Majority
Headnote
1. New York-. City — Consent Required to Confer Franchise upon Gaslighting Corporation can be Given only by Municipal Assembly. Under the provisions of the Greater New York charter (L. 1897, ch. 378), the consent that is required by section 61 of the Transportation Corporations Law (L. 1890, ch. 566) tó confer a franchise upon a gaslighting corporation.can he given only by the municipal assembly, through appropriate ordinances.The question that the Appellate Division on the appeal herein allowed by it certifies should be reviewed by this court reads as follows: “ Are the municipal authorities of. the city of New York, whose consent is required to lay conductors for conducting gas through the streets of such city, under the Transportation Corporations Law, the head of the department of public buildings, lighting and supplies, and the head of the department of highways, under the powers conferred by the charter of the city of New York, or are the ‘ municipal authorities ’ referred to in the said Transportation Corporations Law the municipal assembly, or any other officer or body in the city of New, Y ork ? ” Section sixty-one of the Transportation Corporations Act (chapter 566 of Laws of 1890) provides in substance that if a corporation be incorporated for the purpose of supplying gas for light' in the city, town or village where it is located, it must first obtain the consent of the municipal authorities thereof. Such provision is a re-enactment of section eighteen, chapter thirty-seven of the Laws of 1848, known as the Gas Companies’ Act, and has, therefore, been in force more than fifty years. During all that period 'of time and until the enactment of the Greater New York charter by chapter 378 of the Laws of 1897, the common council of cities, having local and limited legislative authority, has been recognized and held to be the municipal authority whose consent is required by the statute we have referred to. Authorities might be cited in support of this assertion, but that is not needful as it is unquestioned. Indeed, it is conceded in the very thoughtful opinion of the learned justice at the Appellate Division, that prior to the charter of 1897 the common council of the city of New York constituted the “ municipal authorities ” within the meaning of the statute, and that that, has been too frequently decided to admit of question. After an examination of the charter of 1897, however, the conclusion was reached that the legislature had
At the threshold of the consideration of these questions, it will be well to have in mind the legal effect of the consent which the municipal authorities are authorized to give by the Transportation Corporations Act. It operates to create a franchise by which is vested in the corporation receiving it a perpetual and indefeasible interest in the land constituting the streets of a municipality. It is true that the franchise comes from the state, but the act of the local authorities, who represent the state by its permission and for that purpose, constitutes the act upon which the law operates to create the franchise. The state might grant the franchise directly to the corporation without the consent of the local authorities, and has done so in many instances; but the tendency of later years, which is well grounded in reason, is for the state to confer upon the local municipal authorities the right to represent it in the matter of granting franchises to the extent that the final act necessary to the creation of franchises must be exercised by such authorities. The legal effect of the consent, therefore, is the same as if the local authorities in form granted the franchise and the interest in the land. (People ex rel. Woodhaven Gas Co. v. Deehan, 153 N. Y. 528 .) The court said, at page 532 : “ The consent of the town authorities con-' ferred upon the relator a franchise to carry on its business in the town and to lay conductors in the streets and highways for the purpose of delivering gas. That such a franchise is property that cannot be destroyed or taken from it or rendered useless by the arbitrary act of the village authorities in refusing the permit to place the conductors under the streets.” If it be true that the legislature, by the charter of 1897, has taken away from the legislative branch of the city government, elected by the people, the power to confer franchises of this
Before entering upon an examination of the provisions of the charter relating to the power of the municipal assembly, it should be stated that the respondent is correct in his asser
Other provisions of the charter relating to the municipal
The second class has reference to the relative functions of the municipal assembly and the board of public improvements, to which the commissioner of public buildings, lighting and supplies and the commissioner of highways belong, and who, it is insisted, have succeeded to the power that formerly belonged to the legislative body of the city to give such a consent to a gas corporation as under the Transportation Corpo.rations Act operates to create a franchise. Section 416 provides : “ It shall be the duty of the board of public improvements to prepare and to recommend to the municipal assembly all ordinances and resolutions regulating the following matters: 4. The use of the streets and sidewalks for signs, sign posts, awnings, awning posts, horse troughs, urinals, telegraph posts and other purposes. 10. The laying of gas pipes and electric wires under ground, steam pipes, pneumatic tubes and the like, and the lighting of all public thoroughfares,
