57 W. Va. 641 | W. Va. | 1905
Lead Opinion
Although, in form, a proceeding by one railroad company, to condemn, for its road bed, a strip of land owned by another railroad company, which purchased said land for its road bed, this case is in realty a controversy between said railroad companies over the question of priority of right to appropriate the strip of land in question; and calls for settlement of the principles governing the rights of rival companies contending for the same location for their respective roads.
The conflict is between a branch line of the Chesapeake and Ohio Railroad, called the Piney Creek Extension, commencing at Prince .Station on the main line and on New River and running for several miles up Piney Creek and its branches and thence across the divide to the waters of the Guyandotte River; and an extension of the Deepwater Railway, commencing at Glen Jean on Loup Creek, another branch of the New River, and not far from Piney Creek, and running across the divide to the waters of the Guyandotte River, and thence across the mountains to the Bluestone River. The point of conflict is a place called Jenny’s Gap on the ridge between the waters of New River tributaries and those of Guyandotte River branches. There is space for two locations through this gap, but the one in question is preferable to the other.
The main line of the Chesapeake and Ohio Railway Company from Richmond, Virginia, to the Ohio River was completed in the year 1873, and, since that time', branch lines, as feeders to it, running up many of the tributaries of Kana-wha and New Rivers into the rich coal and timber regions of that section of the state, have been built. Few, if any, of these branch or lateral roads exceed fifty miles in length, and most, if not all, of them have been constructed and operated under the original articles of incorporation, by authority conferred by section 69 of chapter 54 of the Code, which provides that: “Any railroad company organized under this chapter, may build and construct lateral and branch roads, or tramways, and of any gauge whatever, not exceeding fifty miles in length” &c. In the exercise of the privilege conferred by this statute, the Piney Branch of the road was surveyed in the years 1898 and 1899, and, in the following year,
The original certificate of incorporation of the Deepwater Railway Company, bearing date January 28, 1898, calls for a route from Deepwater on the Kanawha River up Lower Loup Creek, thence across the divide and down White Oak Creek to its mouth at Dunloup Creek at or near the village of Glen Jean. Early in the year 1902, conceiving the idea of an extension of this line in a southerly direction through the coal fields of West Virginia and menee to the sea boai’d, preliminary surveys for such extension were ordered. The engineer first commenced at Glen Jean and crossed the divide to Piney Creek which he followed to its source in the Flat Top Mountain, and then crossed the mountain to the waters of Camp Creek which he followed to Bluestone River. About the first of April, 1902, he was ordered to make another sur
When the Chesapeake and Ohio engineers were met in Jenny’s Gap, they were prosecuting a survey which they had commenced at Raleigh Station on July 7, 1902, and carried to within six or seven miles of the gap, and then gone to the summit to run back and make connection as is usual in locating a road to the summit of a ridge or hill. They afterwards completed their preliminary survey through the gap and down Low Gap Branch to Slab Fork and connected it with their old survey made in 1899, and a map of their projected location by- this route was completed and filed in the secretary of state’s office September 11, 1902. On the same day, they filed a map of the old 1899 survey down Slab Fork from
On the 2d day of October, 1902, the Deepwater Company acquired, by deeds from John L. Trail and wife and Isaac N. Cook and wife, the fee simple title to the land in Jenny’s ■Gap on which its location was made, and about the 30th of December, 1902, it commenced its work of construction on the disputed strip of land, and prosecuted the same at a cost of about $8,500.00, until sometime in June, 1903, when the trial court decided in this case that the Chesapeake and Ohio Company had paramount right of appropriation. Early in January, 1903, the Chesapeake and Ohio Company caused to be served upon the Deepwater Company, Trail and Cook, notices of its intention to apply to the circuit court of Raleigh county for the appointment of commissioners to ascertain compensation to them for the lands proposed to be taken, including parts of the Deepwater Company location and purchase. Upon the pleading and evidence. adduced, the court decided as already stated that the applicant had prior right .and was entitled to take the lands it sought to condemn on payment of just compensation, the parties having waived a trial by jury as to that question. Such proceedings were ■afterwards had that the compensation was fixed by a jury ■at $11,538.00, and the court overruled a motion by the defendant company to set aside the verdict. To the two judg
The first question, whether the applicant has the superior right, as against the Deepwater Railway Company, to the location in question, is separate and distinct from the right claimed to take the lands in controversy for tlie purposes of its road. The determination of that question against the applicant would end the whole controversy, for, if the Deepwater Company’s right to appropriate the land for the purposes' of its road is prior and paramount to that of the Chesapeake and Ohio Company, the- latter company cannot condemn the land at all and the matter of compensation does not enter into the case. As to what constitutes a location or priority of location between rival railroad companies, there has been no decision by this Court. Some observations on that subject were made in both of what may be termed the majoritj'- and minority opinions, delivered in the case of the Kanawha &c. Co. v. Glen Jean &c. Co., 45 W. Va. 119, but the Court held that, before the plaintiff could enjoin the rival company, it must establish its right and title at law, and, on that ground, the injunction was dissolved and the bill dismissed. Point 2 of the syllabus holds that, “As between rival railroad companies priority of location gives priority of title which is perfected by after-condemnation but as to what amounts to priority of location the Court expressed no opinion. In the dissenting opinion it is suggested that priority of right is with the pai'ty who first begins condemnation proceedings for the land. Whether that position is sound arises in this case; for, if it be. so, the Deepwater Railway Company, having acquired the land by a deed, in consequence of which no condemnation proceeding is necessary, would clearly have a better right to the location than the applicant. In the two opinions', nearly all the decisions of other states and of the Federal courts on this subject are cited, and, to some extent, analysed and applied. Judge BjraNNON very properly suggested the necessity and propriety of examining those decisions in the light of the statutes under which the companies, contending for the disputed locations, endeavored to obtain them; for the courts rendering the decisions undoubtedly kept the judicial eye on the statutes governing the rights of
