Pennsylvania Railroad v. National Railway Co.

23 N.J. Eq. 441
CourtNew Jersey Court of Chancery
DecidedFebruary 15, 1873
StatusPublished
Cited by2 cases

This text of 23 N.J. Eq. 441 (Pennsylvania Railroad v. National Railway Co.) is published on Counsel Stack Legal Research, covering New Jersey Court of Chancery primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pennsylvania Railroad v. National Railway Co., 23 N.J. Eq. 441 (N.J. Ct. App. 1873).

Opinion

The Vice-Chancellor.

This suit is against nineteen defendants. Seven of them are. incorporated companies, and t-welve of them are some of the directors or stockholders. One of the corporate defendants, the National Railway Company, is a corporation of the state of Pennsylvania, and the other six are corporations of New Jersey. They are: The Peapack and Plainfield Railroad Company,'the Elizabeth and New Providence Railroad Company, the Millstone and Trenton Railroad Company, the New Jersey Trust Company, the Narrow Gauge Railway Company, and the Stanhope Railroad Company. Under their respective charters, and under contracts of consolidation and lease, the defendants are co-operating in, and have begun the construction of a series of railroads in this state, to form across it a continuous road, to be part of a through line of communication between the cities of New York and Philadelphia.

The complainants are the United New Jersey Railroad and Canal Company, a corporation of New Jersey, and the Pennsylvania Railroad Company, a corporation of Pennsylvania. In the first of the corporate complainants are included and consolidated the companies formerly known as the Delaware and Raritan Canal Company, the Camden and [443]*443Amboy Railroad and Transportation Company, and the New Jersey Railroad and Transportation Company. The roads, canals, property, and franchises possessed, operated or held by these three corporations, were, before their consolidation into the above named United Company, leased and transferred by them to the Pennsylvania Railroad Company, for the term of nine hundred and ninety-nine years. By virtue of the possession and leasehold interest held or claimed to be held by the latter corporation in the demised property, and of the reversionary interest therein of the former, both are made complainants in the suit. As such they have three lines of communication between Philadelphia and Yew York. The first by ferry from Yew York to Jersey City; thence by railroad through Yewark and Yew Brunswick to Trenton; thence by bridge across the Delaware river ; thence by railroad to Philadelphia. The second by boats from Yew York to South Amboy; thence by railroad to Camden, and thence by ferry to Philadelphia. The third by canal from Borden-town to Yew Brunswick, and effecting a complete route from Philadelphia to Yew York by means of the Delaware river on the one side, and the Raritan river, Staten Island Sound, the Kill Von Kull and Yewark Bay on the other. A branch or connecting road from Trenton to Bordentown is also to be included.

The through route projected by the defendants begins at Philadelphia; from thence in Pennsylvania to Yardleyville on the Delaware, about five miles above Trenton; thence over the Delaware and in a northeasterly direction near to Millstone, Plainfield, and Elizabeth, to some point on the waters adjacent to or in the vicinity of Yew York; and thence to that city by ferry. Considerable portions of this route are yet undetermined or miloeated, but its proposed course is in general as above. It is intended to be constructed and used for the transportation of passengers and freight between Yew York and Philadelphia, and to compote in business with the through business of the complainants between those cities. The right of the defendants to [444]*444build and operate this competing road is the substantial issue involved in this suit. This right is denied'by the complainants, who have exhibited their bill to restrain the defendants from proceeding to execute their pui’pose. At the filing of the bill, a rule to show cause was obtained, why a preliminary injunction should not issue, and the rule has been argued on the bill, answers, and depositions. The argument, which occupied, with the reading of the papers, the most of two weeks, was conducted on both sides with great thoroughness, ability, and learning.

The gravamen or gist of the case on the part of the complainants, is the injury to result to their through business by the diminution of their profits from the defendants’ competition. The bill asserts, in brief, that, by the law of New Jersey, the state has exclusive control over the construction and maintenance of railroads and other internal improvements within her domain. That the right to build and operate a railroad for public use, and for tolls, is a right, privilege, or franchise which the state, through the legislature, is alone able to confer. That such right, unless so conferred, cannot exist. That when conferred it is property, and, like .other property, entitled to the protection of the laws. That the franchise to build and use a railroad across the state, intended to be part of a through line of communication between the above mentioned cities, has been granted • to the complainants, and that none has been granted to the defendants. That the defendants, in proceeding to build their road across the state, to be used for part .of a competing line, are acting without authority or right, and that their threatened invasion of the complainants’ franchise, is an injury which a court of equity will restrain. Out of these allegations, and their denial by the defendants, arise the substantial and decisive questions in the cause. They are:

1. Have the complainants such a franchise, exclusive against all but the state and those upon whom the state has conferred it ?

The through lines of the complainants, as heretofore [445]*445stated, are three. One is by canal, and anotherlbyjh connection of local roads, not originally and separately authorized for purposes of a through route. However much these two lines may have, been heretofore used for such purposes, and whatever advantages they may so afford lo the companies or ihe public, they have been little, if at ail, referred to as entitled to be protected against the defendants’ competition. The argument has turned upon the nature and extent of the franchise given to the Camden and Amboy Railroad and Transportation Company by its charter and supplements. The exclusive rigid to have one line, however, until the state shall have authorized another, will not be affected by the nature of the franchise by which the two other lines were constructed or are used.

The incorporating act of the last mentioned company was passed February 4th, 1830. The words descriptive of or defining its franchise now in question, are contained in the second and eleventh sections of the act. By the second section, the company was authorized to have, enjoy, and exercise all the rights, powers, and privileges pertaining to corporate bodies, and necessary to perfect an expeditious and complete line of communication from Philadelphia to Yew York, and to carry the objects of the act into effect. By the eleventh section was defined the location across the state, of the railroad to form part of the through line. It was to run from the Delaware river, at some point or points between Cooper’s creek and Yewton creek, in the county of Gloucester, to a suitable point or points, to be by them determined on, upon the Raritan bay. It is from this original act that the complainants derive their franchise now relied on, and termed pure and simple in distinction from special and larger ones subsequently acquired. These larger ones were expressed in later enactments, and in consideration of certain payments and agreements by the company, it ,was agreed by the state that it should not be lawful at any time during the company’s charter, to construct without the company’s consent any other railroad in this state, which should be intended [446]

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Cite This Page — Counsel Stack

Bluebook (online)
23 N.J. Eq. 441, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pennsylvania-railroad-v-national-railway-co-njch-1873.