Milwaukee Light, Heat & Traction Co. v. Milwaukee-Northern Railway Co.

112 N.W. 663, 132 Wis. 313, 1907 Wisc. LEXIS 145
CourtWisconsin Supreme Court
DecidedJune 20, 1907
StatusPublished
Cited by13 cases

This text of 112 N.W. 663 (Milwaukee Light, Heat & Traction Co. v. Milwaukee-Northern Railway Co.) is published on Counsel Stack Legal Research, covering Wisconsin Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Milwaukee Light, Heat & Traction Co. v. Milwaukee-Northern Railway Co., 112 N.W. 663, 132 Wis. 313, 1907 Wisc. LEXIS 145 (Wis. 1907).

Opinion

Winslow, J.

As appears by the statement of facts, this, is a contest between two corporations each seeking to acquire the same strip of land for railway purposes, the petitioner by condemnation and the respondent by purchase. Both corporations were in form organized under the provisions of ch. 86, Stats. (1898), the purposes of the petitioner, as stated [325]*325in its articles of incorporation, being to construct and operate street railways for tlie carriage of passengers and property in the city of Milwaukee and elsewhere in Wisconsin, and extending its railways into and through villages and towns of the state, and the purposes of respondent being to construct and operate an electric railway for the carriage of passengers and property in and between the cities of She-boygan, Milwaukee, and Eond du Lac, and neighboring towns, villages, or cities.

The petitioner claimed in the trial court and claims in this court that the respondent has no power to build or operate a railway or to condemn land therefor, and that hence it cannot resist the petitioner’s application for condemnation. The contention, in brief, is that our statutes recognize but two kinds of public railroad corporations, viz., a street railway corporation organized under ch. 86, Stats. (1898), and a general commercial railroad corporation under the provisions of eh. 87 of the same statutes; that the respondent corporation is not a corporation of either kind, and, if it be a corporation at all, it has acquired no power to construct or operate a railroad for the carriage of passengers or freight, nor to acquire lands either by purchase or condemnation for such purpose. On the other hand it is claimed by counsel for respondent that our statutes authorize the formation under ch. 86 of what have been called electric railway corporations, which are neither municipal street railway companies nor general commercial railway companies, and that the re-' spondent is a company of this third class of railway corporations. The question is an important and interesting one and is now raised for the first time. Its correct solution requires a careful examination of the past and present statutes of the state concerning the formation of railroad corporations.

Prior to the year 1872 there was no general law in existence specially designed to provide for the organization of railroad corporations. Oh. 73 of the Revised Statutes of [326]*3261858 provided generally for tlie formation of “joint-stock companies,” with the powers of corporations, for the purpose of carrying on any kind of manufacturing, mechanical, mining, or quarrying business, or any other lawful business, by the adoption of articles of agreement in writing. It is perhaps possible that some transportation companies may have been organized under this law, but the general, if not the universal, custom was to procure a special charter from the legislature for the incorporation of either a general commercial railroad or a street railroad. Companies so formed were controlled by general regulations contained in ch. 76, Tay. Stats. (1871), and street railroads were authorized to accept municipal franchises and extend their lines into adjoining towns. Secs. 93, 94, ch. 76, supra> being ch. 313, Laws of 1860. By an amendment to the constitution finally adopted in 1871 the legislature was prohibited from passing special laws granting corporate powers and privileges except to cities, and in 1872 general laws providing for the organization of corporations by the making and filing of articles of association were passed. Of these general laws ch. 119 provided for the formation of general commercial railroad corporations, with rights of eminent domain, and regulated their operations, but the formation of street railroad corporations was not authorized thereunder. Ch. 144 provided for the formation of corporations for business and manufacturing purposes of various kinds, excluding, however, “banking, insurance, and operating railroads,” and repealed ch. 73 of the Revised Statutes of 1858, relating to joint-stock companies. Ch. 146 provided for the formation of corporations for “other than manufacturing, mercantile, insurance, banking, transportation, and trading purposes.” None of these laws contained any provisions for the organization of street railroad corporations, but the provisions of eh. 313, Laws-of' 1860, remained in force. Thus the law stood until the passage of the Revised Statutes of 1878, with apparently no. [327]*327means provided for the organization of street railroad corporations. By the last-named revision eh. 144 and ch. 146, Laws of 1872, were condensed and united, forming ch. 86, it being provided, however, that corporations for the purpose of engaging in hanking, insurance, building, or operating railroads or plank or turnpike roads could not he formed thereunder. Oh. 119 of the Laws of 1872 became with some changes ch. 87 of the revision, and still remained a chapter authorizing the formation of general commercial railroads only, the provisions of ch. 313, Laws of 1860, being added at the close of the chapter as secs. 1862 and 1863. It was evidently observed, however, that the existing statutes were barren of any provision for the organization of street railroad corporations, and the following new sentence was inserted at the beginning of sec. 1862: “Corporations for constructing, maintaining and operating street railways may be formed under ch. 86 and shall have powers and be governed accordingly.”

At this time, then, the law stood thus: General commercial railroads with the power of eminent domain could be formed trader ch. 87, while street railroad companies without the power of eminent domain, but with the power to accept franchises from a municipal corporation to operate the cars upon the streets, and with the consent of the supervisors to operate them upon the highways of adjoining towns, might be formed under the provisions of ch. 86 as modified by sec. 1862. At this time there was little, if any, thought of the possibilities of the modern interurban railroad, and the street railroad itself was a modest affair, depending for its motive power on animals exclusively, and content to perform the functions of a carrier of passengers upon the streets of a city and its immediate suburbs. For the creation and government of such a railroad the legislation at this time was apparently ample, but it contained no provisions under which an interurban railroad corporation carrying passengers and [328]*328freight through the country from city to city could he formed; nor did it contain any provisions by which a street railroad company could enlarge the scope of its business so as to perform these functions.

By ch. 221, Laws of 1880, however, sec. 1868, R. S. 1818, was amended in a most important respect. This section as it stood before the amendment was but a condensation of sec. 2, ch. 313, Laws of 1860, and provided in substance that a street railroad company operating within any municipal corporation might, with the consent of the supervisors of any adjoining town, extend its lines into such town and use the highways thereof, provided it should not obstruct common travel of the public thereon. The amendment of 1880 made no change in these provisions, but added new provisions, upon the true import of which must depend very largely the answer to the question now before us. These new provisions are as follows:

“Corporations may be formed and governed in like manner for the purpose of building, maintaining, and using street railways with rails of wood or iron, in any village or town, or .

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Bluebook (online)
112 N.W. 663, 132 Wis. 313, 1907 Wisc. LEXIS 145, Counsel Stack Legal Research, https://law.counselstack.com/opinion/milwaukee-light-heat-traction-co-v-milwaukee-northern-railway-co-wis-1907.