Both sides seem to rely upon the filing of maps and profiles in the office of the secretary of state and in the offices of the clerks of the county courts as an important, if not decisive, step in the acquisition of a location. When it was apparent that there would be cpnflict over the location through Jenny’s Grap, each company hastened the filing of its maps and profiles. In view of this and of the suggestion that priority of right is with him who first institutes condemnation proceedings, section 65 of chapter 54 is quoted and attention to its terms invited. It says: “ Every such corporation shall within a reasonable time after its railroad is located, cause to be made a map and profile thereof, with the names of the owners of the lands through which it runs, and of the noted places along the same stated thereon, and file the same in the office of the secretary of state, and in the office of the clerk of the county court of each county in which any part of said road is located.” By its very terms, the statute contemplates a location, an adopted location, of the railroad before the filing of the map and profile. This being true, the filing of the map and profile cannot be considered an essential step in the progress of location nor a necessary act in the process of it. Such was undoubtedly the conclusion of this Court in Wheeling &c Co. v. Camden &c. co., 35 W. Va. 205, holding that the filing of a map and profile is not a condition precedent to the prosecution of condemnation proceedings. Surely, a location must be made before the land can be taken, unless the taking is part of the act of location, and that it is not is now about to be determined. Whether the filing of a map is
As to the relation of condemnation proceedings to the subject of location of route, the statute, under the rules of interpretation and construction, must be viewed, read and applied in the light of what is known to be the universal practice in the location and construction of railroads. It would be a most violent presumption to say that the legislature intended to prescribe and'enforce a rule of law, compelling a departure from the known practice. According to it, location is a mere matter of selection of the ground upon which the company desires to construct its road and is effected by action of the corporate authorities of the company, based upon what are -known among railroad people, and especially railroad civil engineers, as preliminary, projected and actual surveys or locations, of which the first is a mere line with angles, marking the changes of direction, which forms a basis from which to work out on paper a diagram of the right of way, turning the angles into curves. This diagram is called the projected location and, from it, and by it, the right of way is staked out on the ground along the course of the preliminary survey, just as the boundaries of a tract of land are located ■on the ground by the deed calling for courses, distances and monuments. All this must be done before there can be any •certainty as to the particular ground upon which the road is to be built. After it is done, and adopted by the board of directors, the location is made and is completed. What follows is not location, but construction. Of course, the word “location” has two meanings. It means either to place or set a thing or ones-self in a particular spot or position, or to designate the site or place of a thing. The former may include the latter perhaps, but the legislature certainly did not intend to use it in both senses. It would be absurd to say that the railroad should be actually placed, that is, constructed, in a certain place in order to be located. That is not the sense in which the term is used among railroad people, or among the people generally as applied to railroad building. The other sense and meaning is fully satisfied without acquisition of-title to the land, or actual construction
The character of our legislation authorizing the construction of railroads, in its early stages, with the modifications thereof down to the present time, perfecting it or formulating it into its present condition, tends strongly to support-the views here taken. Prior to the Act of March 11, 1837, chapter 118, Acts of 1836-37, the rights and powers conferred upon every railroad company were found in the special act-creating it. Upon some greater powers were conferred than upon others. There was lack of uniformity, each company possessing and exercising its own special powers. The Act of March 11, 1837, was passed for the purpose of establishing certain general regulations to apply to all railroad companies which might thereafter be chartered by the general assembly as effectually as if they wpre expressly re-enacted in the act creating the company, except so far as the act itself might otherwise expressly provide. It may well be assumed that these general regulations were such as, up to that time, had been usually inserted in the special acts granting charters to railroads. That act conferred upon railroad companies the right “to enter upon all lands and tenements-through which they may desire to conduct their railroad, and lay out the same according to their pleasure, * * * and if they think the interest of said company requires it, to-take possession thereof for the -purposes of the company,”' previously to the institution, and during the pendency, of proceedings for ascertaining the- damages to the proprietor for the land taken for the use of the company. Section 9, chapter 118, Acts 1836-37 of Virginia. In such case, the-president and directors were required to describe by certain limits the land which thej^ desired to occupy and were given the right to purchase it or any part of it. In case of failure to agree with the owner, condemnation proceedings were authorized, but section 13 of that act further provided that, “In the meantime, no order shall be made and no injunction shall be awarded by any court or judge, to stay the proceed
This is the view taken by the courts of other states in which the statutes are in substance like ours. In Pennsylvania, there can be no entry upon the land before payment of, or security given for, compensation to the land owner, but, there as here, entry may be made for the purposes of examination and laying out of the location of the road. Williamsport &c. R. R. Co. v. Philadelphia &c. R. R. Co., 141 Pa. St. 407; Railway Co. v. Harvey, 107 Pa. 319; Gilmore v. Railway Co., 104 Pa. 275; Dimmick v. Brodhead, 75 Pa. 464; McClinton v. Railway Co., 66 Pa. 404; Levereing v. Railway co., 8 W. & S. (Pa.) 459. As the relation of the railroad company to the land owner is the same in the two states, and there is no statute in either state expressly defining the rights of railroad companies contending for the same location as to each other, nor any statute requiring a map to be filed 'until after the location, the Pennsylvania statute not requiring any to be filed at all, their relations must be determined by the same principles and the same process of reasoning. The conclusion of the Pennsylvania court on the question as to whether condemnation, or the beginning of condemnation proceedings, is a part of the act of location, is exactly in accord with the one here given. In Williamsport &c. Co. v. Philadelphia &c. Co., cited, the court holds: “In the taking of land for the construction of a railroad, the appropriation, as against the landowner, is valid and effective when compensation for the taking and the injury thereby is made or secured. But, as against a rival corporation, the act of locating a route for a railroad is the appropriation of the land covered by the line to the purposes of the construction and operation of the railroad, by virtue of the power of
