Metropolitan Bridge Co. v. Federal Emergency Administration of Public Works

92 F.2d 475, 67 App. D.C. 324, 1937 U.S. App. LEXIS 4620
CourtCourt of Appeals for the D.C. Circuit
DecidedJune 28, 1937
DocketNo. 6946
StatusPublished

This text of 92 F.2d 475 (Metropolitan Bridge Co. v. Federal Emergency Administration of Public Works) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Metropolitan Bridge Co. v. Federal Emergency Administration of Public Works, 92 F.2d 475, 67 App. D.C. 324, 1937 U.S. App. LEXIS 4620 (D.C. Cir. 1937).

Opinion

GRONER, J.

This is a mandamus proceeding. Appellant Tomasini, claiming to be the owner and holder of a franchise granted to him by the board of supervisors of the county of- Alameda, Cal., to construct, maintain, and operate a toll bridge and tube across San Francisco Bay from Point Fleming, county of Alameda, to Bluff Point in the county of Marin, filed a petition in the court below in which he prayed that a writ of mandamus issue against Secretary Ickes and two others commanding them to consider upon its merits his application for a loan and grant filed with them as Administrator and Assistant Administrators of the Federal Emergency Administration of Public Works (PWA). His petition sets out that he obtained the franchise on the 26th of March, 1928, and that on July 15, 1932, the permit and authority to construct the bridge and tube was granted by the War Department and is now in full force and effect. He says in his petition that the actual construction and operation of the project will be carried on by a corporation and that he has caused such a corporation, known as the Metropolitan Bridge Company, to be organized and has agreed to assign the franchise and authority from the War Department “upon the completion of a financing program, and said corporation will then carry on the construction and operation of said project.” The petition is entitled in the name of Tomasini and the bridge company, but is signed only by Tomasini, and so far as appears the franchise and all rights under it continue in the name of Tomasini. The petition, however, states that the application for a loan and grant made to PWA was filed on behalf of both the bridge company and Tomasini. The application was filed under the provisions of the Emergency Relief Appropriation Act of 1935 (49 Stat. 115, 15 U.S.C.A. § 728 note), and particularly under the paragraph marked (g) which provides for loans or grants, or both, for projects of states and agencies thereof, etc.

Petitioner states -that the application was filed the 29th of May, 1935, and came into the hands of respondents, “and was acted upon by respondents to the extent that they definitely refused to consider said application for the wholly erroneous, illegal, capricious and unlawful reason,” viz.: “that said applicant, Metropolitan Bridge Company * * * is a private corporation, and as such is not entitled to make such application for a loan and grant.”

Secretary Ickes and his corespondents filed defenses in point of law and in answer to the petition. They denied that Tomasini and the bridge company or either of them had ever filed an application for a loan and grant under the 1935 act and averred that the only application which had come into their hands was' an application filed by petitioners .with the Reconstruction Finance Corporation in the year 1933 which was in that year transferred to PWA for consideration and action under the terms of title 2 of the National Industrial Recovery Act of 1933, 48 Stat. 200; that the application under the provisions of the 1933 act was considered and the loan denied because not properly secured.

To this answer appellant Tomasini filed a reply in which he admitted the application was not filed directly with appellees but was filed with the National Emergency Council and that this was done pursuant to Executive Orders directing the manner of making application, and he insists that the application did come into appellees’ hands and that they refused to consider it for the reasons alleged.

Respondents thereupon made a motion for judgment dismissing the petition, and the court below in a short memorandum opinion refused the mandamus and dismissed the petition for the reason that it was not clear that the application was eligible for consideration.

The facts which we shall take to be admitted are that Tomasini holds a franchise permitting him to build and operate a bridge and tube and that he has organized a corporation to which he proposes to assign the franchise if financial backing can be obtained; that in 1933 he and the bridge company made application to RFC for a loan and grant with which to finance the enterprise; that this application after due consideration was denied; [477]*477that in May, 1935, a similar application was filed which duly came to PWA for examination and that respondents sufficiently considered it to determine that the applicant was not (within the intent of the act) an agency of the state granting the franchise and was, therefore, under the act not entitled to make the application.

Mr. Ickes and his assistants urge several separate grounds of defense to the granting of the petition, but in our view these may be laid to one side and the case decided on the single ground set out in petitioners’ brief, viz.: that “the Court below erred in deciding that upon the facts stated it was not clear that appellants’ application for a loan was eligible for consideration,” i. e., on the merits.

The act which petitioners rely upon here is the Emergency Relief Appropriation Act of April 8, 1935, making appropriations for relief purposes. That act appropriates four billions of dollars to be used in the discretion and under the direction of the President to “provide relief, work relief and to increase employment by providing for useful projects,” etc. It further provides for use by the President of various large sums of money remaining unexpended out of the appropriation made in 1932 to the Reconstruction Finance Corporation (47 Stat. 709) and out of the appropriation for national industrial recovery made in 1933 (48 Stat. 195, 275), and then specifies the classes of projects for which the money shall be available. These include (a) highways, roads, streets, and grade crossing elimination; (b) rural rehabilitation and relief in stricken agricultural areas, water conservation, trans-mountain water diversions, and irrigation and reclamation; (c) rural electrification; (d) housing; (e) assistance for educational, professional, and clerical persons; (f) Civilian Conservation Corps; and (g) (the section to which petitioners point) “loans or grants, or both, for projects of States, Territories, Possessions, including subdivisions and agencies thereof, municipalities, and the District of Columbia, and self-liquidating projects of public bodies thereof.”

It is insisted by petitioners that the bridge company or Tomasini (dependent upon which for the time being is holder of the franchise) is a public corporation or a “public individual” and either is an agency of the sovereign power granting the franchise. They cite in support of this proposition a number of cases holding that the operation of bridges by private corporations under a valid franchise constitutes such corporations agencies of the government in the performance of a governmental function — or, in other words, makes such a corporation or person a governmental agent. Generally speaking, this is a correct statement for, as the Supreme Court said in Commissioners of Dodge County v. Chandler, 96 U.S. 205, 24 L.Ed. 625, a public bridge is a work of internal improvement and if a franchise for such a work is granted to an individual or corporation it is a public franchise and the right to take tolls is granted as compensation for erecting the work and relieving the public treasury of the burden — so that those who have such franchises are agents of the public.

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Related

County Commissioners v. Chandler
96 U.S. 205 (Supreme Court, 1878)
United States Ex Rel. McLennan v. Wilbur
283 U.S. 414 (Supreme Court, 1931)
United States Ex Rel. Greathouse v. Dern
289 U.S. 352 (Supreme Court, 1933)

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Bluebook (online)
92 F.2d 475, 67 App. D.C. 324, 1937 U.S. App. LEXIS 4620, Counsel Stack Legal Research, https://law.counselstack.com/opinion/metropolitan-bridge-co-v-federal-emergency-administration-of-public-works-cadc-1937.