310 Mass. 528 | Mass. | 1942
This is a petition in equity filed in this court under the provisions of St. 1939, c. 482, by the Boston Elevated Railway Company (herein referred to as the company) by its directors against the Commonwealth, the city of Boston, the officers of the city of Boston constituting the transit department thereof (herein referred to as the transit department), and the board of trustees of the company. The city of Boston and the officers thereof constituting its transit department filed an answer in which the Commonwealth joined. The board of trustees of the company also filed an answer. The case was reserved by a single justice of this court — without decision by him • — “upon the pleadings and a stipulation of agreed facts for the consideration and determination of the Full Court.” G. L. (Ter. Ed.) c. 214, § 31.
Statute 1939, c. 482, §§ 1, 2, 3, are as follows:
“Section 1. The right of the Boston Elevated Railway Company, hereinafter called the company, to construct, maintain and operate its elevated railway structure located in or upon Commercial street, Atlantic avenue, Beach street and Harrison avenue and public or private lands or ways in the city of Boston between cross girder number 164 over 201 east of Keany square and cross girders numbers IE and 1W near Washington street, hereinafter called the structure, is hereby declared forfeited, said structure no longer being operated in the public service for the purpose for which the franchise of the company to operate an elevated structure on the said location was granted, and constituting a nuisance in the public highway and unreasonably interfering with the enjoyment and use of said highway to the detriment of the public health and safety. The said location and the right of the company to construct, maintain and operate an elevated railway structure thereon are hereby revoked.
*532 “Section 2. The company, acting by its board of directors, may, within thirty days of the effective date of this act, file a petition in equity in the supreme judicial court to determine whether there is just cause for the revocation and declaration of forfeiture provided for in section one. The supreme judicial court shall have jurisdiction in equity to determine the issues raised in such petition and to affirm, modify, or annul the said revocation and declaration of forfeiture, and service of an order of notice upon the state secretary shall be sufficient. Upon the filing of such a petition the court may stay any action under the following sections of this act until such time as the issues raised in such petition have been finally determined, or for any shorter period as justice may require. If a jury trial shall be -claimed by the company the court may transfer said cause to the superior court for trial.
. “Section 3. Within thirty days after the expiration of the period within which a petition under the preceding section may be filed, without the filing of any such petition, or within thirty days after the final disposition of proceedings upon such a petition dismissing it or otherwise sustaining the forfeiture and revocation provided for in section one, the company shall proceed without delay at its own expense to remove said structure above its foundations and to put the surface of the public ways disturbed by such removal into as good condition as the adjacent surface of said ways, and to restore to good condition-sidewalks and buildings affected by such removal. If the company fails' to begin the removal, as herein directed, or to complete it within one year thereafter, the transit department of the city of Boston shall remove the structure at the expense of the company, and such expense shall be recoverable from the company in an action at law.”
Section 4 of the statute prescribes the manner in which the transit department of the city of Boston shall carry out the duties imposed upon it by .said § 3, and includes provisions that the “transit department may sell as salvage or otherwise the structure and any appurtenances thereof,” that the “proceeds of such sales shall be used, to pay the*533 cost of removal or shall be credited against such cost,” and that in “the event that such proceeds exceed such cost, the excess shall be turned over to the treasurer of said city and credited to the Special Account, Sales of City Property as carried on the books of said city.”
The prayers of the petition, other than a prayer for notice and for a temporary stay of action under St. 1939, c. 482, §§ 3, 4, are (a) that the court “determine that there exists no just cause for the revocation and declaration of forfeiture contained in Section 1 of said Chapter 482 of the Acts of 1939, and that the provisions thereof are void and of no effect,” (b) that the court “issue a permanent injunction enjoining the Public Trustees from proceeding to remove said Atlantic Avenue elevated structure, and also enjoining the transit department of the city of Boston from removing or attempting to remove said structure at the expense of the company,” and (c) for general relief.
First. No question is raised as to the jurisdiction of this court to entertain the petition. St. 1939, c. 482, § 2, provides expressly that the company may “file a petition in equity in the supreme judicial court to determine whether there is just cause for the revocation and declaration of forfeiture provided for in section one,” and expressly confers upon the Supreme Judicial Court “jurisdiction in equity to determine the issues raised in such petition and to affirm, modify, or annul the said revocation and declaration of forfeiture.” The company by filing the petition under the statute waived all objections to the determination in the proceeding authorized thereby of the issues described by the statute as the issues to be determined in such proceeding. Since the company has taken advantage of the protection given by the statute by seeking review of legislative action in the statutory proceeding, it can enjoy such protection only upon the terms set out in the statute. Stevens, landowner, 228 Mass. 368, 373-374. Bogigian v. Commissioner of Corporations & Taxation, 248 Mass. 545, 547. Barnes v. Springfield, 268 Mass. 497, 503. And the respondents make no objection to the determination of the issues in this proceeding.
Second. At the threshold of the case it is necessary to define more explicitly the issue that, under the provisions of St. 1939, c. 482, § 2, is to be determined upon this petition, and to define the extent of the waiver made by the company by filing the petition for the determination of this issue.
1. The company, as agreed by the parties, "is a corporation duly organized and existing under” St. 1894, c. 548, as amended by St. 1897, c. .500. See Roosevelt v. Hamblin, 199 Mass. 127. According to the terms of § l-ef-thaiormer statute certain named persons “their associates and successors” were "made a corporation.” Its "chief corporate purpose,” as stated in Opinion of the Justices, 261 Mass. 556, 594, “is to afford carriage of passengers for hire within parts of Boston and nearby cities and towns by means of cars moved mainly by electricity on and through elevated structures, subways, tunnels and surface street railway tracks and other means adapted to that end. . . . The nature of its business is public.” By said § 1 and related statutory provisions the Commonwealth granted "the general franchise to be a corporation” and "the subordinate franchise to manage and carry on its corporate business, without which its franchise to be a corporation can have little more than a nominal existence.” Richardson v. Sibley, 11 Allen, 65, 67. See also Commonwealth v. Smith, 10 Allen, 448, 455-456; Commonwealth v. Lancaster Savings Bank, 123 Mass. 493, 497. The present case does not involve, unless incidentally, either the general franchise of the company to be a corporation or the subordinate franchise above described. Compare Commonwealth v. Fitchburg Railroad, 12 Gray, 180; Opinion of the Justices, 237 Mass. 619, 623. See also Stillwater v. Hudson Valley Railway, 255 N. Y. 144, 150-151. St. 1939, c. 482, does not purport to declare forfeited or to revoke either of' these franchises.
