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V.

BOARD OF PUBLIC UTILITY COMMISSIONERS, City of Paterson and Board of Finance of Said City. (No. 36.)

Err.,

V.

BOARD OF PUBLIC UTILITY COMMISSIONERS, City of Paterson and Board of Finance of Said City. (No. 37.)

MORRIS & COMPANY, PIff. in Err.,

V.

BOARD OF PUBLIC UTILITY COMMISSIONERS, City of Paterson and Board of Finance of Said City. (No. 38.)

JACOB MEYER and Kommer De Vogel,
Partners Doing Business as Meyer & De
Vogel, Plffs. in Err.,

of a tax, but of the recovery of taxes | WESTERN UNION TELEGRAPH COMvoluntarily paid; and that, therefore, PANY, Plff. in Err., the illegality of them should be shown not only by averment, but by proof; not, as it is attempted to be, hy assertion and speculation. It is true that it is averred that, prior to July 1, 1902, the amount of claims against the estate D. FULLERTON & COMPANY, Plff. in had not been ascertained, and that there was responsibility upon the trustees and legatees to make a return of the whole or ratable portions of the legacies to the extent that the sums remaining in the estate should be insufficient to satisfy all valid claims. It is conceded, however, the contingency of this might have terminated August 1, 1902, and while it is averred that the clear value of the interests of the legatees was at all times prior to July 1, 1902, uncertain and indefinite, and still is so, there stand in opposition the facts of the case and the refutation that an estate of the net personal value of nearly eight million dollars was or is in danger of embarrassment by the payment of legacies of less than one million dollars. And we have seen that the executors, who had knowledge of the condition of the estate, and all that it might be made subject to, did not hesitate to make a return of the PUBLIC SERVICE RAILWAY COMPANY,. legacies to the collector of internal revenue, and pay the taxes thereon. The petition in this case was filed in the court of claims June 23, 1916,-fourteen years after the commencement of the administration of the estate, and nearly as long after the time of presentation of claims against it, and the record shows that the total of the claims and expenses of administration, including funeral expenses, amounts to the sum of $235,700. In the face of this exhibition we are asked to speculate upon possibility of the existence of liabilities that fourteen years have not developed.

Judgment affirmed.

[394] ERIE

V.

BOARD OF PUBLIC UTILITY COMMISSIONERS, City of Paterson and Board of Finance of Said City. (No. 39.)

Plff. in Err.,

V.

BOARD OF PUBLIC UTILITY COMMISSIONERS, City of Paterson and Board of Finance of Said City. (No. 40.)

(See S. C. Reporter's ed. 394-414.) Constitutional law due process of law imposing special burden on railway company abolishing grade impairing police power.

crossings commerce contract obligations 1. A state may, consistently with the due process of law, commerce, and con

tract clauses of the Federal Constitution, require a railway corporation engaged in

Note. As to what constitutes due process of law, generally-see notes to People v. O'Brien, 2 L.R.A. 255; Kuntz v. Sumption, 2 L.R.A. 655; Re Gannon, RAILROAD COMPANY, 5 L.R.A. 359; Ulman v. Baltimore, 11 Piff. in Err.,

V.

BOARD OF PUBLIC UTILITY COMMISSIONERS, City of Paterson and Board of Finance of Said City. (Nos. 33 and 34.)

PASSAIC WATER COMPANY, Plff. in

Err.,

V.

BOARD OF PUBLIC UTILITY COMMISSIONERS, City of Paterson and Board of Finance of Said City. (No. 35.)

L.R.A. 224; Gilman v. Tucker, 13 L.R.A. 304; Pearson v. Yewdall, 24 L. ed. U. S. 436, and Wilson v. North Carolina, 42 L. ed. U. S. 865.

As to the validity of class legislation, generally- -see notes to State v. Goodwill, 6 L.R.A. 621; and State v. Loomis, 21 L.R.A. 789.

As to constitutional equality of privileges, immunities, and protection, generally-see note to Louisville Safety Vault & T. Co. v. Louisville & N. R. Co. 14 L.R.A. 579.

