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Cases citing this case: Supreme Court
Cases citing this case: Circuit Courts
U.S. Supreme Court
WESTERN UNION TEL CO v. PENNSYLVANIA R CO, 195 U.S. 540 (1904)
195 U.S. 540
WESTERN UNION TELEGRAPH COMPANY, Appt. and Petitioner,
v.
PENNSYLVANIA RAILROAD COMPANY and United New Jersey Railroad & Canal
Company.
Nos. 89, 199.
Argued October 19, 20, 1904.
Decided December 12, 1904.
Messrs.
This is a bill in equity filed in the circuit court of the District
of New Jersey by the appellant against the appellee, the Pennsylvania
Railroad Company, to prevent the latter from removing from various
railroad companies' rights of way the telegraph lines of the
appellant. The bill was filed in aid of a petition on the law side of
the court, praying the court to issue its process or take such modes
of procedure as might be
[195 U.S. 540, 541] agreeable to the
principles and usages of law, to determine the amount of compensation
to be paid by appellant to appellee for the use of the right of way of
the appellee, and its branches and connecting lines, to construct,
maintain, and operate a line of telegraph over and along such
railways, subject to the conditions and provisions named in the act of
Congress of July 24, 1866. 14 Stat. at L. 221, chap. 230, Rev. Stat.
5263 et seq. U. S. Comp. Stat. 1901, p. 3579
The construction of this act of Congress is the main question in
the case.
The appellant, which we shall designate the telegraph company,
contends that under certain acts of Congress the roads of the railroad
company and all other railroads in the United States are made post
roads, and that by the act of July 24, 1866, the telegraph company has
the right to construct, maintain, and operate lines of telegraph along
said roads upon the payment of compensation to the railroad company.
In other words, the contention is that by the act of 1866 the
telegraph company is given the power of eminent domain to acquire the
right to occupy with its telegraph lines the rights of way of the
railroad company.
A summary of the bill is as follows: The telegraph company is a New
York corporation; the railroad company is a Pennsylvania corporation.
The New Jersey Railroad & Canal Company was incorporated under the
laws of New Jersey, and is the owner of a railroad extending from
Jersey City, in the state of New Jersey, to the Delaware river at the
city of Trenton, in said state, with certain branches, which the bill
describes. The railroad company is the owner of a line of railroad
extending from the city of Philadelphia to the city of Pittsburg, in
the state of Pennsylvania, and in possession and control of the
railroads of the New Jersey Railroad & Canal Company in New Jersey,
under a lease or leases for a period of 999 years from the 1st of
July, 1871. By the laws of New Jersey the said railroads were created
and made and are now public highways, and hence are subject to
occupation and use of telegraph companies
[195 U.S. 540, 542]
under the provisions and conditions of the act of Congress of
July 24, 1866.
The telegraph company was organized in 1851, and began then to
construct and has constructed and acquired a continuous system of
telegraph lines, which extends through all of the states and
territories of the United States, and connects with telegraph lines in
the Dominion of Canada, and with lines also in the Republic of Mexico
and South American Republics, and with and by submarine cables with
the systems of all telegraph lines of foreign countries.
The system operated directly by the telegraph company consists of
over 192,000 miles of poles and cables, and over 900,000 miles of
wire; and an important part of the system and connected with its main
office in New York city, and with other lines leading to the important
cities of the West, is the lines of telegraph over and along the lines
of railway operated by the railroad company, connecting Jersey City
with Philadelphia, and connecting with other lines of the system.
The lines of telegraph along the railways in New Jersey were
originally constructed by the American Telegraph Company, a
corporation of the state of New Jersey, with the consent of, or under
contracts and arrangement with the railway company then owning the
said lines of railway, and were constructed more than forty years ago;
and since the 20th of September, 1881, the telegraph lines over the
right of way of said railroads have been maintained and operated and
compensation paid therefor under the provisions of a contract between
the telegraph company and the railroad company. The contract granted
to the telegraph company the rigth to place, maintain, and use upon
the line of the right of way of the railroad company, and of the
railroads owned, operated, or leased by it, a single line of telegraph
poles (in certain cases two were authorized), with the privilege of
erecting and maintaining thereon such number of wires as the telegraph
company might from time to time elect, said lines
[195 U.S. 540, 543]
to be located and placed under the direction of an officer of
the railroad company.
The telegraph company agreed to pay annually for the privileges
granted the sum of $75,000, in monthly instalments of $6,250, and to
deliver to the railroad company certain poles and wire, which were
then on certain of their roads. The telegraph company also agreed to
transmit the messages of the railroad company at a compensation which
was stated.
The provisions for the termination of the agreement and in the
event of its termination are as follows:
'Thirteenth. This agreement is to continue in force for and
during the term of twenty years from its date, and shall be binding
upon the respective companies, their successors and assigns, and
neither party shall have the right to assign the whole, or any part
hereof, without the consent of the other, given in writing.
... * *
'Fifteenth. If any monthly payment herein provided for be not
made within sixty days after it shall have become due, and shall
have been demanded by written notice, delivered to the treasurer, or
an executive officer of the party in default, or if any other
covenant herein made shall not, after sixty days' written notice of
default and demand made by either party in the manner herein
provided, be fulfilled by the other party, the contract may, at the
option of the party demanding such fulfilment, be rescinded, and
such rescission shall not relieve the party in default from
liability for any amount due, or for damages for nonfulfilment of
such covenant or of any other covenant.
'Sixteenth. If no new agreement be made by the parties hereto,
the telegraph company shall, at the termination of this contract, or
at any time hereafter, upon receiving written notice from the
railroad company, remove, within six months from the receipt of said
notice, all of its poles and wires, and leave the property of the
railroad company in good condi-
[195 U.S. 540, 544] tion and free from
the encumbrance thereof to the satisfaction of the general manager
or other proper officer of the railroad company, and if not so
removed the railroad company may remove them at the expense of the
telegraph company: Provided, however, That the payment agreed to be
made by the telegraph company to the railroad company in the sixth
clause hereof, and by the railroad company in the eighth clause,
shall not apply to the said six months, the companies respectively
hereby expressly agreeing to waive the same.'
The agreement contains the following provision:
'Any easement or right of way heretofore acquired by the
telegraph company upon any of the roads embraced in this agreement,
either directly by contract or by assignment of contracts or
agreements made by other companies with the railroad company, or
with any of the companies whose roads or property are embraced in
the schedule hereto attached, is hereby relinquished and abandoned,
and the rights and easements of the telegraph company upon the right
of way of said railroad company shall be such only as are granted by
this agreement, and shall cease with its termination.'
The agreement was carried out and the payments made as provided,
the last being made on the 20th of June, 1902.
On the 14th of May, 1902, the railroad company notified the
telegraph company in writing to remove its poles, wires, and other
property from the right of way and property of the railroad company
and of the other companies mentioned in the agreement, within six
months from the 1st day of June, 1902. The notice stated that in
default of compliance the railroad company would itself cause such
poles, wires, and other property of the telegraph company to be
removed from the right of way at the expense of the latter company.
It is alleged in the bill that, by reason of the facts set forth,
and by reason of the receipt of payments after the 21st of September,
1901, and after the notice of removal, the agreement was continued in
force, and that the railroad company had no right, notwithstanding the
notice of May 14, [195
U.S. 540, 545] 1902, to remove or cause to be removed
from the line of its railways the poles, wires, and telegraph property
of the telegraph company at the end of six months from the 1st day of
June, 1902.
It is also alleged that the lines of telegraph have been maintained
and operated over the lines of railway without interfering with the
ordinary use and operation thereof, or the ordinary travel thereon,
and, as now located, maintained, and operated, can be continued so as
not to interfere with the future operation and maintenance of the said
railways, or the ordinary travel upon them, subject only to such
slight changes of some of the poles of said lines as may be incident
to the construction of additional tracks upon said right of way, or
shifting the tracks already existing on said railways.
May 20, 1902, the president and general manager of the telegraph
company, in a letter addressed to the president of the railroad
company, acknowledged receipt of the notice of removal of May 14, and
stated that he understood that negotiations had been in progress
between the officers of the respective companies for a renewal of the
contract of September 20, 1881, and declared that he would be glad to
take up the matter actively either in New York or in Philadelphia, at
the convenience of the president of the railroad company. The
following day the president of the railway company replied, stating
that none of the companies named 'desires to renew or extend its
contract with the Western Union Telegraph Company,' and that the
contract between the companies had terminated under its terms on the
20th of September, 1901, and the notice to the telegraph company to
remove its poles had been given in accordance with the provisions of
the contract. A willingness to discuss any temporary arrangement which
might be necessary during the time allowed for the removal of the
poles of the telegraph company was expressed. A somewhat lengthy reply
was made, in which the telegraph company claimed that since some of
the contracts referred to by the railroad company were per-
[195 U.S. 540, 546]
petual in their terms, or ran during the life of the parties,
they could not be terminated by one party without the consent of the
other; asserted a right, under the laws of Congress and the laws and
Constitution of the state of Pennsylvania, to maintain and operate its
lines of telegraph on the railroad company's roads, subject only, at
most, to make a fair and reasonable compensation for such right, which
it offered to pay, and requested, if the railroad company declined to
contract further with it, a meeting for the purpose of agreeing upon
the amount of such compensation, or to submit the matter to
arbitration. The railroad company replied that the meeting requested
would be useless, as the telegraph company asserted rights upon the
lines of the railroad company which could not be conceded. It was
stated in the reply that the railroad company had agreed and
contracted with the Postal Telegraph Cable Company covering the
railroads included in the contract with the telegraph company, and
that the Postal Telegraph Cable Company would immediately commence
transacting a commercial telegraph business at the stations of the
railroad company. The railroad company offered to permit the telegraph
company to do business at the railroad stations until September 30
next ensuing (1902); and for the purpose of avoiding unnecessary loss
to the telegraph company, incident to the removal of its poles, the
railroad company expressed a willingness to purchase, at a fair
valuation, such of the lines as it could make use of.