2. Statute 1894, c. 548, § 6, as amended by St. 1897,
The location in question in this case is a part of the location granted by paragraph seventh of St. 1894, c. 548, § 6, as amended by St. 1897, c. 500, § 3, described as follows: “Commencing at a point at or near the corner of Washington and Castle streets,” thence upon and over private lands and streets “to Harrison avenue; thence upon and over Harrison avenue to Beach street; thence upon and over Beach street to Cove street; thence upon and over Cove street to Federal street, or upon and over the new street to be constructed by the city of Boston, to Atlantic avenue; thence upon and over Atlantic avenue, Commercial street and Causeway street to” a bridge then being built by the transit commission under the provisions of St. 1894, c. 548, “and to Merrimac street.”
The company in 1901 completed the construction of an elevated structure — and placed it in operation — upon the location so granted and upon other locations granted by said St. 1894, c. 548, as amended by St. 1897, c. 500, “from Sullivan Square, in that part of the city of Boston called Charlestown, to the northerly terminus of the Tremont Street Subway in said city of Boston, and from the southerly terminus of the said Tremont Street Subway to Dudley Street, in that part of said Boston known as Roxbury, thereby forming a continuous line of railway adapted to third-rail rapid transit train operation from Sullivan Square to Dudley Street, and also a line of elevated railway by way of Atlantic Avenue and other ways in said Boston. connecting the portion of said elevated structure north of said Tremont Street Subway with the portion of said structure south of said Tremont Street Subway, thereby
It appears in the “stipulation of agreed facts” that if “all other conditions remain unchanged, the revocation of the company’s right to maintain said Atlantic Avenue Section and the removal of the structure therefrom will sever said continuous elevated structure and the elevated structures thereafter owned by the company will be connected for the purpose of operating elevated trains only by the Washington Street Tunnel. The said Atlantic Avenue structure in its present condition is capable of being used as an alternative route upon short notice in the event transportation through the Washington Street Tunnel should be interrupted. The company derives its right to operate its elevated trains through the Washington Street Tunnel from the contract for the use thereof.”
3. The action of the Legislature by St. 1939, c. 482, § 1, is in two forms: (a) a declaration of forfeiture of the company’s Atlantic Avenue location, the elevated structure thereon “no longer being operated in the public service for the purpose for which the franchise of the company to operate an elevated structure on the said location was granted, and constituting a nuisance in the public highway and unreasonably interfering with the enjoyment and use of said highway to the detriment of the public health and safety,” and (b) a revocation of the “said location and the
4. By § 2 of this statute the company is permitted to file in this court a petition in equity “to determine whether there is just cause for the revocation and declaration of forfeiture provided for in section one,” and the court is given jurisdiction in equity “to determine the issues raised in such petition.” As we have already said, the company by filing the petition has waived all objections to the determination of these issues upon the petition. But some of the respondents contend that the company by filing the petition has also waived all its rights to object to the constitutionality of the statute. In other words, they contend that the company is precluded from attacking in this statutory proceeding instituted by it the existence of legislative power to declare such a forfeiture or to make such a revocation. These respondents contend, in substance, that the existence of the power must be taken to be admitted for the purposes of the proceeding, and that the only question open in the proceeding is the propriety of the exercise of such power in the light of the facts appearing in the record.
We cannot accede to this contention. The proceeding was authorized by statute for the express purpose of permitting a judicial determination of the issue whether there was “just cause” for the revocation and declaration of forfeiture of the location in question. Obviously the company by bringing the statutory proceeding did not waive its right to such a determination therein. And the statute does not by its terms limit the issue to be determined in connection with the declaration of forfeiture to the question whether the grounds thereof stated in the statute exist as matter of fact, but by necessary implication the statute includes within this issue the question whether these grounds, if they exist as matter of fact, constitute, as matter of law, “just cause” for the declaration of forfeiture. The statute, moreover, states no grounds for the revocation, unless it is to be implied that the revocation is based on the same grounds as the declaration of forfeiture. As matter of law there can be no “just cause” for such a revocation or such
The company, by filing the petition for the determination of this issue, did not waive the question Of constitutionality included therein. The situation is different in this respect from that in which procedural rights conferred by the Constitution are waived. See, for example, Fratantonio v. Atlantic Refining Co. 297 Mass. 21. It is different also from that in cases such as petitions for the assessment of dámages for takings by eminent domain that are predicated upon the existence of valid takings. See Barnes v. Springfield, 268 Mass. 497, 503. Compare Stevens, landowner, 228 Mass. 368, 373; Cahalan v. Department of Mental Health, 304 Mass. 360, 363-364. The company is seeking protection in this statutory proceeding against an alleged unconstitutional revocation and declaration of forfeiture of its Atlantic Avenue location “upon the terms set out in the statute.” Stevens, landowner, 228 Mass. 368, 374. Moreover, since St. 1939, c. 482, was passed by the Legislature, and consequently, apart from constitutional limitations, supersedes all prior laws, statutory or other, in conflict therewith, the only issue for determination is whether, on the facts appearing in the record, the revocation and declaration of forfeiture of the Atlantic Avenue location purporting to be made thereby impair the constitutional rights of the company. See Selectmen of Brookline, petitioners, 236 Mass. 260, 269.
Third. We now proceed to consider upon its merits the
The company contends that such revocation and declaration of forfeiture are in violation of (a) art. 10 of the Declaration of Rights of the Constitution of the Commonwealth, particularly the provision therein that “whenever the public exigencies require that the property of any individual should be appropriated to public uses, he shall receive a reasonable compensation therefor,” (b) the Fourteenth Amendment to the Constitution of the United States, particularly the provision thereof that no State shall “deprive any person of life, liberty, or property, without due process of law,” and (c) the provision of art. 1, § 10, of the Constitution of the United States, that no State shall pass any “law impairing the obligation of contracts.”