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the tracks of a steam road at grade in a public street may, consistently with the Federal Constitution, be required to bear a part of the expense of abolishing the grade crossing, and the payment of the amount charged, if not excessive, may be made a condition of the street railway company's continued right to use the streets. [For other cases, see Constitutional Law, IV. b, 4; IV. c, 2, in Digest Sup. Ct. 1908.] Constitutional law equal protection of the laws discrimination.

5. A water company required to bear the entire expense of moving its pipes, as necessitated by the abolition of certain highway grade crossings of a steam railroad, is not denied the equal protection of the laws merely because a street railway company occupying such streets, instead of being charged with the expense of moving its tracks, is charged 10 per cent of the total expense at its crossings. [For other cases, see Constitutional Law, IV. a, 3, a, in Digest Sup. Ct. 1908.] Constitutional law

due process of law imposing special burden on telegraph company commerce.

6. An interstate telegraph company may, consistently with the Federal Constitution, be required to bear the expense of the changes in its poles and wires made necessary by the compulsory abolition of certain highway grade crossings of a steam railroad.

[For other cases, see Constitutional Law, IV. b. 4; IV. c. 2; Commerce, III. a, in Digest Sup. Ct. 1908.]

751.

Generally, as to what laws are void | crossing-see note to State ex rel. Ise v. as impairing obligation of contracts- Atchison, T. & S. F. R. Co. L.R.A.1915E, see notes to Franklin County Grammar School v. Bailey, 10 L.R.A. 405; Bullard v. Northern P. R. Co. 11 L.R.A. 246; Henderson v. State Soldiers & S. Monument Comrs. 13 L.R.A. 169, and Fletcher v. Peck, 3 L. ed. U. S. 162.

For a discussion of police power, generally see notes to State v. Marshall, 1 L.R.A. 51: Re Gannon, 5 L.R.A. 359; State v. Schlemmer, 10 L.R.A. 135; Ulman v. Baltimore, 11 L.R.A. 224; Electric Improv. Co. v. San Francisco, 13 L.R.A. 131; and Barbier v. Connolly, 28 L. ed. U. S. 923.

On state regulation of interstate or foreign commerce-see notes to Norfolk & W. R. Co. v. Com. 13 L.R.A. 107, and Gloucester Ferry Co. v. Pennsylvania, 29 L. ed. U. S. 158.

On power to compel railroad to establish or maintain, at its own expense, overhead or underground crossing, as affected by the fact that the street or highway is opened subsequently to construction of railroad-see note to State ex rel. Minneapolis v. St. Paul, M. & M. R. Co. 28 L.R.A. (N.S.) 298.

On the general subject of writs of error from the United States Supreme Court to state courts-see notes to Mar. tin v. Hunter, 4 L. ed. U. S. 97; Hamblin v. Western Land Co. 37 L. ed. U. S. 267; Re Buchanan, 39 L. ed. U. S. 884, and Kipley v. Illinois, 42 L. ed. U. S. 998.

On what adjudications of state courts can be brought up for review in the Supreme Court of the United States by writ of error to those courts-see note to Apex Transp. Co. v. Garbade, 62 L.R.A. 513.

On how and when questions must be raised and decided in a state court in order to make a case for a writ of error from the Supreme Court of the United States-see note to Mutual L. Ins. Co. v. McGrew, 63 L.R.A. 33.

On what questions the Federal Supreme Court will consider in reviewing the judgments of state courts-see note to Missouri ex rel. Hill v. Dockery, 63 L.R.A. 571.

On who may raise objection that a On power to compel railroad to es- statute contains an unconstitutional distablish or maintain at its own expense crimination-see note to Pugh v. Pugh,

an overhead or underground highway

32 L.R.A. (N.S.) 954.

Constitutional law due process of, process clause because the evidence law imposing special burden on shows without dispute that the railway owners of private railway sidings. company did not have sufficient funds or any means of procuring the same for the purpose of meeting the cost of complying with the order.

7. Owners of private railway sidings have no constitutional ground for complaint because such sidings will be dislocated and their owners be put to further expense by the lawful compulsory abolition of certain highway grade crossings of a steam rail

way.

[For other cases, see Constitutional Law, IV. b, 4; IV. c, 2, in Digest Sup. Ct. 1908.]

[Nos. 33-40.]

Argued November 16 and 17, 1920. cided January 3, 1921.

