Inhabitants of Montclair v. New York & Greenwood Lake Railway Co.

45 N.J. Eq. 436
CourtNew Jersey Court of Chancery
DecidedMay 15, 1889
StatusPublished

This text of 45 N.J. Eq. 436 (Inhabitants of Montclair v. New York & Greenwood Lake Railway Co.) is published on Counsel Stack Legal Research, covering New Jersey Court of Chancery primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Inhabitants of Montclair v. New York & Greenwood Lake Railway Co., 45 N.J. Eq. 436 (N.J. Ct. App. 1889).

Opinion

The Chancellor.

The supreme court of this State has lately decided the question raised by the second ground of demurrer so far as the duty imposed by the charter of the Montclair Railway Company is concerned, in a case between the State and this defendant (New York and Greenwood Lake R. R. Co. v. State, 21 Vr. 303), by holding that the devolution of the property and franchises of the Montclair Railway Company upon the defendant, according to the provisions of the fifty-sixth section of the Railroad and Canal act (Rev. p. 916), imposes also upon it the duties which under its charter that company owed to the public, among which was the obligation to build the bridge in question.

I will consider the question whether a like duty is imposed by [441]*441the supplement to the act to authorize the formation of railroad corporations and regulate the same, above spoken of, and at the same time the question whether, if such duty was thus imposed, that supplement empowered this court to enforce its performance. It has not been contended that, unaided by the statute, this court has jurisdiction to enforce such a duty, and I will therefore not consider that question. The only insistment is, that the bill is sustainable, both as to the duty and as to the court’s jurisdiction, under the supplement to the act to authorize the formation of railroad corporations and regulate the same (Rev. p. 925), which was approved April 27th, 1887 (P. L. of 1887 p. 226). The act to which that supplement. applies by its fourteenth section imposed the same duty, with respect to bridges and highways, upon railroad companies formed under it, that the Montclair Railway Company’s charter required of that company. The supplement extended the duty to “ any company owning, leasing or controlling any right of way for a railroad within this state, which has been graded in whole or in part, but upon which right of way the track or tracks have not been completely laid,” and expressly empowered this court to enforce the performance of the duty imposed by such last-mentioned section.

The first question to be considered is, whether this supplemental enactment applies to the defendant. By its language it includes any company incorporated under the law to which it is a supplement “ or ” [undoubtedly meaning “ and ”] “ any company owning” &c. That is, not only corporations formed under the law mentioned, but other railroad companies that own, lease or control rights of way that are in the specified condition. The language is broad enough to include the defendant, and the bill’s description of the defendant’s right of way across Mountain Avenue Worth shows the condition of affairs contemplated by the amendment to the statute.

It is suggested that the extension of such a regulation, in the act amended, to all railroads has no proper relation to the object of the act as expressed in its title; that the object of the act is to provide for the formation of railroad companies under a general law and to regulate such companies. That this was not the [442]*442legislative intent, I think, is apparent upon bare perusal of the statute. Throughout the act the greatest care is taken, by express language prefacing certain of the sections, to confine the provisions of those sections to corporations formed under the act, but there are other sections, which concern proper regulations applicable to any railroad, that are not so prefaced and in terms refer to “ any railroad,” indicating that the legislative intent was to enact a general' law which should regulate all railroad corporations and, at the same time, authorize the formation of new ones. Perhaps the most striking indication of this intention is found in the last section of the act (Rev. p. 935 § 127), where it is provided that the act may be altered, amended or repealed, but such repeal or alteration shall not affect any corporations heretofore organized, unless the act making such repeal or alterations shall so expressly declare.!’ It was evidently the legislative intent that the act should extend to all railroad corporations of the State. Its several sections, however, are so drawn as to distinguish, in their application, between corporations organized under that act and all railroad corporations, whether formed under that act or otherwise incorporated. This distinction was evidently the result of an extended consideration of corporate interests, for in the last section of the act, looking to the maintenance of the distinction, it is provided that, when an amendment is intended to extend to corporations organized before the act was passed, it shall expressly say so.

This act was-approved,on the 2d of April, 1873 (Rev. p. 925; P. L. of 1873 p. 88), and the defendant corporation was subsequently, in 1878, organized.

Under the language of the act the amendment may apply to the defendant. The defendant’s organization does not relate back to the approval of the charter of the Montclair Railway Company. It is a new company with the powers and duties that that charter gave and requires. Shields v. Ohio, 95 U. S. 319.

But it is insisted, as the fifty-sixth section of the Railroad and Canal act (Rev. p. 916) virtually extended to the defendant the charter of the Montclair Railway Company, which was a contract with the State defining that which should be required of the [443]*443company in consideration for that which the statute gave it, and the defendant, by organizing under that section, accepted the contract so tendered, that now the imposition of a new duty, requiring the outlay of money, exacts more than the contract demands the performance of, and therefore takes the defendant’s property without compensation, the argument being, that the charter requires the maintenance of bridges over the defendant’s railway, while the act now amended extends that duty to the maintenance of bridges over graded or unused rights of way.

Without considering the question whether an additional duty is imposed, or whether the charter’s provisions are susceptible of a construction that will include the duty imposed by the section-now considered, I will assume that an additional duty has been imposed, and proceed to the discussion of the question suggested.

Charters of private corporations are regarded as executed contracts between the State and the corporator, and the rule is settled, that, if the charter does not contain a reservation of power-in the legislature to modify or change the.contract, the legislature cannot repeal, impair or alter such a charter against the consent or without the default of the corporation. Subsequent legislation modifying such a charter, where-there is no such reservation, is unauthorized. But where such a provision is incorporated in the charter, it is clear that it modifies the grant, and that the subsequent exercise of that reserved power cannot be regarded as an act within the prohibition of the constitution. And this power, the charter being silent upon the subject, may be reserved by genera] law existing at the time the charter is granted, which provides that all charters thereafter granted shall be subject to it. The effect of such a law is the same as if each special charter thereafter contained its provisions, though the charter contains no such reservation of power nor any allusion to the general law.

These principles are well settled. Miller v.

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Bluebook (online)
45 N.J. Eq. 436, Counsel Stack Legal Research, https://law.counselstack.com/opinion/inhabitants-of-montclair-v-new-york-greenwood-lake-railway-co-njch-1889.