Statute 1939, c. 482, purports, subject to judicial review, to terminate the company’s Atlantic Avenue location by revocation thereof and by a declaration of forfeiture thereof. If reasonably possible the statute is to be interpreted so as to effectuate this purpose and so “as not to render it contrary to the terms of the Constitution.” “Every rational presumption will be indulged in favor of the validity of an act of the legislative department of government.” Commonwealth v. S. S. Kresge Co. 267 Mass. 145, 148. See also Talbot v. Hudson, 16 Gray, 417, 422; Moore v. Election Commissioners of Cambridge, 309 Mass. 303, 311-312. The action of the Legislature by this statute cannot be annulled under the provisions of St. 1939, c. 482, § 2, if it is constitutional either as a revocation of the Atlantic Avenue location or as a declaration of forfeiture thereof. While the respondents, the Commonwealth, the city of Boston and the transit commission do not rely upon said St. 1939, c. 482, as a revocation of the Atlantic Avenue location, the revocation and the declaration of forfeiture are somewhat related and we consider the statute in each of these aspects.
The Atlantic Avenue location granted to the company
These principles, subject to certain important exceptions and limitations, are applicable to the Atlantic Avenue location granted to the company, since by St. 1897, c. 500, § 21, it is provided that except “as otherwise expressly provided in said . . . [St. 1894, c. 548] and by this act, said corporation shall have all the powers and privileges and be subject to all the duties, liabilities and restrictions set forth in general laws now or hereafter in force relating to street railway companies, so far as the same may be applicable.”
The company, therefore, cannot prevail in this proceeding unless on the ground of some exception to or limitation upon the application of the principles above stated relating to street railway locations. The exception particularly relied upon by the company is the provision in St. 1897, c. 500, § 19, that the “locations of or right to maintain any elevated lines or structures of the Boston Elevated Railway Company shall not be subject to revocation except in the manner and on the terms prescribed in sections seven and eight of chapter one hundred and twelve of the Public Statutes: provided, however, that any location upon which said corporation has not constructed its railroad within ten years from the passage of this act shall be subject to revocation by the legislature; but no location upon which said corporation has begun the construction of its railroad within said period shall be subject to revocation if the same be completed within three years thereafter.” Pub. Sts. c. 112, §§ 7, 8, herein referred to, provide respectively that the Commonwealth may purchase of a railroad corporation “its road and all its franchise, property, rights, and privileges” upon terms of payment therein provided, and that the Commonwealth “may at any time take and possess the road, franchise, and other property of a railroad corporation” upon terms as to notice and payment therein provided. These sections are set out in full in a footnote.
The company also relies, in connection with the provisions of St. 1897, c. 500, upon the provision in St. 1894, c. 548, § 8, that the “location, construction, maintenance or operation of said lines of railway in any public or private way shall be deemed an additional servitude and entitle lessees, mortgagees and other parties having an estate in such way or in premises which abut thereon, and who are damaged by reason of the location, construction, maintenance and operation of said lines of railway, to recover reasonable compensation in the manner herein provided.” It appears from the “stipulation of agreed facts” not only that the company has constructed an elevated structure on locations granted to it by St. 1894, c. 548, as amended by St. 1897, c. 500, including the Atlantic Avenue location, but also that, if material, “the records of the company show that the cost of the said Atlantic Avenue Section to January 21, 1939, was approximately $5,636,330, of which
The contentions of the company on this branch of the case are that “acceptance of the charter by the company, its construction of the elevated railway and the payment of damages to property owners clearly created a contract between the Commonwealth and the company with respect to the franchise and also vested in the company an actual easement in the underlying and adjacent estates. . . . This contract vested in the company a property right which the Legislature cannot take away without compensation and any attempt to do so not only violates Article X, Part the First, of the Constitution of Massachusetts, but also violates Sec. 10, Art. I of the Federal Constitution as well as the Fourteenth Amendment thereof. . . . Therefore, the company’s rights affected by legislative declaration of forfeiture are three classes of property rights — its franchise, its interest in the land upon which the structure is built, and in the abutting estates, and its ownership in the structure itself.”
A. Revocation. Statute 1939, c. 482, cannot take effect as a revocation of the Atlantic Avenue location in the sense in which the word “revocation” is ordinarily used in relation to street railway locations, that is, in the sense of a repeal of a grant of a special privilege at the pleasure of the Legislature, or other authority in which the power to repeal is vested, without payment of compensation therefor as in the case of an ordinary street railway location. Compare Public Service Commission of Puerto Rico v. Havemeyer, 296 U. S. 506, 517.
1. It is a revocation of this nature that is expressly prohibited by St. 1897, c. 500, §§ 19, 21. That statute not only provides that the general laws relating to “revocation of locations of street railway companies, shall not be deemed applicable to the locations or routes for elevated railroads granted to said corporation” (§ 21), but also provides generally that the “locations of or right to main
2. The grant to the company of the Atlantic Avenue location with the statutory provisions herein referred to against revocation constituted a contract between the Commonwealth and the company — at least from the time of the construction of the elevated structure upon such location, if not from an earlier date — binding the Commonwealth not to revoke such location by a mere repeal of the grant of such location at the pleasure of the Legislature.
It clearly was the intention of the Legislature that the statute should be so interpreted. It is to be assumed that the Legislature intended that the statute should be effective according to its terms if it was within the power of the Legislature to make it so effective. The express provisions against revocation would be substantially ineffective if they were not binding upon the Commonwealth but were subject to repeal at the pleasure of the Legislature. An intention to pass an ineffective statute is not to be imputed to the Legislature. MacInnis v. Morrissey, 298 Mass. 505, 509. These provisions constituted inducements to the company to engage in the transportation of passengers in the manner provided by the statute and to construct its railroad for that purpose, and, particularly, so far as the present case is concerned, to construct an elevated structure upon the Atlantic Avenue location. The Legislature must have intended
The interpretation of the statute as constituting a contract by the Commonwealth against revocation of the Atlantic Avenue location is not precluded by the general provision of Pub. Sts. c. 105, § 3, in effect .at the times respectively of the passage of St. 1894, c. 548, and of St. 1897, c. 500 (see now G. L. [Ter. Ed.] c. 155, § 3), that every “act of incorporation” passed after March IT, 1831, “shall be subject to amendment, alteration, or repeal at the pleasure of the general court.” The specific provisions against revocation of locations obviously were intended to override this general provision to such an extent, if at all, as they were inconsistent therewith. And art. 59 of the Amendments to the Constitution of the Commonwealth, providing that “Every charter, franchise or act of incorporation shall forever remain subject to revocation and amendment,” was not adopted until after the passage of St. 1897, c. 500, and cannot be invoked to affect the interpretation of the statute.
