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Little Falls Fibre Co. v. Henry Ford & Son, Inc.
249 N.Y. 495
NY
1928
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*1 Company et al., Little Respondents, Falls Fibre v . Henry Inc., Appellant. Son, Ford & *2 (Argued 23, 1928; 31, 1928.) October decided December s Charle E. Nichols, Jr., and Robert E. Whalen

appellant. Defendant’s complete justification is found in its license from the Federal Power Commission, as supplemented by the regulations, approved by the Secretary War, govern which the installation of the flashboards. v. 39 (People App. 110; Div. Page, People ex rel. Loomis v. Canal Appraisers, 33 N. Y. 461; Danes v. 219 N. Y. 67; People v. York, New 221 Gilchrist, App. 19; People Div. v. Y. & O. Power Co., 219 Div. App. 114; v. 9 Wheat. 1; People Ogden, Gibbons v. Hudson River Corp., 228 N. Y. 203; R. R. Connecting Gilman v. Philadelphia, 3 Wall. 713; United States v. 229 U. S. 53; Alabama Power Co., Chandler-Dunbar Co. v. 283 Fed. Rep. 606; Co., Power Jersey Gulf v. 328.) 269 U. S. What the Federal government Sargent, itself legally, could have done it can lawfully accomplish ‍​​​‌​​‌‌​‌‌‌​‌‌​​‌​‌​​​‌​‌‌‌​‌​‌‌​​​​​​‌‌‌‌‌‌​​​‍(Wisconsin through agency of the defendant. v. U. 96 379; S. v. U. S., 263 U. S. Duluth, County Clallan 341; v. U. 274 U. 256; People S. S., v. Hudson Westfall River Co., 228 N. Y. 203; Central Pacific R. R. Connecting R. R. v. California, 162 U. S. 91; Southern R. R. Pacific v. United 183 U. S. 519; Transportation Co. v. States, Chicago, 99 U. 635; S. Co. v. Patten Paper Bay, etc., Green 172 U. S. 58; Co., Mining Co. v. Weir, Jaybird

497 Fed. Co. v. 283 Co., Alabama Power 609; Power Gulf erecting The motive of the defendant Rep. immaterial. Co. v. Patten flashboards is (Green Bay, etc., 324; 172 86 N. Y. 58; Youmans, Paper Co., Kiff v. Y. Co. v. 128 N. 345; Mfg. Shanаhan, Waterloo Chase Even v. City Hibbard Co. Elmira, merits, on the the extra judgment right were allowance limit. plaintiffs statutory exceeds the granted (People Div. County App. Page, Saratoga Conaughty Hathorn Bank, Natural Carbonic Gas Co. 425; Williamsburgh Div. City Fire App. Ins. Div. Rothery App. Ry. Co., England Central New *3 30.) 24 Co., Hun, 172; 90 Y. v. York Rubber for respond- and Thomas O’Connor E. George O’Connor Secretary or from the The Acense permission ents. mere of on the dam the installation flashboards of War nor does invest any agency does create “ ” ” to seize any immunity portion or privilege incurring any Aability. without plaintiffs’ water 202 427; Ill. (Cobb v. Commissioners of Park, Lincoln 166; v. Green 80 U. S. [30 Wall.] Co., Pumpelly Bay 346; Murphy Y. v. 175 N. City Gloversville, Sammons N. Y. 134; 28 Brown- v. Commissioners Emigration, 336; Bellinger 126 v. Rep. v. Misc. Realty Saks, Co. Brandt 42.) Y. The Federal 23 N. R. R. Co., New York Central water plaintiffs’ itself could take compensation required therefor making S. 243 U. v. Cress, States the Constitution. (United Hun, 537; 37 Mononga 316; Reservation, Matter State 312; 148 U. v. S. States, United Navigation Co. hela 616; 115 S. United States v. States, The United Boyd 445; v. State, American Woolen Co. 188 U. v. Lynch, v. Fund 698; Comrs. Kemp Canal Div. App. 195 granted The extra allowance 26 Wend. shall, v. increased. Saratoga (Conaughty should plaintiffs 401; Paper Bank, United Bd. Co. County 38; 226 N. Y. Livermore, Lattimer & P. P. Iroquois 498

