p. 601streets, avenues or public places for which the consent of the' said board of supervisors is hereby given.”. Here again the contract not only imposes upon defendant the'terms already stipulated, but the latter repeats_ its covenant to carry out the obligations undertaken by it with the various local authorities. It is as though these terms (however otherwise, valid or invalid) had de nova, and in full, been repeated, and agreed to by defendant. Under the stipulated. facts the reference is sufficiently plain, and, it seems to me, conclusive of the question in this case. Now, in the Southfield contract with the highway commissioners of that town, the defendant had covenanted as follows: “Seventh. It is further agreed that the fare charged by said railroad company shall not exceed five cents between any points within said town; and, further, that the fare between Richmond and St. George and intermediate points on the company’s line shall be five cents; and the company agrees to furnish transfers to any of its connecting. lines through the Glove road from any points in the within grant.or route for a single fare of five cents.” My conclusion is that, under every legal consideration, the defendant must be deemed to have lawfully covenanted with the Southfield commissioners for the public advantage, in consideration of the public consent which it received for its railroad, to carry the plaintiff through the ride concerned in this case for the single fare of five cents, and that it had no right in law to exact the extra fare collected.
In view of the urgency of counsel to facilitate a review of this case, which was submitted on May 29th, there is no time to abridge this opinion to a more concise statement.Judgment for plaintiff for five cents and costs.
Cortelyou v. Staten Island M. R. Co.REYNAUD, J. The defendant, a street-surface railroad corporation, entered into certain contracts with the various local authorities who had the power to grant or refuse consent to the construction and operation of the railroad. Among other covenants are some in regard to transfers, and in regard to the fare for which defendant agreed to carry passengers. In other words, irrespective of the power of the local authorities to impose the stipulated conditions compulsorily, we have here the affirmative agreement of the defendant company, embodied in contracts in writing and under seal. What the particular clauses specifically provide will be later examined. Counsel, by stipulation, have submitted several broad and general questions. The main one argued—as to the validity of these agreements—may be answered first.
I have been unable to understand on what theory these covenants, such as they are, could be deemed invalid. As already noted, this is not a case of conditions imposed by public authorities and rejected by the proposed grantee. Nor is it the case of a grant or consent received under protest, in which the grantee accepted the consent, but reserved the right to refuse the alleged illegal conditions. There is no claim of any such protest, but, on the contrary, here is the express agreement by the defendant company that it will do certain things as part and parcel of the grant or consent. For all that appears, it might have been the original proposition of the company itself to induce public approval, and to prevent rival applicants from securing the rights which it solicited. At the public hearings contemplated by law this may have been a controlling element in the offers of defendant which brought about the coveted consent, and without which the application would have been immediately negatived. At any rate, here it is embodied, not in a protest, nor reservation of right, but in what must be deemed the free act and contract of the defendant, solemnized with its seal.What strikes the mind at the outset in regard to these covenants, such as they may be, is that the attempt to impeach them seems a breach of that good faith which courts should certainly seek to preserve and secure, and perhaps more emphatically so where public interests are involved. It seems a startling proposition that public authorities lack power to bind an applicant for public privileges to the obligations freely entered into by that applicant as a basis of the solicited privilege. The doctrine of estoppel could scarcely receive more appropriate enforcement than in such a case, where an essential
p. 602moving cause of the consent on one side may precisely rest on the reciprocal covenant of the grantee itself on the other side. That the company had power to contract in regard to its fare seems beyond question. It could so contract with an individual passenger by selling him a ticket, or again by commutation books. °It might do so, in regard to a large number of passengers, with some club, association, or pleasure party. It could contract to that effect with another railroad, or ferry corporation, or with some other public body. It seems to me evident that it may legally do so in regard to the entire public by proper contract with tlie local authorities. Again, it would scarcely be pretended that the agreement to do so is void on the ground that it is against public policy. That would be a bold position to assume in respect of covenants so clearly tending to the public benefit as the voluntary limitation of the fare which the public shall be called uppn to pay. Nor will it do to attack these