It is alleged in the bill that the notice given to the telegraph
company to remove its poles from the railroads, and the refusal of the
railroad company to negotiate further with the telegraph company, were
not induced from any compulsion or necessity to use the space occupied
by the telegraph lines, but that the purpose of the railroad company
is to place upon the lines of railway telegraph lines to be owned or
used by another telegraph company; and it is alleged that the lines of
the telegraph company will not interfere with the ordinary travel and
use of the railways.
[195 U.S. 540, 547]
The directors of the telegraph company accepted the act
of July 24, 1866, and filed an acceptance with the Postmaster General
of the United States June 8, 1867.
The acts of Congress hereinafter mentioned and set out are referred
to in the bill, and a full compliance therewith alleged, whereby, it
is further alleged, the telegraph company became and is entitled to
maintain its lines on the railroads of the railroad company upon
paying just compensation, the payment of which was offered. The prayer
is that the court order and decree the amount of compensation to be
paid by the telegraph company, or, if the court order compensation to
be ascertained at law, it then be decreed that upon payment of such
compensation a perpetual injunction issue.
A preliminary injunction was ordered. 120 Fed. 981. It was reversed
by the circuit court of appeals. 59 C. C. A. 113, 123 Fed. 33.
A controversy ensued upon the form of the decree. The circuit court
of appeals simply reversed the order of the circuit court granting a
preliminary injunction. The telegraph company moved that the decree be
modified so as to direct the dismissal of the bill. The motion was
refused, and the telegraph company took an appeal to this court.
Subsequently the circuit court sua sponte entered an order dismissing
the bill, and the telegraph company appealed therefrom to the circuit
court of appeals. The case was then removed to this court by
certiorari.
H. D. Estabrook, Rush Taggart, John F. Dillon, and Richard Vliet
Lindabury for the Western Union Telegraph Company.
[195 U.S. 540, 555]
Mr. John G. Johnson for the railroad company.
Statement by Mr. Justice McKenna:
[195 U.S. 540, 557]
Mr. Justice McKenna, after stating the case as above, delivered the
opinion of the court.
By an act of Congress approved July 7, 1838 [5 Stat. at L. 271,
chap. 172] and by cubsequent acts (March 3, 1853, 10 Stat. at L. 225,
chap. 146; Rev. Stat. 3964, U. S. Comp. Stat. 1901, p. 2707; June 8,
1872 [17 Stat. at L. 283, chap. 335,]) railroads within the limits of
the United States were made post routes or roads.
By act of March 1, 1884, it is provided 'that all public roads and
highways, while kept up and maintained as such, are hereby declared to
be post routes.' 23 Stat. at L. 3, chap. 9, U. S. Comp. Stat. 1901, p.
2708.
The act of 1866 is as follows:
'Be it enacted by the Senate and House of Representatives of
[195 U.S. 540, 558]
the United States of America in Congress assembled,
That any telegraph company now organized, or which may hereafter be
organized under the laws of any state in this Union, shall have the
right to construct, maintain, and operate lines of telegraph through
and over any portion of the public domain of the United States, over
and along any of the military or post roads of the United States
which have been or may hereafter be declared such by act of
Congress, and over, under, or across the navigable streams or waters
of the United States: Provided, That such lines of telegraph shall
be so constructed and maintained as not to obstruct the navigation
of such streams and waters, or interfere with the ordinary travel on
such military or post roads. And any of said companies shall have
the right to take and use from such public lands the necessary
stone, timber, and other materials for its posts, piers, stations,
and other needful uses in the construction, maintenance, and
operation of said lines of telegraph, and may pre-empt and use such
portion of the unoccupied public lands subject to pre-emption,
through which its said lines of telegraph may be located, as may be
necessary for its stations, not exceeding forty acres for each
station; but such stations shall not be within fifteen miles of each
other.
'Sec. 2. And be it further enacted, That telegraphic
communications between the several departments of the government of
the United States and their officers and agents shall, in their
transmission over the lines of any of said companies, have priority
over all other business, and shall be sent at rates to be annually
fixed by the Postmaster General.
'Sec. 3. And be it further enacted, That the rights and
privileges hereby granted shall not be transferred by any company
acting under this act, to any other corporation, association, or
person: Provided, however, That the United States may at any time
after the expiration of five years from the passage of this act, for
postal, military, or other purposes, purchase all the telegraph
lines, property, and effects of any or all of said companies at an
appraised value, to be ascer-
[195 U.S. 540, 559] tained by five
competent, disinterested persons, two of whom shall be selected by
the Postmaster General of the United States, two by the company
interested, and one by the four so previously selected.
'Sec. 4. And be it further enacted, That before any telegraph
company shall exercise any of the powers or privileges conferred by
this act, such company shall file their written acceptance, with the
Postmaster General, of the restrictions and obligations required by
this act.'
The construction of this act is the fundamental question in the
case. The telegraph company contends that the necessary implication
from the provisions of the act is that telegraph companies may enter
and appropriate for their poles and lines a part of the rights of way
of railroads in invitum upon paying just compensation. In other words,
that the act invests telegraph companies with the right of eminent
domain. The railroad company denies this construction, and asserts
that the act gives the consent of the government to telegraph
companies to construct lines through its public domain and over and
along its military and post roads, which are not the property of
private corporations, and across navigable streams and waters. The act
gives no right, the railroad company contends, to appropriate private
property, but is an exercise by Congress of the national power over
interstate commerce to secure telegraph companies from 'hostile state
legislation or contracts violative of an announced public policy.' In
other words, the contention of the railroad company is that, after the
act of 1866 was passed, it 'became impossible for the states, by any
legislation, to exclude telegraph companies from the post roads.' The
contentions of the parties are opposed, therefore, only as to the
degree of right conferred by the act. It is asserted by one party, and
unqualifiedly admitted by the other, that Congress has power to grant
the power of eminent domain to corporations organized for national
purposes, and the arguments of the parties are addressed only to the
considerations which serve to deter-
[195 U.S. 540, 560] mine the intention of
Congress. Both parties also claim authority for their respective
contentions.
1. The act of 1866 came before this court for consideration
over twenty-five years ago, in Pensacola Teleg. Co. v. Western U.
Teleg. Co.
96 U.S. 1 , 24 L. ed. 708. The language of the court defining the
rights conferred by the act has recently been repeated and sanctioned
in Western U. Teleg. Co. v. Ann Arbor R. Co.
178 U.S. 239 , 44 L. ed. 1052, 20 Sup. Ct. Rep. 867. In both cases
the judgment of the court was adverse to the rights claimed under that
act by the telegraph company in the case at bar. A review of those
cases, therefore, and a consideration of the arguments directed
against them and in support of them will constitute the most
appropriate discussion of the questions now presented, and apply
immediately to their solution the authority of this court.
In Pensacola Teleg. Co. v. Western U. Teleg. Co.
96 U.S. 1 , 24 L. ed. 708, the legislature of Florida in 1866
granted to the Pensacola Telegraph Company 'the sole and exclusive
privilege and right' of maintaining and operating lines of telegraph
through certain counties of the state. In 1872 the property of the
Alabama & Florida Railroad Company was transferred to the Pensacola &
Louisville Railroad Company. On the 14th of February, 1873, the
legislature of Florida passed an act, which was amended in 1874,
authorizing the last-named company to construct and maintain a
telegraph line along its railroad, and to connect with lines in and
out of the state. This was in the territory embraced by the exclusive
grant to the Pensacola Telegraph Company.
On the 24th of June, 1874, the Pensacola & Louisville Railroad
Company granted to the Western Union Telegraph Company the right to
erect a telegraph line upon its right of way, and transferred to it
all the rights and privileges conferred by the act of February, 1873,
and 1874. The Western Union Company immediately commenced the erection
of the line, but before its completion the Pensacola Telegraph Company
filed a bill to enjoin the work, on account
[195 U.S. 540, 561]
of the alleged exclusive right of that company under its
charter. Upon the hearing a decree was passed dismissing the bill, and
an appeal was taken to this court. The Western Union Telegraph Company
had accepted the act of 1866, and claimed to erect and maintain a
telegraph line under its agreement with the Pensacola & Louisville
Railroad Company, and under the provisions of that act. The case,
therefore, presented an issue between rights asserted under a statute
of Florida and rights given and protected by the act of 1866. The
issue was important. The act of 1866 was presented for the first time
for interpretation, and upon it depended not only the private rights
of the contending companies, but the more serious conflict of powers
derived from the national and state governments. The questions,
therefore, which bore on these issues called for, and, it is evident
from the opinion of the court, received, careful attention.