State Public Utilities Commission v. Toledo, St. L. & W. R. Co. 267 Ill. 93, .P.U.R.1915B, 879, 107 N. E. 774; State v. Great Northern R. Co. 100 Minn. 445, 10 L.R.A. (N.S) 250, 111 N. W. 289; Houston & T. C. R. Co. v. Dallas, 98 Tex. 396, 70 L.R.A. 850, 84 S. W. 648; De- Northern C. R. Co.'s Appeal, 103 Pa. 621; Pennsylvania Schuylkill Valley R. Co. v. Philadelphia & R. R. Co. 160 Pa. L. R. Co. v. State Public Utilities Commission, 273 Ill. 210, 112 N. E. 689; Connecticut Co. v. Stamford, Conn. -, 110 Atl. 554; Chicago & N. W. R. Co. v. Ochs, 249 U. S. 416, 63 L. ed. 679, P.U.R.1919D, 498, 39 Sup. Ct. Rep. 343; Chicago, M. & St. P. R. Co. v. Minneapolis, 238 Fed. 384; Health Dept. v. Trinity Church, 145 N. Y. 32, 27 L.R.A. 710, 45 Am. St. Rep. 79, 39 N. E. 833.

FIGHT WRITS of Error to the Court 232, 28 Atl. 771; Cleveland, C. C. & St.

of Errors and Appeals of the State of New Jersey to review judgments which affirmed judgments of the Supreme Court of that state, upholding an order of the state Board of Public Utility Commissioners, directing the abolition of certain highway grade crossings.

Affirmed.

See same case below in Nos. 33 and 34, in supreme court, 89 N. J. L. 57, 98 Atl. 13, in court of errors and appeals, 90 N. J. L. 672, 673, 103 Atl. 1052; in No. 35, 90 N. J. L. 714, 103 Atl. 1053; in No. 36, 90 N. J. L. 729, 103 Atl. 1055; in No. 37, 90 N. J. L. 677, 103 Atl. 1051; in Nos. 38 and 39, 90 N. J. L. 694, 103 Atl. 1053; in No. 40, in supreme court, 89 N. J. L. 24, 98 Atl. 28, in court of errors and appeals, 90 N. J. L. 715, 103

Atl. 1054.

The facts are stated in the opinion.

Messrs. George S. Hobart and Charles E. Hughes argued the cause, and, with Messrs. Gilbert Collins and George F. Brownell, filed a brief for plaintiffs in error in Nos. 33 and 34:

The order imposes a burden upon the interstate traffic of the Erie Railroad Company and interferes with and impairs its ability to perform its duty as an interstate carrier of freight and pas

sengers.

The question of constitutionality must be determined according to the terms of the statute, and is not dependent upon the action or nonaction of the officials authorized to proceed thereun

der.

Montana Co. v. St. Louis Min. & Mill. Co. 152 U. S. 160, 38 L. ed. 398, 14 Sup. Ct. Rep. 506; Security Trust & S. V. Co. v. Lexington, 203 U. S. 323, 51 L. ed. 204, 27 Sup. Ct. Rep. 87; Georgia R. & Bkg. Co. v. Wright, 207 U. S. 126, 52 L. ed. 134, 28 Sup. Ct. Rep. 47, 12 Ann. Cas. 463; Re Christensen, 43 Fed. 243; Grainger v. Douglas Park Jockey Club, 78 C. C. A. 199, 148 Fed. 513, 8 Ann. Cas. 997.

In a case of this kind the court will examine the evidence, not for the purpose of deciding disputed questions of fact, if there is any such dispute, but for the purpose of determining whether what purports to be a finding upon questions of facts is so involved with and dependent upon questions of law as to be, in substance and effect, a decision of the latter.

