Virginia Cañon Toll Road Co. v. People ex rel. Vivian

22 Colo. 429
CourtSupreme Court of Colorado
DecidedApril 15, 1896
StatusPublished
Cited by19 cases

This text of 22 Colo. 429 (Virginia Cañon Toll Road Co. v. People ex rel. Vivian) is published on Counsel Stack Legal Research, covering Supreme Court of Colorado primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Virginia Cañon Toll Road Co. v. People ex rel. Vivian, 22 Colo. 429 (Colo. 1896).

Opinion

Mr. Justice Campbell

delivered the opinion of the court.

A toll road is a public highway, differing from ordinary public highways chiefly in this, that the cost of its construction in the first instance is borne by individuals, or by a corporation, having authority from the state to build it, and further in the right of the public to use the road after its completion, subject only to the payment of toll. The acceptance by the corporation of the franchise to construct the road and the operation thereof constitute a dedication of the same as a public highway. The right of a corporation, or of an individual, to exact tolls is not of common right, and, in this country, does not exist in the absence of a grant from the legislature. This power of collecting tolls is a part of the sovereign power of the state, which the legislature may delegate in return for a supposed public good, and the grant of the power may be conferred with any restrictions which the [432]*432legislature may see fit to impose, and the grantee takes subject to all such limitations, and the grant of the right is the equivalent of, or compensation for, the cost of building and maintaining the road. 2 Waterman on Corporations, sec. 419; Angeli & Ames on Corps., sec. 4; Commonwealth v. Wilkinson, 16 Pick. 175; Wood et al. v. Truckee Turnpike Co., 24 Cal. 474; Craig v. The People, 47 Ill. 487.

If the defendant company have the power to exact tolls, it got that power either as the result of a purchase of such franchise from the Wagon Road Company in connection with a purchase of the latter’s tangible property, or such power was given to the defendant as necessarily incident to its own organization as a corporation, and as a result of its act of incorporating.

While the primary franchise of an incorporated company to be a corporation can never be alienated without legislative permission, yet what are termed the “ secondary franchises ” of a corporation, such as the right of a railroad company to collect fares, or of a toll road company to exact tolls, for services performed, may, under some of the authorities, be transferred in connection with an assignment of the tangible property of the corporation, when that property can be fully enjoyed by the grantee only by an exercise of such secondary franchise. Miners’ Bitch Co. v. Zellerbach et al., 37 Cal. 543; s. c., 99 Am. Dec. 300; State ex rel. v. Irrigating Co., 40 Kan. 96.

. It has been held, however, and in the Kansas case cited it was assumed, that without express legislative consent a corporation charged with the performance of public - duties, or possessing powers which are given in return for some publici good, cannot dispossess itself of those franchises, or of that property, necessary to enable it to discharge those duties. 2 Morawetz on Corps., secs. 924, et seq., 930, 934; 1 Beach on Private Corps., sec. 362, et seq.; 2 Beach, sec. 389, et seq.; 4 Thompson on Corps., secs. 5355, 5373, 5374.

But if we assume that the Wagon Road Company might alien its franchise to collect tolls, and that the defendant [433]*433Toll Road Company now has, by purchase, all the tangible property of the former company, and also the franchise to exact toll which its grantor possessed, it must logically follow that, as the result of such acquisition, the grantee company has only the same powers which its grantor had, and no different or enlarged powers. In other words, whatever limitations or burdens existed against the grantor, still exist as against the grantee. The inquiry then is, what is the extent of the powers of the Wagon Road Company?

Under the territorial act of incorporation the Wagon Road Company’s existence as a corporation expired in 1885. It was then legally dissolved as a corporation, and was thereafter incapable of exercising its franchise to collect toll. Neither could it, by a conveyance made during its corporate life, impart to any other corporation, or to a natural person, the power to continue the exercise of its corporate franchise after that franchise itself expired by limitation of law. The limitation in the general incorporation act of the territory of twenty years as the term of existence of the company operates in the same way as though by express words the exercise of the power to collect tolls was limited to twenty years. Elliott on Roads & Streets, 83; 27 Am. & Eng. Ency. of Law, 324, et seq.