The first of these questions was whether the act of 1866 was a
grant to telegraph companies of portions of the public domain and of
rights in the public domain, or a grant of rights having a broader
field of exercise,- a grant of rights having operation and to be
exercised throughout the whole of the United States. There was a
marked difference in the rights contended for, and they depended upon
different powers. In the public domain the government was proprietor
as well as sovereign, elsewhere only sovereign, and on its powers as
sovereign there were limitations, arising not only from the rights of
the states, but arising from the ownership of private property and the
necessity of a grant of eminent domain to appropriate it. These
limitations were of consequence in fixing exactly the rights conferred
by the act of 1866, and were regarded by the court in its construction
of that act.
The court declared, through Chief Justice Waite, that the act of
1866 was an exercise of the power of Congress over interstate
commerce, and the power to establish postoffices and post roads, and,
like other powers of the national government, could be exercised 'upon
every foot of territory under
[195 U.S. 540, 562] its jurisdiction.' It
was held, therefore, that the act was not a grant of rights only in
the public domain, and the character of the rights was made
unmistakable. The statute, the court said, 'in effect amounts to a
prohibition of all state monopolies' in commercial intercourse by
telegraph. This is expressed more than once as the fundamental idea
and sole purpose of the statute. The court further said: 'It [the
statute] substantially declares, in the interest of commerce and the
convenient transmission of intelligence from place to place by the
government of the United States and its citizens, that the erection of
the telegraph lines shall, so far as state interference is concerned,
be free to all who will submit to the conditions imposed by Congress,
and that corporations organized under the laws of one state for
constructing and operating telegraph lines shall not be excluded by
another from prosecuting their business within its jurisdiction, if
they accept the terms proposed by the national government for this
national privilege. To this extent, certainly, the statute is a
legitimate regulation of commercial intercourse among the states, and
is appropriate legislation to carry into execution the powers of
Congress over the postal service.'
And this construction, making the act of 1866 merely an exercise of
national power to withdraw from state control or interference
commercial intercourse by telegraph, is further emphasized in the
opinion and the objections to it completely answered, which were based
on the ownership of the post roads by individuals or corporations, and
the necessity of implying a grant of the power of eminent domain to
telegraph companies to appropriate them. The court said:
'It [the act of 1866] gives no foreign corporation the right to
enter upon private property without the consent of the owner, and
erect the necessary structures for its business; but it does provide
that, whenever the consent of the owner is obtained, no state
legislation shall prevent the occupation of post roads for telegraph
purposes by such corporations as are willing to avail themselves of
its privileges.' [195
U.S. 540, 563] And again:
'No question arises as to the authority of Congress to provide
for the appropriation of private property to the uses of the
telegraph, for no such attempt has been made. The use of public
property alone is granted. If private property is required, it must,
so far as the present legislation is concerned, be obtained by
private arrangement with its owner. No compulsory proceedings are
authorized. State sovereignty under the Constitution is not
interfered with. Only national privileges are granted.'
This language and the distinctions imported by it were approved in
Western U. Teleg. Co. v. Ann Arbor R. Co.
178 U.S. 239 , 44 L. ed. 1052, 20 Sup. ct. Rep. 867. It was a bill
in equity filed in the circuit court of Benzie county, Michigan, by a
telegraph company against a railway company to restrain the latter
from interfering with the rights of the telegraph company in a certain
telegraph line along the right of way of the railroad. It was removed
to the circuit court of the United States. The circuit court dismissed
the bill, and its action was affirmed by the circuit court of appeals.
33 C. C. A. 113, 61 U. S. App. 741, 90 Fed. 379. The Western Union
Telegraph Company brought the case here. The decrees of both courts
were reversed, and the case remanded to the circuit court, with
directions to remand the case to the state court. This was decreed on
the ground that, by the statement of the complainant's (telegraph
company) own case, it was not brought 'within the category of cases
arising under the laws or Constitution of the United States.' We said
that the bill was in effect for the specific performance of a
contract. 'It is not argued,' we said, by the Chief Justice, 'by
counsel for the telegraph company that the telegraph company had any
right under the statute, and independently of the contract, to
maintain and operate this telegraph line over the railroad company's
property; and it has been long settled that that statute did not
confer on telegraph compaines the rights to enter on private property
without the consent of the owner, and erect the necessary structures
for their busi- [195
U.S. 540, 564] ness; but it does provide that, whenever
the consent of the owner is obtained, no state legislation shall
prevent the occupation of post roads for telegraph purposes by such
corporations as are willing to avail themselves of its privileges.'
And further: 'As we have said, it was not asserted in argument that
the telegraph company had the right, independently of the contract, to
maintain its line on the railroad company's property, and, in view of
the settled construction of the statute, we could not permit such a
contention to be recognized as the basis of jurisdiction.' In other
words, by the decision in the Pensacola Case no such Federal question
remained to be based on the act of 1866.
Counsel, however, pronounce the extracts quoted from the Pensacola
Case and their repetition in the Ann Arbor Case as dicto, and urge,
besides, that the irresistible logic of other cases overthrows the
authority of both. Neither proposition is tenable. We have said enough
to demonstrate that the language we have quoted was the deliberate
resolution of the court, and we might content ourselves by observing
that, as the Ann Arbor Case is the last expression of this court
interpreting the act of 1866, prior cases, if not reconcilable with
its exposition of that act, are superseded. We think they are so
reconcilable.
One of the cases which is relied on (Western U. Teleg. Co. v. Atty.
Gen.
125 U.S. 530 , 31 L. ed. 790, 8 Sup. Ct. Rep. 961, asserted the
very valuable right obtained by telegraph companies under the act of
1866, and vindicated it against a statute of Massachusetts, which
provided for an injunction against the prosecution of business by the
company as a means of enforcing the payment of taxes. This is the very
essence of the effect given to the act of 1866 by the Pensacola and
Ann Arbor Cases. The telegraph company was in occupation of the post
roads of the state of Massachusetts, whether railroads or the ordinary
highways does not appear. Its right to be there was not controverted,
and how it got there was of no consequence. Its right to do business
after and during such occupation was
[195 U.S. 540, 565] involved and was
decided, and to this right the language of the court was addressed,
and receives limitation from it. The language of the court was
substantially the same as that of the act of Congress. It enforced the
right given by that act, and gave to the telegraph company the
protection of the national power and supremacy, and differs only in
the instance, not in the principle, declared in the Pensacola Case.
The telegraph company, indeed, sought for more than the mere exercise
of a right. It sought to turn the act of 1866 from a mere permission
to exercise a right to the creation of such an instrumentality of the
national government as to be exempt from state taxation. The court
rejected that view.
So also must be limited the language in Western U. Teleg. Co. v.
Texas,
105 U.S. 460 , 26 L. ed. 1067, and United States v. Union P. R.
Co.
160 U.S. 1 , 40 L. ed. 319, 16 Sup. Ct. Rep. 190. In the first the
distinction which was necessary to make was between intra and
inter-state commerce, and to determine what rights as to the latter
were conferred by the act of 1866. In the second case the efficacy of
the act to prevent binding contracts against its policy was involved.
The case called for that, but no more, as far as the act of 1866 was
concerned. Such an agreement was set up, and under it the Western
Union Telegraph Company claimed the right to exclude all other
telegraph companies from the roadway of the railway company,
notwithstanding the act of 1866. Mr. Justice Harlan, speaking for the
court, said that such an agreement 'directly tended to make the act of
July 24, 1866, ineffectual, and was, therefore, hostile to the object
contemplated by Congress. Pensacola Teleg. Co. v. Western U. Teleg.
Co.
96 U.S. 1, 11 , 24 S. L. ed. 708, 711.'
We need not dissent from these views, or qualify the general
language by which they were amplified and supported. Whatever rights
were granted by the act of 1866 were granted to all telegraph
companies, and could not be defeated by a binding contract with some
one company; nor could such an agreement be used to evade or escape
the commands of the statute
[195 U.S. 540, 566] constituting the Union
Pacific Railway, passed in 1862 [12 Stat. at L. 489, chap. 120], or
the supplementary act of 1888 [25 Stat. at L. 382, chap. 772, U. S.
Comp. Stat. 1901, p. 3583], which was passed by virtue of a power
reserved in the act of 1862. The suit was brought to enforce the
duties and obligations imposed by those statutes on the railway
company. The statutes are quoted in the opinion, and the act of 1866
is referred to only as reinforcing the provisions of the statute of
1862. It was only necessary, therefore, to declare the policy of the
act of 1866 as a grant of rights to all telegraph companies. The
consideration of the court was not directed to anything else. The
extent of the rights granted as presented in the case at bar could not
have been in contemplation. They were not in issue, and it could not
have been intended to anticipate and decide the controversies which
might be based upon them.