In those states in which the statutes' declare that a map of the location must be filed before the company acquires any right to take the land, the courts hold that, upon making the survey, adopting it and filing the map, the appropriation as to third persons is complete. Barre Railroad Co. v. Granite R. R. Co., 61 Vt. 1; Rochester &c. Co. v. New York &c. Co., 17 N. E. 680. In the latter of these cases, the court say: “When, therefore, a corporation has made and filed a map and survey of the line of route it intends to adopt for the construction • of its road, and has given the required notice to all persons affected by such construction, and no change of route is made, as the result of any proceeding instituted by any land-owner or occupant, in our judgment, it has acquired the right to construct and operate a railroad upon such line exclusive in that respect as to all other railroad corporations, and free from the interference of any partju By its proceedings it has impressed upon the lands a lien in favor of its right to construct, which ripens
Having concluded that a survey adopted by corporate action as and for the location, constitutes appropriation as against third persons, the next inquiry is what kind of a survey, so adopted, is sufficient. In Railway Company v. Alling, cited, Mr. Justice Harlan says the engineer described the survey of 1871-72, “as a ‘close preliminary;’ that is, a line very near the location, without an actual location of the curves.” He then says, “But the location of the curves, he testifies, could have been made in his office away from the canon. With that exception, he pronounces it to have been a complete survey. The line thus surveyed was marked by stakes every hundred feet, numbered consecutively, and at points where it seemed necessary, a plus or stake between the hundred feet was added. Of the work then done, a map and profile were made and returned to the chief engineer of the company, and estimates sent to its general manager. Upon the occasion of that survey, or shortly thereafter, employes of the company, under- the direction of its engineer, removed several hundred yards of material, graded several hundred feet at the upper outlet of the canon, and put up a retaining wall ten to fifteen feet high, and about one hundred yards in length.” It having been suggested that this, without further action, gave prior right of occupation, the court said: “To this proposition we cannot yield our assent.” It was necessary to actually occupy the pass with intent to build the entire line of road. However, when the act of occupation with such intent, evidenced by all the circumstances shown, was added, the survey was held sufficient. In New
A mixed question of survey and adoption, to be now considered, is, whether before the entire route is surveyed, a location of part of it can be made, the Deepwater Company, at the time of its alleged adoption on September 2, 1904, not having made even its preliminary survey between Jenny’s Gap and Glen Jean, and this being the ground of a strongly urged objection to its claim of adoption on that day, as well as on later dates. For this position Railway Co. v. Alling, cited, is relied upon. There the court did say: “The grant was an entirety as to the right of way over all the lands lying on the route designated in the charter of the company, and it would be unreasonable to say that, as to a particular part of that route, a mere preliminary survey was in itself equivalent to a fixed location of the road and an appropriation of the way granted, while°as to another part of the general route a similar survey would not be an appropriation of the way
The principle enunciated in Alling v. Railway Co. seems to be not only equitably and legally sound but also accordant with the spirit of our legislation, as well as that of other states. It enables a railway company to take the benefit of its labor and expenditures and to hold, as the first taker, the land surveyed, if it desires to do so, until it shall have surveyed and located its entire line. Without this power, location of a long line would be a difficult feat to perform, if rival companies were disposed to obstruct the work by the location of short lines along the same route. Hence, it is an implied power accompanying the grant of the right to locate, necessary to the convenient and effectual performance of the things authorized by the grant. The seizure of a partial location, however, must be made in good faith and the test of its bona fides laid down in Alling v. Railway Co. is undoubtedly the
As long as such a company prosecutes the main enterprise it has undertaken with reasonable diligence, the right must be accorded it to seize and hold any point on any part of its intended route. To deny this right would deprive it of a most potent and essential means of advancing its work. It would, in every instance, give the short railroad an immense advantage over the long one. The ease and facility with which an existing road may throw projected branches into the mountain passes, in advance of the work of surveying a long rival trunk line, and thus impede, delay and even prevent, the prosecution of such great enterprises, so necessary to the development of the natural resources of the state ancl to the welfare of the people, makes the construction contended for inconsistent with the spirit of our legislation on the subject of railroads. It is illiberal, technical and discriminative, and, if admitted and applied, would discourage and retard the work of providing cheap and adequate transportation facilities for the people, opening our rich mines, marketing the timber of our great forests and populating our vast areas of unoccupied territory. The court cannot defeat legislative intent and state policy, and set its hand against progress by adopting a construction so narrow and so palpably inimical to the public interests. Therefore, we adhere to the position announed by Judge Holt, in Wheeling &c. Ry. Co. v. Camden &c. Co.., 35 W. Va. 205, and re-iterate and apply, between rival companies, as well as between the company and the land owner, the principle that partial locations of the route may be made and held as long as the company making them prosecutes its work in good faith and with reasonable diligence.
