Ohio & Mississippi Railway Co. v. People ex rel. Hanna

14 N.E. 874, 123 Ill. 467, 1888 Ill. LEXIS 1037
CourtIllinois Supreme Court
DecidedJanuary 18, 1888
StatusPublished
Cited by20 cases

This text of 14 N.E. 874 (Ohio & Mississippi Railway Co. v. People ex rel. Hanna) is published on Counsel Stack Legal Research, covering Illinois Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ohio & Mississippi Railway Co. v. People ex rel. Hanna, 14 N.E. 874, 123 Ill. 467, 1888 Ill. LEXIS 1037 (Ill. 1888).

Opinion

Mr. Justice Shope

delivered the opinion of the Court:

This was an information in the nature of a quo wa/rranto, filed in the Wayne circuit court, by the State’s attorney of that-county, against the Ohio and Mississippi Railway Company. A demurrer was sustained as to the first and overruled as to-the second and third counts of the information, and as to such counts respondent answered. A demurrer to the answer being interposed and sustained, respondent refused to answer further, and was adjudged guilty as charged in the second and third counts of the information,- and a fine of $1000 was thereupon, imposed upon respondent. Motions for a new trial and in ar-rest of judgment having been overruled, the record is brought here upon respondent’s appeal.

It is charged in the information that the Ohio and Mississippi Railway Company is a corporation chartered, organized and existing under the laws of this State, owning and operating a railroad in this State from East St. Louis to the Wabash river, opposite the city of Vincennes, Indiana, and from Shawneetown, through Wayne county, to Beardstown; that it is governed and controlled in its corporate capacity by a board of thirteen directors, a majority of whom are not citizens and residents of this State, and twelve of whom are now and have been citizens and residents of other States, contrary to the laws of this State, whereby it has forfeited its franchise, powers- and privileges. By its answer, the railway company denied that it was guilty of the several wrongs charged against it admitted that it was incorporated under the laws of Illinois, and said that such incorporation was made by virtue and in pursuance of an act of the legislature of Rlinois, entitled “An act to incorporate the Ohio and Mississippi Railway Company, and for other purposes,” approved February 5, 1861; that in the first section thereof thirteen persons were named incorporators of the company, and that a majority of the persons so named were non-residents of the State of Illinois, and were-citizens and residents of other States; that by virtue of the same section of that act respondent was invested with all the corporate franchises and rights which had theretofore been granted to and vested in the corporation known as the Ohio and Mississippi Railroad Company, incorporated by an act of the. General Assembly of the State of Illinois, entitled “An act to incorporate the Ohio and Mississippi Railroad Company, and for other purposes,” approved February 12,1851; referred to both these acts and made them parts of its answer, and insisted, that by virtue of these special acts, in pursuance of which it was incorporated, it became vested with the right to elect a majority of its directors, or all of them, from stockholders residing outside of the State of Illinois, and not citizens of Illinois; that in 1867, and before the adoption of the present constitution of this State, by virtue of the laws of the State of Illinois, and of similar laws in the States of Indiana and Ohio, respondent became consolidated with the Ohio and Mississippi Railway Company, and owning and operating a railroad leading from the Mississippi river at East St. Louis, Illinois, to Cincinnati, Ohio, all under one management and one board of directors, by which consolidation the property, stock and franchises of the old constituent corporations named, became completely merged in respondent, its line of railroad being connected and continuous, and which consolidation was, in all respects, in conformity with the laws of the States of Illinois, Indiana and Ohio; that its principal business as a carrier is between St. Louis, Missouri, and Cincinnati, Ohio; that its capital stock is held and owned, excepting a few shares, by persons outside of Illinois, being largely held in foreign countries and in New York; that now, and for some time last past, but one of its stockholders is or has been a citizen and resident of the city of Springfield, Illinois, and that all its other directors are citizens and residents of other States,—giving their respective places of residence; “that the officers of respondent have always been of the opinion, and have been so advised, that under its charter and consolidation, by authority of the laws of this State, with said railroad corporations in the States of Indiana and Ohio, the law of this State requiring a majority of the directors to be citizens and residents of this State did not apply to respondent; that it has been supported in this opinion and belief by the fact that a majority of its directors have never resided in or been citizens of this State, which fact has been well known to the citizens and officers of this State, and to the relator in this proceeding, and still, until the filing of this proceeding, no objection has ever been made by either citizen, officer or relator, and no injury has been sustained thereby by any one; that respondent has always acted in this matter in good faith, and with a desire to comply with the laws of the State, as they were understood by its officers, and as they seemed to be understood by the officers of the State.”

