913, at least, but that the whole Garden street line must have the same life.

I think I have stated the substance of the claims made by the complainant, and they will be discussed in the order in which they have been given.

1. As to the claim of perpetual or unlimited franchise: Prior to the act of May 14, 1878, the Legislature had given to municipal councils the general power to consent to the use of their streets by street railroads, and to prescribe the terms and conditions of such use. By the act of May 14, 1878 (75 Ohio Laws, p. 360), it is provided that no grant, or renewal of a grant, shall be valid for [118] a greater period than 25 years. It thus appears that prior to the law of 1878 the Legislature had not undertaken to use the authority which it possessed to put any'limit upon the time which might be granted by a municipal corporation to the right of a street railroad company to occupy streets. After that the Legislature withdrew from the municipality all power which it may have had prior to that time to grant such franchises for a period in excess of 25 years. All of the ordinances passed by the city of Cleveland and by the village of East Cleveland, as well those passed prior to 1878 as those passed since that time, fixed a time limitation on the grants and renewals given to street railroad companies. The only unlimited grant is that given by the township of East Cleveland.

The conclusion to which I have come is that prior to the act of 1878 the council of the city of Cleveland had full power to limit the term of a street railroad’s franchise to occupy the streets, and that even if it did not have such power, and such limitation was invalid, nevertheless any rights which may have accrued to the predecessors of the complainant, as well as the right to an unlimited franchise which it had from the township of East Cleveland, have been, for valid considerations, yielded up to the city. If we assume that on March 22, 1880, the complainant, or its predecessor in title, had an unlimited grant over some part of its Garden street line, it is clear that, as a property right, it could contract with the city concerning it; for some accruing advantage it could contract to give back to the city such portion of the term of the franchise as might be agreed upon. What was done by the ordinance of March 22. 1880, passed when the council had the power to grant a franchise for a limited term?' It was agreed by that ordinance that the company might extend its Garden street line to Lincoln avenue,, and “equip and operate its said extension and all of the Garden' street tracks” for the period of 25 years. This ordinance was accepted by the complainant, and constituted a contract. If at the time of the passage of this ordinance the complainant had the right to operate any part of the Garden street line after March 22, 1905, that right was yielded up by force of the contract made through the ordinance of March 22,1S80.

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Cleveland Electric Ry. Co. v. City of Cleveland, 137 F. 111, 14 Ohio F. Dec. 513, 1905 U.S. App. LEXIS 5206 (circtndoh 1905).

137 F. 111 (Cleveland Electric Ry. Co. v. City of Cleveland) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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