Marion & Rye Valley Railway Co. v. United States

60 Ct. Cl. 230, 1925 WL 2696
CourtUnited States Court of Claims
DecidedJanuary 26, 1925
DocketNo. C-699
StatusPublished
Cited by1 cases

This text of 60 Ct. Cl. 230 (Marion & Rye Valley Railway Co. v. United States) is published on Counsel Stack Legal Research, covering United States Court of Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Marion & Rye Valley Railway Co. v. United States, 60 Ct. Cl. 230, 1925 WL 2696 (cc 1925).

Opinion

Hay, Judge,

delivered the opinion of the court:

This case is before us on a motion for a new trial made by the plaintiff. In that motion it is conceded that the' findings of fact heretofore found by the court are correct; but the plaintiff contends that the court erred in its conclusion of law. Upon the facts found the court is of the opinion that its conclusion of law is correct, and therefore adheres to its former opinion which was as follows:

This is a suit to recover the sum of $14,425.94, the amount of an award made by a board of referees duly appointed by the Interstate Commerce Commission under section 8 of the [249]*249Federal control act, 40 Stat. 451, and the transportation act of 1920,41 Stat. 456, as the just compensation of the plaintiff for the alleged taking and use of its railroad property by the United States for the period beginning December 28, 1917, and ending June 29, 1918. The Director General of Railroads having refused to accept the report of the board of referees as a basis for settlement the plaintiff filed its petition in this court as provided by law.

The finding of the amount of the award for just compensation by the board of referees is prima facie in this court, but the prima facie effect of the award may be overcome if it appears that the board applied an erroneous measure of compensation, or if it appears from the facts found that there was no taking by the Government of the plaintiff’s property for public use.

The first question which is presented for our consideration is, Did the Government take possession of the railroad of the plaintiff and operate and control it for the public use %

It is not always necessary that in order to constitute a taking the property should be absolutely taken. If there is a serious interruption to the common and necessary use of property, such an interruption may .be equivalent to the taking of it. But there must be evidence to show that the use of the property was such that its common and necessary use was so seriously interrupted as to cause loss and damage to the owner thereof, and that the owner was deprived of its control and operation in such manner as to prevent him from deriving the benefits which would have accrued had the property not been taken. These principles are particularly apjfiicable in cases where the alleged taking is for the use of the property for a time, and not the taking of the title. There can be no taking of private property for public use unless there is possession and use thereof for public purposes, evidenced by some act which deprives the owner of the use, possession, control, and operation of his property. A mere declaration of an intention to take can -not constitute a taking. The proclamation of the President setting forth that on some future day he will take over the property of certain owners does not of itself constitute a taking of the property. There must be some definite act, [250]*250some positive proceeding by which the property is actually taken and appropriated before the taking' can be consummated. It must be such a taking of the property as that the owner is deprived of, or circumscribed in some way, in the use and enjoyment of his property. If his possession is undisturbed and his property in its value and use is undiminished it can not be said that there is a taking within the meaning of the Constitution.

The plaintiff in this case in order to establish a taking relies upon the proclamation of the President and certain orders which the Director General of Railroads sent to it during the period when the plaintiff alleges that its property was under the control of the Government. The proclamation was issued by the President on December 26, 1917, and provided “ that the possession, control, operation, and utilization of such transportation systems * * * shall be exercised by and through William G. McAdoo, who is hereby appointed and designated Director General of Railroads,” and “that from and after 12 o’clock on said 28th day of December, 1917, all transportation systems included in this order and proclamation shall conclusively be deemed within the possession and control of said director without further act or notice.” The possession, control, operation, and utilization to be exercised by the Director General of Railroads in accordance with the proclamation meant that possession must be at least of such a character as to deprive the owner of its control and operation, and that the owner of the property could no longer use it for its own purposes.

The proclamation by itself did not constitute a taking. If no other .step had been taken, and no agent of the President had done anything to carry into effect the proclamation of the President, it would certainly not have Ijeen regarded as a taking of the property. The contention of the plaintiff that its property was taken by virtue alone of the proclamation of the President can not be sustained.

The plaintiff, however, relies further upon certain general orders sent out by William G. McAdoo as Director General of Railroads as evidencing the intention of the (Government to take its property and as showing that its property was actually taken. Some of these orders were sent to the plaintiff; many of them were not sent to the plaintiff.

[251]*251Among those sent to the plaintiff was general order No. 1, dated December 29, 1917, which is addressed to “All concerned,” and declares that the Director General of Eail-roads “ has taken possession and assumed control of certain transportation systems described in the proclamation of the President.” The receipt of this order by the plaintiff did not constitute a taking of the plaintiff’s prbperty. It did not by its terms signify or state that the property of the plaintiff was being taken possession of. It contained nothing which ousted or tended to oust the property of the plaintiff from its control. There were no instructions in the order which caused the plaintiff to change the management and operation of its property. The plaintiff was not deprived of or circumscribed in any way in the use and enjoyment of its property.

The plaintiff also received general orders Nos. 2, 14, and 28, and two circulars, but none of these interfered in any way with the control and operation of its property by the plaintiff. During the whole period for which the plaintiff claims compensation for the taking and use of its property the plaintiff had absolute control of it. By the testimony of its own general manager it appears that the plaintiff continued to operate its road from December 26, 1917, to June 29,1918, exactly as it always had operated it. No possession of it was taken, no control over it was exercised, and no use of it was made by the Government at any time. Under this state of facts it is difficult to perceive how a taking of this property for public use can be deduced.

The plaintiff seems to rely upon the following letter, which it argues shows that the Government had to have possession in order to relinquish it. The letter is as follows :

Deae SiR:
It is not clear whether the Marion & Eye Valley Eailroad Company has at any time been under Federal control. To remove any possible question, this order is issued definitely relinquishing same.
Very truly yours,
JOHN BARTON PAYNE.
Mr. T. S. Ambler,
General Manager,

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Wheelock Bros. v. United States
88 F. Supp. 278 (Court of Claims, 1950)

Cite This Page — Counsel Stack

Bluebook (online)
60 Ct. Cl. 230, 1925 WL 2696, Counsel Stack Legal Research, https://law.counselstack.com/opinion/marion-rye-valley-railway-co-v-united-states-cc-1925.