McNeill v. Southern R. Co. 202 U. S. 543, 50 L. ed. 1142, 26 Sup. Ct. Rep. 722; Central Stock Yards Co. v. Louisville & N. R. Co. 63 L.R.A. 213, 55 C. C. A. 63, 118 Fed. 113; Kansas City Southern R. Co. v. Kaw Valley Drainage Dist. 233 U. S. 75, 58 L. ed. 857, 34 Sup. Ct. Rep. 564; Chicago, B. & Q. R. Co. v. Railroad Commission, 237 U. S. 220, 59 L. ed. 926, P.U.R.1915C, 309, 35 Sup. Ct. Rep. 560; Mississippi R. Commission v. Mobile & O. R. Co. 244 U. S. 388, | Oregon, R. & Nav. Co. v. Fairchild, 224 U. S. 510, 56 L. ed. 863, 32 Sup. Ct. 61 L. ed. 1216, 37 Sup. Ct. Rep. 602. The order was unreasonable and arbi-Rep. 535; Southern P. Co. v. Schuyler, trary, and therefore violates the duel 227 U. S. 601, 57 L. ed. 662, 43 L.R.A.

Kansas City Southern R. Co. v. C. H. Albers Commission Co. 223 U. S. 573, 56 L. ed. 556, 32 Sup. Ct. Rep. 316; Cedar Rapids Gaslight Co. v. Cedar Rapids, 223 U. S. 655, 56 L. ed. 594, 32 Sup. Ct. Rep. 389; Washington ex rel.

254 U. S.

(N.S.) 901, 33 Sup. Ct. Rep. 277; Norfolk & W. R. Co. v. Conley, 236 U. S. 605, 59 L. ed. 745, P.U.R.1915C, 293, 35 Sup. Ct. Rep. 437; Groesbeck v. Duluth, S. S. & A. R. Co. 250 U. S. 607, 63 L. ed. 1167, 40 Sup. Ct. Rep. 38.

The order was unreasonable and arbitrary, and therefore violates the due process clause because the railway company was not given the alternative of reducing or eliminating the alleged danger to public safety and the alleged impairment to public travel by decreasing the number of train movements or by abandoning the railroad.

lessees of the sidetracks of their property without due process of law.

Missouri P. R. Co. v. Nebraska, 164 U. S. 403, 41 L. ed. 489, 17 Sup. Ct. Rep. 130; Missouri P. R. Co. v. Nebraska, 217 U. S. 196, 54 L. ed. 727, 30 Sup. Ct. Rep. 461, 18 Ann. Cas. 989; Washington ex rel. Oregon R. & Nav. Co. v. Fairchild, 224 U. S. 510, 56 L. ed. 863, 32 Sup. Ct. Rep. 535; Union Lime Co. v. Chicago & N. W. R. Co. 233 U. S. 211, 58 L. ed. 924, 34 Sup. Ct. Rep. 522; Tap Line Cases (United States v. Louisiana & P. R. Co.) 234 U. S. 1, 58 L. ed. 1185, 34 Sup. Ct. Rep. 741; Jack v. Williams, 113 Fed. 823, af- Northern P. R. Co. v. North Dakota, 236 firmed in 76 C. C. A. 165, 145 Fed. 281; U. S. 585, 59 L. ed. 735, L.R.A.1917F, Iowa v. Old Colony Trust Co. L.R.A. 1148, P.U.R.1915C, 277, 35 Sup. Ct. 1915A, 549, 131 C. C. A. 581, 215 Fed. Rep. 429, Ann. Cas. 1916A, 1; Great 307; Northern P. R. Co. v. Washington Northern R. Co. v. Minnesota, 238 U. S. Territory, 142 U. S. 492, 35 L. ed. 1092, 340, 59 L. ed. 1337, P.U.R.1915D, 701, 12 Sup. Ct. Rep. 283; Amesbury v. Cit- 35 Sup. Ct. Rep. 753; Seaboard Air izens Electric Street R. Co. 199 Mass. Line R. Co. v. Railroad Commission, 394, 19 L.R.A.(N.S.) 865, 85 N. E. 419;|240 U. S. 324, 60 L. ed. 669, 36 Sup. Ct. Sherwood v. Atlantic & D. R. Co. 94 Va. Rep. 260; Chicago & N. W. R. Co. v. 291, 26 S. E. 943; Philadelphia & R. R. Ochs, 249 U. S. 416, 63 L. ed. 679, P.U.R. Co. v. Public Service Commission, 67 1919D, 498, 39 Sup. Ct. Rep. 343; Lake Pa. Super. Ct. 604; Re Denver, B. & W. Erie & W. R. Co. v. State Public UtilR. Co. P.U.R.1919F, 9; Re Bellefonte C. ities Commission, 249 U. S. 422, 63 L. R. Co. P.U.R.1919F, 67; Mississippi R. ed. 684, P.U.R.1919D, 459, 39 Sup. Ct. Commission v. Mobile & O. R. Co. 244 Rep. 345; McInnis v. New Orleans & N. U. S. 388, 61 L. ed. 1216, 37 Sup. Ct. E. R. Co. 109 Miss. 482, L.R.A.1915E, Rep. 602; Chicago, M. & St. P. R. Co. 682, P.U.R.1915D, 418, 68 So. 481; State v. Minneapolis, 238 Fed. 384. ex rel. Mt. Hope Coal Co. v. White Oak In so far as the order requires the R. Co. 65 W. Va. 15, 28 L.R.A. (N.S.) railway company to make certain 1013, 64 S. E. 630; State ex rel. Chicachanges in the properties of the Pub-go, M. & P. S. R. Co. v. Public Service lic Service Railway Company, and in so Commission, 77 Wash. 529, L.R.A.1918B, far as it limits the proportion of the 786, 137 Pac. 1057, Ann. Cas. 1915D, expense to be paid by the Street Rail- 202; Re Grade Crossing Comrs. 207 N. way Company to certain of the cross-| Y. 58, 100 N. E. 714, Ann. Cas. 1914C, ings to be eliminated, the order violates the due process clause for the reason that it takes the property of the railway company for the use of the Street Railway Company.