72 N. Y. 174; Empire City Subway Co. v. Broadway & Seventh Ave. R. R. Co., 87 Hun, 279; 1-59 N. Y. 555; Henderson Est. Cо. v. Carroll Elect. Co., 113 App. Div. 775; Y.N. 533; Hudson Riv. Tel. Co. v. Walefvliet T. & R. Co., 135 N. Y. 393; People v. Rochester Dime Sav. Assn., 7 Div. App. Rochester 350; & H. V. R. R. Co. City Rochester, 17 App. Div. 257; 163 N. Y. Hayden 58; Matthews, Div. App. J. Federal Water (June Power Act 10,

Pound, 1920, ch. Stat. U. S. Code, 16, title 797, d) subd. created the Federal Power Commission which is empowered, with limitations not applicable to this case, “ To issue licenses to citizens of the United States, or to any association of or citizеns, any corporation organized under the laws of the United any States or any State, State or to thereof, municipality ‍​​​‌​​‌‌​‌‌‌​‌‌​​‌​‌​​​‌​‌‌‌​‌​‌‌​​​​​​‌‌‌‌‌‌​​​‍for the pur- pose of constructing, operating, and maintaining dams, conduits, reservoirs, power houses, transmission lines, project necessary or other works or convenient for development improvement development, transmission, utilization across, along, from or in of the navigable waters of the States, upon any part United of the public lands and *4 reservations of the United States (including the Terri- tories), purpose utilizing or for the the surplus water any or water from Government power dam, except as herein provided.” applied The defendant to the Federal Water Power permission

Commission install dashboards on the our Troy Dam in conneсtion with house.” The wing a Federal dam in Troy the Hudson Dam river at regulate navigation constructed to under an Troy act Defendant has a house at Green Congress. Island at the dam. It desired power developed to raise using dam order to develop the level of the more power. issued to thereupon The water power Commission of the license are unnecessarily licensе. The terms broad are and operative practically, so far as this litigation is concerned, only as applied maintenance of the flashboards. The by flashboards were erected defendant with the result that the water from down stream backed up as to reduce the head at plaintiffs’ manufacturing plants up Plaintiffs stream. are riparian owners who claim to be entitled to аgainst flow the stream as this by defendant, (Clinton unobstructed the flashboards. Myers, N. Y. 511, 516; S. v. Rio Grande Dam & Irrigation 690, 702.) Their rights must yield to Congress regulate commerce (U. S. 3), Const. art. but not to 1, 8, clause individuals. (Sage Mayor, They this brought action for an injunction damages. They have succeeded in obtain ing judgment from enjoining defendant maintaining awarding the flashboards and The damages. question is authority whether they must submit Federal Water Power asserted Commission by under its license. dams in the construction of Hudson river without consent of the Federal is prohibited. “ It shall not be lawful construct or commence bridge, any dam, dike, causeway

