19 How. Pr. 289 | N.Y. Sup. Ct. | 1859
This is an action in the nature of a quo warranto, against the defendants, for assuming to be,, and acting as a corporation, without authority of law. The complaint alleges that the defendants have associated themselves together and claim to be a corporation, and are unlawfully acting as a corporation, under an alleged act of the legislature of the state
By section one of the act, James Bowen and others, (the defendants in this action,) and their present and future associates, are created, constituted and declared to be a body corporate and politic, by the name of!£ The Metropolitan Gas Light Company of the City of New York,” with authority to lay their pipes in the streets &c., for the purpose of conducting gas, &c.; but this can only be done upon obtaining the permission of the two boards of the common council of said city. The complaint further alleges, that in the month of June, 1855, the defendants, pretending to act as a corporation, under the name of " The Metropolitan Gas Light Company of the City of New York,” presented their petition to the board of councilmen of the city of New York, praying for permission to lay conductors through the streets &c., for the purpose of conducting gas through the same. That on the 12th day of September of the same year, the board of councilmen passed a resolution granting such peimission, but that on the 8th day of December, 1856, the board of aldermen non-concurred, and the resolution was lost. That on the 20th day of December, 1858, the said board of councilmen passed a resolution granting such permission, which resolution is set out in the complaint, and that such resolution was concurred in by the board of aldermen on the 27th day of December, 1858.
The complaint insists that the defendants and their asso
First. Because the act of incorporation was not approved by the governor until after the adjournment of the legislature, and for this reason failed to become a law.
Second. That, if approved by the governor so as to be a law, the act is unconstitutional and void in its purposes and provisions.
Third. That the said corporation did not commence the transaction of its business within one year from the date of its incorporation, and has not yet commenced the transaction of its business, and that thereby its corporate powers (if it ever had any) have ceased. The prayer for relief is, that the act may be adjudged to be in violation of the constitution of this state, and null and void; and that the defendants may be adjudged to unlawfully assume and usurp the franchises of being a corporation, and to act as a corporation without legal authority or right.
To this complaint the defendants have demurred generally, on the ground that 'the complaint does not state facts sufficient to. constitute a cause of action. From this statement it will be seen that three questions are raised by the demurrer: .
First. Can the governor approve and sign a bill, so as to make it a law, after the final adjournment of the legislature ?
Second. Is the act in question unconstitutional and void, if duly passed.and approved by the governor so as to make it a law if otherwise constitutional ?
Third. Does the act in question contain any special provision or provisions, which relieve the corporation, thereby intended to be created, from the provision of the revised statutes, (1 B. S. 600, § 7,) requiring corporations thereafter created, to organize and commence the transaction of their business within one year from the date of their incorporation; or if created subject to this provision of the revised statutes, did this corporation in fact commence the transaction of its business within one year from the date of its incorporation ? Can a bill
By section 1 of article 3 of the constitution, it is provided that “ the legislative power of this state shall be vested in a senate and assembly.” By section 14 of the same article the enacting clause of all bills shall be, “ The. people of the state of blew York, represented in senate and assembly, do enact as follows.” And no law shall be enacted except by bill. By section 15 of the same article, “No bill shall be passed unless by a majority of all the members elected to each branch of the legislature, and the question upon the final passage shall be taken immediately Upon its last reading, and the yeas and nays entered on the journal.” By section 9 of article 4, it is provided “ that every bill, which shall have passed the senate and assembly, shall, before it becomes a law, be presented to the governor. If he approves, he shall sign it; but if not, he shall return it, with his objections, to that house in which it shall have originated, who shall enter the objection at large on their journal, and proceed to reconsider it. If, after such reconsideration, two-thirds of the members present shall agree to pass the bill, it shall be sent, together with the objections, to the other house, by which it shall likewise be reconsidered, and, if approved by two-thirds of all the members present, it shall become a law, notwithstanding the objections of the governor. But, in all such cases, the votes of both houses shall be determined by yeas and nays; and the names of the members voting for and against the bill shall be entered on the journal of each house respectively. If any bill shall not be returned by the governor within ten days (Sundays excepted) after it shall have been presented to him, the same shall be a law, in like manner as if he had signed it, unless the legislature shall, by their adjournment, prevent its return, in which case it shall not be a law.”