contracts on the ground of lack of consideration. In the first place, they are under seal, which itself imports a consideration. The law will not permit such an instrument to be impeached in that regard. The consideration may be sued for if not actually received; the true amount of the consideration may be inquired into; but the fact that there was a consideration to support the sealed instrument cannot be disputed. Secondly. Upon their face the contracts express that they are entered into upon the faith of the mutual convenants therein, which again would itself be a good consideration. There are many terms and conditions as to the nature of the construction permitted, service, etc., which bind the local authorities as well as the company. Finally, viewed as contracts, the consents, grants, and privileges embodied in the instruments constitute consideration. A last objection is as to the capacity of the local authorities on their side to he parties to such covenants and obligations. It is true, no doubt, that the municipal authorities and the private corporation could not combine by any agreement to nullify limitations and restrictions already imposed by law in favor of the public. But there is nothing in the law, that I know of, which prevents their agreement upon still greater restrictions and limitations for the public advantage. The statutory provisions have no such purpose or effect; not more so than they prevent the company from contracting, as already remarked, with a passenger, for a lesser fare than the statute might otherwise permit. Take the case of a general railroad, which, under the statute, could charge three cents a mile. The statutory provision does not in any way affect the perfect validity of the agreement by the railroad company to charge less. And so of other matters. Such provisions in the statute were intended to make sure that the public interest should be protected at least to the extent prescribed. The local authorities are barred from granting easier terms to the private corporation, but not from obtaining better ones. .The whole trend of public policy is towards exacting and expecting from official authorities the most favorable terms which they can get in return for the concession of public privileges. It would, indeed, be anomalous, when they have acted accordingly, and have secured the agreement of the applicant itself to such terms, to hold their labors unlawful and void. In my opinion, all reasonable conditions in favor of the public, thus accepted and agreed upon, which are not repugnant to some positive prohibition of the statutes, are valid and binding. Conditions for common use or common trackage; in regard to transfers between various lines of the same railroad, or lines of other railroads; 'in regard to the frequency of service; limitations as to the rate of fare; limitations as to the time within which the railroad must be constructed,—all these tend towards the purpose of the statute, and not against it; and they are, in my opinion, reasonable and legal conditions and obligations, properly undertaken by the railroad company in its contracts with the municipal authorities. Indeed, as I view it, these conditions are lawful and binding, not only as terms stipulated by the covenants on the part of the applicant itself, but as terms which the local authorities could impose of their own motion as conditions of their assent. Back of the statute lies the constitution. The statutory enactments in regard to the local authorities are intended to enforce the constitutional provision which practically prohibits railroads from being constructed and operated on public streets and highways without the consent of the local authorities. It seems a very narrow and
p. 605in point. A parallel case might have arisen if the local authorities had granted to some one the right to lay water mains in public streets on condition that the public should receive water therefrom at a specified rate. In such a case it seems to me that the public might be deemed the contemplated beneficiaries, and could refuse, under such a contract, to pay more than the rate thus fixed by the authorities and the. company. Irrespective of the principles of Lawrence v. Fox, it seems to me that, in relation to contracts of this character, entered into for the benefit of the public by the proper public authorities, the sound doctrine (allowing for any difference in the facts) is that essentially established in the case of Little v. Banks. Having made such a contract, assuming it to be valid, suppose defendant had carried the passenger, could the company sue for the extra fare? I think not. Public policy in the practical enforcement of such covenants requires that defendant should not be permitted, by threats or otherwise, to exact and retain what it thus had no lawful right to demand. As is well said in the Banks Case: “The ground upon which these decisions are founded is a broad principle of public policy, essential to the public welfare.” Little v. Banks, 85 N. Y. 263 , 264.Now, as to what the contracts, or any of them which may govern, actually provide in regard to fare and transfers. On the argument, defendant’s position was essentially based on the assertion that the various local authorities had undertaken to regulate the fare beyond their own territorial jurisdiction. The stress of counsel’s contention was that the village trustees, highway