Omaha Horse Ry. Co. v. Cable Tramway Co.

30 F. 324, 1887 U.S. App. LEXIS 2445
CourtUnited States Circuit Court
DecidedMarch 5, 1887
StatusPublished
Cited by5 cases

This text of 30 F. 324 (Omaha Horse Ry. Co. v. Cable Tramway Co.) is published on Counsel Stack Legal Research, covering United States Circuit Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Omaha Horse Ry. Co. v. Cable Tramway Co., 30 F. 324, 1887 U.S. App. LEXIS 2445 (uscirct 1887).

Opinion

BrkweR, C. J.

The initial and important question is wliether a cable tramway is within plaintiff’s exclusive grant of a right to build, erect, and operate horse railways. If tlie grant were made to-day it could not seriously be contended that it was so included. There is such a clear and recognized distinction between horse railroads and cable roads that, applying the ordinary rules for the construction of legislative grants, neither kind of road would be included within a grant of the other. The contention, however, is that at the time of this grant cable roads were practically unknown; tliat the only known form of street railways was the horse railway; that the terms “street railroad” and “horse railroad” were in common parlance used to describe the same thing; that in construing the grant we aro to place ourselves back to the time at which it was made, and these terms “horse railroad” and “street railroad” being thou used interchangeably for the same thing, we are to suppose that the legislature meant by the use of one term all that it would have meant by the use of the other, and that therefore all that would to-day be included within either term was within the scope of the grant. The rule for the construction of legislative grants is well settled. They are to be construed against the grantee and in favor of the public; and nothing passes unless it is obvious that the intent was that it should pass. 1 do not mean that they are to bo construed technically and narrowly so as to defeat the very purposes of the grant, but that, giving to language its ordinary meaning, nothing will be included unless obviously witbin the scope of such meaning.

In Perrine v. Chesapeake & Delaware Canal Co., 9 How. 172, Chief Justice Taxey says, at page 192:

[328]*328“The rule of construction in cases of this description is this, that any ambiguity in the terms of the grant must operate against the corporation and in favor of the public; and the corporation can claim nothing that is not clearly given by the law. We do not mean to say that the charter is to receive a strained and unreasonable construction, contrary to the obvious intention of the act. It must be fairly examined and considered, and reasonably and j ustly expounded.”

This rule of construction against the grantee, which applies in all legislative grants, obtains with the greater force in a case libe the one at bar, where the grant claimed is not merely the right to do something, but of a right to exclude all the rest of the public from doing that thing. He who says that the state has given him a franchise, a right to do that which without that franchise he could not do, will be compelled to show that the franchise, the right-Qlaimed, is within the terms of his grant. Múch more strenuous must be the demand upon him for clear and explicit language in his grant when he claims that a part of it is not merely the franchise, the right to do, but also the right to exclude all others of the public from exercising the same right, and the state, as the representative of the public, from according the same right to another. Jackson Co. Horse Ry. Co. v. Rapid Transit Co., 24 Fed. Rep. 306; Proprietors, etc., v. Wheeley, 2 Barn. & Adol. 793. See, also, Charles River Bridge v. Warren Bridge, 11 Pet. 422, in which Mr. Chief Justice Taney, speaking for the court, uses this language;

“Is there anything in our local situation, or in the nature of our political institutions, which should lead us to depart from the principle where corporations are concerned? Are we to apply to acts of incorporation a rule of construction differing from that of the English law, and by implication make the terms of a charter in one of the states more unfavorable to the public than upon an act of parliament framed in the same words would be sanctioned in an English court? * * * We think not; and it would present a singular spectacle if, while the courts in England are restraining within the strictest limits the spirit of monopoly, and exclusive privileges in the nature of monopolies, and confining corporations to the privileges plainly given to them in their charter, the courts of this country should be found enlarging these privileges by implication, and construing a statute more unfavorably to the public and the rights of the community than wo"’11 be done in a like case in an English court of justice.’’'

Now, placing ourselves back at the time of this grant, what should be attributed to the legislature as its intent? It may be assumed that the only form of street railway in practical use was the horse railway, and that in common parlance the two terms were often used interchangeably. Is it probable that it intended to foreclose the public in advance from all the benefits of possible inventions and discoveries in the matter of street railway travel, and give them to this grantee? or did it not rather intend that its grantee should take that complete and single thing known as a horse railway, with all of which it was familiar, and retain for the public all of the unknown possibilities of invention and discovery in reference to modes of street railway travel? Did it intend to give .that which it knew nothing of or only that which it knew? It seems to me that the mere stating of the question suggests the inevitable answer. Indeed, assuming the con[329]*329ditions to bo all as stated, if the legislature had used the words “street railway,” instead of the term “horse railway,” a very pertinent question would arise whether it intended to grant an exclusive right to any other than that form of street railway, to-wit, horse railway, with which it was familiar. Wo are hound to assume that the legislature is dealing with the known and not with the unknown, and that when it grants a franchise it only intends to grant that of which it has knowledge; and it is unreasonable to lay stress on the form of language or the words used for the sake of broadening an intent so as to include things not then known. A case most apt and pertinent to this line of thought is that of Bridge Proprietors v. Hoboken Co., 1 Wall. 1,16. In that case the legislature of New Jersey had given the plaintiff the right to build a toll-bridge, with a provision that no other bridge should be built witbin certain limits for a period of 99 years. ^Subsequently tbe defendant, within the time limited, was proceeding to construct a railroad bridge within the prescribed limits, and this construction was sought to be enjoined by the plaintiffs as an invasion ot their franchise. The court of errors and appeals of New Jersey denied the injunction, and on appeal to the supreme court of the United States its ruling was affirmed. In the opinion of the court, Mr. Justice Miller uses this language:

“It does not follow that when a newly-invented or discovered thing is called by some familiar word which comes nearest to expressing the new idea, that the thing so styled is really the thing formerly meant by the familar word. Matters most intimately connected with the immediate subject of our discussion may well illustrate this. The track on which the steam cars now transport the traveler or his property is called a road, somet imes, perhaps generally, a railroad. The, term < road ’ is applied to it, no doubt, beca use in some sense it is used for the same purpose that roads had been used.

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Cite This Page — Counsel Stack

Bluebook (online)
30 F. 324, 1887 U.S. App. LEXIS 2445, Counsel Stack Legal Research, https://law.counselstack.com/opinion/omaha-horse-ry-co-v-cable-tramway-co-uscirct-1887.