construction of over roadstead, haven, canal, port, harbor, navigable river, or other the United States until building the consent of of such structures have and until for the the.plans shall been obtained samе to and the Chief approved shall been submitted Provided, Engineers Secretary War: be built authority That such structures under waterways a State across rivers and other Legislature of wholly of which lie within navigable portions State, provided plans limits of the location a single *5 of to and the Chief approved thereof are submitted Secretary of before Engineers War construction and the Cоde, title 33, is (U. commenced.” S. § of Congress, Acts chapter 425, the of Since enactment “ 1899, any creation of obstruction not affirmatively the the of by Congress, navigable authorized to capacity * ** of the United pro waters States is hibited,” though waterway the within the limits even is single (U. of U. S. v. Code, 33, a S. title State. § Rio 708, 709; Co., supra, pp. Grande Dam & Irrigation It Economy 113, 123.) has S., Co. v. U. 256 U. S. Light imply been do not that that these sections .held building of of a authorization” dam “affirmative given by Congress with the same permit under such a enterprise though Congress effect as had undertaken upon itself. a condition the exercise They merely place be right. right of such to construct the dam must (Inter independently permit. of the Federal established York, 126, national Co. v. New Bridge The pro- are quoted negative. The sections above Power Act are affirmative. visions the Federal Water to permit regulate granting and They purport to have power purposes. Defendant claims licenses to a permit obtained more than from Commission than stream; an obstruction more place a right give which the defendant permit purports and the exercise merely build the structure sanctions obtained The Commission has madе elsewhere. in sub- it, finding, taking support evidence (U. S. Act in the Power language Water stance “ contemplated d) 16, 797, title subd. Code, § interest public in the improvement justified is desirable Hudson developing purpose improving far for the of interstate commerce.” River use benefit Water Federal also regulations pursuant made 811) (U. Code, 16, title section 18 S. Act, Power § “ flashboards govern maintenance navigation.” interests 16, title Code, Although (§ provides 10-c; the act liable shall c): 803, Each licensee hereunder subd. others property all occasioned damages *6 the

by construction, of maintenance, the operation or of the works project works appurtenant accessory thereto, in no constructed under license, event therefor,” shall the United be States hable is thаt inapplicable; plaintiffs contends that this section have suffered damages no because there been no of taking private regulation but of property merely a of flow the river the Federal in aid of for have no plaintiffs which could com- pensation United against and, therefore, States none against its licensee. Private property be taken public for (U. use S. v. compensation Cress, but of of a 316), navigable the flow the stream is in no river is private sense and there property room judicial for review, private at instance of the owner of the banks of flooded, a are not of stream whose lands a determination Congress of flow is needed for that such purposes of navigation. (U. S. v. Chandler-Duribar Water Power Co., Jersey 229 ‍​​​‌​​‌‌​‌‌‌​‌‌​​‌​‌​​​‌​‌‌‌​‌​‌‌​​​​​​‌‌‌‌‌‌​​​‍U. Sargent, New S. 328, that Defendant asserts its license the equivalent is a determination is not subject judicial to review. The first question is to the effect Federal permit of a n an place in a obstruction stream for upon business of the private purposes licensee up-stream owners free flow stream. jurisdiction of the Commission Federal Power a issue license the use of the the Hudson waters for power license river and the of such a purposes effect right are determined the courts. When some actual subject asserted under license becomes jurisdiction controversy, necessary ground excess is judicial review to of law supremacy maintain the of their keep administrative boards the exercise delegated Service powers. Quinby Public (Matter Sargent, Jersey Commission, supra, p. 339.) finding The. оf the Commission is in of navigation work aid project on conclusive in the courts absence to support evidence even it, *7 though the license is in form the delegated powers within of the (People Federal Water Power rel. Commission. ex Queens Y. & Gas Co. v. 245 McCall, 345, U. S. although be we do assumed, not attempt to decide, Congress may, that connection with its limited express implied powers, provide enumerated for the development of of or to aid as incidental Const, powers (U. 1, 8, art. clause 18); § of may not, scope Constitution, that within an go into the as inde development business The extent of pendent proposition. authority Congress carry to enact to into execution laws its enu not merated need be considered at this powers time. it is broad. very (M’Culloch Maryland, Dоubtless Legal Tender U. S. Case, [U. Wheaton S.] Congress may How far Jersey Sargent, supra.) regulate navigation in this connec delegate powers its to .assume, although will open tion remains an We question. Act, do that the Federal Water Power decide, we not so of legis construed, is a constitutional exercise properly Jersey The supra.) power. (New Sargent, lative does not result grаnted license herein defendant Its navigation. plain development improvement of Congress against prohibition effect is the removal noth stream; of an in a placing obstruction ing accomplished. more is fact on establishes clearly

The the trial evidence the Com- that the are neither authorized flashboards private for the except mission nor maintained their and that оf defendant in purposes developing ” navigation interests erection no relation navigation. except they interferejwith that must to defendant delegate license, as it so far purports extra- an regulate powers Congress to no affording board, jurisdictional act of an administrative of others. against protection to defendant assume In reason conclusion, we by its license intended Federal -Power Commission Water damages liability the holder from exempt be otherwise what would legalize or to rights of others think, places we more Defendant, to them. trespass as of its permit. the substance than on reliance on the form grant water power did authorize to the detriment exist- utilized might licenses which (Head Amos- compensation. ing power rights Code, title 16, U. S. 9, heag Mfg.