commissioners, and other officials had attempted to prescribe and regulate the fare beyond the limits of their respective authority. Of course, if I am right in the preceding remarks as to the validity of these obligations as covenants undertaken by the defendant itself in the contracts executed by it, then the objection loses its force. It is not a question of what the authorities could undertake to impose, but what the company could undertake to do. If the company could contract in that regard, it could do so as to all or any part of its road. It would make no difference, for instance, on what part of the road, or between what points, its contract to carry for a given fare was entered into by the company. The agreement might be between points or termini in one or several townships or villages. The court, however, suggested that a stronger argument in favor of the defendant could perhaps be rested on the ground that, whatever the general belief as to the provisions in these contracts, some of them (to wit, the printed village contracts in evidence) might be construed as failing to express the obligation to carry for the five-cent fare beyond the village limits. It might be true that the intention of the parties was to secure a five-cent fare not only over defendant’s railroad, but still more, over some connecting roads of other companies, for the purpose of reaching a ferry, and creating an extensive plan of transfers at a fixed fare. The question would still remain whether the phraseology as finally embodied in the contracts effected the' supposed result. There is force in the contention of counsel for plaintiff that any different construction might in great part render purposeless the long provision adopted in the village contracts, and particularly those portions of it in relation to transfers. The statute (section 101, Railroad Law, as amended by Laws 1892, c. 676) already provided that within the boundaries of incorporated villages no greater charge than five cents could be made. The twelfth clause in the printed village contracts seems to be a very elaborate contrivance if it only was intended to mean what was already secured by law. Looking to the second and third clauses in the New Brighton'and Edgewatei* contracts, it is evident that an extensive district was contemplated to secure access to a ferry for all street railroads at a single fare, although possibly coming from other jurisdictions; and that transfers to and from other railroads were expressly stipulated. The expression “transfers” is clearly meaningless excepting it be for the same given fare. Anybody could “transfer,” in the physical sense, without that provision, by paying a fresh fare. However, whatever may have been represented or intended, I cannot say that the twelfth clause of the village contracts, as worded, effects the supposed result as to the amount of the fare except within the village limits. The contract does contain clear provisions of common use and trackage, and conditions as to transfers and as to fare, but the latter—that is, as to the 'amount of the total fare—seem to be limited to points
p. 606within the. respective villages. This is in regard to the two village contracts. I have said so much only because of the specific questions submitted by counsel in the stipulation. But it is not necessary to decide that point. If any one contract covers this case, that is enough. It is sufficient to say that the ¡".mdlilield contract is clear and explicit, and leaves no room for doubt as to the agreement of the company so far as this case is concerned. It provides as follows: “Seventh. It is further agreed that thé fare charged by said railroad company shall not exceed five cents between any points within said town; and further, that the fare between Richmond and .St. George and intermediate points on the company’s line shall be five cents; and the company agrees to furnish transfers to any of its connecting lines through the Glove road from any points in the within grant or route for a single fare of five cents.” Plaintiff became a passenger on defendant’s car in the former town of Southfield. He paid the five-cents fare on such car. Pursuant to the company’s instructions, and by direction of the conductor, he alighted at Grant City, in said town. A transfer was refused under orders of the company, and under the stipulation it is conceded that placards in the cars announced that no transfers would be given. Plaintiff, at the place of such ordered alightment (the said Grant City), boarded the next connecting car of the defendant going to the Clove road and Prohibition Park. By like direction of the company, the conductor exacted a new fare of five cents, which plaintiff paid under protest and under threat of ejectment. All this appears to fall clearly within the provisions of the Southfield contract. The Middletown contract effects substantially the same result. I hold, as matter of law, that the exaction was in violation of the express covenant of the Southfield contract; that this contract was valid, and is enforceable in that respect by the plaintiff in this action. The plaintiff is therefore entitled to the recovery of the additional five-cents fare thus illegally charged.Judgment for plaintiff for five cents and costs.
Argued before GOODRICH, P. J., and CULLER, BARTLETT, HATCH, and WOODWARD, JJ.Hareourt Bull, for appellant.
J ohn G. Clark, for respondent.