But plaintiff in error insists that its property is valuable only in case it has the right to collect tolls ; and, therefore, that such use of its property is, of itself, a property right, and unless there is some way whereby it can enjoy this use of its property after its corporate life is ended, practically it is deprived of its property without due process of law.

The argument proceeds upon a false premise. In the eye of the law, the toll road was dedicated by its owner as a public highway. While in one case (People v. N. & S. P. R. Co., 86 N. Y. 1) it was held that if a private corporation owns the fee on which the road exists, the public does not acquire the right to use the way upon the expiration of the charter (which decision has been said to be contrary to the weight of authority, — Elliott on Roads & Streets, 54), yet where the [434]*434corporation has only an easement, as is the case here, and not the fee, the authorities are unanimous that upon the expiration of the charter the way becomes a public way. 27 Am. & Eng. Ency. of Law, supra, and cases cited.

Once a highway, always a highway, until vacated by the proper authorities, is the general rule. The easement in, or the right to pass over, the roadway which the corporation laid out, belongs to the public, subject to the necessity of paying tolls only for such length of time as the corporation exists. The contract between the state and the corporation contained in the charter, or resulting from the act of incorporation under the general laws, is that the corporation shall possess during its corporate life the power of collecting tolls, which is regarded as a compensation, and a full equivalent, for the cost of construction and operating the road. The corporation accepts the grant subject to this condition, and supposing, at least, that the business will prove remunerative.

This right to collect tolls not belonging to the corporation either as a matter of common right, or for an indefinite time, as a grant from the legislature, but for such length of time as the corporation itself is permitted to do business, remains the property of the company only until its dissolution or expiration of its charter, and, after that, is neither the property of the corporation nor of its stockholders, but reverts to the state. This property does not, therefore, like the tangible property of a corporation, pass to its stockholders, subject to the rights of the creditors, for the obvious reason that the franchise as originally granted was limited in time to twenty years.

It is no answer to this proposition to say that the corporation is deprived of that which is valuable, for the corporation is deprived only of that which, by implication, it agreed to relinquish upon the termination of its corporate existence. If the rule were otherwise, the result would be that a toll road company which, under our statute, is limited to twenty years, might indefinitely prolong its existence and perpetuate its franchises, contrary to the express provision of section 11 [435]

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Ski Time Square Condominium Ass'n v. Ski Time Square Enterprises
119 P.3d 588 (Colorado Court of Appeals, 2005)
City of Thibodaux v. Louisiana Power & Light Co.
126 So. 2d 24 (Louisiana Court of Appeal, 1960)
Lillie Boman v. Birmingham Transit Company
280 F.2d 531 (Fifth Circuit, 1960)
State of Ga. v. Toll Bridge Authority
82 S.E.2d 626 (Supreme Court of Georgia, 1954)
Hamill v. Hawks
58 F.2d 41 (Tenth Circuit, 1932)
Day v. City of St. Augustine
139 So. 880 (Supreme Court of Florida, 1932)
Hamill v. Hawks
50 F.2d 628 (W.D. Oklahoma, 1931)
City of Pineville v. Pineville Bridge Co.
200 S.W. 659 (Court of Appeals of Kentucky, 1918)
Omaha Electric Light & Power Co. v. City of Omaha
179 F. 455 (Eighth Circuit, 1910)
Oregon v. Portland Gen. Elec. Co.
95 P. 722 (Oregon Supreme Court, 1908)
Mercantile Trust Co. v. City of Denver
161 F. 769 (D. Colorado, 1908)
State ex rel. Hines v. Scott County Macadamized Road Co.
105 S.W. 752 (Supreme Court of Missouri, 1907)
Lyons & Estes Park Toll Road Co. v. People ex rel. Sprague
29 Colo. 434 (Supreme Court of Colorado, 1902)
Denver Union Water Co. v. Board of Co. Com'rs
1 Colo. N. P. 93 (Arapahoe County District Court, 1898)

Cite This Page — Counsel Stack

Bluebook (online)
22 Colo. 429, Counsel Stack Legal Research, https://law.counselstack.com/opinion/virginia-canon-toll-road-co-v-people-ex-rel-vivian-colo-1896.