Majority
Headnote
Words and phrases in a statute, conferring upon a corporation its franchises and special privileges, which are ambiguous or admit of different meanings, must receive that construction which is most favorable to the public.The defendant was organized in pursuance of the act, chapter 303 of the Laws of 1858, under the General Railroad Act, and it was required to complete its road through the streets mentioned in the first section of the act within eighteen months from the passage of the act. It constructed its road within.the time mentioned, upon the route specified, a distance of about four miles and a half. In April, 1860, the act, chapter 461 of the Laws of that year was passed, section 1 of 'which is as follows:
“ It shall be lawful for the Broadway Railroad Company of Brooklyn, organized by virtue of the act hereby amended, to lay down a single line of railroad track, commencing at their present track at South Sixth street, through Eighth street, to and across Broadway to Ross street, and double line of rail road tracks through said Ross street and Bedford avenue to Fulton avenue; 'and whenever Hostrand or Rogers avenue' shall have been legally opened, graded and paved, to extend the line of double tracks through Fulton and either FTostrand or Rogers avenue to the village of Flatbush; also, to lay a single line of railroad track, commencing at then* present track on South Sixth street, through Eleventh street to south Fifth street, through Squth Fifth street to Montrose avenue, through said avenue to Morrell street, through Morrell to Johnson street, through Johnson street to intersect the track of said company on Broadway, and a double line of tracks from Morrell street through Johnson to its intersection with tire Cypress Hills planlc-road, and through and over said plank-road to Cypress avenue; and whenever Cypress avenue shall have been legally opened and graded, to extend a double or single
And section 3 of the act is as follows: ■
“ Said railroad company shall complete the tracks upon the said several streets and avenues or roads named in the first section of this act on or before the first day of October, eighteen hundred and sixty-one, or as soon thereafter as the said streeets and avenues within said city shall have been opened, graded and paved, and upon any plank-road or roads, whenever the eonsent of the plank-road companies shall have been obtained.”
The defendant accepted the act and the franchises and rights thereby given, and assumed the obligations thereby imposed. At the time of the passage of the act of 1860 Eleventh street from South Sixth street to South Fifth street, South Fifth street from Eleventh street to Montrose avenue, Montrose avenue from South Fifth street to Morrell street, Morrell street from Montrose avenue to Johnson street, and Johnson street from Morrell street to Broadway, were city streets, opened, graded, and paved, and traveled and in use as such. The aggregate length of such streets was about one mile and a half. In the fall of 1860, the defendant constructed a single line of railroad tracks through such streets and began to operate the same with cars on the 1st day of March, 1861; and so it continued until in the year 1816, when it removed its tracks from those streets and it has never since maintained or operated any road therein. In 1887 the defendant com
It thus appears that during the twelve years prior to the commencement of this action the defendant did not maintain or operate a railroad upon any of the routes mentioned in the act of 1860, and that during twenty-eight years prior to the commencement of this action it did not attempt to build or maintain any railroad upon any of the routes mentioned in that act except as above mentioned.
The claim on the part of the plaintiff is that for the non-user of the franchises conferred upon the defendant by the act of 1860, and for its neglect to perform the obligations assumed by it under that act, it forfeited all its rights and franchises under the act; and so it was held at tile Special Term.
The defendant claims that it was not bound to build its road upon any one of the routes mentioned in the act until the streets upon such route were opened, graded and paved so that the road could be constructed upon the whole route and, therefore, that it had not forfeited any of its franchises; and so the General Term held, and reversed the judgment of the Special Term.
The General and Special Terms differed • as to the construction of the act of 1860; and as the real inerits of the controversey between the parties depend upon the construction of that act, we will, in the main, coniine our attention to that.
As the judgment of the General Term does not state that the reversal was upon the facts, we must' presumé it to have been solely upon the law, and not upon the facts, or in the exercise of any discretion. (Code, § 1338.)
