Grand Trunk Western Railway Co. v. City of South Bend

227 U.S. 544, 33 S. Ct. 303, 57 L. Ed. 633, 1913 U.S. LEXIS 2330
CourtSupreme Court of the United States
DecidedFebruary 24, 1913
Docket81
StatusPublished
Cited by74 cases

This text of 227 U.S. 544 (Grand Trunk Western Railway Co. v. City of South Bend) is published on Counsel Stack Legal Research, covering Supreme Court of the United States primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Grand Trunk Western Railway Co. v. City of South Bend, 227 U.S. 544, 33 S. Ct. 303, 57 L. Ed. 633, 1913 U.S. LEXIS 2330 (1913).

Opinions

Mb. Justice Lamar,

after making the foregoing statement, delivered the opinion of the court.

In 1868 the City Council of South Bend, by ordinance, granted plaintiff’s predecessor in title the right to lay a double track over a part of Division street. The Company built a single track in 1871 and a double track for part of the way in 1881, but, on attempting in 1902 to extend it, for the balance of the authorized distance, Was prevented from doing so because the city had repealed so much of the ordinance of 1868 as related to double tracks. In the record here it appears that, in the litigation which followed, the action of the city was sustained on the ground that the repeal was presumptively a reasonable. exercise of the police power and not a legislative impairment of the contract ordinance.

The assignment of error on this ruling presents a question which this court is bound to' decide for itself, independent of decisions of the State court, Northern Pacific Ry. v. Duluth, 208 U. S. 583, 590. In doing so it is necessary first to determine whether the city had legislative authority to pass the ordinance, for,-if there was no such power, the grant was void and the repeal was not so much the impairment of the obligation of a contract as the. withdrawal of an assent to occupy the streets..

We are, however, relieved of the necessity of making any extended inquiry on this primary question, because the Indiana statute provided that the railroad might be built through any city that would give its consent. In a suit by an abutting owner, the Supreme Court of the State, construing, this very ordinance of 1868, held that [552]*552the city had power to pass it, “the laying out and operating of the railway being' a new and improved method of using the streets germane to its principal object.” Dwenger v. Chicago & Grand Trunk Ry. Co., 98 Indiana, 153. In other cases, that court held that the statute authorized cities to grant franchises to lay tracks in the streets; that such an ordinance created that which is in the nature of a contract “which the municipality itself cannot materially impair.” Williams v. Citizens’ Ry., 130 Indiana, 71, 73; Town of New Castle v. Lake Erie & W. R. Co., 155 Indiana, 18, 24. These rulings ‘accord with the decisions in other jurisdictions and by this court in Louisville v. Cumberland Telephone Company, 225 U. S. 430, holding that an ordinance conferring a street franchise, passed by a municipality under legislative authority, created a valid contract binding and enforceable- according to its terms.

2. If, then, the City of South Bend was authorized to pass this ordinance which granted an easement, the contract cannot be impaired unless, as claimed by the defend-ánt, the railroad took subject to a right to amend or repeal in the exercise of the police power. And many cases are cited in support of the proposition that the grant of authority to úse the streets of a city does not prevent the subsequent passage of ordinances needed for the preservation of the public safety and convenience, Some of the cases turned on the question as to the city’s want of legislative power to make the grant in the first instance. Others held that charter grants did not prevent the State from subsequently repealing franchises which in their operation were injurious to the morals or health of the public, as in the Lottery, Liquor and Fertilizer cases. Stone v. Mississippi, 101 U. S. 814; Boston Beer Co. v. Massachusetts, 97 U. S. 25; Northwestern Fertilizing Co. v. Hyde Park, 97 U. S. 659. Others related to the change of paving, grade and location of viaducts. All of them recognize the municipality’s control of the use of the streets by travellers [553]*553on foot or in vehicles, as well as the use by companies which have a franchise to lay tracks over which to haul cars.

. Undoubtedly the railroad here took no vested .interest in the maintenance of the laws or regulations of force when the ordinance was passed in 1868, but the rights-acquired were subject to the power of the municipality to pass reasonable regulations necessary to secure the public „safety.- Northern Pac. R. R. v. Duluth, 208 U. S. 583. And while the franchise to lay and use a double track was a contract which could not be impaired, yet, as the police power remained efficient and operative, the municipality had ample authority to make regulations necessitating changes of a nature which* could not have been compelled if the grant had been from it as a private proprietor. The city could, therefore, legislate as to crossings, grades, character of rails, rate of speed, giving of signals and the details of operating track and train, regulating the use of the franchise, and preserving the concurrent rights of'the pub-, lie and the company. And, ás in the viaduct cases, it might require these tracks to be lowered or elevated (Chicago, B. & Q. R. R. v. Nebraska, 170 U. S. 57), or, — the franchise,' and not the particular location, being the essence of the contract, the city, under the power to regulate, might compel the company to remove the tracks from the center to the side, or from the side to the center of the street. New Orleans Gas Light Co. v. Drainage Commission, 197 U. S. 453; Macon &c. R. R. v. Mayor, 112 Georgia, 782; Atlantic & B. Ry. v. Cordele, 128 Georgia, 293, 296; Snouffer v. Cedar Rapids & M. C. Ry. Co., 118 Iowa, 287 (5).

These, however, are examples of the persistence'of the power to regulate and do not sustain the validity of the repealing ordinance of 1901, since it is not regulative of the use but destructive of the franchise. In every case like this involving an inquiry as to whether a law is valid, as an exertion of the police power, or void, as impairing [554]*554the obligation of a contract, the determination must depend on the nature of the contract and the right of government to make it. The difference between the two classes of cases is that which results from the want of authority to bartér away the police power, whose continued existence is essential to the well-being of society, and the undoubted right of government to contract as to some matters and the want of power, when such contract is made, to destroy or impair its obligation. New Orleans Gas Co. v. Louisiana Light Co., 115 U. S. 650.

The State, with its plenary control over the streets, had this governmental power to make the grant. There was nothing contrary to public policy in any of its terms, and being valid and innocuous, the police power could not be invoked to abrogate it as a whole or to impair it in part. Walla Walla v. Walla Walla Water Co.,

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Bluebook (online)
227 U.S. 544, 33 S. Ct. 303, 57 L. Ed. 633, 1913 U.S. LEXIS 2330, Counsel Stack Legal Research, https://law.counselstack.com/opinion/grand-trunk-western-railway-co-v-city-of-south-bend-scotus-1913.