Majority
Headnote
Street railroads — effect of additional franchise granted on condition of reduced fare — when purchaser of street railroad at foreclosure sale bound by such conditions — remedy for purchaser’s failure to comply therewith.The decision in this proceeding affirms the obligation of the appellant to carry passengers on a continuous passage between the village of White Plains and the steamboat landing, so called, in the village of Mamaroneck for a single fare of five cents.
As moje fully 'appears in the foregoing statement of facts, its predecessor, the Tarrytown, White Plains and Mamaroneck Bailway Company, owned and operated a railroad between said points under franchises, granted by said village of Mamaroneck and others under which it was entitled to charge a fare of ten cents. While thus situated it executed a mortgage covering property and franchises then ’ owned and thereafter to be acquired. Later it obtained from the town and village of Mamaroneck, respectively, franchises for an extension beyond the steamboat landing on the condition, amongst others, that it would carry passengers between points on said extension and the village of White Plains, and which included the original section now owned by appellant and involved here, for a single fare of five cents, and by formal instrument it duly accepted said franchises and agreed to all their conditions and entered upon their enjoyment. Thereafter judgment of foreclosure and sale was obtained under said mortgage under which the road of said Tarry-town Company, including- said extension, was sold in parcels, the appellant by assignment of bids becoming the owner of the parcel involved here, and some one else of the extension above mentioned.
It will only be necessary in this case to consider the effect of the franchises granted by the village of. Mamaroneck and of the acceptance thereof. When the village granted appellant’s predecessor an extension of its fran
It is urged that this did not have the effect to modify the original or ten-cent franchise covering the section of road here involved. I do not know that particular terms are indispensable, but ifc seems to me that such was the result. The village had granted a prior franchise duly accepted by the company under which the ■ latter was entitled to charge a ten-cent fare. The village then granted an additional franchise on condition of a reduced fare over that portion of the road covered and affected by the first franchise, and the company accepted it and agreed to abide by its conditions and entered on its enjoyment. It seems to me that thereby the old franchise was presently and effectively modified or superseded by the new contract so far as the village authorities were interested in and could contract for a reduced fare. It is not necessary here to determine whether the latter could contract for a reduced fare on a continuous passage between White Plains and some point short of or beyond the village.
I do not understand that there is any serious question that so long as the Tarrytown Company operated its road including the extension, it was bound to afford a continuous passage for five cents as it had agreed. But it is insisted with much earnestness and ability by appellant’s counsel that this obligation has been cut off by the fore
There is no doubt that the agreement of the Tarrytown Company to subject part of its original road covered by its mortgage to a reduced fare was subordinate to the lien of the mortgage and might have been rejected by the mortgage trustee or bondholders. I doubt if it would have been necessary for them to take any affirmative action in this direction or do more than ignore the extension in the foreclosure. But they did not by any means assume this attitude. The mortgage by express terms covered property and franchises acquired after its execution and it was provided therein that part of the proceeds of the bond issue should be devoted to development of extensions. Under these circumstances, the trustee in foreclosing its mortgage elected to enforce its lien on the newly acquired property and- secured a judgment directing a sale of the extension which was later made for upwards of one hundred thousand dollars. Certainly and too obviously for argument this was not a repudiation by the mortgagee but an affirmance of the act of the mortgagor in procuring the extension and, therefore, of the terms on which it was secured. For again I suppose it will hardly be claimed that the mortgagee could thus get the benefit of the extension and at the same time escape the burdens undertaken in its acquisition. If the bondholders had bid off the entire road I think one would not seriously claim that they could at the same time cling to the extension and push away the obligations which it imposed on the balance of the road. Did the purchaser acquire any greater rights even though it bid off a parcel not included in the extension but subjected to its conditions?
The appellant is in no position to claim that the trustee acted improvidently or in violation of the rights of the bondholders in affirming the action of the mortgagor in. subjecting the mortgaged property to an undesirable bur
The remaining question in this connection is as to the manner of enforcement of the conditions of the five-cent franchise, because if appellant’s counsel is right in his views upon this his client is saved anyway.