These provisions amount to a constitutional definition, and
By the ninth section, every bill shall be presented to the governor for his approval or objections; and there are two ways in which the bill may become a law during the session of the legislature—‘with his approval and without his approval. If he signs the bill, his signature is evidence of his approval; if he retains the bill ten days without returning it, &c., “ the same shall become a law in like manner as if he had signed it that is, you may say, that the constitution makes such retention for ten days, evidence of his approval; but the legislature may adjourn before the expiration of the ten days, and thus prevent the return of the bill; in which case, says the constitution, “ it (that is, any bill which shall not have been returned by the governor to the legislature before their adjournment) shall not be a law that is, by the governor’s, retention of it
All public officers, and all departments of government, are to be presumed to act from public motives, and within the sphere of their constitutional duties; all bills passed by the legislature, therefore, are to be presumed to be constitutional and for the public good; they might not be—hence the veto check; but if a law authorized by the constitution is called for by the public interest, why should not the bill embodying it, approved of by the governor, become a law by his signature, although the legislature may have adjourned without giving him time for examination ? Why should the adjournment of the legislature deprive the public of the law P the governor being always at hand to examine, and, if he approves, to sign. “ Every bill which shall have passed the senate and assembly, shall, before it becomes a law, be presented to the governor; if he approves, he shall sign it,” says the first part of section nine of article four. The remainder of the section is a provision for the contingency of his not approving the bill. The yeto power calls for time and examination. The legislature
Conceding the construction of these provisions of the constitution to be doubtful, so that considerations of public convenience or public policy can properly be resorted to, I am of the opinion that the strength of the argument, drawn from such considerations, is decidedly in favor of the construction giving the right in question to the governor. It is said, if the governor can sign bills after the adjournment of the legislature, to which the constitutional limitation of ten days does not apply, there being no time fixed for his examination or signature, if he approves, that he might sign at any time during the interval between the adjournment and the next session, or even at any time during his term of office. To this I answer that, the legislature having adjourned, there was no need of fixing a time as to them; and as to the public at large, whether the bill becomes a law depends entirely upon the governor’s signature; whether he shall or shall not approve and sign, is wholly at his discretion. Is it extraordinary that the constitution, leaving the fate of the bill after the adjournment of the legislature wholly at the discretion of the governor, should also leave somewhat at his discretion the time at or within which such discretion is to be exercised ?
There being, therefore, no motive for unnecessary delay, the framers of the constitution did not apprehend any public inconvenience from delay in the executive action after the adjournment of the legislature; nor do I see any risk of any other or further delay than might arise from averseness to undertake the labor of examination, and the pressure of other executive duties; and this, it was probably thought, could not be provided against by an express limitation, without unnecessarily (after the adjournment of the legislature) circumscribing executive discretion. This, I think, is a sufficient answer to the only argument which I have seen, founded on considerations of public convenience or policy, against the construction, giving the governor the power in question.
bfow, let us look on the other side of this question of public convenience or public policy. The provisions in the first constitution-of this state, adopted in 1777, before the adoption
Their recent experience of parliamentary omnipotence and oppression had shown them that tyranny was not the less tyranny for having a hundred heads. It is plain that in this country all political liberty depends upon the integrity of our written constitutions; and without reference to the past, or recent experience, it is equally plain that a fanatical, partizan,
The argument, from the supposed analogy between the English constitution and ours, has, I think, but very little force. By the English constitution, the king is a constituent, part of parliament; and from the very origin of the English constitution, as it now is, it follows that he must be so. By the feudal law, proprietorship conferred jurisdiction, and by the feudal law, as introduced into England, the king was deemed to have the proprietorship, or “jus proprietas,” as distinguished from the use and occupation, or the right of use and occupation, of all the lands' in England. Hence, by the theory of the English constitution, the king is not only the fountain of all justice, but also of all legislation. The history of parliament shows that the ancient method of passing laws was by petition and answer; and that the acts of parliament, or the tenor of them, were published by regal proclamation. The history of English liberty shows that almost all its guarantees, in the form of statutes or otherwise, like sparks from the flint and the steel, have been struck from the crown, by collisions between the barons, or the people, and the crown; and that the veto power has been (as I have before expressed it) left in the crown for the protection of its prerogatives.
The tyranny of the English parliament, and our revolution, wrought out and gave vitality to, if they did not originate a
The practice at Washington has been, I believe, for the president not to sign bills or resolutions after the adjournment of congress ; but the practice of some of the governors of this state has been different. How long or to what extent it has been the practice for the governors of the state to sign bills after the adjournment of the legislature, I have not the means of ascertaining; but it would appear that of the bills passed at the session of 1855, when the act in question in this case was passed, no fewer than fifty-five received the signature of the governor after the adjournment of the legislature ; and in view of the magnitude of the interest involved, I should hesitate to consider the practice at Washington of controlling weight, did I deem the question more doubtful than I think it to be from the constitutional provision itself. It is not extraordinary that the national executive, if he had the least doubt of his right to sign a bill after the adjournment of congress, should have been very careful, even at his personal inconvenience, to sign all bills which he did approve, before the adjournment. Upon the whole, I think the act in question became a law, although signed by the governor after the adjournment of the legislature.
But it is insisted that if the alleged act has the authenti
First. Because it establishes a monopoly in the trade or business of supplying gas within the city of New York, and is within the constitutional legislative prohibition, that “ no member of this state shall be disfranchised or deprived of any of the rights or privileges secured to any citizen thereof, unless by the law of the land or the judgment of his peers.”
Second. Because it takes for the uses of the gas company the streets, or easements, or privileges in the streets of the city, being the property of the corporation of the city of New York, without making or providing for compensation to the city, and without the consent of the corporation of the city.