Closely allied to this is the contention that a survey, made before articles of incorporation are taken out, by persons intending to incorporate for the purpose of building the road for which the survey is so made, is a nullity and cannot be adopted by the corporation, without having been retraced .and the stakes reset, after organization. It is founded upon the failure of the Deepwater Company to file a certificate of ■extension before making its survey of the disputed location.
This review of the authorities clearly establishes the following principles: First. When the statute does not make the filing of a map or plat of a railroad location a prerequisite to the adoption of it, an appropriation of it may be made without the filing of such maps. Second. The beginning of condemnation proceedings against the land owner is not a prerequisite to the acquisition of a right of way against third
The application of these principles to the facts must determine whether the applicant is entitled to the right of way through Jenny’s Gap. The work done in Jenny’s Gap by the engineers of the Deepwater Company prior to September 2, 1902, although platted and shown by stakes on the ground, did not constitute a location. The engineers alone could not make a legal location. It could be made only by act of the board of directors. For want of the consent of a majority of the stockholders and the filing of a certificate of extension, required by section 53 of chapter 54 of the Code, the board of directors were themselves powerless to make a location through Jenny’s Gap. If, however, the board of directors, after having obtained authority to do so, adopted, as the location of the road, the survey previously made, it
At the time of the passage by the stockholders of the resolution of extension they had before them plats of the surveys made up to that time, including the survey through Jenny’s Gap, but it is contended that that resolution makes no reference to them. It does say, “said extension to be located on the most practicable route, as shown on the maps and profiles filed as required by law,” but at that time none had been filed as required by law. They were filed on the same day, but after the adoption of the resolution. As has been shown, prior to that date, the engineers had made two surveys, one through Jenny’s Gap and Clark’s Gap, and the other over an entirely different route by way of Piney Creek and Camp Creek. Whether the Piney Creek and Camp Creek survey was ever platted is not shown. That it was, cannot be assumed. There is no evidence that any plat of it was made or placed before the stockholders or the directors. If, therefore, the resolution referred to maps then in existence, they were the maps of the Clark’s Gap and Jennj^’s Gap survey. In view of these facts and the further fact that the stockholders’ meeting was held for the express purpose, as shown by all the circumstances pertaining to the transaction and the situation of the parties, of claiming the Jenny’s Gap location, as shown on the plat then in the hands of the stockholders and officers of the company, against the Chesapeake and Ohio Company, and, to that end, of making an immediate filing of those maps, and that the resolution passed by the stockholders and the one passed by the board of directors had been prepared on the day before with a view to adopting-them early on the morning of the second of September and
‘ ‘said extension to be located on the most practicable route as shown on the maps and profiles, filed as required by law.” So far as the survey had been made, the most practicable route had been ascertained and was then shown on the map. As to that part of it which had not been surveyed, the engineers were to proceed with their work and make the filings as fast as the maps could be prepared.
The two principal objections to this construction, based upon language found in the resolution itself, are, first, that it was designated by the stockholders themselves as their certificate of extension and not as a description of a specific location, and, second, that it directed certain persons by name “to make the necessary filings as required by law as fast as the same may be prepared. ” The direction to file the resolution as the certificate of extension would preclude its use, or an intent in passing it, for any other purpose inconsistent with the office of such certificate, but a location is perfectly consistent with an extension, and the resolution might well subserve both purposes. A fact -fully proved is that the stockholders had before them at the meeting, and had previously examined, maps of the survey through Jenny’s Gap^ and of the survey of the route from the mouth of Barker’s Creek to within four or five miles of Jenny’s Gap, a distance of ten or twelve miles. Does the direction to make filings
Here it is suggested that the adoption of this resolution by the stockholders did not make a location, because the statute says the corporate powers of a railroad corporation shall be in the board of directors. The point is well taken. This did not amount to a location, but it is an important transaction to be considered upon the inquiry as to whether the directors made a location. If the foregoing construction of the resolution is correct, it was adopted by the directors and made their resolution. Immediately after the adjournment of the stockholders’ meeting and before any papers were sent away, the directors, fresh from the stockholders’ meeting, fully cognizant of all that had been done there, and imbued with the spirit and purpose of that meeting, met and .passed the resolution hereinbefore set out, directing the chief engineer and attorney in fact of the Deepwater Company, “to carry out the surveys and extensions of same as authorized by the stockholders in their meeting of this date and to do all things further that may be necessary for carrying out said resolution. ” If we are correct about the reference to maps and profiles in the resolution passed by the stockholders, they were the maps of the surveys mentioned in the resolution passed by the directors, and this resolution of the directors ■ordered the doing of all things necessary for carrying out the resolution, and among these was the extension of the railroad upon the location shown by the maps and profiles. This meeting was held at an early hour to insure the filing of the maps on that day, and they were sent away immediately for that purpose and actually filed by the person appointed for that purpose at that meeting. They, as well as the maps subsequently filed in the office of the clerk of the county court of Raleigh County on the 3rd and 9th days of Septem