It is argued that the franchise for the extension was
The only substantial objection to the present proceeding, assuming that the petitioners are correct in their claims respecting the legal rights of the parties, is that it appears that the appellant cannot carry passengers between the points in question for five' cents and that, therefore, this application should be denied as a matter of equity.
If we regard this proceeding as the equivalent of an action for specific performance, the rule undoubtedly is that courts may refuse the prayer for such relief when because of special circumstances it would be inequitable to grant it. But the statute expressly authorizes this form of proceeding", and I am not aware of any principle or authority which compelled the court to refuse to enforce the obligations imposed by the contract involved simply because one of the parties had ill advisedly agreed to unprofitable terms.
There may be considerable force in the appellant’s argument that sound public policy is not best subserved by
The order appealed from should be affirmed, with costs.
Cullen, Oh. J., Gray, Werner, Willard Bartlett, Chase and Collin, JJ, concur.
Order affirmed.
Cases cited
- Palmer v. Fort Plain & Cooperstown Plank Road Co. 11 N. Y. 376 p. 213
- Davidge v. Guardian Trust Co. 198 N. Y. 595 p. 213
- Rector of Christ Protestant Episcopal Church v. Mack 93 N. Y. 488 p. 213
- East New York Refrigerator & Woodworking Co. v. Halpern 140 App. Div. 201 p. 213
- Caccia v. Brooklyn Union Elevated R. 98 App. Div. 294 p. 213, p. 214, p. 219
- People ex rel. Brooklyn Union Elevated R. v. Morgan 85 App. Div. 292 p. 213
- Platt v. New York & S. B. Railway Co. 9 App. Div. 87 p. 213, p. 214
- People v. O'Brien 111 N. Y. 1 at 41, at 30 p. 213, p. 215
- Hatfield v. Straus 189 N. Y. 208 at 219 p. 213
- Suburban Rapid Transit Co. v. Mayor of New York 128 N. Y. 510 p. 213
- Sage v. Lake Shore & Michigan Southern Railway Co. 70 N. Y. 220 p. 214
- People v. Albany & Vermont Railroad 37 Barb. 216 p. 214, p. 215
- People ex rel. Stevens v. Hayt 66 N. Y. 606 p. 214
- Trustees of Freeholders & Commonalty v. Jessup 162 N. Y. 122 p. 214
- Munro v. Syracuse, Lake Shore & Northern Railroad 200 N. Y. 224 p. 214, p. 215
- City of Columbus v. Mercantile Trust & Deposit Co. 218 U. S. 645 p. 214
- Rochester Telephone Co. v. Ross 195 N. Y. 429 p. 215
- People ex. rel. West Side Street Railway Co. v. Barnard 110 N. Y. 548 p. 215
- Gaedeke v. Staten Island Midland Railroad 43 App. Div. 514 p. 215
- In re Thirty-fourth Street Railroad 102 N. Y. 343 p. 215
- Kittinger v. Buffalo Traction Co. 160 N. Y. 377 p. 215
- Village of Phœnix v. Gannon 195 N. Y. 471 p. 215
- Willcox v. Richmond Light & Railroad 142 App. Div. 44 p. 215
- Loader v. Brooklyn Heights R. 14 Misc. Rep. 208 p. 215
- Union Pacific Railroad v. Hall 91 U. S. 343 p. 215
- Frank v. New York, Lake Erie & Western Railroad 122 N. Y. 197 p. 215
- People v. Albany & Vermont Railroad 24 N. Y. 261 p. 215
- People ex rel. Kimball v. Boston & Albany Railroad 70 N. Y. 569 p. 215
- People ex rel. Bacon v. Northern Central Railway Co. 164 N. Y. 289 p. 216
- People ex rel. Frost v. New York Central & Hudson River Railroad 168 N. Y. 187 p. 216