Railroad & Warehouse Commission v. Litchfield & M. R., Co. 267 Ill. 337, 108 N. E. 347.

271; Hatfield v. Straus, 117 App. Div. 671, 102 N. Y. Supp. 934, 189 N. Y. 208, 82 N. E. 172; Re Rochester, H. & L. R. Co. 110 N. Y. 126, 17 N. E. 680; Fanning v. Osborne, 102 N. Y. 441, 7 N. E. 307; Swift v. Delaware, L. & W. R. Co. 66 N. J. Eq. 34, 57 Atl. 456; Grand Trunk Western R. Co. v. Railroad Commission, 221 U. S. 400, 55 L. ed. 786, 31 Sup. Ct. Rep. 537.

The statute, as construed by the state courts, violates the 14th Amendment: (a) Because it takes the property of the railway company as the

lessee of the Paterson & Hudson River

In so far as the order affects the sidetracks indicated on the plan attached thereto, it impairs the obligation of the contracts between the railway company and the respective owners or lessees of the sidetracks; if the order is construed to require the railway company to re- Railroad Company and of the Paterson locate or reconstruct the sidetracks & Ramapo Railroad Company for the (either on or off its right of way), at private use and benefit of the two comits own expense, then it further op- panies; (b) because the cost of complyerates to deprive the railway company ing with the order will greatly exceed of its property without due process of the value of the interest of the raillaw; while, on the other hand, if not so way company in the property of the construed, it deprives the owners or two companies, without any compen

sating advantages to the railway com, pany, and will make its investment in said properties incapable of earning a fair and reasonable return upon the amount of its investment therein; (c) because it deprives the railway company of the equal protection of the laws.

Myles Salt Co. v. Iberia & S. M. Drainage Dist. 239 U. S. 478, 60 L. ed. 392, L.R.A.1918E, 190, 36 Sup. Ct. Rep. 204; New York & N. E. R. Co. v. Bristol, 151 U. S. 556, 38 L. ed. 269, 14 Sup. Ct. Rep. 437.

The state has the right to reserve the power to alter or amend the charter of a corporation, or to alter or amend or repeal the laws under which the corporation is organized.

Berea College v. Kentucky, 211 U. S. 45, 53 L. ed. 81, 29 Sup. Ct. Rep. 33.

Where the right is reserved, either by the Constitution or by statute, the provision of the law to this effect be comes automatically a part of the charter of corporations thereafter organized.

Re College Hill Land Asso. 157 Cal. 596, 108 Pac. 681; Shiloh Turnp. Co. v. Bates, 80 N. J. L. 171, 76 Atl. 448.