Moreover, the Legislature had the power, which it purported to' exercise, to bind the Commonwealth by a contract such as is embodied in St. 1897, c. 500, that the Atlantic Avenue location should not be revoked without payment of compensation therefor. It was said by this court in Springfield v. Springfield Street Railway, 182 Mass. 41, 48, with respect to a street railway location: “No doubt the Legislature could have granted the defendant [the street railway company] the right to lay tracks in the streets of Springfield or have authorized the plaintiff [said city] to grant it in such terms that when accepted they would have constituted a contract between the plaintiff and defendant.” (It is to be observed that at the time that case was decided
The Legislature was not precluded from entering into such a contract by the statutory reservation, above re
Nor are the provisions against revocation open to the objection that thereby the legislative power ordinarily known as the police power was bargained away. This court has never undertaken to define the police power. General Outdoor Advertising Co. Inc. v. Department of Public Works, 289 Mass. 149, 180. As was said by Chief Justice Shaw in Commonwealth v. Alger, 7 Cush. 53, 85, it “is much easier to perceive and realize the existence and sources of this power, than to mark its boundaries, or prescribe limits to its exercise.” See also Slaughter-House Cases, 16 Wall. 36, 62. And it was said by Chief Justice Knowlton in
The police power herein referred to, however, though of broad scope, has a narrower signification than the police power in its comprehensive signification — as the term “police power” is sometimes used — “embracing in substance the whole field of State authority.” Dakota Central Telephone Co. v. South Dakota, 250 U. S. 163, 185-186. And the principle that the police power cannot be bargained away does not wholly preclude the Legislature from dealing with public rights by contract so as to prevent subsequent legislative action in violation of such contract. See Boston & Lowell Railroad v. Salem & Lowell Railroad, 2 Gray, 1, 32; Commonwealth v. Proprietors of New Bedford Bridge, 2 Gray, 339, 347-348; Commonwealth v. Essex Co. 13 Gray, 239; Central Bridge Corp. v. Lowell, 15 Gray, 106, 116-118; Boston v. Treasurer & Receiver General, 237 Mass. 403, 416; Opinion of the Justices, 261 Mass. 523, 552; 300 Mass. 607, 612. “In every case like this involving an inquiry as to whether' a law is valid, as an exertion of the police power, or void, as impairing the obligation of a contract, the determination must depend on the nature of the contract and the right of government to make it. The difference between the two classes of cases is that which results from the want of authority to barter away the police power, whose continued existence is essential to the well-béing of society, and the undoubted right of government to contract as to some matters and the want of power, when such contract is made, to destroy or impair its obligation.” Grand Trunk Western Railway v. South Bend, 227 U. S. 544, 553-554. Whatever may be the nature or description of the power of the Legislature to regulate public rights in the streets, the grant of the Atlantic Avenue
3. Statute 1939, c. 482, considered solely in its aspect as a revocation at the pleasure of the Legislature of the Atlantic Avenue "location and the right of the company to construct, maintain and operate an elevated railway structure thereon” (see § 1), would be void as impairing, in violatian of art. 1, § 10, of the Constitution of the United States, the obligation of the valid contract between the Commonwealth and the company that such location should be irrevocable. And even though this location — as in the case of an ordinary street railway location — constituted merely a license and not a property right in land or an easement in the streets (see Boston, Worcester & New York Street Railway v. Commonwealth, 301 Mass. 283, 285), such a location made irrevocable, as here, by a valid contract is "property” within the protection of art. 10 of the Declaration of Rights of the Commonwealth and the Fourteenth Amendment to the Constitution of the United States. See Commonwealth v. Essex Co. 13 Gray, 239, 253-254; Central Bridge Corp. v. Lowell, 15 Gray, 106, 117;
The grant of the Atlantic Avenue location was not subject to any reserved right in the Commonwealth to amend, alter or repeal such grant except so far as that result might be effected by the exercise of the police power as ordinarily understood — apart, of course, from the rights of the Commonwealth to exercise the power of eminent domain and the power expressly reserved by the statute to purchase the property of the company — neither of which rights was exercised by St. 1939, c. 482. No such right to amend, alter or repeal was reserved by the statute by which the location was granted. Nor, as already pointed out, on a proper interpretation of that statute, was the grant of such location subject to the statutory reservation in Pub. Sts. c. 105, § 3. See now G. L. (Ter. Ed.) c. 155, § 3. And whatever may be the scope of the similar constitutional reservation by art. 59 of the Amendments to the Constitution of the Commonwealth (see Opinion of the Justices, 261 Mass. 523, 552-553; compare Commonwealth v. Boston & Northern Street Railway, 212 Mass. 82, 84-85), adopted after the contract now in question-was made, it does not authorize legislation that impairs the obligation of the contract in violation of the Constitution of the United States. “A State can no more impair the obligation of a contract by her organic law than by legislative enactment; for, her constitution is a law within the meaning of the contract clause of the National Constitution.” New Orleans Gas Co. v. Louisiana Light Co. 115 U. S. 650, 672.