Is any rule violated by thus reading the resolutions in the light of the surrounding circumstances, the situation of the parties and their conduct? Certainly not. They are instruments of much less solemnity than deeds, wills and contracts, and all such instruments may be so read, when the intent of the parties is not made pláin by,the terms used. ‘ ‘The circumstances connected with the transaction and the situation of the parties may be considered in arriving at the intent of the parties.” Devlin on Deeds, section 839, citing along list of cases. The rule, as applied to contracts, is tersely and accurately stated in 9 Cyc. 587,'as follows: “To determine the intention of the parties, if the meaning is not clear, it is necessary that regard shall be had to the nature of the instrument itself, the condition of the parties executing it, and the objects which they had in view, for which purpose parol evidence is admissible.” In the law of wills the same rule obtains. “To aid in the true construction of the will, evidence may be received, and should be sought, of any facts known to the testator, which may reasonably be supposed to have influenced him in the disposition of his property, and all the surrounding circumstances at the time of making the will.” Magers v. Edwards, 13 W. Va. 822. Another rule, applicable to contracts and deeds that are uncertain in their terms, is stated in 9 Cyc. 588, as follows: “Where the par
The suggestion that the resolutions are certain and definite in terms, founded upon the designation of the resolution as a certificate of extension, and the direction to make filings “as fast as they may be prepared,” has been disposed of. The fact that they had maps before them and contemplated the making of others, makes the resolution uncertain as to whether the reference is to both classes of maps or to only one, and opens the way for parol evidence on the question of intent. Another objection to this method of interpretation is that the resolution, like a statute, must speak for itself and cannot be aided by extrinsic circumstances, and is not, therefore, to be classed with such instruments as deeds, wills and contracts. This position is clearly untenable. Though the power to make a location may be legislative in its nature, no form or mode by which its exercise shall be evidenced, has been provided by law. No reason is perceived why corporate action in the selection of a railroad location should be evidenced in a manner different from any other corporate act. The nature of the power and the mode of its exercise are obviously distinct. But if these were not so, statutes form no exception to the rules of interpretation and construction above referred to_. In Railway Co. v. Alling, 99 U. S. 463, 474, Mr. Justice Harlan applied the principle, saying: “Of what the company had done, prior to the passage of the act
Nor, in reaching this conclusion by the application of the fordgoing principles, have we lost sight of the status of the case in this Court. The plaintiff in error is regarded as a de-murrant to evidence, admitting all the facts which the evidence of the defendant in error fairly tends to prove and all
The Deepwater Company made a location by another and later act of adoption. The directors of that company, on the 26th day of September, 1902, passed a resolution reciting that the engineer had located the company’s proposed railroad from Glen Jean up the Dunloup Creek to the mouth of Sugar Creek and up Sugar Creek, crossing the divide, to
If, prior to- the 26th day of September, 1902, the Chesapeake and Ohio Company had not, by corporate action, adopted the same, location through Jenny’s Gap, the right of the Deepwater Company to that location, by force of the action of its directors on September 26, 1902, is beyond dispute. The defendant in error claims to have adopted the location on the 11th day of September, by a resolution passed by its board of directors at a meeting held on that day in the city of New York. For proof of this, it introduced, over the objection of plaintiff in error, what purports to be a record of the minutes of such meeting, including the adoption of such a resolution. This record is in the form of typewritten sheets, pasted in a regular book of the company kept at Richmond, Virginia, by the secretary of the company, who testified that he had not attended the meeting and knew nothing of it or what had been done thereat, other than what was disclosed by the typewritten matter. This typewritten record on sheets of paper, signed by the president of the company and the assistant secretary, had been received by him and pasted in a minute book, but he did not even say when they had been received. Neither the president, assistant sec
The defendant in error attempts to use this record as evidence to prove its own acts in its own favor against a total strangér to it. It is not used for the purpose of establishing any contractual relation between it and the plantiff in error. It makes no charge against the plaintiff in error. It does, however, make use of this resolution to prove title in itself to a thing which the plaintiff in error says it has not acquired and to which the plaintiff in error is entitled, unless, by prior acquisition, it has become the property of the defendant in error. In support of the admissibility of the record for this purpose, upon showing that it was entered in the book by one having authority to clo so, it is contended that the records of a private corporation are admissible evidence against all persons to prove its corporate acts.
The able counsel for defendant in error say the following is deducible from the authorities as a rule on the subject: The records of a corporation are 'admissible to establish a right in it which grows out of its own proceedings, although they may not be admissible to fasten the liability on others.” In testing the soundness of this proposition, it is necessary to bear in mind that the decisions relating to the admissibility of such evidence present many distinctions, in respect to the subject matter of the controversy, the relation of the parties to it and to one another and the nature of the fact sought to be proved by such evidence.
