Ghee v. . Northern Union Gas Co.

53 N.E. 692, 158 N.Y. 510, 1899 N.Y. LEXIS 702
CourtNew York Court of Appeals
DecidedApril 18, 1899
StatusPublished
Cited by48 cases

This text of 53 N.E. 692 (Ghee v. . Northern Union Gas Co.) is published on Counsel Stack Legal Research, covering New York Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ghee v. . Northern Union Gas Co., 53 N.E. 692, 158 N.Y. 510, 1899 N.Y. LEXIS 702 (N.Y. 1899).

Opinion

Parker, Ch. J.

The question that the Appellate Division on the appeal herein allowed by it certifies should be reviewed by this court reads as follows: Are the municipal authorities of. the city of New York, whose consent is required to lay conductors for conducting gas through the streets of such city, under the Transportation Corporations Law, the head of the department of public buildings, lighting and supplies, and the head of the department of highways, under the powers conferred by the charter of the city of New York, or are the ‘ municipal authorities ’ referred to in the said Transportation Corporations Law the municipal assembly, or any other officer or body in the city of New, Y ork ? ” Section sixty-one of the Transportation Corporations Act (chapter 566 of Laws of 1890) provides in substance that if a corporation be incorporated for the purpose of supplying gas for light' in the city, town or village where it is located, it must first obtain the consent of the municipal authorities thereof. Such provision is a re-enactment of section eighteen, chapter thirty-seven of the Laws of 1848, known as the Gas Companies’ Act, and has, therefore, been in force more than fifty years. During all that period 'of time and until the enactment of the Greater New York charter by chapter 378 of the Laws of 1897, the common council of cities, having local and limited legislative authority, has been recognized and held to be the municipal authority whose consent is required by the statute we have referred to. Authorities might be cited in support of this assertion, but that is not needful as it is unquestioned. Indeed, it is conceded in the very thoughtful opinion of the learned justice at the Appellate Division, that prior to the charter of 1897 the common council of the city of New York constituted the municipal authorities ” within the meaning of the statute, and that that, has been too frequently decided to admit of question. After an examination of the charter of 1897, however, the conclusion was reached that the legislature had *513 by it not only refrained from conferring the power upon the municipal assembly to give the consent provided for by the Transportation Corporations Act, but had by sections 523, 524 and 525 of the charter expressly granted to the commissioner of public buildings, lighting and supplies and the commissioner of highways the authority to grant such consents.

At the threshold of the consideration of these questions, it will be well to have in mind the legal effect of the consent which the municipal authorities are authorized to give by the Transportation Corporations Act. It operates to create a franchise by which is vested in the corporation receiving it a perpetual and indefeasible interest in the land constituting the streets of a municipality. It is true that the franchise comes from the state, but the act of the local authorities, who represent the state by its permission and for that purpose, constitutes the act upon which the law operates to create the franchise. The state might grant the franchise directly to the corporation without the consent of the local authorities, and has done so in many instances; but the tendency of later years, which is well grounded in reason, is for the state to confer upon the local municipal authorities the right to represent it in the matter of granting franchises to the extent that the final act necessary to the creation of franchises must be exercised by such authorities. The legal effect of the consent, therefore, is the same as if the local authorities in form granted the franchise and the interest in the land. (People ex rel. Woodhaven Gas Co. v. Deehan, 153 N. Y. 528.) The court said, at page 532 : “ The consent of the town authorities con-' ferred upon the relator a franchise to carry on its business in the town and to lay conductors in the streets and highways for the purpose of delivering gas. That such a franchise is property that cannot be destroyed or taken from it or rendered useless by the arbitrary act of the village authorities in refusing the permit to place the conductors under the streets.” If it be true that the legislature, by the charter of 1897, has taken away from the legislative branch of the city government, elected by the people, the power to confer franchises of this *514 character, and transferred to two subordinate administrative officers authority to grant them and alienate a portion of the title in the streets, which the city holds in trust, then it is apparent that a very important and seemingly unwise step has been taken from the path that had been followed for half a century. The use of the space in the streets of New York, whether on the surface or beneath it, has been steadily growing in importance and value, and will probably so continue for many years to come. The accumulation under ground, during the past few years, of sewers, electrical subways, cable and electrical railway conduits, pneumatic tubes, steam-heating, water and gas pipes, seems t¿ indicate that the day may come when there will be no more unoccupied space beneath the surface of the streets, and of this situation the legislature and the learned commissioners who drafted the charter undoubtedly had full knowledge. It is difficult to believe that, with such knowledge, they would attempt to take away from general and responsible representatives of the people the power to grant such important and valuable rights and vest them in subordinate administrative officers, and a full understanding upon this important subject, of the views of the commissioners who drafted the charter, will help us in its examination. The committee on draft reported under the head of municipal ownership, among other things, the following: There is naturally a diversity of opinion in the committee upon this subject. From an original and ideal standpoint it is easy to see that the city would become the recipient of vast revenues by the ownership and operation of all franchises for lighting by gas or electricity and for tramways and other purposes necessary to the life and business of a metropolitan community and exercised so largely by a use of the streets and aveniies belonging to the people. * * * We have, however, provided for the future that all franchises operated principally by the use of the public streets should be granted by way of a lease for a period not exceeding twenty-five years. * * * ” Here we find unmistakable evidence that the committee fully appreciated that the right to use the streets for lighting by gas con *515 stituted a franchise, and further that it was regarded by them as a matter of serious importance and entitled to be classed for the purposes of consideration with the use of the streets for tramways and other purposes necessary for the life and business of the community. The commission in its report to the legislature, under the head of the charter scheme of the municipal assembly,” said in part: “ It is a marked feature of the charter now presented that it differentiates the powers relating to franchises, the creation of debt, the expenditure of money, the laying of taxes and assessments — these being the only powers liable to serious abuse — from the ordinary powers of the municipality embracing the countless subjects requiring municipal regulation.

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Bluebook (online)
53 N.E. 692, 158 N.Y. 510, 1899 N.Y. LEXIS 702, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ghee-v-northern-union-gas-co-ny-1899.