State ex rel. Vilter Manufacturing Co. v. Milwaukee, Burlington & Lake Geneva Railroad

92 N.W. 546, 116 Wis. 142, 1902 Wisc. LEXIS 285
CourtWisconsin Supreme Court
DecidedDecember 16, 1902
StatusPublished
Cited by16 cases

This text of 92 N.W. 546 (State ex rel. Vilter Manufacturing Co. v. Milwaukee, Burlington & Lake Geneva Railroad) is published on Counsel Stack Legal Research, covering Wisconsin Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State ex rel. Vilter Manufacturing Co. v. Milwaukee, Burlington & Lake Geneva Railroad, 92 N.W. 546, 116 Wis. 142, 1902 Wisc. LEXIS 285 (Wis. 1902).

Opinion

Winslow, J.

By this action of quo warranto the relators have challenged the right of the defendant corporation to hold and exercise the privileges attempted to be conferred upon it by the common council of Milwaukee by the ordinance of which an abstract appears in the statement of facts. The relator’s claim, in brief, is this: The defendant is a commercial railroad corporation organized under sec. 1820, Stats. 1898, and is not authorized by law to operate a street railroad. The ordinance in question is in fact a street railway franchise, and can only be legally granted to a street railway [149]*149corporation organized under sec. 1862, Stats. 1898. Tbe defendant by accepting such franchise by formal written acceptance, and by insisting upon its right to' hold and use the privileges granted by the ordinance, is unlawfully “holding” and “exercising” a franchise within the state, within the meaning of subd. 1, sec. 3466, Stats. 1898. On the other hand, the defendant claims that, while the ordinance in question has been termed a “franchise,” and is framed in language appropriate for a franchise, it is in reality simply a code of regulations made by the city in the exercise of its police powers ; not conferring any rights or privileges upon the defendant, but merely regulating the use of its right to build a railroad across or along any street, which right it obtains directly from the state by the provisions of subd. 5, sec. 1828, Stats. 1898.

The questions upon which the decision of the case depend may be stated as follows: (1) Is the ordinance in question an ordinance granting street railway franchises? (2) If so, can the defendant hold or exercise such franchises? (3) If not, can the relators invoke quo warranto as a remedy ?

1. As to the first question: The various provisions of the ordinance leave us no room to doubt that it is, in effect, an ordinance attempting to grant a franchise to operate an elevated street railroad in the city of Milwaukee. The fact that it is called a franchise, and that it is couched in terms frequently used in granting franchises, is not, of course, conclusive as to its character. Such terms might be used, and yet, if the provisions themselves were simply police regulations, they would not become franchises because they were so called. But, looking over the whole ordinance, it seems to us very clear that the term “franchise” was used advisedly. It bears nearly or quite all the marks usually borne by street railway franchise ordinances. The rights are granted to the defendant, its successors or assigns. It contemplates that almost the entire road within the city limits shall be con[150]*150structed over and along streets, many of which are much-used business streets, and some containing surface street railways. It also contemplates the construction of stations, stairways, and platforms in the streets for the accommodation of passengers. The provisions as to these stations, stairways, and platforms are elaborate, and seem to be framed with the idea that there will be numerous stations; and this is further made clear by the provision limiting the rate of fare between two points within the city of Milwaukee to five cents, and the provision that policemen, firemen, and members of the health department shall be carried free of charge within the city limits. Unless the supposed railway was expected to be to all practical intents and purposes a street railway with numerous stations, these clauses limiting fares within the city limits, and providing free carriage for city employees, would be absolutely nonsensical. Again, the ordinance provides that in return for the rights granted by the ordinance the company shall build bridges, which shall accommodate teams and foot passengers as well as its railroad, and perpetually furnish the power necessary for opening and closing the same. Here the city definitely proposes to exact from the company in return for its privileges an expensive service to be rendered to the city and its citizens. Whether these exactions could be legally made in the proper exercise of the police power it is not necessary to decide (State ex rel. Wis. Tel. Co., v. Sheboygan, 111 Wis. 23, 86 N. W. 657), but, in any event, they tend very strongly to- stamp the ordinance as an attempted franchise. We can come to no conclusion except that the ordinance is, and was intended to be, a grant of the right to build a street railway over streets and bridges in the city of Milwaukee, under the provisions of see. 1862, Stats. 1898.

2. The second question can be answered with little hesitation. It is very clear that the legislature did not intend that ordinary commercial railroads organized under sec. 1820, Stats. 1898, should be endowed with the power of accepting [151]*151street railway franchises under sec. 1862. The intention to keep the two classes of companies separate and distinct could scarcely be more clearly expressed than it has been by the statute. Street railway franchises can only be granted to street railway corporations formed under chapter 86, Stats. 1898, for the purpose of building and operating street railways. This is so plain, under the provisions of sec. 1862, sufra,, that we will spend no further time upon the question. Indeed, this proposition was not disputed by appellant’s counsel.

3. We thus come to the question whether the relators have chosen the proper remedy. Our statute provides (sec. 3466, Stats. 1898) that an action may be brought by the attorney general in the name of the state “when any person shall usurp, intrude into or unlawfully hold or exercise any public office, civil or military, or any franchise within the state,” and that such action may be brought by a private person on his own complaint when the attorney general refuses to act. It is alleged in the complaint in the present case that the attorney general, on due application to- him, has refused to act, and this is expressly admitted in the answer; hence it is clear that, if it appear by the answer that the defendant is a person usurping or unlawfully “holding or exercising a franchise within this state,” no defense to the action is shown. It was held in State ex rel. Att’y Gen. v. Portage City W. Co. 107 Wis. 441, 83 N. W. 697, that a private corporation is a “person,” within the meaning of this statute, and that a franchise to operate a system of public waterworks in a city, using the streets and alleys for that purpose, while not a corporate franchise in the sense that it is necessary to corporate existence, is still a franchise within the meaning of the section quoted, and may be annulled for cause by quo war-ranto proceedings. A street railway franchise is of the same nature as the franchise considered in the case just cited. While not a corporate franchise, it is a special privilege [152]*152granted by sovereign authority, and the state may always inquire into the title by which it is held, and render judgment of ouster if the party assuming' to exercise it has no title thereto. High, Extr. Rem. (3d ed.) § 648. It is well understood that there must be something more than a mere claim of the franchise or privilege in order to justify an action of quo warranto. There must be a usurpation or an unlawful holding or exercising of the franchise, as the statute indicates. Indeed, the very form of the ancient writ demonstrates this. It commanded the defendant to show by what right (quo warranto) he exercised the franchise, having no lawful grant thereof. The principle is well illustrated in Att'y Gen. v. S. & St. C. R. Co. 93 Wis. 604, 67 N. W.

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Bluebook (online)
92 N.W. 546, 116 Wis. 142, 1902 Wisc. LEXIS 285, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-vilter-manufacturing-co-v-milwaukee-burlington-lake-wis-1902.