St. Louis v. Western U. Teleg. Co.
148 U.S. 93 , 37 L. ed. 381, 13 Sup. Ct. Rep. 485, is also urged
by the telegraph company as inconsistent with the Ann Arbor Case. It
is clearly not so. The case involved the validity of a charge or
rental made by the city of St. Louis for the use of its streets by the
telegraph company. The charge was imposed by the same ordinance that
gave permission to the telegraph company to occupy the streets of the
city. The telegraph company resisted the charge upon several grounds,
among which were the provisions of the act of 1866, and its acceptance
by the company. The charge was held to be a valid one, but on no
ground which involved the consideration of the right of the telegraph
company to occupy the streets. The right was not disputed. The
ordinance of the city conferred it. The claim made under the act of
1866 was that it exempted the telegraph company from a payment of any
compensation. But compensation was decreed on the ground that the
franchise or privilege granted by the act of 1866 could only be
exercised in subordination to public as well as private rights, and,
as entry upon the latter could only be made upon the payment of just
compensation, entry upon the former was subject to the same payment.
This was all that was necessary to decide to sustain the charge made
by the [195 U.S. 540,
567] city. In other words, it was all that was necessary
to decide to meet the extreme contention made by the telegraph
company, that under the act of 1866 it was entitled to occupy the
streets without charge, notwithstanding its occupation was exclusive
and permanent, as the court said it was. It is manifest, to hold that
there can be no entry upon property without payment of compensation is
not to decide that such entry can be made upon tender of compensation.
Certainly, as to private property or rights, the nonconsent of the
owner is a factor to be dealt with. Nonconsent, if resolute, can only
be overcome by power conferred by law; in other words, by the exercise
of eminent domain. The act of 1866 was not considered in that regard.
By this review of the cases it is evident that there is no
inconsistency between them and the Pensacola Case and the Ann Arbor
Case, and we are brought to the discussion of the general
considerations urged against the latter cases. Construed as they
construe the act of 1866, it becomes meaningless, counsel say. If the
act grants no rights, it is urged, except by permission of the
railroad companies, it confers no more than can be obtained from the
railroad companies. The objection is best answered by examples. The
telegraph company had such permission in the Pensacola Case. It
needed, however, the act of 1866 to make its exercise effectual
against the legislation of the state of Florida. In the Union Pacific
Case a claim of a monopoly by one telegraph company was answered by
the act construed as a grant of rights to all companies. These
examples show important results achieved by the act, and the
principles of the cases may come to be applied to prevent other
hostile action of states or individuals.
This court, when it came to consider the act of 1866 in the
Pensacola Case, was confronted, as we are confronted now, with the
serious nature of the right of eminent domain. It is indeed
'inseparable from sovereignty,' but it is accompanied and restrained
by inexorable limitations. The property taken must be for a public
use, and there must be com-
[195 U.S. 540, 568] pensation made for it,
and compensation, whether it be regarded as part of the power or a
limitation upon the power, is so far essential that the absence of a
provision for it has been regarded as important in determining the
intention of the legislature when a grant of such power is claimed. 1
Lewis, Em. Dom. 240, and cases cited. We said in Sweet v. Rechel,
159 U.S. 399 , 40 L. ed. 196, 16 Sup. Ct. Rep. 48, by Mr. Justice
Harlan: 'It is a condition precedent to the exercise of such power [
eminent domain] that the statute make provision for reasonable
compensation to the owner.' Many state cases were cited, and also
Cherokee Nation v. Southern Kansas R. Co.
135 U.S. 641 , 34 L. ed. 295, 10 Sup. Ct. Rep. 965. The act of
Congress under review in the latter case, it was contended, did not
provide for compensation for the property taken. In reply, Mr. Justice
Harlan, delivering the opinion of the court, said: 'The objection to
the act cannot be sustained. The Constitution declares that private
property shall not be taken 'for public use without just
compensation.' It does not provide or require that compensation shall
be actually paid in advance of the occupancy of the land to be taken.
But the owner is entitled to reasonable, certain, and adequate
provision for obtaining compensation before his occupancy is
disturbed. Whether a particular provision be sufficient to secure the
compensation to which, under the Constitution, he is entitled, is
sometimes a question of difficulty.' The requirements of the
Constitution were held to be fully met because the act which was under
consideration provided that, before the railway which was authorized
should be constructed through any of the lands proposed to be taken,
full compensation should be made to the onwer for all property taken,
or damage done by reason of the construction of the road, and in the
event of an appeal from the finding of the referee the railway company
should pay into court double the amount of the award to abide the
judgment.
In Kohl v. United States,
91 U.S. 367 , 23 L. ed. 449, acts of Congress were considered, one
providing for the acquisition of a site
[195 U.S. 540, 569]
for a public building, the other an appropriation act. The
appropriation made by the latter was 'for the purchase, at a private
sale or by condemnation, of ground for a site' for the building. The
real controversy in the case was whether the acts of Congress intended
the site to be obtained under the authority of the state government in
the exercise of its power of eminent domain, or by the United States
government in its own right and by virtue of its own eminent domain.
The court held the latter, and, commenting on the sufficiency of the
acts to give the right, said: 'The authority here given [the first
act] was to purchase. If that were all, it might be doubted whether
the right of eminent domain was intended to be invoked. . . . That
Congress intended more than this is evident, however, in view of the
subsequent and amendatory act passed June 10, 1872 [ 17 Stat. at L.
352, chap. 415, U. S. Comp. Stat. 1901, p. 2457], which made an
appropriation 'for the purchase, at private sale or by condemnation,
of the ground for a site' for the building.'
But in the act of July, 1866, there is not a word which provides
for condemnation or compensation. The rule that when a right is given
all the means of exercising it are given does not, as we have seen,
apply to the extent contended for by the telegraph company. The
exercise of the power of eminent domain is against common right. It
subverts the usual attributes of the ownership of property. It must,
therefore, be given in express terms or by necessary implication; and
this was the reasoning in the Pensacola Case, and applied directly to
the act of 1866. We may repeat the language of the court: 'If private
property is required it must, so far as the present legislation is
concerned, be obtained by private arrangement with its owner. No
compulsory proceedings are authorized.'
In Sweet v. Rechel, Cherokee Nation v. Southern Kansas R. Co., and
Kohl v. United States, the property to which the constitutional
protection was applied was property in private use. Their doctrine
applies as well to private property devoted to a public use. There is
no difference whatever in principle arising from the difference in the
uses. [195 U.S. 540,
570] A railroad right of way is a very substantial thing.
It is more than a mere right of passage. It is more than an easement.
We discussed its character in New Mexico v. United States Trust Co.
172 U.S. 171 , 43 L. ed. 407, 19 Sup. Ct. Rep. 128. We there said
that if a railroad's right of way was an easement it was 'one having
the attributes of the fee, perpetuity and exclusive use and
possession; also the remedies of the fee, and, like it, corporeal, not
incorporeal, property.' And we drew support for this from a New Jersey
case, in which state the rights of way in the case at bar are
situated. We quoted New York, S. & W. R. Co. v. Trimmer, 53 N. J. L.
1, 3, 20 Atl. 761, as follows: 'Unlike the use of a private way,-that
is, discontinuous,-the use of land condemned by a railroad company is
perpetual and continuous.' And it is held in Pennsylvania 'that a
railway company is a purchaser, in consideration of public
accommodation and convenience, of the exclusive possession of the
ground paid for to the proprietors of it.' Philadelphia & R. R. Co. v.
Hummell, 44 Pa. 375, 84 Am. Dec. 457. It is 'a fee in the surface and
so much beneath as may be necessary for support. . . . But whatever it
may be called, it is, in substance, an interest in the land, special
and exclusive in its nature.' Pennsylvania S. Valley R. Co. v. Reading
Paper Mills, 149 Pa. 18, 4 Atl. 205; Philadelphia v. Ward, 174 Pa. 45,
34 Atl. 458; Pittsburgh, Ft. W. & C. O. R. Co. v. Peet, 152 Pa. 488,
19 L. R. A. 467, 25 Atl. 612.
A railroad's right of way has, therefore, the substantiality of the
fee, and it is private property, even to the public, in all else but
an interest and benefit in its uses. It cannot be invaded without
guilt of trespass. It cannot be appropriated in whole or part except
upon the payment of compensation. In other words, it is entitled to
the protection of the Constitution, and in the precise manner in which
protection is given. It can only be taken by the exercise of the
powers of eminent domain; and a condition precedent to the exercise of
such power is, we said in Sweet v. Rechel, that the statute conferring
it make provision for reasonable compensation to the owner of the
property taken. This condition is expressed
[195 U.S. 540, 571]
with even more emphasis in Cherokee Nation v. Southern Kansas
R. Co.
A few words more may be necessary to avoid all possible
misunderstanding of the purpose for which we have cited those cases
and Kohl v. United States. We have cited them, not as tests of the
validity of the act of 1866, but as tests of its meaning, supporting
the authority of the Pensacola Case and Ann Arbor Case. We have no
occasion to consider the validity of the act of 1866 as an attempt to
grant the power of eminent domain. We decide the act to be an exercise
by Congress of its power to withdraw from state interference
interstate commerce by telegraph. As such, of course, the act is an
efficient and constitutional enactment.