Furthermore, the revocation of the Atlantic Avenue location, purporting to be made by said St. 1939, c. 482, cannot
B. Forfeiture. Though St. 1939, c. 482, by reason of constitutional limitations cannot take effect as a revocation of the Atlantic Avenue location, in the sense in which the word “revocation” is ordinarily used in relation to street railway locations, it does not follow necessarily that it cannot take effect as a “declaration of forfeiture” for condition broken. The respondents, the Commonwealth, the city of Boston, and the transit department, on this branch of the case, contend in substance that the Atlantic Avenue location was granted upon an implied condition that it should be used for the purpose for which it was
1. Statute 1939, c. 482, clearly discloses a legislative purpose that the Atlantic Avenue location be terminated. Apparently it was the legislative purpose that such location should be terminated either by “revocation,” in the sense in which that word is ordinarily used in relation to street railway locations, or by “forfeiture” for condition broken, whichever method can be given effect within the limitations of the State and Federal Constitutions. The word “revocation” is sometimes used in the sense of a “declaration of forfeiture” (see New York Electric Lines Co. v. Empire City Subway Co. 235 U. S. 179, 194, 195), but, as ordinarily understood, there is a fundamental difference between “revocation” or repeal and “forfeiture” or cancellation for condition broken. This distinction was pointed out in Public Service Commission of Puerto Rico v. Havemeyer, 296 U. S. 506, 517, where it was said that the “reserved power to repeal a grant of special privileges implies that it may be exerted at the pleasure of the legislature or other authority in which the power to repeal is vested. . . . That power is plainly distinguishable from the power to cancel for violation of the terms of the grant. In the absence of constitutional, legislative or contractual restriction, the exertion of the first mentioned power requires nothing more than an appropriate declaration of the repeal. . . . But, without consent of the holder, valid cancellation for condition broken cannot be accomplished without giving to the holder an opportunity to have the asserted default judicially determined.” Though the statutory provisions relating to “revocation” and those' relating to “forfeiture” are in form somewhat interwoven, in their nature they are separable within the “well settled
2. As appears from the statement above quoted from Public Service Commission of Puerto Rico v. Havemeyer, 296 U. S. 506, 517, the question whether there has been a forfeiture of the Atlantic Avenue location for breach of a condition of the grant of such location is for judicial determination upon the facts and not for legislative determination. This principle was stated in Opinion of the Justices, 237 Mass. 619, 623, with respect to an act of incorporation then under consideration that constituted a contract, and what was there said is applicable to the grant of the Atlantic Avenue location, which we hold to be a contract. It was there said: “The decision of the question whether a charter has been so misused that it ought to be forfeited or suspended is judicial and not legislative or governmental in its nature. . . . Since the act of incorporation of the society constituted a contract, it is not a legislative function to determine whether that contract has been broken. Such action would be the taking of property without due process of law. . . . That is a question which under art. 30 of the Declaration of Rights of the Constitution of the Commonwealth can be decided only by the courts. . . . The act of incorporation having been a compact between the Commonwealth and the society, the question whether the latter has complied with
It does not follow, however, that in the matter of a forfeiture for condition broken there is no scope for legislative action. The ordinary procedure for enforcing such a forfeiture is by a proceeding in the nature of quo warranta brought by or in behalf of the Commonwealth. Commonwealth v. Tenth Massachusetts Turnpike Corp. 11 Cush. 171. See also Commonwealth v. Union Fire & Marine Ins. Co. 5 Mass. 230; Attorney General v. Tudor Ice Co. 104 Mass. 239; Campbell v. Talbot, 132 Mass. 174, 177; Attorney General v. Adonai Shomo Corp. 167 Mass. 424; Attorney General v. Preferred Mercantile Co. of Boston, 187 Mass. 516, 521; Attorney General v. New York, New Haven & Hartford Railroad, 197 Mass. 194. The Legislature, however, may prescribe a different procedure for a judicial determination whether there has been a forfeiture of the privilege granted. Upon this point the Supreme Court of the United States in New York Electric Lines Co. v. Empire City Subway Co. 235 U. S. 179, 195, said, speaking with respect to municipal permission to use the streets, that whether “the State shall proceed directly by quo warranta, or whether it shall authorize the municipality to pass a resolution or ordinance of repeal or revocation leaving the propriety of its course to be determined in an appropriate legal proceeding in which the default of the grantee may be adjudicated, is a question of state law with which we are not concerned. The resolution in such case serves to define the attitude of the public
3. Conditions, express or implied, in a grant by the State of a franchise or privilege are in the nature of conditions subsequent and the State making such a grant may, by proper proceedings, as here, terminate the franchise or
4. Upon this petition in equity this court must decide the mixed question of fact and law, whether on the facts agreed and the proper inferences therefrom there has been a breach of a material condition of the grant of the Atlantic Avenue location that constitutes “just cause” — that is “a cause sufficient in law,” Higgins v. License Commissioners of Quincy, 308 Mass. 142, 144 — for forfeiture of this location, where, as here, the forfeiture is insisted upon by the Commonwealth.
5. No contention is made that there has been a breach of any express condition of the grant of the Atlantic Avenue location. Reliance is placed solely on breach of an implied condition of such grant that the location should continue to be used for the purpose for which it was granted. With respect to such an implied condition of a grant it was said in New York Electric Lines Co. v. Empire City Subway Co. 235 U. S. 179, 194, that "while the grant becomes effective when made and accepted in accordance with the statute and the grantee is thus protected in starting the enterprise, it has always been recognized that, as the franchise
6. The fact, however, that the grant of the Atlantic Avenue location was by contract irrevocable does not change its general purpose or its fundamental nature. This contract against revocation cannot, in our opinion, rightly be interpreted as including a contract that the location shall not be terminated for breach of a material condition of the grant. A “grant from the sovereign power is to be construed strictly against the grantee. Nothing will be included in the grant except what is granted expressly or by clear implication.” Attorney General v. Jamaica Pond Aqueduct Corp. 133 Mass. 361, 365-366. Stoneham v. Commonwealth, 249 Mass. 112, 117. See also Cleaveland v. Norton, 6 Cush. 380, 383-384. In the case last cited it was said that “one who claims a franchise or exclusive privilege, in derogation of the common rights of the public, must prove his title thereto by a grant clearly and definitely expressed, and cannot enlarge it, by equivocal or doubtful provisions, or mere probable inferences.” Page 383. And see Cleveland Electric Railway v. Cleveland & Forest City Railway, 204 U. S. 116, 129-130. This principle of construction is applicable even though the grant constitutes a contract between the Commonwealth and the grantee. See Fertilizing Co. v. Hyde Park, 97 U. S. 659, 666, 667.
