Mosier v. Hilton

15 Barb. 657, 1853 N.Y. App. Div. LEXIS 90
New York Supreme Court·Decided November 7, 1853·Published·Cited by 12 cases

Opinion

Marvin, P. J.

It becomes necessary to examine the statutes touching the Lockport and Niagara Falls Railroad Company, and the statute under which the Rochester, Lockport and Niagara Falls Railroad Company claim existence. The Lockport and Niagara Falls Railroad Company was incorporated by an act passed for that purpose, April 24, 1834. (Session Laws,p. 225.) The stockholders were constituted a body corporate, with power to construct a single or double railroad from Lockport to Niagara Falls. The directors were empowered to cause examinations and surveys of the route to be made, and to select the line for the road, and designate it by a certificate to be filed in the office of the clerk of Niagara county. (Id. § 15.) The corporation was empowered to purchase, &c. real estate. If there was a disagreement as to the price of the land, the directors were empowered to present their petition to the vice chancellor of the 8th circuit, setting forth, &c.; the vice chancellor was to direct such notice to the owner of the land, as he should deem proper, of the time and place of hearing the parties, and upon proof of due service of the notice he was authorized to appoint three compe[659] tent and disinterested freeholders of the county of Niagara to appraise the land. The duties of the commissioners were declared, and they were to award to the owner what they should deem to be th.0 full value of the land. The vice chancellor was to examine the report and hear the parties, if desired, and increase or diminish the amount awarded, if he should be satisfied injustice had been done.

The Lockport and Niagara Falls Railroad Company constructed the road from Lockport to the Falls. By an act passed April 24, 1841, (Less. Laws, p. 101,) the corporation was authorized to extend their railroad from Lockport to the western termination of the Auburn and Rochester railroad in Rochester, or to the western termination of the Tonawanda railroad in Batavia. The corporation was authorized to increase its capital stock. It was authorized, in constructing such road, to exercise all the powers, and it was subjected to all the provisions and restrictions contained in the original charter. By the act of 1842, chapter 36, the directors were authorized further to increase the capital stock, and the original charter was so amended as to authorize the commissioners appointed by the vice chancellor to allow damages to the owner of the land taken, in addition to the simple value of the land taken. By the act of 1847, (Less. L. p. 504,) the original charter was so amended, as to authorize the corporation to obtain authority to take lands in like manner as in the charter, by applying to any court of record of the county where the land is situated, and such court was empowered .to perform the same duties, and grant the same orders, as by the charter was conferred on the vice chancellor. And by this act, the same proceedings were to be had in the several counties into or through which the road might run, as by the charter was required to be done in the county of Niagara. The act of 1850, (Less. Laws, p. 159,) is entitled, an act for the relief of the creditors of the Lockport and Niagara Falls Railroad Company.” By the first section of this act, it was made the duty of the president of the corporation, or one of the directors to be appointed by the president, and he was authorized, to advertise and sell 'the real and personal estate, including the franchise of the company, at pub-[660] lie auction, to the highest bidder. It was declared that the sale should be absolute, and that it should vest in the purchaser or purchasers the property, real or personal, of the company, and the franchise, rights and privileges of the corporation as fully and as absolutely as the same were then possessed by the company. The money arising from the sale, after paying costs, was to be applied, first, to the payment of a certain judgment, and then to other liens according to priority, and the surplus, if any, was to be divided ratably among the other creditors, and then if there should be an overplus it was to be divided ratably among the then stockholders. By the second section of the act, it was declared that the purchaser or purchasers should'have the right to sell and distribute stock to the full amount which was authorized by the act of incorporation, and the several amendments thereto ¡ and to appoint an election, and choose nine directors for the management of the corporation, and organize the company anew, by such name as a majority of the directors should adopt and certify to the secretary of state ; and when so organized, the company should have the same powers and be subject to the same restrictions as the then existing company. There was then a proviso, that nothing in the act should impair or affect the subscriptions for' new stock, or the obligations or liabilities of the company incurred in the extension of the road from Lockport to Bochester, &e. It has seemed' to be necessary thus to bring into view the above legislation, in order to appreciate the objections made to the title of the Bochester, Lockport and Niagara Palls Bailroad Company to the locus in quo\

It is insisted, apparently with much confidence, by the plaintiff’s counsel, that the act of 1850 is unconstitutional and therefore void, upon the ground that it violated the 16th section of article three of the constitution of this state. This is the important question in this case ; and as my brother Taggart, for whose opinions I have great respect, has come to the conclusion that this position is correct, I shall- proceed to state as briefly as may be, my reasons for a different opinion.

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Mosier v. Hilton, 15 Barb. 657, 1853 N.Y. App. Div. LEXIS 90 (N.Y. Super. Ct. 1853).

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