Certain cases decided at circuit are cited for our consideration,
and we will close this branch of our discussion by a brief review of
them.
In Postal Teleg. Cable Co. v. Oregon Short Line R. Co. 104 Fed.
623, and Postal Teleg. Cable Co. v. Oregon Short Line R. Co. 114 Fed.
787, there were views expressed favorable to the contentions made in
the case at bar by the telegraph company, but the judgments in both
cases were ultimately rested upon the local statutes,-Idaho and
Montana,-which granted the right of eminent domain to telegraph
companies. We may also observe that the first case went to the circuit
court of appeals of the ninth circuit. That court sustained the
judgment of the circuit court, upon the statute of Idaho and upon
general legal principles. It did not refer to the act of 1866. 49 C.
C. A. 663, 111 Fed. 843.
In Postal Teleg. Cable Co. v. Southern R. Co. 89 Fed. 190, and
Postal Teleg. Cable Co. v. Cleveland, C. C. & St. L. R. Co. 94 Fed.
234, the act of 1866 was more directly passed on. Both cases were
proceedings in eminent domain,-one brought in the courts of North
Carolina and removed to the circuit court of the United States; the
other brought in the circuit court of the United States for the
[195 U.S. 540, 572]
northern district of Ohio. In passing on the sufficiency of
the petition in the first case, Judge Simonton said that the right of
petitioner to construct its lines along the right of way of post roads
of the United States was given under the act of Congress of 1866; but,
he observed, the mode or method of exercising the right conferred was
fixed by the laws of the several states, and it was exclusive in its
character in ascertaining the amount of compensation to be allowed.
The right of the telegraph company was, therefore, considered and
adjudged under the North Carolina statutes.
In the second case a motion was made to dismiss on the ground that
the power of eminent domain was not conferred by any law of the United
States or the state of Ohio. The motion was sustained. District Judge
Ricks said: 'The act of July 24, 1866, made no provision for
compensation or payment for property to be taken; hence the procedure
cannot be sustained by virtue of that act.' He cited the Pensacola
Case,
96 U.S. 1, 11 , 24 S. L. ed. 708, 711.
Western U. Teleg. Co. v. Ann Arbor R. Co. 33 C. C. A. 113, 61 U. S.
App. 741, 90 Fed. 379, and St. Paul, M. & M. R. Co. v. western U.
Teleg. Co. 55 C. C. A. 263, 118 Fed. 497, were respectively decided by
the circuit court of appeals of the sixth circuit and the circuit
court of appeals of the eighth circuit. It is difficult to reconcile
them. In one it was decided, following the authority of the Pensacola
Case, that the telegraph company could not occupy the line of the
defendant's railroad without its consent or that of some predecessor
in title. This was wanting. In the other it was conceded that the
right of entry upon private property was not conferred by the act of
1866, without the owner's consent, yet held that, as consent had been
given, no reason could be perceived why a court of equity should
compel a removal of the telegraph company's lines from the railway's
right of way,-'especially where it appears that no express agreement
was made that they should be removed when its lines were erected.'
[195 U.S. 540, 573]
2. It is contended by the telegraph company that the charters
under which the several railway companies constituting the system of
the railroad company were organized expressly created them 'public
highways,' and that in the acquisition of land for their purposes they
were public agents, 'and the land was taken by the government, and in
the eye of the law as completely subject to public uses as though it
had been taken by the state itself,'-that is to say, if we understand
the argument, have become highways in the full sense of that word. And
counsel further say the difference between them and ordinary highways
'is not a legal difference, but is the difference of the kind of use
to which the highway is subject,-in the one case, wheel vehicles drawn
by horses; in the other, to steam vehicles drawn by locomotives along
and upon iron rails.' They are subject, therefore, it is urged, as
ordinary highways and streets of a city are subject, to the control of
Congress by virtue of its power over interstate commerce.
Counsel in advancing the argument exhibits a consciousness of
taking an extreme position. It would seem, certainly if considered
with other parts of their argument, to make a railroad right of way
public property. To that extreme we cannot go, for the reasons which
we have already indicated. The right of way of a railroad is property
devoted to a public use, and has often been called a highway, and as
such is subject, to a certain extent, to state and Federal control;
and for this many cases may be cited. But it has always been
recognized, as we have pointed out, that a railroad right of way is so
far private property as to be entitled to that provision of the
Constitution which forbids its taking, except under the power of
eminent domain and upon payment of compensation. The right of way of a
railroad was recognized as private property in the Pensacola Case, and
we are brought back to the main question,-the interpretation of the
act of July, 1866, and upon that we have sufficiently dilated.
It follows from these views that the act of 1866 does not
[195 U.S. 540, 574]
grant the right to telegraph companies to enter upon and
occupy the rights of way of railroad companies, except with the
consent of the latter, or grant the power of eminent domain. Nor does
the statute of New Jersey make those rights of way public property so
as to subject them to such occupation under the provisions of the act
of 1866.
It is admitted that the statutes of New Jersey do not confer the
right of eminent domain upon the telegraph company.
3. In view of our conclusion, it is not necessary to
consider the question whether, if the power of eminent domain were
granted by the act of 1866, it would be within the competency of a
court of equity to ascertain compensation, or that compensation might
be determined at law. That question was pertinent in Kohl v. United
States. It is not pertinent in this case. The acts of Congress passed
on in Kohl v. United States, as we have seen, provided for the
appropriation of a site for a public building by purchase or by
condemnation. By the act of 1866 power of condemnation is not given,
and, of course, methods of procedure are not involved in its
construction.
It is equally unnecessary to consider the questions which might
arise if the state of New Jersey gave the right of eminent domain to
the telegraph company. It is conceded by counsel that such right does
not exist, and it happens that under the policy of New Jersey the
right of way of the railroad company enjoys in that state immunity
from compulsory proceedings instituted by the telegraph company. But
this has no bearing on the act of 1866, nor does it make that act, as
construed by us, a grant to railroads of greater power over commercial
intercourse by telegraph than the states have. Indeed, we think, a
comparison between the states and railroads in that regard is
misleading, and overlooks the essential difference between restraints
on the legislative power of the states and the rights of property.
On account of those restraints, it may be, and finding no
[195 U.S. 540, 575]
impediment in the rights of property, interstate commerce by
telegraph has marched to a splendid development, although in the
acquisition of the means for its exercise it has relied on the consent
of the owner of private property, or the power of eminent domain
conferred by the states. We cannot but feel, therefore, that there is
something inadequate in the argument which is based on the
apprehension that the act of July 24, 1866, construed as we construe
it gives a sinister power to railroad companies. It gives no power to
those companies but that which appertains to the ownership of their
property.
Decree affirmed.
Mr. Justice Harlan, dissenting:
In view of the importance of these cases I do not feel that any
dissent from the opinion and judgment of the court should be expressed
unless the grounds of such dissent be fully disclosed.
The controlling question before the court is whether the Western
Union Telegraph Company is entitled, in virtue of any existing acts of
Congress, to keep and maintain its telegraph lines upon the right of
way of the Pennsylvania Railroad Company, assuming that the ordinary
travel on that road will not be thereby interfered with.
Congress, having power to establish postoffices and post roads, has
declared all railroads in operation within the limits of the United
States to be post roads and post routes. 5 Stat. at L. 283, chap. 172;
10 Stat. at L. 255, chap. 146; Rev. Stat. 3964, U. S. Comp. Stat.
1901, p. 2707; 23 Stat. at L. 3, chap. 9, U. S. Comp. Stat. 1901, p.
2708.
There was, for many years, as all know, and therefore as the court
may judicially know, a widespread belief that the government and the
people of the country were at great disavantage in matters of business
and intercourse as involved
[195 U.S. 540, 576] in the use of the
telegraph. The conviction was strong and universal that the control of
the post roads of the country was being exerted by great railroad
corporations in such way as to subserve private and corporate
interests at the expense of the United States and without any regard
for the convenience of the general public. As a remedy for those evils
Congress passed the act of July 24th, 1866, entitled 'An Act to Aid in
the Construction of Telegraph Lines, and to Secure to the Government
the Use of the Same for Postal, Military, and Other Purposes.' 14
Stat. at L. 221, chap. 230, U. S. Comp. Stat. 1901, p. 3579. By that
act Congress conferred upon any telegraph company organized under the
laws of any state 'the right to construct, maintain, and operate lines
of telegraph,' not only through and over the public domain, and over,
under, or across the navigable streams or waters of the United States,
but 'over and along any of the military or post roads of the United
States.' By the same act it is declared that on the lines of such
companies telegraphic communication between the several departments of
the government should be at rates to be annually fixed by the
Postmaster General, and have priority over all other business. 2. To
the exercise of the right thus given, Congress annexed several
conditions, but the only one pertinent to the present discussion is
the condition that the telegraph lines erected by any company
accepting the provisions of the act should be so constructed and
maintained as not to obstruct the navigation of the navigable streams
and waters of the United States, or 'interfere with the ordinary
travel on such military or post roads.'