An intention on the part of the Legislature to grant to
Nor is the existence of an implied condition that a granted location should be used for the purpose for which it was granted negatived by the other statutory provision in § 19 that the locations granted to the company “shall not be subject to revocation” except in accordance with certain statutes providing for taking by eminent domain or purchase, under which the company would receive compensation for a location so revoked. This restriction, imposed by the Legislature by contract, upon itself and succeeding legislatures, acting directly or indirectly, construed strictly against the company — the grantee — is a restriction upon the power of the Legislature to revoke at its pleasure locations granted to the company — a power that, in accordance with the decisions relating to ordinary street railway locations (Boston, Worcester & New York Street Railway v. Commonwealth, 301 Mass. 283, and cases cited), the Legislature would have had apart from this contractual restriction. As pointed out earlier in this opinion, the Legislature, by reason of this restriction, could not revoke such a location at its pleasure without payment of compensation, and St. 1939, c. 482, cannot take effect as a revocation of the Atlantic Avenue location. But the inference is not to be drawn from this restriction upon the power of the Legislature that the company is entitled to retain its granted locations without using them for the purpose for which they were granted. The condition ordinarily implied in a grant of a special privilege, that such privilege shall be used for the purpose for which it was granted, is to be implied notwithstanding the restriction upon the power of the Legislature to revoke the grant thereof at its pleasure. And the general principle that a material breach of such an implied condition in a grant is a ground of forfeiture remains appli
7. The facts that the Atlantic Avenue structure has cost the company a large amount of money, and that, doubtless, a large expenditure by the company for this purpose was contemplated by the statute by which the Atlantic Avenue location was granted, do not preclude the implication of a condition that such location was to be used for the purpose for which the location was granted. Nor do these facts preclude the enforcement of a forfeiture of the location if there has been a material breach of this implied condition. This condition, though implied and not express, was a part of the contract between the Commonwealth and the company, limiting the obligation of the Commonwealth thereunder. Considerations of hardship resulting from the enforcement of this condition cannot be invoked to prevent such enforcement when insisted on by the Commonwealth. See Commonwealth v. Tenth Massachusetts Turnpike Corp. 11 Cush. 171, 175-176; Columbus v. Mercantile Trust & Deposit Co. of Baltimore, 218 U. S. 645, 663. The hardship resulting from forfeiture of the Atlantic Avenue location for condition broken is comparable to that resulting to a street railway company from a revocation of an ordinary street railway location by the Legislature or by its authority. Yet such hardship does not preclude revocation without compensation. See Boston, Worcester & New York Street Railway v. Commonwealth, 301 Mass. 283, 284-286, and cases cited.
The large expenditure of the company in connection with the Atlantic Avenue location for damages on account of the additional servitude created or declared by St. 1894, c. 548, § 8 (considered in connection with St. 1897, c. 500) resulting from the “location, construction, maintenance or operation” of the company’s lines of railway “in any public or private way” stands on the same footing as expenditures of the
8. The company in support of its case that .there has been no forfeiture of the Atlantic Avenue location makes these contentions: (a) that no "condition of continuous operation of passenger service” can be implied, (b) that if any such condition be implied it has not been broken, and (c) that
9. The contention of the company that no "condition of continuous operation of passenger service” can be implied is based almost entirely on the ground, already considered, that there is no implied condition that the Atlantic Avenue location be used for the purpose for which it was granted. We hold, for the reasons stated, that there was such an implied condition. Whether this implied condition includes a "condition of continuous operation of passenger service” can best be considered in connection with the question whether there has been a breach of the implied condition that the Atlantic Avenue location be used for the purpose for which it was granted. We do not attempt to define precisely the limits of this implied condition, but merely decide whether on the facts found and proper inferences therefrom there has been a breach of this, condition. And we consider this matter in the first instance on the basis that the acts of the board of trustees of the company under Spec. St. 1918, c. 159, as revised and extended by St. 1931, c. 333 — herein referred to as “Public Trustees” — were in all material respects the acts of the company.
Statute 1939, c. 482, was passed on August 12, 1939, and took effect upon its passage. There had been no physical severance of the Atlantic Avenue structure from the rest of the company’s system of elevated railways. But since the previous October 1 (1938) "no elevated railway trains . . . [had] been operated for any purpose over said Atlantic Avenue Section,” meaning the Atlantic Avenue location and the structure thereon. However, certain “electric cables and air pipe lines on said Atlantic Avenue elevated
The purpose for which the Atlantic Avenue location was granted to the company was clearly the transportation of passengers. The company’s “chief corporate purpose is to afford carriage of passengers for hire.” Opinion of the Justices, 261 Mass. 556, 594. It was authorized to “construct lines of elevated railway” upon certain locations including the Atlantic Avenue location, and to “equip, maintain and operate engines, motors and cars” thereon. St. 1894, c. 548, § 6, as amended by St. 1897, c. 500, §§ 2, 3. Doubtless the grant of such a location contemplated its use for purposes incidental to transportation of passengers on the location and perhaps to some extent for purposes incidental to transportation of passengers on other parts of the company’s system of railways considered as a unit. But the primary purpose of the grant of such a location obviously was to provide for transportation over the location itself. In this respect the location resembles an ordinary street railway location, which is in the nature of a privilege “to enjoy in common with others the easement of public travel.” Sawin v. Connecticut Valley Street Railway, 213 Mass. 103, 107. It would require clear language in the grant of a location to show an intention on the part
It remains, however, to consider whether the use of the Atlantic Avenue location by the company in the manner described was of such duration as to be a material breach of the implied condition of the grant of the location that it be used for the purpose for which it was granted, constituting a ground of forfeiture of the location. The question involved is to be distinguished from the question of abandonment of an easement or other interest in land, where intention to abandon is an important factor. See Willets v. Langhaar, 212 Mass. 573, 575; New York Central & Hudson River Railroad v. Chelsea, 213 Mass. 40, 45; Boston & Albany Railroad v. Reardon, 226 Mass. 286, 292; Dubinsky v. Cama, 261 Mass. 47, 57; Williams v. Atlantic Coast Line Railroad, 17 Fed. (2d) 17, 22. In such cases it has been said that abandonment is not to be inferred from mere nonuser. Here, however, the question arises between the Commonwealth, the grantor of this location, and the company, the grantee, and is whether the grantee has failed to perform a condition of the grant. Whether or ■ not the grantee intended to abandon the location is not decisive if, in fact, such grantee has not performed the condition.
For a period of more than ten months prior to the declaration of forfeiture by the Legislature the company failed to use the location for the purpose for which it was granted.
The Atlantic Avenue structure has not been physically severed from the other parts of the company’s system of railways. It is apparent, however, from the facts agreed, that neither the Atlantic Avenue location nor the structure thereon constitutes such an integral part of the company’s system that the loss of the location by the company will substantially interfere with the operation of the rest of the system, except as it will require the substitution of other means for transmission of electricity and compressed air. The incidental use of the location and the structure for this purpose, as already pointed out, does not entitle the company, under the condition of the grant thereof, to retain the location. The company urges, however, that the structure is capable of being used at short notice as an alternative route if operation through the Washington Street tunnel should be interrupted, that the company’s right to operate through that tunnel is only by virtue of a lease which may terminate on July 1, 1962, and that if such lease were terminated the company would be without facilities for through operation of rapid transit trains except upon the Atlantic
It follows from what has been said — and we so find — that there has been a material breach of the implied condition of the grant of the Atlantic Avenue location that it be used for the purpose for which it was granted —• provided the acts of the Public Trustees with respect to the use thereof are to be regarded as the acts of the company.