That the records of a corporation are always admissible against it is perfectly apparent. They are admissions and declarations against its interest and may be used as such, just as the books, memoranda, letters and declarations of an individual may be used against him, although not admissible in his favor. Jones Ev. section 530; Townsend v. Church, 6 Cush. 279. The cases illustrating this use of corporation records and books can have no possible bearing on the question presented here. Hence, no time need be spent in collecting and analyzing them.
Though, according to good authority, there is no legal principle upon which the action can be justified, courts almost everywhere hold that the records and proceedings of a corporation are admissible to prove prima facie, against an individual, his membership -in it as a stockholder. This rule is stated in Turnbull v. Payson, 95 U. S. 418, as follows: “A person is presumed to be the owner of stock when his name appears upon the books of the company as a stockholder; and, when he is sued as such, the burden of disproving that presumption is cast upon him.” It was adopted by this Court in Railway v. Applegate, 21 W. Va. 172, without any reference to other authorities for a verification of its soundness. The federal decision just mentioned predicated the rule upon the following decisions as authority therefor: Coffin v. Collins, 17 Me. 440; Merrill v. Walker, 24 Me. 237; Plank Road v. Rice, 7 Barb. (N. Y.) 162; Hoagland v. Bell, 36 Barb. (N. Y.) 57; Turnpike Road v. Van Mess, 2 Cranch (2 C. C.) 451; Mudgett v. Horrell, 33 Cal. 25. The oldest of these is Coffin v. Collins, an action of replevin against a sheriff for certain logs seized under an execution against a certain corporation. The defendant endeavored to prove that the property which he took out of the possession of the plaintiffs belonged to a certain individual who was a member of the corporation, in consequence of which said individual’s property was liable to be taken under the execution. In order to establish the existence of the corporation, he intro
A review of the cases will show that, except in a few instances, there was evidence other than the mere appearance of the defendant’s name upon the stock book to show his connection with the company as a stockholder. In Railway Co. v. Applegate, 21 W. Va. 172, the defendants were shown, by the oral testimony of two witnesses, to have been connected with the company as subscribers. Witnesses testified to having been present at the meetings, the records of the transactions of which were shown by the books. It was proved by one witness that the defendants had paid to him for the company part of their subscriptions. Others had seen the signatures of the defendants on the subscription list. What this Court meant, therefore, seems to have been, not that the appearance of the defendant’s name on the stock book was alone sufficient to make him a subscriber prima .facie, but that his subscription having been shown, as well as the presence of his name on the stock book, the burden was upon him to prove a release. So in the Glenn Cases, 91 Ala. 245, 6 S. E. 806, 96 N. C. 413, the subscriptions do not seem to have been contested, but it was claimed that the defendants had been released by a change in the name of the ■corporation and in the amount of its capital stock. As that corporation had been insolvent and inactive for about twenty years when the suits were brought against the stockholders, the admission of its books, record and papers might have been justified on the ground of necessity, owing to the death •or absence of those who made the entries in them, although that is not stated as the reason for admitting them. In Semple v. Glenn, 91 Ala. 245, there was not even an authentication of the books, but the court said, in view of the .absence of any objection to their introduction, “we must •assume that this ground of objection was waived.” The issue in that case was not whether certain things had been done, but the legal effect of what admittedly had been done. In Brewer v. Stone, 11 Gray (Mass.) 228, the subscription
A very numerous class of cases in which corporations have been permitted to introduce their records and books for the purpose of proving their acts is, that in which it is necessary to establish only de facto corporate existence and not existence de jure. For instance, a bank sues on a note, or a railroad companj^ on a contract, and the plea of mol tiel record is interposed, denying that the plaintiff is a corporation. Here proof of corporate existence is required, but it need not be full nor need the evidence be such as is necessary to prove many kinds of specific corporate acts. Many decisions . say that for this purpose, it suffices to introduce the charter, act of incorporation, or articles of incorporation, and then proof that the plaintiff has acted as such corporation, carried on a banking business or a railroad business. The 'issue is collateral in its nature. The plea simply requires the plaintiff to establish a status — show that it is what it claims to be. In that question, the other party has no direct, but only an incidental, interest. The fact thus put in issue is distinct from, and practically independent of, the real controversy between the parties. See Way v. Billings, 2 Mich. 397; Insurance Co. v. Allis, 24 Minn. 75; Henderson v. Bank, 14 Miss. 314; Bank v. Harrison, 39 Mo. 433; Insurance Co. v. Cadwell, 3 Wend. 296; Jones v. Dana, 24 Barb. 395; M. E. U. Church v. Picket, 23 Barb. 436; Bank v. Bank, 21 N Y. 542; State v. Murphy, 17 R. I. 698; Turnpike v. Cutler, 6 Vt. 323; Bank v. Allen, 11 Vt. 302; Bank v. Lee, 112 Mass. 521; Bank v. Glendon, 120 Mass. 97; Mix v. Bank, 91 Ill. 20. Some of the earlier cases required a great deal more proof than the courts now exact. To this class belong the following cases, relied upon by counsel for defendant in error, as authority for the position they have taken here: Wood v. Bank, 9 Cow. (N. Y.) 193, an action against an endorser on a note; McFarland v. Ins. Co., 4 Denio (N. Y.) 392, an action by the insurance company on a bond conditioned fo.r the payment of money; Grant v. Coal Co., 80 Pa, St. 208, an action of assumpsit by a coal company on an account for coal sold to defendant; Duke v. Navigation Co.,
Practically all the cases found in which it has been held that the books and records of private corporations are evidence of their acts and proceedings, as against strangers, belong to this last class. This accounts for the oft repeated proposition that, for such purposes, such records are admissible in controversies with strangers to the corporation. To say that the same rule must be applied to the determination of a question of vital interest between the corporation and a stranger; would ignore the distinction which ought to be made between the cases in which the issue is one in which the stranger has no direct and substantial interest and the case in which the records are offered to prove the very fact
Even the records of public corporations are not admissible to prove anything but acts of a public nature. Thus, in Attorney General v. Warwicke, 4 Russell 222, it was said: “Private entries in the books of a corporation, which are under their own control, and to which none but the members of the corporation have access, cannot be made use of to establish rights of the corporation against, third parties.” So in Marriage v. Lawrence, 3 B. & A. 142, the court held that: “An entry in the public books of a corporation, is not evidence for them, unless it be an entry of a public nature.”