The act of 1860 was obtained by the defendant, or in its interest. It may be assumed that the language therein contained was the language chosen by it to define the rights and franchises which' it sought by the act. As the act conveyed to it franchises and special privileges, its language must be con
A few other facts must now be stated. Bot only were the streets above mentioned upon which the railroad was built in 1860 opened, paved and graded, but in that year Eighth street, from South Sixth street to and across Broadway to Boss street, and Boss street to Bedford avenue, and Bedford avenue to Fulton avenue were opened, graded and paved, and the aggregate length of these streets was about two miles. Fulton avenue, from Bedford avenue to Bostrand avenue was opened, graded and paved prior to 1855; Bostrand avenue, from Fulton avenue to the city line and the village of Flatbush was opened
It was the manifest intention of the act that a road should be built upon the second route mentioned therein, to wit: through Eleventh street around to Broadway, and a double line of tracks from Morrill street to the Cypress Hills plank-road, and through and over the plank-road to Cypress avenue.
Whenever White, Bogart or Thames streets, and Central or Knickerbocker avenue should have been legally opened and graded the company Avas authorized to lay a single or double line of railroad tracks through and over the same to the city line. But as these streets Avere not opened or graded it is quite clear that the defendant was not bound to build its road upon that route. But all these routes Avere part of an entire railway system. They were really branches of the BroadAvay road, the trunk line of the defendant. The third route above mentioned was evidently intended to be' operated in connection with a portion of the second, route mentioned, and the cars thereon were expected to reach BroadAvay and other parts of the city OArer that route. If that route (the third) had been the only one upon which the defendant was authorized to build its road
So if we look at section 1 of the act of 1860 alone we find certain routes upon Avhicli roads could be presently built, and certain routes upon Avliich roads were to be built when streets had been opened, graded and paved. Upon the former routes the defendant Avas bound by the terms of that section, standing alone, to build roads within a reasonable time. Upon the latter routes it was bound to build roads Avlien the conditions existed which are reférred to in the section.
But the defendant relies upon section 3 of the act, and claims that that limits the times when it was bound to exercise its franchises and build and complete its roads, and the proper construction of that section is the main question in this case. ‘The language of that section leaves no doubt that the legislature intended that the tracks upon some of the streets and avenues should be laid before the 1st day of October, 1861, and effect should, if possible, be given to that intention. We think it Avas the intention of the legislature, by the first clause of the'section, to provide that roads upon the portions of the routes which Ave have above mentioned, Avliere the streets were opened and graded, and some of them also paved, and more or less built upon, should be at once constructed and completed by the time mentioned, and the other clause, providing for the construction of roads upon streets “ as soon as the said streets and avenues shall have been opened, graded and paved,” has reference to streets Avliich were not then opened, graded and paved which are mentioned in the first section, to wit: Cypress,
The argument on the part of the plaintiff to show that the claim of the defendant, that it was not bound to build upon any route until it was entirely “ opened, graded and paved ” is untenable, finds some support in the provision in this section that the defendant should build upon any plank-road whenever the consent of the plank-road company could be obtained. There was no other limit to the time of building its road upon that route, and it was bound, as we have before said, to use reasonable diligence to obtain such consent, without unnecessary delay.
It is said, on behalf of the defendant, that it would not have been profitable to build roads upon these various routes until each route was opened to the final termination thereof, as provided in section 1. But even if it were absolutely certain that the defendant could have made no profit by building the roads to the extent which we have above indicated, yet that is no answer to the proposition that it is the duty of the defendant to build them. It applied for this act and accepted the franchises, and thus took upon itself the obligation and burden to' exercise the franchises for the public benefit. If these routes
It is said, on behalf of the defendants, that by the act chapter 905 of the Laws of 1867, it was absolutely prohibited from building its railroad upon Bedford avenue, and that such prohibition is an answer to its default in reference to that avenue. But at the time of the passage of that act, it had been in default for upwards of five years, and that default was a cause of forfeiture. That route, however, is not now very important. If it is true, as said by the defendant, that the provisions of the last-named act prevent the building of the road, then a judgment forfeiting any franchise it had there can do it no harm. The scope of that act is not very certain and does not extend to the whole route, and, therefore, it was quite proper that that route should be included in the condemnation visited upon the defendant by the judgment of the Special Term.