The object of the act, this court has said, all its members
concurring, 'was not only to promote and secure the interests of the
government, but to obtain for the benefit of the people of the entire
country every advantage in the matter of communication by telegraph
which might come from competition between corporations of different
states;' that 'it was very far from the intention of Congress, by any
legislation, to so exert its power as to enable one telegraph
corporation, Federal
[195 U.S. 540, 577] or state, to acquire exclusive rights
over any post road;' and that 'no railroad company operating a post
road of the United States over which interstate commerce is carried on
can consistently with the act of July 24th, 1866, bind itself by
agreement to exclude from its roadway any telegraph company
incorporated under the laws of a state, which accepts the provisions
of that act, and desires to use such roadway for its line in such
manner as will not interfere with the ordinary travel thereon.' United
States v. Union P. R. Co.
160 U.S. 1, 44 , 49 S., 40 L. ed. 319, 334, 336, 16 Sup. Ct. Rep.
190, 206, 208. Yet, by its present construction of the act of 1866 the
court-if we do not misapprehend its opinion-holds that the right which
that act gives to construct, maintain, and operate a telegraph line
upon a post road cannot, in virtue of that act, or under any existing
legislation, be exercised by the Western Union Telegraph Company,
against the will of the railroad company operating such road; and
this, notwithstanding it be absolutely clear that the occupancy of the
post road by the telegraph lines of the particular company proposing
or desiring to erect them would not, in the slightest degree,
interfere with the ordinary travel on such road. It is now held, in
effect, that, so far as that act is concerned, and despite its
explicit provisions, even the government cannot, except with the
assent of the railroad company, enjoy the advantages sought to be
secured by its passage. I think it was intended by the act of 1866, in
the interest of the postal service and of interstate trade and
intercourse, to throw open all the post roads of the country to the
use of telegraph companies accepting its provisions, subject to the
condition that such use should not interfere with ordinary travel on
the post roads so occupied. And that intention is in harmony with the
doctrine often announced by this court, that 'a railroad is a public
highway, established primarily for the convenience of the people and
to subserve public ends, and therefore subject to governmental
control.' Cherokee Nation v. Southern Kansas R. Co.
135 U.S. 641, 657 , 34 S. L. ed. 295, 302, 10 Sup. Ct. Rep. 965;
Olcott v. Fon du Lac County, 16
[195 U.S. 540, 578] Wall. 678, 694, 21 L.
ed. 382, 388; United States v. Joint Traffic Asso.
171 U.S. 505 , 43 L. ed. 259, 19 Sup. Ct. Rep. 25; Wisconsin, M. &
P. R. Co. v. Jacobson,
179 U.S. 287 , 45 L. ed. 194, 21 Sup. Ct. Rep. 115.
But it is suggested that the telegraph company has not been
expressly invested with the power of eminent domain. Nevertheless, it
has been given, by express words, the right to construct, maintain,
and operate its lines on any post road of the United States; and, as
it is not contended that Congress has exceeded its power in granting
that right, the question is whether the right so given can be made
effective by any mode of procedure known to our jurisprudence. I have
always supposed it to be competent for a court of the United States
having general jurisdiction of suits at law and in equity, in some
efficient mode, by some process or form of procedure, to enforce and
protect any right constitutionally conferred by the legislative
department. The principle is illustrated in D. M. Osborne & Co. v.
Missouri P. R. Co.
147 U.S. 248, 259 , 37 S. L. ed. 155, 161, 13 Sup. Ct. Rep. 299,
303, which was an action to enjoin the construction of a track along a
public street, because of irreparable damage to be thereby inflicted
on the plaintiff. This court, following the decision of Judge Brewer,
now of this court, in McElroy v. Kansas City, 21 Fed. 257, said: 'If
the defendant had an ultimate right to do the act sought to be
restrained, but only upon some condition precedent, and compliance
with the condition was within the power of the defendant, the
injunction would almost universally be granted until the condition was
complied with; but, if the means of complying with the condition were
not at defendant's command, then the court would adjust its order so
as to give complainant the substantial benefit of the condition while
not restraining defendant from the exercise of its ultimate rights.
Inasmuch as, while the statutes of Missouri provided for the
assessment of damages resulting from the taking of property for public
use, there existed no provision to attain that result where the
property was merely damaged, an injunction was granted, with leave to
the defendant to apply for the appointment of a board of commissioners
to ascertain and report the damages which complainant would
[195 U.S. 540, 579]
sustain, upon payment of which the injunction would be
vacated.' This principle was recognized in the recent case of New York
v. Pine,
185 U.S. 93 , 46 L. ed. 820, 22 Sup. Ct. Rep. 592.
It is said by counsel that the right given by the act of 1866 is
necessarily subject to the condition prescribed by the constitutional
provision that private property shall not be taken for public use
without just compensation, and that the property interest of the
railroad company in its right of way cannot be permanently taken from
it for public purposes, against its will, without making such
compensation.
Upon the subject of compensation the court reproduces from the
opinion in Sweet v. Rechel,
159 U.S. 380, 399 , 40 S. L. ed. 188, 196, 16 Sup. Ct. Rep. 43,
48, this detached sentence: 'It is a condition precedent to the
exercise of such power [eminent domain] that the statute make
provision for reasonable compensation to the owner.' But the court
does not apply any such rule to the present case, and holds that the
act of 1866 is invalid as not making provision for compensation.
Besides, the above sentence, taken in connection with the one
immediately preceding it, shows clearly that what was said had
reference to the taking of private property for public use without
provision being made in the statute for compensation. The entire
paragraph from which the above sentence was taken reads: 'When,
however, the legislature provides for the actual taking and
appropriation of private property for public uses, its authority to
enact such a regulation rests upon its right of eminent domain,-a
right vital to the existence and safety of government. But it is a
condition precedent to the exercise of such power that the statute
make provision for reasonable compensation to the owner.' What was
said in Sweet v. Rechel plainly had no reference to property of a
public or quasi public nature. The same observations may be made in
reference to the quotation made from Cherokee Nation v. Southern
Kansas R. Co.
135 U.S. 641 , 34 L. ed. 295, 10 Sup. Ct. Rep. 965. What was said
in that case had also reference to the taking of private property. If
the court were now of opinion that the act of 1866 was invalid as
[195 U.S. 540, 580]
not making provision for compensation, then the object of
citing Sweet v. Rechel and Cherokee Nation v. Southern Kansas R. Co.
would be both manifest and appropriate. But the court does not hold
that the act of 1866 is objectionable on any such ground. On the
contrary, it holds a railroad right of way to be private property, and
yet, despite its citation of the above cases, recognizes the validity
of the act, although it makes no provision for compensation to the
owner. It may not be appropriate for me to say that I adhere to what
was said in Sweet v. Sechel and Cherokee Nation v. Southern Kansas R.
Co., the opinions in both of which cases were written by myself,
speaking for the court. Whether a railroad right of way over a post
road of the United States-such road being a public highway established
primarily for the public convenience and subject to governmental
control-is private property within the rule that a statute authorizing
private property to be taken for public use must make provision for
compensation, is a question not wholly free from doubt, and it need
not be here discussed; for the court does not hold that the act of
1866 is subject to that objection.
But let it be granted, for the purposes of this case, that a
railroad company has such a property interest in its right of way that
it is entitled to compensation if such right of way be appropriated to
the use of a telegraph company accepting the act of 1866; still, the
question remains, In what way or by what mode may such compensation be
legally ascertained? May it not be ascertained by a court of general
jurisdiction, when all parties in interest are regularly being brought
in? Here the telegraph company comes into the circuit court of the
United States, and seeks, in virtue of the act of Congress, to enforce
the right expressly granted to it, of occupying the post road in
question with its lines. It expresses its readiness to make such
compensation to the railroad company as the law requires, and informs
the court that it has instituted an action at law to ascertain the
amount of such compensation. The bill alleges:
[195 U.S. 540, 581]
'Your orator says further that it is diligently prosecuting
said action on the law side of this court for the ascertainment of the
amount of compensation to the said railway companies defendant herein,
for the right to the use of said railroads to maintain and operate its
telegraph line along and over the lines of said railways as prescribed
in said act of Congress of July 24th, 1866; and that it will continue
to prosecute the same to a final determination as rapidly as the
business in said court will permit the said cause to be heard and
determined, and without any unnecessary delay.'