Counsel for defendant in error base their contention largely upon an observation made in Railroad Co. v. Eastman, 34 N. H. 137, quoted in 2 Thomp. Corp., section 1921. But as no question, calling for such principle, arose in that case, the declaration is obiter. Mr. Thompson also says, in Volume 6 of his Work on Corporations, section 7740, that “The general rule is believed to be that, except for the purpose of proving what the corporation did, or what action its corpora-tors took in effecting the organization, its books and records are not evidence as against a stranger.” Then, in the same section, he states the converse of the proposition as follows: “They are evidence, in any form of proceeding and against any party, for the purpose of showing that the corporation
Another light in which to view the text quoted from Thomp. Cor. and found in Elliott Ev., section 416, Whart. Ev., section 662, and An. & Ames. Cor. 573, is the difficulty of conceiving circumstances under which corporate existence can be directly and vitally in issue between the corporation and a stranger. Ro stranger, save the state, has any direct interest in that question. From the vast number of cases in which such records have been introduced to prove a mere de facto existence against strangers the expression used by the text writers and relied upon here has arisen. Generally speaking, they are evidence against strangers to prove the doings and proceedings, necessary to show itself to be a corporation, for generally the stranger’s interest in that question is but slight. As against him, mere user of the franchise claimed is about all that need be shown. So understood, this part of the text may be reconciled with the other part which says corporation books cannot at common law be used to sustain a claim of the corporation against persons not
The effort here is to prove title, not by purchase, recovery or otherwise, from the adverse party, but to show title, nevertheless. It is title by appropriation from the public. Shall it be proved by evidence, different in character from what is required in other cases? Could title by purchase, in case of conflict between two corporations, be established by the exhibition of a resolution on the books of one of them, on the theory that, as to the other, it was a corporate act and not a transaction with such other company? What is the difference between the two cases? A prior purchase by one company precludes title by purchase in the other. Here appropriation by one company at a certain time precludes title by appropriation in the other. If a self-serving, self-made, unsworn record can avail in the one case, there is not a shadow of reason why it should not in the other. This long and laborious search and analysis of the authorities has revealed but two or three cases which seem to countenance such use of corporate records. Against them stand several, holding the contrary. Therefore, the weight of authority, reason and sound legal principles all assert the contrary. Escape from this conclusion is attempted on the theory that adoption of a route is an act in the process of organizing or constituting the corporation. The fallacy of this lies in the fact that a railroad corporation may be fully organized without having acquired a specific location or right of way for its road. Organization precedes location. Location is an act of acquisition and not of organization or constitution. It is an an act of preparation for building the road, just as is the purchase of a right of way and materials.
As this evidence must be discarded as inadmissible, nothing remains to support the claim of a location by the defendant in error on the 11th day of September, 1902. It is said that the certificate of the secretary of state, showing the filing of the plat of the right of way claimed in his office on that day
We are asked to reconsider, and recede from, the decision in Lambert v. N. & W. Ry. Co., 54 W. Va. 387, construing the certificate of extension of the plaintiff in error and holding it sufficent. Having reconsidered it, we see no reason for changing the conclusion of the Court in respect to the validity of the certificate. We think the objective point on the Yirginia line is indicated with reasonable certainty and nothing more is required. The preposition “to” has pri-ma^ and pregnant significations, of which the former is adopted here, while in Railway Co. v. Railway Co., 112 Ill. 580, the latter was adopted.
