Evens v. Public Service Commission

214 A.D. 122, 211 N.Y.S. 650, 1925 N.Y. App. Div. LEXIS 10457
CourtAppellate Division of the Supreme Court of the State of New York
DecidedSeptember 10, 1925
StatusPublished
Cited by2 cases

This text of 214 A.D. 122 (Evens v. Public Service Commission) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Evens v. Public Service Commission, 214 A.D. 122, 211 N.Y.S. 650, 1925 N.Y. App. Div. LEXIS 10457 (N.Y. Ct. App. 1925).

Opinion

Cochrane, P. J.:

The appellant, as receiver of the Binghamton Railway Company, operated a street railroad in the city of Binghamton. He made application to the Public Service Commission for permission to increase the rate of fare to be charged passengers. The order from which this appeal has been taken prohibits the Commission from considering such application because of a lack of jurisdiction. The questions to be determined are, first, whether the appellant is operating said railroad under franchises fixing the rate of fare, and, second, if the fare is so fixed by said franchises whether they are of such a nature as to render a change in the rate of fare beyond the jurisdiction of the Commission. In respect to the first question if there is no contractual relation between the city and the railroad corporation as to the rate of fare there is no doubt that the Commission has power to direct an increase.

. The Binghamton Railway Company was formed in the year 1901 as the result of the consolidation and merger of seven distinct corporations organized between the years 1868 and 1887, both inclusive, for the purpose of operating street car lines in the city of Binghamton. Another company incorporated in 1894 to operate a railroad outside the city forms part of said consolidation or merger but it has no bearing on the questions to be here considered. All of said seven corporations used horse or mule power from the time of their organization until various dates between 1888 and 1892 when the motive power was changed to electricity. The city in each instance consented to such change but in the consents thus given there was no reference to the rate of fare. We turn, therefore, to a consideration of the various franchises granted to the seven initial corporations the rights of which have been acquired by the appellant.

The first of these corporations was the Binghamton and Port Dickinson Railroad Company. It received its franchise directly from the Legislature, having been incorporated by a special act, chapter 501 of the Laws of 1868. This act contained a provision for charging each passenger “ not to exceed five cents a mile ” and also the following provision: "The cars to be used on said railroad shall be drawn by animal power.” The act in such respects has not been amended or repealed. This franchise having been granted directly by the Legislature the rate of fare therein fixed is subject to regulation by the Public Service Commission. (People ex rel. Garrison v. Nixon, 229 N. Y. 575.)

The remaining six corporations all were incorporated under general laws and derived their franchises from the city. As we [124]*124shall see, the fare provisions in the franchises had reference only to cars propelled by horse or mule power.

The second corporation was the Washington Street and State Asylum Railroad Company, formed in 1871. The franchise to this company was granted by the city January 2, 1872, by an ordinance which was vitally important in respect to the fare question not only to this company but also to the subsequent companies. It provided in part as follows:

“ Rate of Speed:

“ Sec. 4. The cars to be used on the said road shall be drawn by horses or mules, only at a speed not exceeding the rate of seven miles an hour.

“ Rate of Fare:

“ Sec. 5. The company may charge and collect from any person on entering their cars or carriages, for riding any distance upon said road on the same continuous route, within the corporation limits, a sum not exceeding five cents; except that children under twelve years of age in going to and from school, shall not be charged by said company a sum exceeding four cents; and also except children under five years of age accompanied by parents or other persons having them in charge, such children to ride free. * * *

Restrictions:

Sec. 23. The restrictions, requirements and regulations herein imposed upon said railroad company as the condition of this grant, shall be imposed and required of all railroad companies using horse or mule power, which may hereafter build, establish or maintain railroads in other of the streets in the said city, and for such purpose this resolution is declared to be an ordinance in relation to street railroads.’ ”

It is the contention of the respondents that section 5, relating to the rate of fare, applied to the situation after electricity supplanted horse power and that section 23 extended such application to all the companies subsequently deriving their franchises from the city. The appellant, on the other hand, contends that the rate of fare provision was only effective as long as the cars were drawn by horses or mules. When the ordinance was enacted the use of electricity in connection with street cars was unknown. The city did not and could not anticipate its use. Many of the restrictions and requirements of the ordinance are irrelevant and meaningless as applied to electric cars. Section 23 imposes its restrictions and requirements on companies using horse or mule power. The reasonable inference is that only such power was contemplated and that the ordinance was intended to apply only to such companies as [125]*125used and while they used horse or mule power. A change of power could only be made with the consent of the city. The city consented to the use of electricity. This change involved a change in the style of cars, the construction of a power house, a change in the method of operation, the maintenance of transmission poles and wires, and different equipment. The ordinance contemplated nothing of the kind but only the use of horse-drawn cars. In Westinghouse Electric & Mfg. Co. v. Binghamton Railway Co. (255 Fed. 378) the court had under consideration this same ordinance. What was there said by Judge Rat on this question at pages 394 and 395 is so apt and comprehensive that we repeat it here: I think it very plain that this ordinance of the city showed its policy and purpose in regard to street railroads within the city then and thereby authorized, or that might thereafter be authorized, viz., to provide for the use of horse or mule power in moving cars thereon and exclude the use thereon of all other motive power; and, secondly, to prescribe and limit in amount the rate of fare that might be charged to the users of such cars when and while so drawn and propelled. The common council did not undertake to deal with the subject of fares on the Washington Street line, or any other line, when it or they should cease to be operated by horses or mules, and come, by consent of the city, to be operated by some other motive power. There is nothing to indicate either party had other than horses and mules in mind or contemplation as a motive power. Nor did the common council undertake to deal with rates of fare on street railroads thereafter authorized, except in a general way and by carrying the rate of fare mentioned along with and as a part of the provisions as to the motive power to be used. The one restriction is dependent on the other.

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Bluebook (online)
214 A.D. 122, 211 N.Y.S. 650, 1925 N.Y. App. Div. LEXIS 10457, Counsel Stack Legal Research, https://law.counselstack.com/opinion/evens-v-public-service-commission-nyappdiv-1925.