French v. Jones

78 N.E. 118, 191 Mass. 522, 1906 Mass. LEXIS 1318
CourtMassachusetts Supreme Judicial Court
DecidedMay 16, 1906
StatusPublished
Cited by22 cases

This text of 78 N.E. 118 (French v. Jones) is published on Counsel Stack Legal Research, covering Massachusetts Supreme Judicial Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
French v. Jones, 78 N.E. 118, 191 Mass. 522, 1906 Mass. LEXIS 1318 (Mass. 1906).

Opinion

Sheldon, J.

The first question presented in this case is whether the petitioner has become the absolute owner of the rails and tracks laid by the street railway company and now lying on and embedded in the surface of one of the public streets. He purchased all the property of the company at a sale properly made by duly appointed receivers of the company, and the receivers made a proper transfer to him. It is provided by R L. c. 112, § 12, that “A receiver of the property of a street railway company may, by order of the court,. sell and transfer the road and property of such company, its locations and franchises, on such terms and in such manner as the court may order. The purchasers from such receiver, and a corporation organized under the provisions of the following section, if such road has been transferred to it, shall hold and possess said road, all its rights and franchises and all property acquired in connection therewith, with the same rights and privileges and subject to the same duties and liabilities as the original street railway company; but no action shall be brought against such purchaser or such new corporation, to enforce any liability incurred by said original corporation, except debts and liabilities owing from said original corporation to any city or town within which the road is operated and taxes and assessments for which said original corporation is liable under the statutes relating to street railways, which shall be assumed and paid by said new corporation. The provisions of this section shall not impair the powers of the holders of an outstanding mortgage to enforce their rights by suit or otherwise.”

Section 13 of the same chapter provides that the purchasers at such a sale shall within sixty days thereafter organize a corporation for the purpose of holding, owning and operating the street railway purchased, and that if they fail to organize such [526]*526a corporation in the manner therein prescribed, all rights and powers to operate the road shall thereupon cease. The respondent contends that the petitioner, never having organized or intended to organize such a corporation, and never having intended in anyway to operate the street railway or cause it to be operated, but having made his purchase for the purpose only of removing and. selling the rails, was not such a purchaser as is contemplated by the statute, and did not acquire any right to the property.

We think however that the titlé to the property sold by the receivers did pass to the petitioner. It may be granted that the sections of the statute to which we have referred contemplate the continued operation of a street railway which has been sold under the authority that they give. But no such requirement is made in terms; and the provision in § 13 that upon failure to form a corporation to hold and operate the railway the right and power to operate it shall cease, is far from being tantamount to a provision that the purchasers shall suffer the further penalty of being deprived of the property which they have bought and paid for. ' The receivers have full power to make the sale; it is their duty to do so when ordered by the court which has appointed them; they have no right or duty to inquire into and no means of ascertaining the motives or intentions of bidders or purchasers. We are of opinion accordingly that the petitioner is the absolute owner of the property in question.

But his right to remove the rails and other materials which are embedded in the surface of the public street, and for that purpose to break and dig up the street depends upon other considerations. It has been decided by this court that these rails and materials remain personal property. Lorain Steel Co. v. Norfolk & Bristol Street Railway, 187 Mass. 500. But they were laid by a street railway company in pursuance of a location granted to it and accepted by it and with the obligation to operate its road and thus to perform certain public duties ; and they cannot be removed without digging up the surface of the street and making the public highway, at any rate partially and temporarily impassable. The petitioner does not contend that he has any right to remove the rails if he or the voluntary associaztion which he represents is under any duty to operate this line [527]*527as a street railway; and accordingly it becomes necessary to determine whether he is now under such a duty.

A street railway company, like a railroad corporation, has no power to alienate its franchise without permission of the Legislature. Richardson v. Sibley, 11 Allen, 65. Our earliest statute upon this subject provided that “no street railway corporation shall sell or lease its road or property unless authorized so to do by its charter, or by special act of the Legislature.” St. 1864, c. 229, § 24. And “ any alienation, either in fee, or for the period of its corporate existence, or for any less term, of substantially all its real and personal property, so as to disable it from carrying on the business which it had been chartered to do for the benefit of the public, is clearly within the terms and meaning of this prohibition.” Gray, J. in Richardson v. Sibley, ubi supra. And subject to certain limitations not material to the decision of this case, the same prohibition has since remained in force (Pub. Sts. c. 113, § 56; St. 1897, c. 269; it. L. c. 112, §§ 85 et seqi), except that in 1900 power was given to the receiver of a street railway company to make such a sale of its road, property, locations and franchises as is here in question. St. 1900, c. 381. E. L. c. 112, §§ 12-14. The petitioner’s rights accordingly depend upon the provisions of these sections.

The respondent contends that as it is expressly provided by § 12 that the purchasers at such a sale “ shall hold and possess said road, all its rights and franchises and all property acquired in connection therewith, rvith the same rights and privileges and subject to the same duties and liabilities as the original street railway company,” and by § 13 that they shall within a limited time organize a corporation for the purpose of holding, owning and operating the street railway, they are under the same obligation to operate the railway and to carry passengers as rested upon the original company; and that this obligation can be terminated only by an order of the board of aldermen or selectmen ordering the street to be cleared of the tracks under R. L. c. 112, § 36, or revoking the location under R. L. c. 112, § 32. Springfield v. Springfield Street Railway, 182 Mass. 41,48. But under the last clause of § 13, the petitioner has now no right or power to operate a street railway over these tracks; and we cannot construe the statute as continuing the existence [528]*528of this duty after its performance has been forbidden by the very terms of the statute. The language of these sections is indeed mandatory; but looking at the object to be attained, .the realization of all the property of an insolvent corporation for the payment of its debts, considering the fact that the penalty imposed for the failure of the purchasers to organize a corporation and operate the railway is merely the loss of the right and power to carry on such operation, and the practical impossibility of continuing to operate a railway whose gross receipts are insufficient to meet its operating expenses, we are of opinion that the petitioner is'not now under any duty to use, these tracks for the operation of a street railway.

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Bluebook (online)
78 N.E. 118, 191 Mass. 522, 1906 Mass. LEXIS 1318, Counsel Stack Legal Research, https://law.counselstack.com/opinion/french-v-jones-mass-1906.