Illinois Central Railroad v. East Sioux Falls Quarry Co.

144 N.W. 724, 33 S.D. 63, 1913 S.D. LEXIS 282
CourtSouth Dakota Supreme Court
DecidedDecember 30, 1913
StatusPublished
Cited by12 cases

This text of 144 N.W. 724 (Illinois Central Railroad v. East Sioux Falls Quarry Co.) is published on Counsel Stack Legal Research, covering South Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Illinois Central Railroad v. East Sioux Falls Quarry Co., 144 N.W. 724, 33 S.D. 63, 1913 S.D. LEXIS 282 (S.D. 1913).

Opinion

WHITING, P. J.

Plaintiff, a foreign corporation-, as lessee of the -owner thereof, another foreign- corporation, operates a lin-e of -railway extending -into -this -sta-te f-ro-m ¡the state of Io-wa, and brought this action -seeking to exercise the- -right of eminent domain, and- thereby condemn a right of way f-or a -spur or -industrial track, this proposed s-p-ur track to branch from the- main line of such railway, and to -extend across the land of defendants; its objective point being a private stone quarry -owned by'-one Lowe. Trial was h-a-d; a judgment condemning -such land- entered; motion for new trial -denied; and defendants appealed- from such judgment and order denying -a new trial.

[1] Appellants declare, and we think correctly, that it devolves upon a -party seeking, through delegated -power, -to- exercise t-he right of eminent domain to show: “ (1) That such party is within the class -to whom the power has -been delegated. (2) That all conditions precedent have been complied with. (3) That the purpose for which -the- property is to be taken -is one of the purposes enumerated in the statute. (4) That the property is to be taken for a public use. (5) That the -particular property -sought to be taken- is necessary to the accomplishment -of the public purpose intended.”

Appellants contend: (1) That the respondent does not passes-s the power to take private property for the purpo-se o-f building a branch to the road of its -lessor, because it'has not complied with the -statutory conditions precedent -to- -the exercise of such power -in such -case. (2) That respondent does not possess the ■power to -take -the land of appellants for -the branch road in ques[72]*72tion, because its board1 of 'directors did not adopt a resolution designating the route of such proposed extension or branch, and' file a copy thereof in the office of the secretary oif state; that it could not proceed under the resolution adopted 'by the grantor of its lessor because (a) that .resolution was far the main line, and did not include the branch in question; (b) the lease of such road by •respondent coiuld not transfer to it any franchise acquired by the grantor of its lessor, authorizing it to take private property for railway purposes. (3) That the statutes of ¡this state do not empower a railway company to condemn land for a spur or industrial track from a main line to a private establishment. (4) That the evidence in this Case show® that it was sought take appellants’ land for the private use of 'respondent and Lowe, and not for any public use -or purpose, and that there is no public necessity for taking the same.

[2] Has respondent complied w-ith' the statutory conditions precedent' to the exercise of the power of eminent domain in this case? The power of eminent domain being a power which is possessed by a railway corporation solely by being delegated to such corporation by the sovereign power of the state, its existence depends upon a strict 'compliance with each and every condition prescribed by s-uch sovereign power. 1 Lewis, Eminent Domain (3d Ed.) X 388; 15 Cyc. 812, 815; Chestatee, etc., Co. v. Cavenders Creek Co., 119 Ga. 354, 46 S. E. 422, 100 Am. St. Rep. 174.

[3] It is conceded by appellants that -a lessee operating a railroad belongs to a class to whom is delegated the power of eminent domain; it is also 'conceded that respondent i® authorized to exercise such power for various purposes, but 'appellants contend that this authority come® from section 494, C. C., which provides among other 'things., that, before a foreign railroad corporation shall be permitted to avail itself of the provision® of such act, it “shall file with the secretary of state a duly certified copy of its charter or articles of incorporation, and comply with all other provisions of the laws of this state relating to foreign corporations,’’ and. appelants contend that respondent has not complied with the provision's of section 551, C. C., which provides: “Every railroad corporation organized or doing business in this state under the laws or authority thereof shall have and maintain [73]*73a public 'office or place within the state for the transaction of its business and where shall be kept for public inspection, books, in ■which shall be recorded the amount of capital stock subscribed and by whom, the names of the owners of its stock and the amount owned by them respectively, the 'amount of stock paid in and by whom, the transfer of stock, the-amount of -the assets -and liabilities of the corporation, and the names and places of residence -of its officers.”

This section was enacted pursuant to and- -for the purpose of carrying into effect -section 12, art. 17, Const., which, after reciting almost verbatim what was afterward enacted in said section 551, provides: “Anti the Legislature shall pass laws enforcing -by suitable penalties the provisions of this section. It is conceded that respondent has never complied with the above provisions of the -Constitution: and of said section 551; but respondent contends, and we think correctly, that a compliance therewith is not prerequisite to- its1 right to exercise the right of -eminent -domain. It will be noted that the Constitution provides that the Legislature should- pass laws enforcing, by suitable penalties, .the s-ai-d provisions -of the Constitution. In -compliance therewith the Legislature, ’by section 552, C. C., specifically provided 'for a penalty in the nature of a financial -forfeiture. This certainly precludes any presumption that any other penalty was to be visited upon a corporation for a failure to comply with- such provisions. It will also be observed that these constitutional and statutory provisions relate to railroad corporations' only, while the proviso in section 494 recited -that the corporation -should “comply w-ith- all other provisions of ¡the laws of this state relating to foreign corporations” — not with all other laws- relating to railroad corporations. It is -clear to our minds that this law -requires- that -the foreign railroad corporation shall comply with those -provisions of the statute o-n-ly which impose duties upon foreign corporations as distinguished from domestic corporations, such as laws requiring filing of articles of incorporation, appointing of resident agents for purpose cf service of process, etc. N-o claim is made but that respondent has complied, with all tire laws relating to- foreign corporations generally. It will be noted that neither the Constitution nor section 551, C. C., provides that the right on the part of a foreign corporation to exercise the power -of emin[74]*74ent domain depends in any manner upon a compliance with the provisions therein contained.

[4] Was it incumbent upon respondent to plead and prove that its board of directors toad"passed and filed with, the Secretary of State a resolution designating the route of the proposed spur or industrial track? Section' 506, C. C., authorizes the building of extensions and branches,

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Bluebook (online)
144 N.W. 724, 33 S.D. 63, 1913 S.D. LEXIS 282, Counsel Stack Legal Research, https://law.counselstack.com/opinion/illinois-central-railroad-v-east-sioux-falls-quarry-co-sd-1913.