10. Though the failure of the company to use the Atlantic Avenue location resulted from the acts of the Public Trustees in the management and operation of the company, it none the less constituted a breach of the implied condition that the location be used for the purpose for which it was granted.
The use of the Atlantic Avenue location and the structure thereon by them in the manner herein described was within the authority conferred upon the Public Trustees by the so called Public Control Act, Spec. St. 1918, c. 159, as amended
This contract between the company and the Commonwealth provided for what is described in the Public Control Act as “public management and operation of the railway system” of the company (Spec. St. 1918, c. 159, §§ 1, 12), or more broadly as management and operation or management of the “company.” Spec. St. 1918, c. 159, §§ 1, 2. St. 1931, c. 333, § 1. See also Spec. St. 1918, c. 159, §§ 3, 13, 15, 16; St. 1931, c. 333, §§ 3,17,19. The period of “public management and operation” was fixed by Spec. St. 1918, c. 159, §§ 1, 12, at ten years from the date of assumption of such management by the trustees and, thereafter, “until such time as the commonwealth shall elect to discontinue such public management and operation” in a manner therein prescribed, and by St. 1931, c. 333, § 1, was extended until July 1, 1959, “and thereafter, unless terminated on said date or thereafter” in the manner prescribed by Spec. St. 1918, c. 159, § 12. See Opinion of the Justices, 309 Mass. 609, 615. The contract between the company and the Commonwealth created by the Public Control Act and acceptance thereof by the company has been described as “in its essential features a lease of the railway property to the Commonwealth, or at least a contract for public operation upon stipulated terms ... A street railway system was turned over for public management in return for the provisions made in the statute for the benefit of the owner. All those provisions, including that for rehabilitation of the railway property, are in the nature of compensation to be made for the use of the property.” Boston v. Treasurer & Receiver General, 237 Mass. 403, 415-417. See Opinion of the Justices, 261 Mass. 523, 551; 309 Mass. 609, 620-621. See also Helvering v. Powers, 293 U. S. 214, 222-223. Major
Undoubtedly the management and operation of the company’s railways by the Public Trustees under the Public Control Act are for a public purpose. Boston v. Treasurer & Receiver General, 237 Mass. 403, 412-414; S. C. sub nomine Boston v. Jackson, 260 U. S. 309, 314-316. Chelsea v. Treasurer & Receiver General, 237 Mass. 422, 429. Helvering v. Powers, 293 U. S. 214, 222. See also Opinion of the Justices, 231 Mass. 603, 608-609; 261 Mass. 523, 541-543; 261 Mass. 556, 594. And such management and operation are carried on by the Public Trustees in behalf of the Commonwealth, which contracted with the company for such management and operation upon certain specified terms and conditions. Spec. St. 1918, c. 159, § 18. St. 1931, c. 333, § 19. Moreover, it is provided expressly by the Public Control Act that the Public Trustees “shall take and have possession of said properties [the “properties owned, leased or operated” by the company] in behalf of the commonwealth during the period of public operation.” Spec. St. 1918, c. 159, § 2. The Public Trustees are appointed by the Governor with the advice and consent of the Council. Spec. St. 1918, c. 159, § 1. In Opinion of the Justices, 261 Mass. 523, 542-543, the Justices, in speaking of Spec. St. 1918, c. 159, as amended by a proposed bill that would not affect the statement here quoted, said that under said c. 159 as so amended the com-
The Legislature, however, did not purport by the Public Control Act to take or to authorize the taking of possession of the properties of the company or the subsequent management and operation thereof by virtue of any sovereign power other than the power to enter into a contract with the company for the carrying out of a public purpose. There was “no inexorable mandate that such public operation be undertaken.” Boston v. Treasurer & Receiver General, 237 Mass. 403, 412-413. The Public Trustees, as public officers, have statutory powers and duties under the Public Control Act for the carrying out of its public purpose. But, within the scope of these statutory powers, the powers of the trustees to take and have possession of the properties of the company and to manage and operate these properties are derived from the contract of the company with the Commonwealth that permits the trustees to deal in this manner with the properties of the company. Apart from this contract the trustees would have no such powers with respect to these properties. But no question is involved here as to any difference in the scope of the statutory powers of the trustees and their contractual powers to deal
The conclusion here reached is in accord with the fundamental nature of the enterprise carried on by the Commonwealth under the Public Control Act. The purpose of the enterprise is none the less public by reason of the authority of the Public Trustees to act in behalf of the
It was within the scope of the authority of the Public Trustees derived from the contract of the company with the Commonwealth •— and for like reasons within their statutory authority as public officers — to discontinue the use of the Atlantic Avenue location for the transportation of passengers thereon. The duty was charged upon the trustees, accompanied by a grant of power to perform that duty,
It is not necessary to consider the extent to which the trustees could go in abandoning service on the company’s railway system. But in the light of the purpose of the Public Control Act and the express provision thereof authorizing the trustees to “determine the character and extent of the service and facilities to be furnished,” it must be inferred that they are not required to operate passenger service on all the railway properties of the company of the same character and extent as was being maintained when the trustees took possession of the properties. The trustees were not required to operate such service on all the company’s locations — at least if, in the exercise of sound judgment, they decided that adequate service and facilities could be furnished in some other way within the provisions of the Public Control Act. This principle is applicable to the act of the trustees in discontinuing passenger service on the Atlantic Avenue structure, notwithstanding its extent and its cost to the company. The trustees did not exceed their powers in discontinuing passenger service on the Atlantic Avenue location and the structure thereon.
