Connersville Hydraulic Co. v. City of Connersville

173 N.E. 641, 95 Ind. App. 234, 1930 Ind. App. LEXIS 179
CourtIndiana Court of Appeals
DecidedSeptember 3, 1930
DocketNo. 13,348.
StatusPublished
Cited by4 cases

This text of 173 N.E. 641 (Connersville Hydraulic Co. v. City of Connersville) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Connersville Hydraulic Co. v. City of Connersville, 173 N.E. 641, 95 Ind. App. 234, 1930 Ind. App. LEXIS 179 (Ind. Ct. App. 1930).

Opinions

McMahan, J.

— In providing for a system of internal improvements, the legislature in 1836 created the Board of Internal Improvements and authorized it to proceed, within a reasonable time, to construct a canal from the point where the west branch of the White Water River crosses the National Road in Wayne County, southward to the Ohio River at Lawrenceburg. R. S. 1833, p. 337. Section 23 of that act gave the board authority to cause surplus water and ground to be leased for hydraulic purposes. The work of constructing the canal was commenced, but in 1842, the state, being financially embarrassed, could not go forward with the work. By an act approved January 20, 1842, the legislature (Local Laws 1842, p. 27) provided that certain named persons constituted a body corporate under the name of the White Water Valley Canal Company, hereinafter referred to as the canal company, and that, after certain conditions precedent were complied with, the interest of the state in the canal should be transferred to the canal company, such transfer to be effective on proclamation of the governor and subject to the stipulations named in the act, and for the completion of the canal by that company. Section 12 of said act provides that: “It shall be the duty of said company to construct suitable and convenient bridges over said canal and its feeders at all places where they may cross any existing state or county road or streets of towns which, at the time of constructing the same, shall be open and used as such.”

Section 24, inter alia, provides: “That said company shall be bound to keep said White Water canal in repair* and furnish the water for all power, sold by the state on said canal, from the Ohio River to the point of com *238 pletion.” While the act does not expressly authorize the canal company to make leases of water privileges, such authority is implied.

The canal was completed and was in the possession of and operated by the canal company for a number of years, and was constructed across what are now known as Seventh and Eighth streets in the City of Connersville.

In 1865, Acts 1865, p. 116, §12938 Burns 1926, the legislature authorized railroad companies to occupy and use for railroad purposes the property of canal companies with the consent of such companies. The canal companies were given authority to grant, lease, or convey to any railroad company the “real estate and personal property and appurtenances, rights of way and privileges, to be occupied and used for railroad purpose,” and also provides that no grant, lease, or conveyance should be made that would suffer the hydraulic power of any canal company then in use to be impaired, and, for the protection of the hydraulic power, the railroad was required to maintain the embankments thereof so far as they were occupied by the railroad company.

On December 5,1865, the canal company, acting under said act, consented that the White Water Valley Railroad Company might occupy, and use forever, for railroad purposes the real and personal property of the canal company, which canal, with all rights of way and privileges, bridges, aqueducts, buildings, appendages, and appurtenances, were by deed conveyed and warranted to the White Water Valley Railroad Company,' to be used and occupied by the railroad company to the extent the canal company had authority to convey, with a provision that such conveyance should not authorize the railroad company to impair the hydraulic power of the grantor or its lessees then in use, and that such conveyance should not grant the right of way for *239 water to run in the canal for hydraulic purposes to supply the then lessee of water power, or impair the hydraulic power of the canal company then in use. As a part of the consideration for said conveyance, the railroad company convenanted and agreed that for the protection of the hydraulic power of the canal it would maintain the embankments thereof so far as it used and occupied the same, and that it would not impair the hydraulic power of the canal then in use, nor impair in any way the contracts then existing between the canal company and the lessee of water power.

On May 12, 1879, the title and rights of the White Water Valley Railroad Company, with the privileges and appurtenances thereto, were, by virtue of a decree of foreclosure, sold and conveyed to the White Water Railroad Company. On November 1, 1890, the White Water Railroad Company sold and by deed conveyed its entire railroad and property to the Cleveland, Cincinnati, Chicago & St. Louis Railway Company, one of the appellants herein. No mention is made in either of the last two deeds of the canal, water power, or bridges.

On December 9, 1865, the “White Water Canal Company, by E. S. Hamlin, receiver,” signed and acknowledged an instrument which, after reciting that Hamlin had been appointed receiver for the canal company by the United States Circuit Court for the District of Indiana and that he had been authorized to “receive and lease all water power which may expire, or to make leases for all unoccupied water power,” subject to the approval of the canal company and of the court, and after referring to the execution of the above mentioned deed from the canal company to the railroad, states that in consideration of certain expenditures made by various lessees of water power in repairing the canal and the desire to secure a continuance of the then hydraulic power of the canal, and that in consideration of said *240 expenditures and the agreement of the Connersville Hydraulic Company to keep the canal in good and substantial repair-so as to keep up the hydraulic power of the canal and to perform towards all lessees of water power all covenants and agreements of the canal company toward each lessee, subject to the approval of the said court and in subordination of the right of the White Water Valley Railroad Company, he bargained, sold and conveyed to the hydraulic company for the term of 99 years, subject to right of renewal, “all the unoccupied water power” of a part of the canal which included the part passing through the city of Connersville and the appurtenances thereof, and “also the rents that shall accrue on any lease heretofore granted” by the canal company and the right to make all needed repairs for the purpose of keeping up the hydraulic power on that part of the canal. In consideration of which grant the hydraulic company covenanted to keep that part of the canal in good and substantial repair and that it would in all respects comply with the provisions- of the several acts imposing the duties in respect to real property of the canal, and especially with the Act of November 16, 1865, heretofore referred to. The hydraulic company also agreed that it would not interfere with the right of way of the railroad company, and would at all times allow the latter company the free use of water in canal for supplying locomotive engines with water. This instrument is signed “White Water ■ Valley Canal Company, by E. S. Hamlin, Receiver,” and is acknowledged by Hamlin as receiver. It does not bear or show an approval by the canal company or by the court. There is nothing outside of the recitals in the instrument to show that Hamlin had been appointed receiver, or that he had any authority to execute that or any other instrument of similar import.

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Bluebook (online)
173 N.E. 641, 95 Ind. App. 234, 1930 Ind. App. LEXIS 179, Counsel Stack Legal Research, https://law.counselstack.com/opinion/connersville-hydraulic-co-v-city-of-connersville-indctapp-1930.