Porto Rico Railway, Light, & Power Co. v. Amador

11 P.R. Fed. 170
CourtDistrict Court, D. Puerto Rico
DecidedJanuary 27, 1919
DocketNo. 1011
StatusPublished

This text of 11 P.R. Fed. 170 (Porto Rico Railway, Light, & Power Co. v. Amador) is published on Counsel Stack Legal Research, covering District Court, D. Puerto Rico primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Porto Rico Railway, Light, & Power Co. v. Amador, 11 P.R. Fed. 170 (prd 1919).

Opinion

HAMILTON, Judge,

delivered tlie following opinion:

The bill in this case was filed May 20, 1918, by a street car company against some forty-four owners or operators of automobiles between the main plaza in San Juan and stop 25 in San-tnree, alleging that the latter were irresponsible financially, and conducted what is called a jitney business, and were without a franchise, carrying the public for hire along the same or a paral-, lei route with the plaintiff, which had constructed its plant at an expense of a million and a half dollars under franchise granted by the Executive Council of Porto Rico in 1911, and duly approved by the governor and by the President of the [172]*172United States. Further allegations develop the charge that the. defendants are conducting their business in a reckless manner, obstructing the highways, and causing a loss of from three tb four hundred dollars a day to plaintiff by their competition. The bill seeks an injunction against the defendants for so carrying on the business of common carriers in competition with plaintiff. Answer on oath being waived, the defendants on November 22 filed a short answer denying seriatim the different statements of the bill, except so far as they relate to parties and the business of the plaintiff and defendants, and further denying the jurisdiction of the c'ourt in virtue of domicil of the parties and nature of the cause of action, and because the bill states no matter of equity, and prays no preliminary injunction.

Upon the cause being set down for hearing upon sufficiency of the answer, the only points urged are those as to the necessity of the defendants obtaining a franchise and the right of the plaintiff to proceed against them for failure to do so.

1. It is contended by the defendants that their business is that of common carrier, which is a common-law right, and does not depend upon statute. It has been held that the business of a common carrier is general and has its foundation in the common law, needing in itself no legislative authority, that it is not a franchise, and that even a foreign corporation may exercise a carrier business and like any other citizen of the state use the highways, this being a matter of common right. McGregor v. Erie R. Co. 35 N. J. L. 89, 96. A railroad, on the other hand, for public use is publici juris, and cannot be legally erected without legislative permission, and railroad operation is therefore regarded as a franchise requiring a specific grant from the legislature. Raritan & D. B. R. Co. v. Delaware & R. Canal Co. [173]*17318 N. J. Eq. 546. A public ferry is likewise a franchise, consisting not merely in the building of a ferry and boats, but in running them. It is, however, very difficult to draw the line to which the right as a carrier would extend ancl beyond which it might be regarded as an invasion of a franchise. McGregor v. Erie R. Co. supra.

This therefore brings up for consideration what is meant by a franchise. Leaving aside general uses of the word, it is essentially a special privilege conferred by the government on an individual, which does not belong to citizens of common right. 19 Cyc. 1452. Blackstone, expressing it under a monarchical government, defines a franchise as a royal privilege or a grant of the King’s prerogative existing in the hands of a subject. 2 Bl. Com. 37. This has been substantially adopted, the expression being adapted to a republican form of government. It is pro’tanto the exercise of the sovereign power of a state subsisting in a person or a corporation by a grant from the state. Rochester, H. & L. R. Co. v. New York, L. E. & W. R. Co. 110 N. Y. 128, 17 N. E. 680. Or, with reference specially to the method of acquisition, it is defined as a privilege of a public nature which cannot be exercised without a legislative grant. 19 Cyc. 1454, notes.

It is to be distinguished from the police supervision which a state may' and indeed must exercise over all property and business, and may and must enforce over the exercise of franchises themselves when granted. Thus banking is a common-law right, and not a franchise. International Trust Co. v. American Loan & T. Co. 62 Minn. 501, 65 N. W. 78, 632. Although the right to issue notes is a franchise. Ij). A franchise when granted is property, often of great value. Beekman v. Third Ave. R. Co. [174]*174153 N. Y. 144, 47 N. E. 277. A grant of a franchise presupposes a benefit to tbe public and an equal right on the part of every member of the public to participate in this benefit upon the terms prescribed by statute. Rhinehart v. Redfield, 179 N. Y. 569, 72 N. E. 1150.

There is no question that the crowding of the vehicles and the congestion of the public streets caused by a common carrier are subject to police regulation, but that is equally true of a public meeting, which is a constitutional right. The result seems to be therefore-that there is a common-law right on the part of anyone to use the streets to carry'passengers for hire, subject to proper police regulation. ' This would be true of a street railroad but for the fact that this railroad has to lay a permanent track in the public highway for the purpose of carrying -its passengers, which is unquestionably a franchise, as has been so construed from the beginning of railroads. We are confronted now by the situation that a street railroad with a large investment of money has to compete with common carriers using the same street but not requiring a permanent track, and, according to the allegation -of the bill, cutting into the earnings of the street railway itself; and yet a street railway requires a franchise, while at common law the -competing business does not.

2. This brings up the interesting question whether the common law as to franchises applies in Porto Rico. There is no question that Porto Rico is a civil-law community, having not only inherited the civil law of Spain, but in so many words readopted it in the revision of March 1, 1902, and the Organic Acts both of 1900 and 1917 provide, the latter in § 57: “That the laws and ordinances of Porto Rico now in force shall continue in force and effect.” There is a well-marked distinction in [175]*175all systems between .public and private law, but tbe Spanish Civil Code, in force in Porto Pico,- has not limited itself to private law. Tims §§ 327 and 328 provide, as follows:

Section 327. “Tbe following are things of public domain: These intended for public use, as roads, • canals, rivers, streams, and others of a like nature.”

Section 328. • “The property of public jise in Porto Pico and the towns thereof comprises the Insular and local roads, the squares, streets, fountains and public waters, walks, and public works for general use, paid for by the said towns or from the Treasury of Porto Pico . . . [Compilation 1911, §§ 3397, 3398.]

Substantially the same provisions prevail in Louisiana as part of the Code Napoleon readopted there. Indeed it may be questioned whether there is any serious difference between the common law and the civil law as to ultimate ownership of such public places.

The question at issue in the case at bar.is not as to the ownership of the land of the Carretera or public highway, but as to the right of user of that Carretera by individual citizens. If there be any difference between the civil law and common law in this regard, it is in connection with the political government, the control to be exercised by the state, whenever the sovereignty may be held to reside.

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Bluebook (online)
11 P.R. Fed. 170, Counsel Stack Legal Research, https://law.counselstack.com/opinion/porto-rico-railway-light-power-co-v-amador-prd-1919.