The company makes no contention that the trustees exceeded their powers in discontinuing passenger service on the Atlantic Avenue location, apart from the effect of such discontinuance upon the company’s right to the
Neither the Commonwealth nor the trustees acquired title to this location under the contract between the company and the Commonwealth. Such title remained in the company. The trustees, under the contract, merely took possession in behalf of the Commonwealth of the company’s right in the location. Boston v. Treasurer & Receiver General, 237 Mass. 403, 419. That right, as already pointed out, was subject to an implied condition that such location be used for the purpose for which it was granted. It continued to be subject to that condition while in the possession of the trustees, unless waived by the Commonwealth. And, unless it was so waived, the action of the trustees in discontinuing passenger service thereon was a breach of the condition, since such service was discontinued by them by authority of the company, conferred upon them by its contract with the Commonwealth. We need not consider whether the loss of the Atlantic Avenue location and the structure thereon would fall within the provision of the Public Control Act authorizing the trustees to include in the cost of service allowances for losses in respect to property sold, destroyed or abandoned. Spec. St. 1918, c. 159, § 6. The company, however, apparently has no interest in this question since the burden of such an inclusion would fall upon income and, in case of a deficiency of income, on the taxpayers. The protection of the owners of the company lies in the fact that, at the expiration of the period of public management and operation, control of the property reverts to the company and
As has been said already, the Commonwealth acting by the Legislature could have waived the implied condition of the grant of the Atlantic Avenue location that it be used for the purpose for which it was granted. But the Commonwealth has not done so. Such a waiver must be found, if at all, in the Public Control Act. That act contains no express waiver of this condition. And a waiver cannot be implied from the fact that under the act, and the contract between the company and the Commonwealth embodied therein, the Public Trustees have taken possession of the Atlantic Avenue location and the structure thereon with other properties of the company and are managing and operating these properties. The condition that a granted location shall be used for the purpose for which it was granted is implied as an incident of the regulation of the use of the streets. Such a location is a modification of the use of the streets by the public generally.
11. We find that there has been a breach of the implied condition of the grant of the Atlantic Avenue location that it be used for the purpose for which it was granted. This breach is a ground for forfeiture of the location where, as here, such forfeiture is insisted on by the Commonwealth. Such forfeiture extends to the entire location described in St. 1939, c. 482, § 1, including such part thereof as is on privately owned land. So far as this location is
12. The forfeiture declared by St. 1939, c. 482, § 1, is therein stated as being not only on the ground of the Atlantic Avenue structure "no longer being operated in the public service for the purpose for which the franchise of the company to operate an elevated structure on the said location was granted” but also on the ground of its "constituting a nuisance in the public highway and unreasonably interfering with the enjoyment and use of said highway to the detriment of the public health and safety.” Whether the latter ground is stated as an independent ground of forfeiture or a result of forfeiture on the former ground is not wholly clear. Since, however, the former ground, for reasons herein stated, is a sufficient ground of forfeiture, we need not consider
Fourth. 1. By the terms of St. 1939, c. 482, § 2, the issue to be determined upon the petition is “whether there is just cause for the revocation and declaration of forfeiture provided for in section one” of said act. Upon this issue we determine, for reasons herein stated, that, though there is not “just cause” for such a “revocation,” there is “just cause” for such a “declaration of forfeiture” for failure to operate the Atlantic Avenue structure “in the public service for the purpose for which the franchise of the company to operate an elevated structure on the said location [described in said § 1] was granted.” We determine that the Atlantic Avenue location is forfeited — as declared in said § 1 —- for a material breach of the implied condition of the grant thereof that such location be used for the purpose for which it was granted.
2. Statute 1939, c, 482, § 2, confers no jurisdiction for the determination of any issue as to the propriety of the action that, by the terms of the statute, §§ 3, 4, is to follow a decision, such as is here made, sustaining the forfeiture. There is, however, nothing in the statutory provisions relating to such action that precludes enforcing the forfeiture declared by § 1 of the statute. The precise extent of the powers granted by these provisions relating to action following this decision is not before us for determination upon this pétition.
Fifth. A decree is to be entered that the right of the company described in St. 1939, c. 482, § 1, is forfeited, as declared by said section, because the company’s elevated structure therein referred to is “no longer being operated in the public service for the purpose for which the franchise of the company to operate an elevated structure” on the location described in said § 1 “was granted.”
Ordered accordingly.
“3. Boston Elevated Railway Company constructed lines of elevated railway pursuant to the provisions of said Chapter 548, Acts of 1894, and Chapter 500, Acts of 1897, upon certain locations extending from Sullivan Square, in that part of the city of Boston called Charlestown, to the northerly terminus of the Tremont Street Subway in said city of Boston, and from the southerly terminus of the said Tremont Street Subway to Dudley Street, in that part of said Boston known as Roxbury, thereby forming a continuous line of railway adapted to third-rail rapid transit train operation from Sullivan Square to Dudley Street, and also a line of elevated railway by way of Atlantic Avenue and other ways in said Boston connecting the portion of said elevated structure north of said Tremont Street Subway with the portion of said structure south of said Tremont Street Subway, thereby forming a continuous line of elevated railway from Sullivan Square to Dudley Street for use by the same type of third-rail rapid transit trains as those which are operated through the Tremont Street Subway. The lines of the Elevated from Sullivan Square to the northerly end of the Tremont Street Subway and from the southerly end of the Tremont Street Subway to Dudley Street were completed and operation thereof commenced June 10, 1901. The connection between the north and south ends of said elevated railway lines by way of Atlantic Avenue was completed and placed in operation on August 22, 1901. The connection between the north and south ends of said elevated railway lines by way of the Tremont Street Subway was completed and placed in operation on June 10, 1901.
“4. Boston Elevated Railway Company constructed an extension of its elevated railway from Dudley Street to Forest Hills, in the city of Boston, which was completed and operation thereof commenced November 22, 1909; and, further, constructed an extension of its elevated railway lines from Sullivan Square to the city of Everett, which was completed and placed in operation on March 15, 1919.
“5. Boston Elevated Railway Company became lessee of the properties of the West End Street Railway Company, a Massachusetts corporation, under a lease dated December 9, 1897, by which it became sublessee of said Tremont Street Subway under a contract made between the city of Boston and the West End Street Railway Company for the use of said Subway dated December 7, 1896, by virtue of which Boston Elevated Railway Company had the right to operate its elevated railway trains through said Tremont Street Subway upon the completion of its railway structures connecting therewith.
“6. The city of Boston, acting through the Boston Transit Commission, pursuant to authority granted by Chapter 534 of the Acts of 1902, constructed
Pub. Sts. c. 112, § 7: “The commonwealth may at any time during the continuance of the charter of a railroad corporation, after the expiration of twenty years from the opening of its road for use, purchase of the corporation its road and all its franchise, property, rights, and privileges, by paying