By the act, chapter 598 of the Laws of 1875, it was enacted that any railroad company which had been unable, from any cause, to construct its railroad within the period specified in its charter should have its time for construction extended for two years, and that “ failure by any railroad company to construct its railroads heretofore, shall not cause a forfeiture of its corporate powers,” and by chapter 350 of the Laws of 1879 a further extension of two years was given in substantially the same language as was also given by the act chapter 405 of the Laws of 1882; but in the second section of the latter act it was. provided that the provisions of the act should not apply to any corporation or company that had already commenced the construction of its road. The latter act, therefore, clearly did not-apply to this defendant, for it had long before constructed its. main line, and had also commenced the construction of the
But these acts do not apply to this defendant for another reason. It does not appear that it was unable from any cause to construct roads, which we hold it was bound to .construct under the act of 1860. These acts were not passed to aid corporations which willfully and intentionally omitted to construct •their roads, but to aid such corporations as were unable from some cause to construct them. Ror was the act of 1875 intended for a corporation which, at the time of Its passage, was in default for not building its road within the time limited in its charter. It expressly applied to corporations which may have been unable, from any cause, to construct their roads within the times limited in their charter, or articles of association; and the extension was for a further term of two years beyond the time thus limited, and not an extension of two years from the time of the passage of the act. The further extensions in the subsequent acts were simply for a further term of two years beyond the times theretofore limited. So that if these three acts could be held to apply to the defendant their combined effect at most, would be to extend the time for the construction of its roads for six years from the first day of October, 1861.
But even if we were to hold that these extensions applied to this company so that it was not in default until two years after the passage of the act of 1882, then for several years thereafter without any reason whatever, so far as appears in this record, it had omitted to exercise its franchises and was liable to the condemnation visited upon it by the judgment of the Special Term.
The power of the court to declare the franchises of the defendant forfeited for non-user is undoubted. (Code of Civil Procedure, § 1799; People v. Turnpike Co., 23 Wend. 204 ; People v. Troy House Co., 44 Barb. 625 ; People v. Railroad Co., 53 id. 98; Matter of Jackson M. Ins. Co., 4 Sandf. Ch. 559 ; People v. Dispensary Society, 7 Lansing, 304; Ward v. Insurance Co., 7 Paige, 294; Conrad v. Trustees of Ithaca, 16 N. Y. 158 ; People v. Albany, etc., R. R. Co., 24 id. 261 ;
This defendant should not stand in the streets of Brooklyn claiming franchises which for many years it refused to use, and thus bar oxtt other railroads which might be constructed for public convenience and accommodation. If these franchises are of no value it is not harmed by the judgment of the Special Term. If they are valuable and of growing worth it should have discharged its duty to the public by using-them.
We are, therefore, of opinion that the judgment of the General Term should be reversed and that of the Special Term, affirmed, with costs. . <?
All concur, except O’Brien, J., taking no part.
Judgment reversed.
Cases cited
- Conrad v. Trustees of the Village of Ithaca 16 N. Y. 158 at 163, 164 p. 31, p. 44
- Denike v. New York & Rosendale Lime & Cement Co. 80 N. Y. 599 p. 31
- People v. Northern Railroad 53 Barb. 98 at 103, 122, at 102, 103 p. 31, p. 32
- People v. Troy House Co. 44 Barb. 625 p. 31, p. 44
- Conro v. Gray 4 How. Pr. 166 p. 31
- Burtis v. Buffalo & State Line Railroad 24 N. Y. 269 p. 31
- People ex rel. Twenty-third Street Railroad v. Commissioners of Taxes 95 N. Y. 554 p. 31
- Sprague v. Birdsall 2 Cow. 419 p. 32
- United States v. Union Pacific Railroad 91 U. S. 72 p. 32
- Fertilizing Co. v. Hyde Park 97 U. S. 659 p. 32, p. 37
- Hankins v. Mayor of New York 64 N. Y. 18 p. 32
- McManus v. Gavin 77 N. Y. 36 p. 32
- People v. Palmer 109 N. Y. 110 p. 32
- People ex rel. Hatzel v. Hall 80 N. Y. 117 p. 32
- Jackson, ex dem. Reeves v. Topping 1 Wend. 388 p. 33
- Hasbrook v. Paddock 1 Barb. 635 p. 33
- In re Union Elevated Railroad 113 N. Y. 275 p. 33
- Mumma v. Potomac Co. 8 Pet. 281 p. 33
- Auburn & Cato Plank Road Co. v. Douglass 9 N. Y. 444 p. 37