Economic Power v. City of Buffalo

59 Misc. 571, 111 N.Y.S. 443
CourtNew York Supreme Court
DecidedJune 15, 1908
StatusPublished
Cited by3 cases

This text of 59 Misc. 571 (Economic Power v. City of Buffalo) 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
Economic Power v. City of Buffalo, 59 Misc. 571, 111 N.Y.S. 443 (N.Y. Super. Ct. 1908).

Opinion

Marcus, J.

This action is brought by the Economic Power and Construction Company against the city of Buffalo and its officials to restrain the defendants from interfering with the plaintiff’s entry upon the streets of Buffalo and excavating trenches therein for the purpose of laying its steam mains and electric conduits, through which it proposes to furnish steam heating and electricity for lighting and power purposes to the city and its inhabitants.

The company claims the right to use the streets of the city and all other cities and the highways of the State, generally, without the consent of the local authorities, pursuant to a direct franchise and right so to do obtained from the Legislature, under its special act of incorporation. Laws of 1893, chap. 459.

Under this act, George H. Thacher, William G. Bice and Augustus P. Smith, were created a corporation under the name of “ Economic Power and Construction Company,” which was given large powers, including the right to create, transmit and utilize power between any points selected from time to time within the State, for any purpose except railway business, or the transmission of mail matter or parcels. §§ 1, 11.

The original capital stock, was fixed at $50,000, with power to increase the same and with power to borrow money and to issue its obligations therefor, and to secure the pay-[573]*573meat of the same by mortgaging its properties and franchises (§ 2) ; the capital stock to be issued for money, property or services. § 4.

The company is then empowered, “ without other or further authority of law or ordinance,” to acquire power stations and machinery, to construct tubes for the utilization and transmission of the power to be supplied, and, for such purposes, to enter upon and use the ground under any street, public place or highway of the State; to enter upon such real property as it may require for its purposes, or in the exercise of its powers, which are expressly declared to be a public purpose and their use a public use; to purchase real property or to acquire the same by condemnation proceedings (§ 5) ; and to have the general powers and privileges granted to corporations by the General Corporation Law and the Stock Corporation Law. § 7. The stockholders are made liable to an amount equal to the stock held by them for its debts until the whole capital stock shall have been fully paid in. § 8.

Considerable evidence was offered on behalf of the plaintiff to show that the company has, from its creation to the present time, been engaged in various enterprises and operations, involving the creation, transmission and utilization of various kinds and forms of power in different municipalities of the State, and that numerous large financial transactions Jiave resulted therefrom, under which the company and other corporations have acquired vested rights, and under and by reason of which heavy financial obligations have been created and assumed which are outstanding. The facts in the case were indeed entirely undisputed, and presented only questions of law.

The complaint and proof showed that in January, 1907, the plaintiff sent a communication to the commissioner of public works of the city of Buffalo, stating its intention to lay steam mains in trenches in certain streets of the city, for the transmission of steam power for heating purposes in residences, places of business and manufacturing establishments, and in the same trenches to lay conduits for the transmission of electric power for general lighting and [574]*574power purposes, to be generated by the same steam which was to be used for heating purposes, and the plaintiff in connection with said communication filed plans and specifications of its proposed structures.

The commissioner submitted this communication and the plans to the common council, and the board of aldermen referred the matter to its committee on streets, which held public meetings during the spring of 1907, but never made any report on the matter. The plaintiff also presented to the committee on streets various regulations and conditions, recognizing the police power of the 'city, under which it was willing to build its structures and to furnish its products to the citizens, and the company appears generally to have adopted a conciliatory policy toward the city, and to have sought its good will and co-operation in its enterprise, but without encouragement or response from the city authorities.

After waiting some months, the company in the fall of 1907 sent a further communication to the commissioner of public works and to the common council, reciting its previous proceedings and the failure of the city to act upon its prior communications, and announcing definitely that it now proposed to enter upon certain streets in the city and to begin the construction of its structures and to raise funds therefor and to incur liabilities in connection therewith, and the company further stated that in the performance of its work it proposed to observe certain regulations which it likewise communicated to the city authorities and which appear to be in accordance with precedent and to be reasonable.

Thereupon, and early in October, 1907, the common council adopted a stringent resolution, which was approved by the mayor, directing the commissioner of public works and the superintendent of police to prevent the company and its employees from entering upon or disturbing the streets of the city, or laying its mains or conduits in any of the streets, and directing the corporation counsel to defend the city in the premises, and recommending other drastic legal measures against the company.

About the middle of October, 1907, the company gave [575]*575definite notice to the commissioner of public works that the company would commence the work of excavating Summer street in Buffalo, a few days thereafter, and to lay its mains in the streets previously specified, and, at the time indicated by it, the company’s contractor and employees appeared upon the scene with workmen and materials, prepared to go on with the work, when they were summarily stopped by a squad of policemen, and the company has been prevented from doing any further work in the ‘city of Buffalo.

The plaintiff thereupon promptly brought the present action to restrain the city from further interfering with its work, but is willing that its work should be done under reasonable regulations and conditions to be prescribed by the court.

The answer contained certain formal denials of some of the allegations of the complaint, which allegations were, however, proved to the satisfaction of the court, and it may be broadly stated that all the facts of the complaint were proved by uncontroverted and satisfactory evidence.

The answer also contained two affirmative defenses, one to the effect that the plaintiff had not commenced the transaction of its business or undertaken the discharge of its corporate duties within two years from its incorporation, and the other, that the plaintiff did not obtain from the public service commission permission to build its structures.

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Related

Rodger v. American Kennel Club, Inc.
138 Misc. 310 (New York Supreme Court, 1930)
People v. Teuscher
129 Misc. 94 (New York Supreme Court, 1927)
Economic Power & Construction Co. v. City of Buffalo
112 N.Y.S. 1127 (Appellate Division of the Supreme Court of New York, 1908)

Cite This Page — Counsel Stack

Bluebook (online)
59 Misc. 571, 111 N.Y.S. 443, Counsel Stack Legal Research, https://law.counselstack.com/opinion/economic-power-v-city-of-buffalo-nysupct-1908.