Section 72. “ Every grant of or relating to a franchise of muy character to any person or corporation must, unless otherwise provided in this act, be by ordinance.” As we have already seen, the consent of the municipal authorities provided for in section sixty-one of the Transportation Corporations Act operates to create a franchise, and, therefore, if not technically a grant, it at least relates to a franchise and is specifically prohibited by this section unless granted by ordinance. How, the commissioner of public buildings, lighting and supplies and the commissioner of highways have not the power to pass ordinances, but the municipal assembly has, and this section does not require a second reading to reach the conclusion that the framers of it could not have intended to provide elsewhere that certain subordinate municipal administrative officers could create a franchise. Section 73 provides: “ After the approval of this act no franchise or right to use the streets, avenues, parkways or highways of the city shall be granted by the municipal assembly to any person or corporation for a longer period than twenty-five years * * From the examination so far made, therefore, it appears that the grant of legislative power to the municipal assembly is as broad as that previously granted to the common council of
This brings us to- a consideration of the sections of1 the charter that are claimed to have conferred the power to consent upon the commissioner of the department of public buildings, lighting and supplies and the commissioner of highways. These two officers constitute the heads of two of the six depart
“ § 524. The commissioner of highways shall have cognizance cmd control: 1. Of regulating, grading, curbing, flagging and guttering of streets and laying of crosswalks. 2. Of constructing and repairing public roads. 3. Of paving, repaving, resurfacing and repairing of all streets, and of the relaying of all pavements removed for any cause. * * * ”
“ § 525. No removal of the pavement or disturbance of the surface of any street for the purpose of constructing vaults or lateral ways, digging cellars, laying foundations of buildings or other structures making sewer connections, or repairing sewers or pipes, of laying down gas and water pipes, steam pipes and electric wires, or introducing the same into buildings, or for any purpose whatever, shall be made until a permit is first had from the department of highways. * * . * ”
It is clear that section 573 was designed to give the commissioner of public buildings, lighting and supplies some authority regarding the use and transmission of gas in and under the streets of the city ; but the question is, what authority ? Is it the authority to regulate the use of the streets by a duly authorized corporation after its franchise has been granted? Or does the authority vest it with the power to grant' a franchise for such use and to convey a perpetual and indefeasible interest in the land constituting the street ? It is necessary
§ 322. “ The Department of Public Works shall have cognizance, control and general direction * * * in the laying down of gas and water pipes, or introducing the same into buildings * * *' and no removal of pavement for such purpose shall be made until a permit is first had from the said department.”
Now, it is conceded that while these statutes were in force, and down to the ' enactment of the present charter the common council of the city of New York alone had power to grant a consent by which a franchise was conferred upon a corporation to use the streets for gas-lighting purposes, and it follows necessarily that the Croton aqueduct department, down to 1882, and the department of public works thereafter, did not have such power. Indeed, it is not pretended that they did have. The words “cognizance and control ” were used for a period of thirty-five years before the Greater New York charter to describe a power strictly limited to the regulation of existing rights, and they cannot now be given an entirely different meaning from that in which they were used in the previous statutes referred to and relied upon, to some considerable extent, by the draftsmen of the present charter, in order to imply a power in these administrative officers, which otherwise, as we have seen, was properly vested in the municipal assembly. Examining the provisions of this charter bearing upon this subject, as we have, in the light of previous legislation, to which reference has been made, we have had no difficulty in reaching the conclusion that the con
The answer to the question certified to this court is, that, in the city of New York, the municipal authorities, within the meaning of that term as used in section sixty-one of the Transportation Corporations Law, are the municipal assembly.
The order should, be reversed, with costs.
All concur.
Order reversed.
Cases cited
- Ghee v. Northern Union Gas Co. 34 App. Div. 551 p. 510
- Smith v. Metropolitan Gas-Light Co. 12 How. Pr. 187 p. 511
- In re the New York Elevated Railroad 70 N. Y. 327 p. 511
- Beekman v. Third Avenue Railroad 153 N. Y. 144 p. 511
- Colonial City Traction Co. v. Kingston City Railroad 153 N. Y. 540 p. 511
- Suburban Rapid Transit Co. v. Mayor of New York 128 N. Y. 510 p. 511
- White v. Manhattan Railway Co. 139 N. Y. 19 p. 511
- Blaschko v. Wurster 156 N. Y. 437 p. 511
- Knox v. Mayor of New York 55 Barb. 404 p. 512
- People ex rel. Woodhaven Gas Light Co. v. Deehan 153 N. Y. 528 p. 513