The very full examination which this case received in the court below, and the able opinions delivered by the learned judge in the decision of this and the Cortelyou Case, require little to be said by us. We may safely rest our decision of this case thereon. It is, however, so earnestly insisted by the appellant that the clause in the contract made by the defendant with the commissioners of the town of Southfield is void that we conclude to express our views thereon. It is conceded that the railroad company applied to the commissioners for their consent to lay its tracks in the highway, and that, as a condition of giving such consent, the railroad company agreed to transport passengers at a five-cent rate of fare between points named therein, and to issue transfers to any of its connecting lines through the-Clove road for such fare. It also appears that the railroad company violated this agreement, although it took advantage of the consent, laid its tracks, is operating its cars, and collects fares of passengers transported thereon. The defendant is a street-surface railroad corporation organized under the general act of 1884 (chapter 252). The contract which it made with the commissioners of highways of the town of Southfield was made and executed on the 30th day of December, 1895. By chapter 434 of the Laws of 1893, section 91 of the general railroad law was amended so as to require the railroad company-to obtain the consent
p. 607of the commissioners of highways of the town where it was sought to acquire the right to construct its railroad upon the highways of such town, and this provision now remains the law. It was pursuant to this requirement that the defendant applied for and obtained the consent of the commissioners, and executed the contract. The defendant now says that this was an unnecessary proceeding, that such consent was not required, and that the contract is void, and this for the reason that by chapter 555, Laws 1890, the county roads of the county of Eichmond were placed under the exclusive jurisdiction of the board of supervisors of the county. This claim is only partly true. Examination of that act shows that the jurisdiction vested by it was for the “purpose of improving and maintaining the roadbed thereof as a road or roads for carriages or other vehicles, but for no other purpose.” Section 1. By section 7 of this act, the consent of the board of supervisors to lay any surface railroad upon the roads of the county was to be obtained in addition to the requirements of existing laws. By section 10 the act reiterated the provision of section 1 that such control by the board was only for the purpose of improvement and keeping the roads in repair, except as expressly authorized otherwise by the act, “and for all other purposes the said roads shall remain and be subject to the authority, control, and jurisdiction of the town, village, separate road district, or local authorities to which they shall respectively belong.” It is quite evident that the authority conferred by this act upon the board of supervisors and the authority vested in the highway commissioners by section 91 of the general railroad law can both stand together, and full effect be given to each. There is no inconsistency therein, and it becomes the duty of the court so to construe them as that both shall have effect. People v. Palmer,
52 N. Y. 83 ;
Mongeon v. People, 55 N. Y. 613 . If, however, there was complete repugnancy between the two acts, as the statute conferring power upon the highway commissioners was passed subsequent, the former statute would necessarily have to yield, as the later is the final expression of legislative intent.
Pratt v. Munson, 84 N. Y. 582 . We are not now concerned with the status of highway commissioners before the law, nor with their general powers and duties. It is presently sufficient to say that by law the power to give the consent under which the defendant acted was deposited with the commissioners, and, as it resided with them, they were the persons, and the only ones, who could give it. All of the consents which were obtained would have been ineffectual to authorize the construction of the road if their consent had been withheld. Nothing in the highway law operates to destroy the authority vested in the commissioners for reasons already assigned. It may be conceded that no authority exists to exact an unreasonable requirement as a condition of granting consent to construct a railroad, or where an act provided the conditions upon which the consent should be granted it is probable that others might not be added. Illustrations of this rule are found in Re Kings Co. El. R. Co., 105 N. Y. 97 , 13 N. E. 18 , and Beekman v. Railroad Co.,
153 N. Y. 144 , 47 N.
p. 608or explicitly, are properly exacted. People v. Barnard, 110 N. Y. 548 , 18 N. E. 354 ; Peekskill, S. C. & M. R. Co. v. Village of Peekskill, 21 App. Div. 94 , 47 N. Y. Supp. 305 . Section 93 of the general railroad law requires that the consent, when given, shall provide for but one fare over the proposed line of road. While such provision is not controlling of the present question, yet it indicates clearly that the condition imposed was in harmony with the spirit of the railroad law, and was of such a character as was proper to exact. How far the contract is operative as to carriage upon the entire line, it is not now necessary to say. There was clear violation of its provisions in the present case, and for that reason the judgment should be affirmed.
Judgment of the municipal court affirmed, with costs. All concur.