In re the Gilbert Elevated Railway Co.

16 N.Y. Sup. Ct. 303
CourtNew York Supreme Court
DecidedDecember 15, 1876
StatusPublished

This text of 16 N.Y. Sup. Ct. 303 (In re the Gilbert Elevated Railway Co.) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re the Gilbert Elevated Railway Co., 16 N.Y. Sup. Ct. 303 (N.Y. Super. Ct. 1876).

Opinions

Beady, J.:

The Gilbert Elevated Railroad Company was, by its charter, authorized to build an elevated road, according to the plans therein designated. The charter passed in 1872 was amended by acts .passed in 1873 and 1874 but the principle of construction was not changed in any respect. It is clear, therefore, that, until the passage of the so called rapid transit act of 1875, if the company constructed any road, it would necessarily be upon the plan known as the Gilbert elevated railroad; but the franchise was secured and could be employed in the manner designated. The company, in other words, was created with all necessary powers ; none of which were warped or destroyed. Jt was an existing company, requiring [308]*308no further legislation to give it either vitality or the necessary authority to carry out the purposes of its incorporation; it was intact, and a power. The thirty-sixth section of the rapid transit act recognized this indirectly. It provides that, whenever the route or routes determined upon by the commissioners to be appointed, coincide with the route or routes covered by the charter of an existing corporation, formed for the purpose provided for by the act, such corporation should have the like power to construct and operate such railway or railways, upon the fulfillment of the requirements and conditions imposed by said commissioners, as a corporation specially formed under the act, provided such corporation had not forfeited its charter or failed to comply with the provisions thereof requiring the construction of a road or roads within the time prescribed by its charter.

The evident design of this provision was to prevent any conflict between existing but unexecuted charters and companies to be formed under the act; and, at all events, to secure to the people the advantages* of an elevated road over the route selected. If the chartered company chose to adopt the route, they could do it by virtue of a quasi prior claim founded upon a vested right; and if not, then they abandoned the opportunity to avail themselves of it, and another could use it. They were not to be permitted, by a claim only, to prevent the consummation of rapid transit, which was the chief object of the act. It conferred the right to adopt the model prescribed by the commissioners to be appointed, upon fulfillment of the requirements and conditions imposed by them. It was not a right given to create or construct a road or railway, for that had already been granted and secured by the charter of the company, but an exercise of the right in a manner other and different — it might be in model — from that required by its charter. It authorized a change in engineering and in the mechanical details of the superstructure, if the company complied with the conditions lawfully imposed by the act. And, though magnified into a supposed fatal departure from the original charter, because of a supposed conflict with the provisions of the Constitution, it is in effect nothing more than this. The act of 1815 is not a local act, we have so declared; the charter of the Gilbert elevated road was predicated of the general laws with which it was [309]*309required to comply. This general act —■ the so called rapid transit act — recognized the existence of the company, as already suggested, and by a general, not special provision, protected it against the consequences which might issue if its existing authority, legally and constitutionally conferred, was by conflict endangered or interfered with; and to make its exercise certain, extended to it the right to accept the route established by the commissioners in compliance with their requirements. The effect was not to change the entire character of the franchise; it was to be an elevated road, though different perhaps in its construction, mode of transit and propelling power. The legislature had reserved to itself, by section 10 of the act of incorporation, the power to alter, amend or repeal the charter, and had the undoubted right, therefore, to make such modifications in the structure as were deemed essential either to the public safety, the better preservation of the rights of the property owner, or the more successful accomplishment of the end in view by the act of incorporation.

The question as to such power has been considered and passed upon. (Suydam v. Moore, 8 Barb., 355.) The change from a tubular to an open or covered railway would be within this power. It would affect the model to be employed— the mode in which the franchise was to be consummated, but not otherwise. The right to the benefit and advantage of the result would be preserved and the franchise therefore held intact. The legislature have in many instances made substantial changes or modifications of existing charters, by which new elements were introduced, new features engrafted upon them, without violating constitutional provisions prohibiting new creations of a kindred character. (Mosier v. Hilton, 15 Barb., 663; Syracuse City Bank v. Davis, 16 id., 188; see, also, Zabriskie v. Hackensack and N. Y. Railroad Co., 3 C. E. Green, 178, 192; Veazie v. Mayo, 45 Maine, 562; Buffalo, etc., Railroad v. Dudley, 14 N. Y., 348.) In Mosier v. Milton {supra) it appeared that an act was passed authorizing an existing railroad company to sell its property and franchises, empowering the purchaser to issue stock and choose directors to manage and organize the corporation by any new name, and declaring that when so organized the company should have the same powers, etc., as the existing company, and it was held not to create a new corporation. [310]*310The court said : “ It is also objected that the act of 1850, for the relief of the creditors of the railroad company, is in conflict with section 1 of article 8 of the Constitution. It is insisted that the legislature, by the act of 1850, created a railroad corporation by a special act. * * * The act of 1850 created no new corporation. The Lockport and Niagara Falls Railroad Company was incorporated in 1834; its charter had several times been amended, and it possessed property, franchises, rights and privileges which, under, the act of 1850, were sold; and the company was organized anew by choosing new directors and by changing its name. It is a continuation of the first corporation under a new name.”

In the ease of The Syracuse v. City Bank v. Davis (supra), it appeared that a bank having been organized under a certificate insufficiently subscribed and acknowledged, an act was passed declaring that it should be deemed a valid corporation, notwithstanding any such defect. In an action by the bank against the indorsers of a note which it had discounted, it was held that the act in question did not create a banking association within article 8, section 4 of the Constitution.

The court said : “ It is scarcely necessary to notice the objection that this act of 1852 violates the Constitution by creating a corporation by a special charter. (Const. 1846, art. 8, § 4.) The act does not profess to create a corporation, it only remedies defects in one already created. The institution may be said to have the powers and rights of a bank doing business de facto, while its rights were imperfect de jure. The statute in question was of a class of acts, entitled to be most liberally construed, for the advancement of the public ■ welfare and the' promotion of individual rights.” ' (j

In Zabriskie v. Hackensack and New York Railroad Company (supra),

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Related

Buffalo and N.Y. City R.R. Co. v. . Dudley
14 N.Y. 336 (New York Court of Appeals, 1856)
Fox v. Jackson
8 Barb. 355 (New York Supreme Court, 1850)
Mosier v. Hilton
15 Barb. 657 (New York Supreme Court, 1853)
Dunlap v. Hawkins
14 N.Y. 342 (New York Court of Appeals, 1874)
Bucklin v. State
20 Ohio St. 18 (Ohio Supreme Court, 1851)

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16 N.Y. Sup. Ct. 303, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-the-gilbert-elevated-railway-co-nysupct-1876.