The principal question here presented is, whether the organic law of the State is applicable to appellant corporation. The consolidation mentioned was completed in 1867, and there was at that time, neither in the constitution of the State nor on the statute books, any provision requiring that a majority of the board of directors of corporations similar to the Ohio and Mississippi Eailway Company should be citizens and residents of this State. The provision of the present constitution, which is said to be mandatory upon appellant, is as follows: “A majority of the directors of any railroad corporation now incorporated or hereafter to be incorporated by the laws of this State, shall be citizens and residents of this State.”

It is insisted, and has been held, that the power given to a railway corporation to form a union or consolidation with another railway corporation, is a contract between the State granting the power, and the corporation, which, after the right of consolidation has been exercised, can not be withdrawn or impaired by the State. (Zimmer v. The State, 30 Ark. 677. See, also, Central Railroad and Banking Co. v. Georgia, 92 U. S. 665.) In the view we entertain of this case, it will not be necessary to discuss or determine- the question whether appellant corporation acquired such rights by virtue of consolidation as would bring it within the inhibition of the constitution of the United States against the impairment of contracts by the State, and we therefore express no opinion in respect thereto.

The view of this case which we regard as decisive, involves a construction of this State constitutional provision, and the determination of the question as to whether appellant corporation falls within its letter or spirit. This will necessarily involve a consideration of the status of appellant corporation at the time of the adoption of the constitution now in force. The constitution was adopted in 1870, and the record leaves no question but that the consolidation of the Ohio and Mississippi Eailway Company of Illinois, with the corporation of the same name existing in the States of Indiana and Ohio, ■was consummated in the year 1867. The Ohio and Mississippi railway of Illinois was incorporated by an act of the legislature of Illinois in 1861. (Private Laws, 1861, p.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Steckler v. Pennroad Corp.
44 F. Supp. 800 (E.D. Pennsylvania, 1942)
Jewett City Savings Bank v. Board of Equalization
164 A. 643 (Supreme Court of Connecticut, 1933)
McRoberts v. Minier
270 Ill. App. 1 (Appellate Court of Illinois, 1933)
Morris v. Interstate Iron & Steel Co.
257 Ill. App. 613 (Appellate Court of Illinois, 1930)
People Ex Rel. Shipton v. Dunleith & Dubuque Bridge Co.
152 N.E. 526 (Illinois Supreme Court, 1926)
Vermont Valley Railroad v. Connecticut River Power Co.
133 A. 367 (Supreme Court of Vermont, 1926)
Indiana Harbor Belt Railroad v. Green
124 N.E. 298 (Illinois Supreme Court, 1919)
Venner v. New York Central & Hudson River Railroad
177 A.D. 296 (Appellate Division of the Supreme Court of New York, 1917)
Chicago Title & Trust Co. v. Doyle
102 N.E. 790 (Illinois Supreme Court, 1913)
People ex rel. Mamer v. Wayman
99 N.E. 941 (Illinois Supreme Court, 1912)
State ex rel. Tyrrell v. Lincoln Traction Co.
134 N.W. 278 (Nebraska Supreme Court, 1912)
W. Scheidel Coil Co. v. Rose
90 N.E. 221 (Illinois Supreme Court, 1909)
Carolina Coal & Ice Co. v. Southern Railway Co.
57 S.E. 444 (Supreme Court of North Carolina, 1907)
Winn v. Wabash R.
118 F. 55 (U.S. Circuit Court for the District of Western Missouri, 1902)
City of Belleville v. I. & St. L. R. R.
49 Ill. App. 301 (Appellate Court of Illinois, 1893)
People v. N. Y., Chicago & St. Louis Railroad
29 N.E. 959 (New York Court of Appeals, 1892)
People v. New York, Chicago & St. Louis Railroad
29 N.E. 959 (New York Court of Appeals, 1892)
Kincaid v. People
28 N.E. 1060 (Illinois Supreme Court, 1891)
People v. New York, Chicago & St. Loius Railroad
15 N.Y.S. 635 (New York Supreme Court, 1891)

Cite This Page — Counsel Stack

Bluebook (online)
14 N.E. 874, 123 Ill. 467, 1888 Ill. LEXIS 1037, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ohio-mississippi-railway-co-v-people-ex-rel-hanna-ill-1888.