People v. Clark

53 Barb. 171, 1869 N.Y. App. Div. LEXIS 16
CourtNew York Supreme Court
DecidedJanuary 26, 1869
StatusPublished
Cited by2 cases

This text of 53 Barb. 171 (People v. Clark) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
People v. Clark, 53 Barb. 171, 1869 N.Y. App. Div. LEXIS 16 (N.Y. Super. Ct. 1869).

Opinion

By the Court, Balcom, P. J.

The commissioners, Clark, Smith and Lewis, were appointed by the county judge of Madison county, pursuant to section one, of the act of 1866. (Laws of 1866, vol. 1, p. 874.) The second section of that act authorized the commissioners to borrow, on the faith or credit of the town of Lebanon, such sum of money as a majority of the tax paying inhabitants of said town should fix upon by their assent in writing, not exceeding in amount thirty per cent of the assessed valuation of the real and personal property of said town as shown by the assessment roll- for the year 1865, of such town, at a rate of interest not exceeding seven per cent, for a term not exceeding thirty years, and to execute bonds therefor under their hands and seals. But the commissioners were for[174]*174'•jSÍSS’fn by the same section to issue such bonds unless dim sent" should first be obtained, in writing, of a. majority of the tax payers of said town owning or representing more than one half of the taxable property of said town, assessed and appearing upon the assessment roll of the year 1865.

The written consent of the requisite number of the tax payers of said town was obtained for said commissioners . to borrow on the faith or credit of said town, as aforesaid, the sum of $125,000.

By section three of said act the commissioners were authorized to dispose of said bonds and invest the proceeds in the stock of the Hew York and Oswego Midland Railroad Company; and subscribe' for such stock; and such stock, when scrip therefor should be issued, would belong to said town; and such town would acquire the same rights and privileges as other stockholders of said company.

This action would not have been brought if the aforesaid consent, of a considerable portion of the tax payers of said town, had not contained the following condition, viz: “ This consent is made and signed upon the express condition that said road (meaning the Hew York and Oswego Midland Railroad) shall be located and constructed upon a line running through or near the village of Eaton; thence southerly through the towns of Lebanon and Smyrna.” A sufficient number of the tax payers of Lebanon did not sign an unconditional consent to authorize the commissioners to bond said town and subscribe for stock in said railroad company, pursuant to the act of 1866. (Sufra.)

It is claimed by the plaintiffs’ counsel that the above mentioned condition made the consent of the tax payers of the town of Lebanon invalid, and that no bonds of said town could be legally issued upon such consent.

Several objections are raised by the defendants’ coun[175]*175eel touching the right of the plaintiffs action; and they insist that the consent c of the town was valid, notwithstanding the condition complained of.

The road was located in accordance with said condition.

It is alleged in the complaint that the commissioners of the town of Lebanon have executed and issued, and were executing and issuing, $25,000 or more of the bonds of said town, and have delivered or were about to deliver the same to the said Hew York and Oswego Midland Railroad Company, or to the president or directors thereof, and to take in exchange therefor the stock of said company, or to otherwise dispose of the same. And that the bonds and such of them as have been so delivered are still in the hands of said company, its president, directors or some officer or agent of said company.

It does not appear by the appeal papers that the summons in the action has been served on said railroad company, or that such company has appeared in the action. That such company has not been brought in as a defendant is conceded in the brief of Mason & Underhill, on the part of the plaintiffs, and also in the brief of Merritt & Prindle, on the part of the commissioners. The action being for an alleged wrong, said railroad company is not a defendant, so as to be bound by the proceedings or judgment in the action, by merely being named as a defendant in the summons and pleadings. (See Robinson v. Frost, 14 Barb, 536; Horton v. Payne, 27 How. Pr. 374.) The company has such interest in the controversy that it is a necessary party defendant to the action. (See Code, § 122; Shaver v. Brainard, 29 Barb. 25.)

The defendants’ counsel insist that the action cannot be maintained in the name of the people by their attorney-general.

It it provided by the Revised Statutes that “ it shall be the duty of the attorney-general to prosecute and defend [176]*176all actions in the event of which the people of this state shall be interested.” (1 R. S. p. 487, § 1, 5th ed.)

Judge Davis, in delivering the opinion of the Court of Appeals, in The People v. Booth, (32 N. Y. Rep. 397,) said: “ The people of the state, like all other parties to actions, must show an interest in the subject matter of, the litigation, to entitle them to prosecute a suit, and demand relief.” ■

The remedy to prevent the erection of a purpresture and nuisance, in a bay or navigable river, is by injunction at the suit of the people by their attorney-general. For all the people of the state are interested in the question, and • have the right to use all bays and navigable rivers within the state. (See People v. Vanderbilt, 26 N. Y. Rep. 287; S. C. 28 id, 396.) And I think the attorney-general may maintain an action in the name of the people of the state to prevent the obstruction of a public- highway, which all the people have the right to travel, because all of them have an interest in such highways. (See Davis v. The Mayor, &c. 4 Kern. 506.)

All the people of the state are not interested in the question whether the taxable inhabitants of the town of Lebanon shall issue bonds of their town to aid in the, construction of the Hew York and Oswego Midland Eailroad. And this action cannot be maintained by them, by their attorney-general, unless it is authorized by the statute, which declares that “ upon a civil action being commenced by the attorney-general in the Supreme Court, it shall have power to restrain by injunction any corporation from assuming or exercising any franchise, liberty or privilege, or transacting any business, not allowed by the charter of such corporation; and in the same manner to restrain any individuals from exercising any corporate rights, privileges or franchises not granted to them by any law of this state.” (3 R. S. 762, § 39, 5th ed.)

Towns aré bodies corporate for certain purposes. (1 R. [177]*177S. 812, §§ 1, 2, 5th ed.) But they have no charters as corporations,, within the meaning of the statute above quoted.

It is claimed by the plaintiffs’ counsel that the defendants Clark, Smith and Lewis, as commissioners of the town of Lebanon, are exercising corporate rights, privileges or franchises not granted to them by any law of this state, by taking measures to issue bonds of the town of Lebanon, and in subscribing for stock for such town in the Hew York and Oswego Midland Railroad Company, &c.

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Related

City of Atchison v. State
34 Kan. 379 (Supreme Court of Kansas, 1885)
People v. Ingersoll
67 Barb. 472 (New York Supreme Court, 1873)

Cite This Page — Counsel Stack

Bluebook (online)
53 Barb. 171, 1869 N.Y. App. Div. LEXIS 16, Counsel Stack Legal Research, https://law.counselstack.com/opinion/people-v-clark-nysupct-1869.