Cumberland & Ohio R. R. v. Barren Co. Ct.

73 Ky. 604, 10 Bush 604, 1874 Ky. LEXIS 98
CourtCourt of Appeals of Kentucky
DecidedFebruary 17, 1874
StatusPublished
Cited by8 cases

This text of 73 Ky. 604 (Cumberland & Ohio R. R. v. Barren Co. Ct.) 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
Cumberland & Ohio R. R. v. Barren Co. Ct., 73 Ky. 604, 10 Bush 604, 1874 Ky. LEXIS 98 (Ky. Ct. App. 1874).

Opinion

JUDGE. LINDSAY

delivered the opinion oe the court.

This is an agreed case in which, two questions were submitted to the circuit court for adjudication.

First—Is the act of the General Assembly, approved March 11, 1873, entitled “An act to amend an act to incorporate the Cumberland & Ohio R. R. Co.,” constitutional and valid?

Second—If it is constitutional, is it the duty of the county judge of Barren County to issue and deliver at once so many of the bonds of the county as are necessary ip enable the Cumberland & Ohio Railroad Company to comply with its contract to loan to the Glasgow Railroad Company $116,666.66 of said bonds, or has the county judge the right to withhold all the bonds for the present, and deliver them only in the manner and to the extent provided by the said act of March 11, 1873?

The facts as agreed by the parties are substantially as follows:

First—The Cumberland & Ohio Railroad Company, in the exercise of a right conferred upon it by the fifteenth section of its charter, applied to the County Court of Barren County on the 5th day of April, 1872, to submit to the qualified voters of said county a proposition for the subscription by the county for $350,000 of the capital stock of the railroad company.

Second—The county court made the order as requested, and the proposition was voted on May 4, 1872, and a majority of the qualified voters voting at the election pronounced in favor of it.

Third—In January, 1873, the county court made an order directing the judge thereof, upon a given contingency, to sub[607]*607scribe, for and on behalf of the comity, for the amount of the capital stock hereinbefore stated.

Fourth—That the railroad company on the 10th of July, 1873, rejected or attempted to reject the amendment to its charter passed and approved the 11th of March, 1873, and so notified the Barren County Court.

Fifth—That the presiding judge of said county court at different meetings of the stockholders of said company cast the votes to which Barren County was entitled by reason of such subscription of stock, for and on behalf of such county, in the election of directors, and upon other questions about which said stockholders were called upon and authorized to vote.

A further important fact appearing from exhibit C is that one of the conditions upon which the county judge was directed to subscribe for the stock was that $116,666.66-f of the bonds of the county were “to be delivered to the president and directors and company of the Glasgow Railroad Com'pany, as per contract entered into between the president and directors of the Cumberland & Ohio Railroad Company and the president and directors of the Glasgow Railroad Company,#dated the 30th of April, 1872.” The substance of said contract is that in consideration of the bonds of the county to be delivered to the Glasgow Railroad Company it is to mortgage its road, fixtures, franchises, etc., to the Cumberland & Ohio Railroad Company, the mortgage to be foreclosed by the last-named company at such time as its road may be finished to Glasgow.

Upon these facts the parties to the agreed cause asked the circuit court to render such judgment as the railroad company had the legal right to demand. Said court adjudged that the act of March 11, 1873, was constitutional, and that the railroad company was entitled to no relief whatever; and from that judgment it has appealed to this court.

[608]*608It claims that under the fifteenth section of its charter it had the vested right to solicit and receive from any county through which its road should pass subscriptions for stock in such amounts as said county might desire, and to receive in satisfaction of subscriptions so made the bonds of the county subscribing, and that this right could neither be divested, modified, nor in any way impaired by subsequent legislation.

In answer to the argument that the right to repeal, alter, or amend its charter was reserved by the act of February 14, 1856, it insists that the legislature by the provisions of its said charter “plainly expressed” its intention not to reserve any such right.

The second section of the act of incorporation provides that the company shall have “perpetual succession;” the fifteenth section that there shall be levied, for the purpose of paying the interest and finally the principal of bonds executed and delivered by any city, town, or county in'payment of its subscriptions for stock, an annual tax, and that the tax-payers shall receive stock in the company to the amount of their tax-receipts. The sixteenth section confers upon the company all the powers and privileges possessed by the Louisville & Nashville Railroad Company. The eighteenth section of the charter of that company vests in the corporation the title to its road, franchises, and all its property of every character and description, and provides that it and its successors shall hold such title forever, and shall be protected against the competition of rival roads running parallel to its main line.

The amendment of February 6, 1858, authorized said last-named company to pledge its income for the payment of certain of its bonds; and that of February 21, 1868, authorized it to issue bonds running thirty years, and prescribed the duty of the company and its officers touching the mortgage that might be executed to secure the payment of such bonds when issued and sold.

[609]*609It is difficult to deduce from any or all of these grants the conclusion that the legislature intended to relinquish the power to alter, amend, or repeal appellant’s act of incorporation. There is certainly nothing in the language used, nor in the character of the privileges and franchises granted and conferred, authorizing us to say that the intent to relinquish that power is “plainly expressed.” It was to protect the state against irrevocable grants of powers, rights, franchises, etc., to private corporations that the provision was made in the act of 1856 “that all charters and grants of or to corporations, or amendments thereof, and other statutes shall be subject to amendment or repeal at the will of the legislature, unless a contrary intent be therein plainly expressed.

The act was intended to preserve to the state control over all acts of incorporation thereafter passed. Experience had demonstrated the propriety of, if not the absolute necessity for, such a reservation of power, and it would be a manifest disregard of the clearly-expressed will of the legislature for the courts to resort to technical rules of construction or finely-drawn legal implications to escape the effect of the plain declaration that all charters of and grants to corporations shall be subject to amendment and repeal “unless a contrary intent be plainly expressed.”

We do not doubt the power of the legislature to amend at will appellant’s charter, provided the amendment or modificátion does not affect its title to or right of enjoyment in some property right that has previously vested.

The power to pass the amendment under consideration in this case is not such a power as was attempted to be exercised in the passage of the amendment to the charter of the Western Baptist Theological Institute. In the case of Sage v. Dillard (15 B. Mon. 340) this court decided that the legislature, under the guise of an amendment to that charter, attempted to take the “charity out of the hands of those to whose care and [610]

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Bluebook (online)
73 Ky. 604, 10 Bush 604, 1874 Ky. LEXIS 98, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cumberland-ohio-r-r-v-barren-co-ct-kyctapp-1874.