But this reserved right does not authorize the confiscation or destruction of property of corporations, or the taking of such property without compensation, and it must be construed subject to the restrictions of the state and Federal Constitutions forbidding the taking of property without due process of law Delaware, L. & W. R. Co. v. Public Utilities Comrs. 85 N. J. L. 28, 88 Atl. 849; State ex rel. Wausau Street R. Co. v. Bancroft, 148 Wis. 124, 38 L.R.A. (N.S.) 526, 134 N. W. 330; Berea College v. Kentucky, 211 U. S. 45, 53 L. ed. 81, 29 Sup. Ct. Rep. 33; Grand Trunk Western R. Co. v. South Bend, 227 U. S. 544, 57 L. ed. 633, 44 L.R.A. (N.S.) 405, 33 Sup. Ct. Rep. 303; Chicago, M. & St. P. R. Co. v. Wisconsin, 238 U. S. 491, 59 L. ed. 1423, L.R.A. 1916A, 1133, P.U.R.1915D, 706, 35 Sup. Ct. Rep. 869.

The statute, as construed by the state courts, violates the contract clause of the Constitution, in that it impairs the obligation of the contracts between the state of New Jersey and the Paterson & Hudson River Railroad Company and the Paterson & Ramapo Railroad Company, to whose rights the Erie Railway Company has succeeded, by imposing upon the Erie Railway Company a greater duty, with respect to the construction and maintenance of grade

crossings, than was imposed upon the two companies.

West Jersey & S. R. Co. v. Woodbury, 80 N. J. Eq. 412, 84 Atl. 1047; State, Delaware, L. & W. R. Co., Prosecutors, v. East Orange, 41 N. J. L. 127; Morris & E. R. Co. v. Orange, 63 N. J. L. 252, 43 Atl. 730, 47 Atl. 363; Morris Canal & Bkg. Co. v. State, 24 N. J. L. 62; Marino v. Central R. Co. 69 N. J. L. 628, 56 Atl. 306; State, Central R. Co., Prosecutor, v. Bayonne, 51 N. J. L. 428, 17 Atl. 971; Paterson, N. & N. Y. R. Co. v. Nutley, 72 N. J. L. 123, 59 Atl. 1032; Hudson County v. New York Bay R. Co. 84 N. J. L. 354, 86 Atl. 381; State v. Lackawanna R. Co. 84 N. J. L. 289, 86 Atl. 386.

the contract

The statute violates clause and the due process clause in that it impairs the obligation of the contracts between the Erie Railroad Company and the Public Service Railway Company by altering their respective rights and duties as fixed by the contracts, in that it fixes a maximum proportion to be paid by the Public Service Railway Company, without regard to the terms of the contract, and without regard to the proportion of the danger or impediment created by the Public Service Railway Company.

New York & L. B. R. Co. v. Atlantic Highlands R. B. & L. B. Electric R. Co. 55 N. J. Eq. 522, 35 Atl. 389, 37 Atl. 736; Re Saddle River Traction Co. N. J., 41 Atl. 107; West Jersey & S. R. Co. v. Atlantic City & Suburban Traction Co. 65 N. J. Eq. 613, 56 Atl. 890; Jersey City, H. & P. Street R. Co. v. New York, S. & W. R. Co. 62 N. J. Eq. 396, 53 Atl. 709; Watchung R. Case (unreported); Re West End & L. B. R. Co. filed May 7, 1896 (unreported); Re Jersey Central Traction Co. filed Sept. 14, 1904 (unreported); Re New Jersey & H. River R. & Ferry Co. filed Dec. 24, 1902 (unreported); Re Bergen Turnp. Co. dated July 1916 (unreported) Yick Wo. v. Hopkins, 118 U. S. 356, 30 L. ed. 220, 6 Sup. Ct. Rep. 1064; Chicago, R. I. & P. R. Co. v. Arkansas, 219 U. S. 453, 55 L. ed. 290, 31 Sup. Ct. Rep. 275; Pennsylvania R. Co. v. Ewing, 241 Pa. 581, 49 L.R.A. (N.S.) 977, 88 Atl. 775, Ann. Cas. 1915B, 157.

The statute violates the 14th Amendment in that it is an unreasonable exereise of the police power.

Sanitary Dist. v. Chicago & A. R. Co. 267 Ill. 252, 108 N. E. 312; Dobbins v. Los Angeles, 195 U. S. 223, 49 L. ed. 169, 25 Sup. Ct. Rep. 18; Lawton v.

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