'Your orator prays that this court ascertain, order, adjudge, and
decree the amount of compensation to be paid by your orator to the
defendants, as their rights may severally appear, for the
construction, maintenance, and operation of your orator's telegraph
lines over and along the right of way of the defendants' said
railroads, under the terms, provisions, and restrictions of said
acts of Congress hereinbefore mentioned, or, if this court shall
order and determine that the amount of such compensation to the
defendants shall be such amount as shall be determined or adjudged
in the said action at law, that upon due payment of such
compensation by your orator to the defendants this court will order,
adjudge, and decree that your orator is entitled to a perpetual
injunction against the defendants herein and each of them,
restraining them and each of them from in any manner interfering
with the location, construction, maintenance, and operation of your
orator's said lines of telegraph upon the roadway or right of way of
the said defendants, under and subject to the provisions and
restrictions of the said act of Congress of July 24th, 1866, and
meanwhile and until the final decree of this court that a temporary
injunction be issued against the defendants, prohibiting and
restraining them and each of them from in any manner interfering
with the use and operation of the telegraph lines of your orator
upon the said roadway and right of way of the defendants pending the
determination of the said action at law, or until the further order
of this court in the premises.
[195 U.S. 540, 582] And for such other
and further relief as the case may require and to your honors may
seem just.'
Kohl v. United States,
91 U.S. 367, 375 , 376 S., 23 L. ed. 449, 452, 453, was an
application filed in pursuance of acts of Congress authorizing and
directing the Secretary of the Treasury to purchase a site for a
public building. A site was selected, but the Secretary and private
owners could not agree as to price, and the acts of Congress did not
direct the particular mode by which the land should be condemned and
the compensation to be made by the government ascertained. The
Secretary of the Treasury, in order to carry out the will of Congress,
did not institute formal proceedings of condemnation, as one of the
acts, under which he proceeded, authorized him to do. But he
instituted a suit in a circuit court of the United States to
appropriate a certain parcel of land for the proposed building. It was
objected that the circuit court was without jurisdiction, but that
objection was overruled. It was contended in argument that, while the
United States had the right of eminent domain, Congress had not given
to the circuit court jurisdiction of a proceeding for the condemnation
of property brought by the United States in the assertion or
enforcement of that right; and that the act of Congress meant that the
land for the proposed public building was to be obtained under the
authority of the state government, in the exercise of its right of
eminent domain. It was further contended that if the proceeding was
properly instituted in the circuit court, then the act of Congress
required that it should conform to the provisions of the state law in
a like proceeding in the state court. This court said: 'Doubtless
Congress might have provided a mode of taking the land and determining
the compensation to be made, which would have been exclusive of all
other modes. They might have prescribed in what tribunal or by what
agents the taking and the ascertainment of the just compensation
should be accomplished. The mode might have been by a commission, or
it might have been referred expressly to the circuit court; but this,
we think, was not necessary. The investment of the
[195 U.S. 540, 583]
Secretary of the Treasury with power to obtain the land by
condemnation, without prescribing the mode of exercising the power,
gave him also the power to obtain it by any means that were competent
to adjudge a condemnation . . . It is quite immaterial that Congress
has not enacted that the compensation shall be ascertained in a
judicial proceeding. That ascertainment is in its nature at least
quasi judicial. Certainly no other mode than a judicial trial has been
provided. . . . But there is no special provision for ascertaining the
just compensation to be made for land taken. That is left to the
ordinary processes of the law; and hence, as the government is a
suitor for the property under a claim of legal right to take it, there
appears to be no reason for holding that the proper circuit court has
not jurisdiction of the suit under the general grant of jurisdiction
made by the act of 1789.'
In United States v. Jones,
109 U.S. 513, 518 , 519 S., 27 L. ed. 1015, 1017, 3 Sup. Ct. Rep.
346, which was a proceeding to condemn property for the use of the
United States, this court, referring to a certain proposition advanced
by counsel, said: 'There is in this position an assumption that the
ascertainment of the amount of compensation to be made is an essential
element of the power of appropriation; but such is not the case. The
power to take private property for public uses, generally termed the
right of eminent domain, belongs to every independent government. It
is an incident of sovereignty, and, as said in Mississippi & R. River
Boom Co. v. Patterson,
98 U.S. 403 , 25 L. ed. 206, requires no constitutional
recognition. The provision found in the 5th Amendment to the Federal
Constitution and in the Constitutions of the several states, for just
compensation for the property taken, is merely a limitation upon the
use of the power. It is no part of the power itself, but a condition
upon which the power may be exercised. . . . But there is no reason
why the compensation to be made may not be ascertained by any
appropriate tribunal capable of estimating the value of the property.
There is nothing in the nature of the matter to be determined which
calls for the establishment of any special tribunal by the
[195 U.S. 540, 584]
appropriating power. The proceeding for theascertainment of
the value of the property and consequent compensation to be made is
merely an inquisition to establish a particular fact as a preliminary
to the actual taking; and it may be prosecuted before the
commissioners, or special boards, or the courts, with or without the
intervention of a jury, as the legislative power may designate. All
that is required is that it shall be conducted in some fair and just
manner, with opportunity to the owners of the property to present
evidence as to its value, and to be heard thereon.'
The vital object of the present suit was to secure the recognition
and enforcement of the right of the telegraph company, under the act
of 1866, to keep and maintain its lines upon the railroad's right of
way. If it had such a right,-the authority to confer the right is, we
repeat, not disputed,-then this suit in equity was an appropriate mode
by which the right could be adequately protected and compensation
secured to the railroad company. To assert the right and to ask that
the amount of compensation shall be ascertained made the proceeding a
suit or controversy within the meaning of the judiciary acts, and made
the case one-in legal effect-for condemnation. I perceive no reason
why the court, in advance of a final decree recognizing and enforcing
that right, could not have instituted, as it was asked to do, an
inquiry in respect of the compensation which the railroad company was
entitled to receive for the proposed use of its right of way, and have
made the payment of such compensation a condition precedent to the
exercise by the telegraph company of the right given by the act of
1866. Having all the parties interested before it, could not the court
have directed a jury to be impaneled to inquire, under the direction
of the court, as to the amount of compensation to be paid to the
railroad company? Could it have done any more under regular
proceedings of condemnation? Instead of adopting that course, the
circuit court proceeded upon the ground that even if the use of the
defendant's road by the telegraph company would not interfere with
ordinary travel on and
[195 U.S. 540, 585] over it, it was compelled by the
former decisions of this court to hold that neither in virtue of the
act of 1866, nor of any other existing Federal statute, could the
telegraph company occupy the railroad's right of way without the
consent of the railroad company.
The cases in this court which, it is supposed, adopted this view of
the act of 1866, are Pensacola Teleg. Co. v. Western U. Teleg. Co.
96 U.S. 1 , 24 L. ed. 708, and Western U. Teleg. Co. v. Ann Arbor
R. Co.
178 U.S. 239, 243 , 44 S. L. ed. 1052, 1054, 20 Sup. Ct. Rep. 867.
But the utmost ingenuity is inadequate to show that the present
question was involved in either of those cases, or that the decision
in either case depended in the slightest degree on its solution.
It appears from the Pensacola Case that the Western Union Telegraph
Company had the right to place and operate its lines upon the right of
way of a certain railroad company between points in Alabama and points
in Florida. There was no controversy in that case between the railroad
company and the telegraph company as to the right of the latter to
have its lines on the railroad right of way. The railroad company, as
the report of the case shows, had consented to the occupancy of its
right of way by the lines of the telegraph company, and that fact was
not disputed. The railroad company was not even a party to the suit.
It had no quarrel with the telegraph company. What need, then, had the
court to consider the rights of the Western Union Telegraph Company,
under the act of 1866, when it was conceded that that company had the
consent of the railroad company to occupy its right of way? This view
of the case was distinctly announced by this court when it said in the
Pensacola Case that 'the present case is satisfied if we find that
Congress has power, by appropriate legislation, to prevent the states
from placing obstructions in the way of its [the telegraph's]
usefulness.' The sole question in the case was as to the validity of a
Florida statute, under which a Florida telegraph company was given
exclusive telegraphic rights over the route to be occupied by the
Western Union Telegraph Company with the consent of the railroad
[195 U.S. 540, 586]
company; and the charter of the Florida company authorized it
to locate and construct its lines within certain named counties of
Florida, 'along and upon any public road or highway, or across any
water, or upon any railroad or private property for which permission
shall first have been obtained from the proprietors thereof.' This
court held that the attempt of the state to exercise exclusive control
over telegraphic communications between it and other states was in
conflict with the commerce clause of the Constitution of the United
States, and that the Florida statute was void so far as it assumed to
grant exclusive privileges to a particular telegraph company.