, аre of opinion We costs remains. A question “on the value of based allowance that the additional ” (Civ. Act, Prac. proper was matter involved subject *8 the being involved subject-matter the 1513, 2), subd. § of the river without inter- the water to use plaintiffs’ right having damage suffered no plaintiffs of the ference and one computed. could be allowance on which the additional affirmed, costs. be The should judgment given The the permission by (concurring). J. Crane, on the to install flashboards Federal Power Commission permission. or less than nothing more Troy Dam was States was the United that far as meant making to the applicant objection it had no concerned, might it have way, the same In of the this use dam. it. If over individual walk to an permission given in walking any damage over it, damage in did any he lookout, was his own thаt flashboards, up putting applicant The was pay. he which would for of the purposes any flashboards put up obliged affair; his own solely it was government; United States The Commission pleased. he just or not do it could he I do see how objection.” have We merely said: litigation. in this involved the Commission license result). The (concurring Ch. J. Cardozo, jurisdiction within Commission, whether by 504 People ex rel. (cf. Lehigh Vallеy body without

Ry. Comm., 9, 15), Co. State Tax did not exempt liability holder damage from caused waters, others a diversion nor authorize impairment requital existing rights of property (U. Code, 16, 803, title Otis Co. v. c; S. subd. § § 201 U. Mfg. Co., Ludlow S. Kaukauna Co. 140, Head Amos- Bay 254, 276; Canal U. S. Green 23, 26). keag Mfg. Co., 9, 113 U. S. by appropriate

Until such have been condemned cf. Con- (U. 16, N. Y. Code, title proceedings 24; Sweet Laws, 73], 17, ch. Law demnation §§ [Consol. Krupp, Crozier v. U. S. Rechel, 380, 401; obstructing trespasser the defendant is still a 290), neighbor. of a damage flow stream may lawfully domain Whether the eminent statute one ‍​​​‌​​‌‌​‌‌‌​‌‌​​‌​‌​​​‌​‌‌‌​‌​‌‌​​​​​​‌‌‌‌‌‌​​​‍so be exercised under section 814 not before question is a us. situated as with costs. judgment should affirmed result). Before 1789 (concurring J. Andrews, of the State bed of Hudson was the property river control over governmental New York. It also exercised property and navigable stream, its In a whatever waters. *9 people in trust the State had held powers were right their to use subject of New York and were (Matter for their and commerce. navigation river own Travis, Palmer 182 Y. ex rel. Mayor, 361; People by flow might regulate 150.) 223 N. Y. its State It bed. its might improve or other means. It dams to a reasonable might It might remove obstructions. all might exercise canals. divert waters into extent its before possessed King and Parliament powers by Revolution. He was rights. certain also had riparian proprietor A docks erect might of the He entitled to access stream. Smith, Brookhavenv. Town interfering navigation. ( with reasonably its flow 74.) might He divert Y. 188 N. And creating power. it his own land so lead over was of the river do this as the level might he well where prop- river his passed raised a State dam as where was if only surplus erty in its natural condition purposes. (United not needed State taken as was Com- Pulp Paper & Iroquois Paper Company Board navigation Y. Except improve pany, him of the right deprive use the State would naturally his premises. which ran past of water amount Without however, permitted. were things, Some erect lands and not enter State might upon he consent or other a dam might He not build structures thereon. created If he did he of the river. obstruction to the flow a if also with purpresture, a it interfered or, Vanderbilt, (People nuisance. public In case either Schultz, 116 N. Company Ice Attorney- of the the suit and removed at be abated might, also be might a remedy If public General. nuisance especially to be one shown by any had in an action think, if a Under injured purpresture. So I thereby. being in the people, title government, our form of their rights the invasion injured by one especially remedy case a nuisance. have a as should unchanged except powers remain All these them chosen to surrender far we have agree did of the United States. We regulate should have commerce how the several States. Just foreign among nations аnd over the authority our far we believed we surrendered Singularly clear. Hudson this is far from clause in the Convention, appears little the debates was ratified or in debates here the Constitution when subject, although the need for the Federalist on the creation of central authority regulate commerce was *10 moving one for the adoption causes of the Con- (Brown Maryland, 419.) stitution. v. 12 Wheаt. [U. S.] are Whatever have been we may understood at the time admonished that the a broad words are to be given used significance. (Gilman Philadelphia, 713; [U. 3 Wall. S.] Gibson v. United States, 166 United States U. Chandler-Dunbar Power Jersey Water U. S. New v. Sargent, 328.) They confer the only regulate shipping itself but regulate stream. turn may deepen river; one channel into another; regulate remove build dams to obstructions; flow thе its water; forbid, consent, erection do or may structures that interfere with do may other But there many things. doubtless is a limit to its power. Whatever it does to regu- must late foreign commerce with nations several among It states.” has no Hudson not connected navigation. (Groat Moah, with People International Bridge Company, 223 N. Y. 137, And it is the courts to whether this limit has determine ultimately been exceeded. Thеy must decide whether congressional regulation relation to commerce. (Chief Lottery Justice Fuller Cases, 188 [S. If it has there is no not, may basis which it rest. upon for itself