Third. Because the constitution (Art. 8, § 1,) has specifically prohibited the creation of corporations by special acts, except in cases where “ the object of the corporation cannot be attained under general laws,” and the object of this corporation being to make gas for the purpose of lighting streets, &c. and buildings in the city of New York, this whole object was attainable under a general law passed by the legislature in 1848. (Laws of 1848, ch. 37, p. 48.)
As to the first objection to the constitutionality of the act, it is insisted that the monopoly complained of arises from the authority given by the act to the two boards of the common council of the city of New York, “to grant and vest exclusive permission and authority to and in said company,” for certain purposes. It is not necessary to inquire whether, irrespective of the express constitutional provision above quoted, prohibiting legislation against vested rights, there is any other or further prohibition of monopolies implied from the form of the government or from certain great principles of justice and equality upon which the constitution was founded, and supposed to have been taken for granted by it; for I think that in this case the only semblance of an argument that the act creates, or authorizes a monopoly, or wrongfully affects vested
As to the second objection to the constitutionality of the act, that it takes for the uses of the company, the streets, &c., being the property of the city corporation, without compensation to or the consent of the city corporation, I think it has been sufficiently answered in answering the first constitutional objection ; but I will add, that the act itself certainly does not work this alleged violation of the constitution, and that when the defendants shall undertake to act under the permission granted to them by the two boards of the common council, and the city corporation is before us as a complainant, it will be time enough to examine and decide whether the two boards alone could give the permission, and whether it authorized the act, or threatened act under it. I do not think the attorney general has a right to raise this objection in this action.
As to the third and last objection to the constitutionality of the act—that the legislature were prohibited by the constitution from passing it, because the objects of the corporation could have been attained under the general act—the answer to it is, that the provision of the constitution containing this prohibition would seem, in express terms, to leave it to the legislature to decide whether the objects of a corporation can or cannot be attained under a general law; and it has been held in two cases, (Mosier v. Hilton, 15 Barb. 657, and United States Trust Co. v. Brady, 20 id. 119,) that whether a special act of incorporation is necessary or not, is a matter entirely for the judgment and discretion of the legislature. The last case, it is said, has been affirmed by the court of appeals, though not reported.
The third and only remaining question in this case, whether this corporation was subject to the provision of the revised statutes, requiring corporations to organize and commence the transaction of their business within a year, or, if it was, whether it did organize and commence the transaction of its business within the year, is in a nut-shell. The 9th section
It is argued on the part of the people that this corporation, under the provision of the revised statutes, were obliged to obtain the permission and authority provided for in the first section of the act within the yearj that this 9th section, declaring that the company should be deemed to be in practical operation from the time of such permission and authority, by holding, with reference to both statutory provisions, that the permission and authority should have been obtained within the year, effect would be given to both statutes. This argument admits, what indeed follows from the express words of the 9 th section, that if the permission and authority had been obtained within the year, the company would have been entirely relieved from the obligation of the revised statutes, and could, in fact, have commenced practical operations at any time thereafter. It appears to me that this argument stultifies the legislature. What could have been the object in compelling the company to obtain the permission and authority within the year, and then permit them, after obtaining such permission and authority, to rest upon their mere corporate rights for any number of years, without, in fact, doing any other or further thing P This construction, while it puts the defendants technically within the provision of the revised statutes, for the -purpose of a forfeiture of their corporate rights, leaves them outside of, and unaffected by, and relieved from the whole policy and beneficial purpose and operation of the provision of the revised statutes. Had the defendants obtained the permission and authority within the year, they would have been, on obtaining the same, in reference to the
I cannot concur in the view of the question presented on the part of the people. I suppose the applicants for this special act of incorporation thought, and that the legislature thought, that the corporation might not be able to obtain the permission and authority within the year, and that this special provision, in its special act, was put in it with reference to the general law in the revised statutes, and for the purpose of relieving the defendants from it. It may be that this special provision of the act made it a proper subject to illustrate the value of an executive veto power; but with that I have nothing to do. It was plainly within the power of the legislature, entirely, to relieve the defendants from the penal provision of the general law, and I think they intended to do so by the special provision in their special act. But, suppose it is not so; and that effect can be given and should be given to the general provision, and the special provision both. The special provision of the act declares that the company shall be deemed to be in practical operation from the time the permission and authority is obtained. Then why was not the application of the defendants, as a corporation, by petition to the board of councilmen, in June, 1855, alleged in the complaint, the commencement of the transaction of its business within the provisions of the revised statutes ? As the legislature had seen fit to do so absurd a thing as to declare, in effect, that the obtaining the permission and authority should be deemed the business for which the defendants were incorporated, I do not see why the court must not hold, that the application by the corporation for the permission and authority in 1855, and the
It is not alleged in the complaint that the company did not elect a president within the year, and therefore it must be assumed that it was organized within the year by the election of a president, within section nine of the act.
Upon all the questions raised by the demurrer in this case, my conclusion is, that the defendants must have judgment on the demurrer with costs.
Sutherland, Justice,]