Failure of the plaintiff in error to allege in terms that the land in controversy is in its actual use and necessary to the proper exercise of its franchise is relied upon as ground for the appropriation thereof by the defendant in error, notwithstanding priority of location by its adversary. The answer avers that the lands in controversy form a portion of its right of way and are part of the land on which it has located its right of way. A right of way, land upon which to build the road, is an absolute necessity of a railroad company. Is it possible-that lands so used, or held for the purpose of such use, and not exceeding, in quantity, the amount necessary for such purpose, are not to be regarded as necessary for the purposes of the company? We do not understand counsel to assert the negative of this proposition, but only to say the necessity must be alleged in terms. This^was not the defect in the pleas rejected in B. & O. R. R. Co. v. P. W. & Ky. R. R. Co., 17 W. Va. 812. They fail to show that the land was in use by the defendant company. “Pleas numbers two and three did not so much as aver that the lands were in present use.” Judge Johnson
Thus it appears that priority of right to the location in question is in the plaintiff in error, which renders it unnecessary to pass upon the rulings of the court in the proceedings for ascertaining the damages. Nothing remains but to reverse the judgments and dismiss the action. But the final contention is that the action ought not to be dismissed for two reasons, the first of which is that the defendant in error ought to be permitted to prove the passage of the resolution of September 11, 1902, by competent evidence. Some authorities are presented which say that, under certain circumstances, a case reversed by an appellate court, after having been tried by the court below without a jury, should be remanded for a new trial. But none have been shown which hold such action proper when the court can see that no beneficial result could be attained by such action. As the Deepwater Company clearly has the prior and superior right to the location in question, regardless of any action that may have been taken by the Chesapeake and Ohio Company on the 11th day of September, 1902, proof of a location by that company on that day would avail nothing. Hence, a new trial for letting in evidence on that question would be futile and idle.
The other ground of objection is the assertion that the defendant in error may have entered upon the lands in question since the date of the judgment in the court below and commenced the construction of its road thereon. In fact, affidavits have been presented here showing that such is the fact, and it is earnestly insisted that the action should not, under any circumstances, be dismissed, and that it should be remanded for inquiry as to any rights that may have vested, pending the litigation in this Court. The decision in Rail
Plaintiff in error having requested this Court to enter an order directing a restoration to it of the possession of the premises in controversj^ and granting it leave to sue out a writ of possession therefor, the defendant in error resists on the ground that improvements may have been made on said premises by it, pending proceedings in the court below and in this Court, since it obtained possession thereof under its writ of possession, for which compensation should be ascertained and made a lien on the property before it is deprived of its possession, as is provided in chapter 91 of the Code. Unless this case can be distinguished from others decided by this Court, involving claims for improvements, the ground of resistance is untenable for two reasons. The first is that the defendant in error is not a defendant within the meaning of the statute It gives compensation under certain circumstances, to “any defendant against whom a judgment or decree shall be rendered for land.” The Chesapeake and Ohio Company’s position here is that of plaintiff, it having instituted this action to take from its opponent the land in question. Though, for some purposes, some courts have said a writ of error to reverse a judgment is a new suit, it cannot be regarded as a new and separate action within the meaning of said statute or the law relating to improvements. Hall v. Hall, 30 W. Va. 179, 785, is authority for this position. That was a bill of review to reverse a decree of sale, a proceeding to correct error, bearing a greater resemblance to a new suit than does a writ of error, or an appeal in the same case. Judge Snyder said: “The present suit is a continuation of that suit,” meaning Lowther v. Hall, in which the erroneous decree had been made. The second reason is .graver than the first. Under the decisions of this Court, the defendant in error cannot possibly be a tona fide occupant, although it entered upon the land under an order of the court, believing its title to be good, because it had notice not only of all the facts, being ignorant of matter of law only, but also of the adverse claim of the plaintiff in error. The propriety of the application of the maxim, Ignorcmtia legis nemi-nem exeusat, to occupants who, relying upon muniments of title, which none save lawyers and courts would con
It has been suggested that a right to such compensation may be predicated on the provisions of section 20 of chapter 42, authorizing an entry upon the land by the applicant, upon his paying into court the amount of compensation reported bjr the commissioners, and then providing that “No order shall be made, or any injunction awarded, by a court or a judge, to stay him in so doing, unless it be manifest that the applicant is insolvent, or that he, or his officers, agents or servants are transcending their authority, or that such inter
Some authority for the position that restitution lies in the discretion of the court and is not demandable of right, has been produced, but none to the effect that a court should arbitrarily refuse it and without a substantial reason. Like specific performance and rescission of contracts, it may be discretionary, but it will go as a matter of course, when a proper case is made. Brown v. Cunningham, 23 W. Va. 109; McCormick v. Short, 49 W. Va. 1; Keck v. Allender, 42 W. Va. 420; Stannard v. Brownlow, 1 Munf. 229; Branch v. Burnley, 1 Call. 147; Haebler v. Myers, 132 N. Y. 366.
The conclusions above stated require reversal of the two judgments complained of, setting aside of the verdict, restitution of the land in controversy to the plaintiff in error, and remanding of the case to the circuit court of Raleigh county, with leave to the plaintiff in error to sue out a writ of possession for said premises, and a direction to dismiss the action as to the lands of the plaintiff in error with costs to it, after it shall have been restored to the possession thereof as aforesaid, all of which will be adjudged and ordered.
Reversed.
Dissenting Opinion
(dissentvng impart):
I cannot concur in that feature of the foregoing opinion or syllabus laying down, as a permanent rule of evidence, that the record of proceedings of the directors of a railroad company is not admissible evidence alone to prove that the directors adopted a particular location for its road. It is an act which can be done alone by the directors. It cannot be done except in regular meeting. The act of adoption is a resolution in its record books. It may not be going too far to say that is the only evidence, if the record be in existence. It is not necessary to say that; but I do say that the resolution on record is competent evidence. It cannot create a debt or liability against a stranger; it cannot operate to take away his right; but where the law demands that the corporation do any act by its directory, that book is competent evidence to prove the doing of that act. Our Code says in chapter 53, section