Undoubtedly Congress may determine what is an obstruction to a stream its determina- tion is It bridges conclusive. forbid the erection of dams it far it concerned, may, permit them consent of some It things official. does these connection with its оver commerce. has no an power, however, give individual plenary authority to erect a purposes dam across the Hudson. permit objection Its waives an merely to such a work might that the United States otherwise make. Any one on relying permit alone commits a trespass upon the lands of the State. He invades its property. As subject purpresture has been is a said, to abаtement. I And as before I think indicated, any one especially injured remedy. has a *11 is a general before us one we have pointed act is judge subjecting all the chief

out dams and similar license and supervision. to Federal buildings So much erection Their be done. directly maintenance of a river. the flow They affect cannot be (People consent. ex built without ‍​​​‌​​‌‌​‌‌‌​‌‌​​‌​‌​​​‌​‌‌‌​‌​‌‌​​​​​​‌‌‌‌‌‌​​​‍Federal rel. Lehigh V. Commission, Tax By. But con- Co. this it is enough given is not unless in aid of sent navigation. It removes but one obstacle way the lawful maintenance of the dam. act

Taken at its face value the does more than refer navigation. permits dams the development of water This power. no At do. may give it its consent if the most is per- dam otherwise mitted. Under that consent alone the defendant has it authority no to do what has done. permission

For on its face the it shows was given with Clearly reference to commerce. it was simply allow the defendant to develop for manufacturing Acting under it purposes. alone the defendant has violated of the State and has injured also the plaintiffs. It seems to me immaterial whether we construe the “ ” “ “ ” an or or statute with an and.” If with it is plainly usurpation power nowhere If conferred. I and,” think equally unauthorized. I do not think the United States may traffic excess power, aby legally created created for dam purposes of commerce. is in the What said Chandler-Dunbar case plainly is But whether this be or not dictum. we need not decide. been Here, said, as has there is no attempt sell power. attempted excess be created private purposes. purely Kellogg J., memorandum, Lehman,

Crane, JJ., concur with J.; Cardozo, J., Ch.' O’Brien, Pound, J., in opinions concur in result. Andrews, Judgment affirmed, etc.

Case Details

Case Name: Little Falls Fibre Co. v. Henry Ford & Son, Inc.
Court Name: New York Court of Appeals
Date Published: Dec 31, 1928
Citation: 249 N.Y. 495
Court Abbreviation: NY
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