State ex rel. Attorney-General v. Pennsylvania & Ohio Canal Co.

23 Ohio St. (N.S.) 121
Ohio Supreme Court·Decided December 15, 1872·Published

Opinion

McIlvaine, J.

An information in the nature of a quo warranto was filed in this case, on the 8th day of March, 1869, against the Pennsylvania and Ohio Canal Company, by its corporate name, complaining that, without any warrant, grant, charter, or legal authority, the defendant had assumed to be a body politic and corporate, and to use and exercise the following liberties, privileges, and franchises, to wit, that of suing and being sued by and under the name of the Pennsylvania and' Ohio Canal Company; of constructing and maintaining a navigable canal from a point on the Ohio canal, in Akron, Ohio, to a point near the city of Pittsburg, in the State of Pennsylvania, and of exercising the right and power of eminent domain; and also the right and power of leasing, selling, and abandoning such portion or portions of its canal, as, in the opinion of the defendant, might be for its interests; concluding with a prayer for process against the defendant, to the end [125]*125that it might be made to answer to the State of Ohio, by what warrant it claimed to use and enjoy the liberties, privileges, and franchises aforesaid.

The defendant pleaded, as and for its warrant and charter for claiming the franchise to be a body politic and corporate, and the right to sue and be sued by its corporate-name, and the right to construct and maintain its canal, and the right to exercise the power of eminent domain, a certain statute, passed by the general assembly of the State of' Ohio, on the 10th day of January, 1827, entitled “an act to incorporate the Pennsylvania and Ohio Canal Company,” and certain other statutes of the same state supplementary thereto, and also a certain statute of the State of Pennsylvania, passed by the general assembly of the commonwealth' of Pennsylvania, on the 14th day of April, 1827, entitled an act to incorporate the Pennsylvania and Ohio Canal Company,” together with certain other statutes of said, commonwealth supplementary thereto; and for its warrant, and authority to lease, sell, or abandon such portion or portions of its canal, as in its opinion might be for its interests,, the defendant pleaded a special act of the general assembly of the State of Ohio, passed March 20, 1867, entitled “an act to authorize the Pennsylvania and Ohio Canal Company to abandon, lease, or sell any portion or portions of' said canal.”

The relator, by his replication, admitted the corporate existence of the defendant, and its corporate powers to sue- and be sued, etc., to construct and maintain a canal, etc.,, and to exercise the power of eminent domain, as granted by the act of the general assembly of the State of Ohio,, passed January 10, 1827, and the acts supplementary thereto, and as pleaded in the defendant’s plea; but denied the right and power of the defendant to sell, lease, or abandon any portion or portions of its canal under and by virtue of ‘ said statute of March 20, 1867, averring that said act was in conflict with the provisions of the constitution of the state, and therefore void.

The relator also averred, in his replication, that the de[126]*126fendant had failed to keep its canal in repair for a period of more than twelve months at one time, both before and after the passage of the act of March 20, 1867, in violation of the provisions and conditions of said act of January 10, 1827, and the acts supplementary thereto, and that by reason thereof, the defendant had ceased to be a corporation and had forfeited its charter.

The relator further averred that the defendant had abandoned certain portions of its canal, and leased other portions, without legal authority to do so, and in violation of its charter, and thereby its charter had become forfeited to the State of Ohio; concluding his replication with a prayer for judgment of forfeiture and dissolution, etc.

Upon this state of pleadings, a question of practice arises, which has been considered by the court, to wit: "Whether it is competent for the relator, in his replication to the defendant’s-plea, to set up a cause of forfeiture and demand a judgment of dissolution against the defendant — there having been no such complaint made or relief demanded in the information.

In considering this question, we have come to the following conclusions : The office of an information in the nature of a quo warranto, is not to tender an issue of fact, but simply to call upon the defendant to show its warrant or charter for exercising the privileges and franchises named; and when filed against a corporation, by its corporate name, it nfust be regarded as admitting the corporate existence of the defendant defacto; but its legal right to exist is not thereby admitted, nor its right to exercise any other franchise specified in the information. When, therefore, a charter or warrant, regular upon its face, is pleaded by the defendant, it is competent for the relator to show, by replication, that its charter has been forfeited by the act of the defendant, or to show that the charter does not, in fact or in law, confer upon the defendant the particular franchise in dispute. And when a cause of forfeiture is thus shown, the state is entitled to a judgment of ouster and dissolution; but if it only appears that the charter does not confer upon [127]*127the defendant the right to exercise the particular franchise, then judgment of ouster as to such franchise only can be rendered. S. & C. 1271; The King v. City of London, 8 St. Trials, 1039; The King v. Amery, 2 Durnf. & East, 515; People v. Richardson, 4 Cowen, 97; Same v. Bank of Hudson, 6 Cowen, 217; Same v. R. & S. Railroad Co., 15 Wend. 118.

In .regard to the facts of the case, we find that the defendant was incorporated in the year 1827, by a special act of the general assembly of the State of Ohio, and by a special act of the general assembly of the commonwealth of Pennsylvania, for the purpose of constructing and maintaining a navigable canal, from a point on the Ohio canal, at Akron, Ohio, to the waters of the Mahoning river, and thence to meet or intersect the Pennsylvania or Chesapeake and Ohio canal at or near the city of Pittsburg, Pennsylvania, etc.

By the terms of the charter granted by the State of Ohio, it was provided that, “if the corporation hereby created shall not, within ten years from the taking effect of this act, finish and put in operation the canal hereby contemplated, or, if after the completion thereof, they shall fail, for twelve months at one time, to keep the same in repair, then, or in eithér case, the said corporation shall thenceforth forever cease, and their charter be forfeited.” The time for completing the canal was afterward extended to the 31st of December, 1845, and within the time thus extended and limited the canal was completed.

From the time of its completion to the year 1865, the canal was maintained in navigable condition, but from the year 1865 to March 20, 1807, it was suffered to be and remain out of repair, and unnavigable at several points along the line, and especially along the central portions thereof.

On March 20, 1867, the general assembly of the state, by a special act, in terms, authorized the defendant to abandon, lease, or sell the whole or any part of its canal, in the manner and upon the conditions therein prescribed. And, for the purpose of enabling the defendant to avail itself of the provisions of this act, the canal was divided into six sections — one of the conditions being that the canal might [128]

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State ex rel. Attorney-General v. Pennsylvania & Ohio Canal Co., 23 Ohio St. (N.S.) 121 (Ohio 1872).

23 Ohio St. (N.S.) 121 (State ex rel. Attorney-General v. Pennsylvania & Ohio Canal Co.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.