Hawaiian Commercial & Sugar Co. v. Kahului Railroad

11 Haw. 479
Hawaii Supreme Court·Decided July 19, 1898·Published·Cited by 4 cases

Opinion

OPINION OF THE COURT BY

FREAR, J.

This is a bill in equity for an injunction to restrain the defendant, a domestic corporation doing business (principally in conducting a railway) on the island of Maui, with its wharf and main office at the seaport town of Kabului, from proceeding under an alleged right of eminent domain to condemn and take for tbe purposes of its railway certain land in said, town of Kabului belonging to tbe plaintiff, a foreign corporation doing business (principally in conducting a sugar plantation) on said island of Maui. Tbe relief is sought on tbe grounds that by taking said land tbe defendant would obtain exclusive access to tbe harbor of Kabului and thereby, as well as by depriving tbe plaintiff of tbe use of said land, cause tbe plaintiff irreparable injury, and that tbe defendant has no right of eminent domain. Tbe defendant answered denying both these grounds and averring the contrary and also that it held tbe said land under certain deeds made witb full authority by tbe Grown Land Commissioners prior to tbe conveyances from tbe Hawaiian Government under which tbe plaintiff claims. Tbe Circuit Judge, after bearing evidence, found for tbe defendant on both grounds relied on by tbe plaintiff and dismissed tbe bill. Tbe plaintiff now brings tbe case to tbis court on appeal.

As to tbe first ground, tbe Circuit Judge was fully supported by tbe evidence in finding that tbe frontage on tbe harbor available for wbarf purposes which tbe defendant proposed to take was only a little more than one-third of tbe whole frontage available for such purposes, and consequently that tbe defendant .would not by taking tbe land in question obtain, as alleged, exclusive access to tbe harbor, but tbis point becomes unimportant in view of our conclusion that tbe decision of tbe Circuit Judge must be reversed on tbe other point. In our opinion tbe de[481]*481fendant had no right of eminent domain, and by the weight off authority,' as the defendant practically concedes in this case, an injunction may properly be granted to restrain the taking of property under an alleged but non-existing right of eminent domain.

Whether the defendant may exercise the right of eminent domain or not depends upon the constitutionality and construction of the Eailway Act of 1878 and the construction of defendant’s charter. If that Act is unconstitutional the defendant has not the right in question. This point of the constitutionality of the Act was raised for the first time in this court and was argued with great ability By Mr. Chas. S. Wheeler of the San Francisco Bar, by permission of the court and without objection from opposing counsel, but in view of our opinion upon the question of the construction of the Act it will be unnecessary to pass upon its constitutionality. Whether, so far as the construction of the Act is concerned, the defendant may exercise.the right of eminent domain or not, depends upon whether that. Act confers that right upon all domestic public railway corporations or only upon such as have a contract with the Minister-of the Interior as provided for in the first section of the Act. It is conceded that the defendant has no such contract unless contained in its charter. Whether the charter contains such a contract will be considered later. In our opinion, only such corporations as have such a contract may exercise the right in question under this Act.

This Act is Chapter 29 of the Laws of 1878, entitled “An Act to Promote the Construction of Eailways,” and reads as follows:

“Section 1. Power and authority is hereby given to the Minister of the Interior, by and with the consent of His Majesty in Privy Council, to enter into contract with any association of persons who may associate themselves together under the General Corporation Act of this Kingdom, and by the general law in relation to corporations and subject to all the provisions thereof, for [482]*482the purpose of building and operating a railroad or railroads in any part of this Kingdom.
“Section 2. And the said Minister, with the consent of His Majesty in Privy Council, shall have power and authority to grant a right of way through all Government lands, and to grant such Government lands as may be necessary for their buildings, stations, depots, and stores, or other structures, and also the free use of water, to- any corporation as aforesaid for the purpose of building such railroad or railroads.
“Section 3. For the purposes and subject to the provisions and restrictions of this Act, the corporation may, from time to time, exercise any of the following powers:
“It may enter upon any lands which may adjoin upon the line of any railway which may be authorized by charter to be made, and may bore, dig, cut, trench, embank and drain, and may remove or lay, take, carry away, and use any earth, gravel, ■stone, timber or other things dug or obtained therein or otherwise in the execution of any powers hereafter given and which may be proper for the making, maintaining, altering, repairing, or using any railway lawfully authorized, or which may obstruct the making, maintaining, altering, repairing or using of the same.
This section contains nine other paragraphs, each beginning with “It may” and enumerating the various powers conferred.
Section 4 provides for compensation; Section 5, the width of lands to be taken; Sections 6-10, taking lands for temporary use; Sections 11-18, methods of determining and enforcing compensation; Sections 19-22, disposition of lands acquired under ■the Act but not required for the purposes of the corporation, Section 19 reading as follows:
“Section 19. Where lands are acquired by the corporation under the provisions of this Act, but are not required for the purposes thereof, the corporation, within the prescribed period, or if no period be prescribed within ten years after the expiration of the time limited by the Charter for the completion of the [483]*483works, shall absolutely sell and 'dispose of all such superfluous lands and apply the purchase money arising from such sale to the purpose of the Charter, and in default thereof, all such superfluous lands remaining unsold at the expiration of such period, shall thereupon vest in and become the property of the owners of the lands adjoining thereto in proportion to the extent of their lands respectively adjoining the same.”

Section 23 relates to fences; Sections 24-26 provide for the making and enforcing of by-laws and regulations.

“Section 27. And be it further enacted, that the said Minister is hereby authorized to guarantee to any corporation that shall undertake any such railroad or railroads, a profit of not less than five per cent, per annum on the cost of their road or roads and equipment thereof.

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Hawaiian Commercial & Sugar Co. v. Kahului Railroad, 11 Haw. 479 (haw 1898).

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