Referring to the act of 1866 the court said: 'It substantially
declares, in the interest of commerce and the convenient transmission
of intelligence from place to place by the government of the United
States and its citizens, that th erection of telegraph lines shall, so
far as state interference is concerned, be free to all who will submit
to the conditions imposed by Congress, and that corporations organized
under the laws of one state for constructing and operating telegraph
lines shall not be excluded by another from prosecuting their business
within its jurisdiction, if they accept the terms proposed by the
national government for this national privilege. To this extent,
certainly, the statute is a legitimate regulation of commercial
intercourse among the states, and is appropriate legislation to carry
into execution the powers of Congress over the postal service. It
gives no foreign corporations the right to enter upon private property
without the consent of the owner, and erect the necessary structures
for its business; but it does provide that, whenever the consent of
the owner is obtained, no state legislation shall prevent the
occupation of post roads for telegraph purposes by such corporations
as are willing to avail themselves of its privileges.' What was meant
by the words, 'but it [the act] does provide that, whenever the
consent of the owner is obtained,' I cannot understand. The act of
1866 does not contain any such provision, nor anything like it. Not a
single word is to be found in it
[195 U.S. 540, 587] that refers to the
consent of the owner of the property to be taken. The court proceeds:
'It is insisted, however, that the statute extends only to such
military and post roads as are upon the public domain; but this, we
think, is not so. The language is, 'through and over any portion of
the public domain of the United States, over and along any of the
military or post roads of the United States, which have been or may
hereafter be declared such by act of Congress, and over, under, or
across the navigable streams or waters of the United States.' There is
nothing to indicate an intention of limiting the effect of the words
employed, and they are, therefore, to be given their natural and
ordinary signification. Read in this way, the grant evidently extends
to the public domain, the military and post roads, and the navigable
waters of the United States. These are all within the dominion of the
mational government to the extent of the national powers, and are,
therefore, subject to legitimate congressional regulation. No question
arises as to the authority of Congress to provide for the
appropriation of private property to the uses of the telegraph, for no
such attempt has been made. The use of public property alone is
granted. If private property is required, it must, so far as the
present legislation is concerned, be obtained by private arrangement
with its owner. No compulsory proceedings are authorized. State
sovereignty under the Constitution is not interfered with. Only
national privileges are granted.'
This language, it seems to me, has not been correctly interpreted.
Undue stress has been laid upon the words 'private property without
the consent of the owner,' and the words 'private property . . .
obtained by private arrangement with its owner.' They have been so
interpreted as to make the court decide a question not before it, not
necessary to the decision, not involved in the issues made, and never
suggested by counsel. The briefs of counsel in that case show that no
such question was in their minds; for they as well as the court knew,
from the record before them, and as we may know from an examination of
that record, that the Western Union Com-
[195 U.S. 540, 588]
pany was entitled, so far as the consent of the railroad
company was concerned, to maintain its lines on the railroad right of
way. Upon the above-quoted words the contention is based that the
court intended to decide that no railroad right of way could, in
virtue of the act of 1866 be occupied by any telegraph company without
the consent of the railroad company first obtained. I cannot believe
that any such question was intended to be decised. As already shown,
the court expressly said that the only question to be decided was
whether Congress had power to prevent a state from obstructing
interstate telegraphic communications, by granting exclusive
privileges to a particular telegraph company of its own creation. It
is a mistake to say that the court declared that the sole purpose of
the act of 1866 was to prevent state monopolies, or that the act was
merely an exercise of national power to forbid state interference with
telegraphic communications. It did say that the case then before the
court would be satisfied if the question as to state interference was
decided, that is, that the case involved no other question. Besides,
the whole context of the opinion in the Pensacola Case shows that the
court did not include railroad property employed in commerce when it
used the above-quoted words. It was argued in that case that the act
of 1866 had reference only to the 'public domain,' that is, to the
public lands owned by the United States. This view was distinctly
rejected, and post roads were placed by the court, so far as the
privileges granted by the act were concerned, on the same plane as the
public domain, so that not even a state could interfere with the
national privilege granted by Congress, if the telegraph company
accepted the terms of the act. The court said that any telegraphic
company accepting the provisions of the act could put its lines on any
post road, if ordinary travel thereon was not interfered with, and
that not even the state could stand in the way. It then added, as if
out of abundant caution, and to show that Congress had no purpose to
interfere with the rights of private owners, that no attempt was made
by Congress to provide for
[195 U.S. 540, 589] the appropriation of
private property, and that 'the use of public property alone is
granted.' That meant that the act had not granted any right to
telegraph companies to occupy private property with telegraph lines.
Having said that the act granted the use of post roads for telegraphic
purposes, that it embraced the use of such roads equally with the
public domain, and that 'the use of public property alone is granted,'
it is inconceivable that the court employed in the same connection the
words 'private property' as embracing post roads, or the use of such
roads. To relieve the minds of those who apprehended danger arising
from the act of 1866 to state sovereignty and to rights that were
strictly private, the court took care to say that neither state
sovereignty nor private rights were interfered with; that only
national privileges were granted; but that, in respect of the use of
the public domain and military and post roads, Congress had power to
pass the act of 1866, and in dealing with the use of post roads by
telegraph companies it dealt with public property.
When the court held in the Pensacola Case that telegraphic
communications between the states could be regulated by Congress under
its power to regulate commerce, and that the statute of Florida which
assumed to give to a Florida telegraph company an exclusive right in
respect of telegraphic communications over certain territory in that
state was inconsistent with the act of 1866, that was an end of that
case, and nothing remained to be done except to dismiss the suit. The
court itself so declared. Nothing more was in issue between the
parties. The case involved, I confidently insist, no question as to
the previous assent of the railroad company being a condition of the
exercise by the Western Union Telegraph Company of the rights given by
the act of 1866.
Nor is the case of Western Union Teleg. Co. v. Ann Arbor R. Co.
178 U.S. 239, 243 , 244 S., 44 L. ed. 1052, 1054, 20 Sup. Ct. Rep.
867, 869, an authority for the action of the circuit court. That was a
case in which the only relief sought was the specific performance of a
contract under which a telegraph company claimed the right to remain
in the occupancy [195
U.S. 540, 590] of the right of way of a railroad company.
The court pertinently observed in that case that it was not claimed
that 'the telegraph company had any right under the statute, and
independently of the contract, to maintain and operate this telegraph
line over the railroad company's property.' It was, however, claimed
that, as the telegraph company was in the discharge of public duties,
the circuit court 'should have so framed its decree as to preserve the
occupancy of the telegraph company, subject to making compensation to
the railroad company, the value of the alleged easement to be
ascertained by the court.' But that view was rejected because the bill
'was not framed in that aspect' and so as to protect the occupancy of
the telegraph company subject to the condition of its making
compensation; and the court also said that the relief asked could not
be given under the prayer for general relief, because not 'agreeable
to the case made by the bill.'
Now, the present bill has been framed so that the court can protect
the right given to the telegraph company by the act of 1866 to have
its wires and poles on the company's right of way, upon its being
ascertained that such use will not interfere with the ordinary travel
on the railroad, just compensation being made for that use, and the
amount of compensation to be ascertained by the court in some
appropriate way.
In my judgment, nothing involved or in judgment in the Pensacola
and Ann Arbor Cases requires the affirmance of the decree of the
circuit court.
The affirmance of that decree of the circuit court will mean that
the efforts of Congress, by the act of 1866, to obtain for the people
of the country the advantages accruing from competition between
corporations of the different states in the matter of telegraphic
communications, and also to promote and secure the interests of the
government as involved in the conduct of its postal and military
business, will prove of but little value. Indeed, as construed, it
might have been better for the country if the act of 1866 had not been
passed, and the states left free to establish such regulations in
refer- [195 U.S. 540,
591] ence to telegraphic communications, within in and
over its territory, as would be appropriate and valid in the absence
of congressional legislation on the subject. As the matter now stands,
the whole subject is practically committed to the railroad companies.
The court says that the act of 1866 is an efficient enactment for the
purpose of preventing state interference with interstate telegraphic
communications. As now construed, it would seem to be most efficient
in tying the hands of the state, and leaving railroad companies
operating post roads, so far as existing legislation is concerned,
absolute masters of interstate communication by telegraph.
In the Pensacola Case it was decided, and I think rightly, that in
respect at least of interstate telegraphic communications, a state
could not give exclusive privileges to a particular telegraph company.
But, as just stated, by the necessary operation of the judgment now
rendered a railroad company operating a post road can, in effect or
practically, confer exclusive privileges upon a particular telegraph
company, in respect of its right of way, by simply withholding its
consent for a second telegraph company to occupy any part of such
right of way with its wires and poles. If the government should be of
opinion that the public business imperatively required another
telegraph line upon the post road now occupied by the Pennsylvania
Railroad, that company need only object to other telegraph lines being
placed upon its right of way, and that will be the end of the matter,
so far as the act of 1866, as now construed, is concerned. If the
government and a telegraph company fully equipped should jointly
represent to the railroad company that an additional company can be
admitted to its right of way without obstructing the ordinary travel
on that road, the company need only reply that no other telegraph
company than the one now there can occupy its right of way, and that
will be the end of the matter, so far as the act of 1866, as now
construed, is concerned. And all this is now made possible,
notwithstanding the decision of this court in United States v. Union
P. R. Co. [195 U.S. 540,
592] above cited. In that case we propounded this
question: 'Can it be said that after the passage of the act of 1866,
and while it was in force, a railway company operating a post road of
the United States could, by any form of agreement, exclude from its
roadway a telegraph company which had accepted the provisions of that
act?' We said that this question could be answered only in one way,
'namely, that every railroad company operating a post road of the
United States, over which commerce among the states is carried on, was
inhibited, after the act of July 24th, 1866, took effect, from making
any agreement inconsistent with its provisions or that tended to
defeat its operation.' The court added that it was very far from the
intention of Congress by any legislation to so exert its power as to
enable one telegraph corporation, Federal or state, to acquire
exclusive rights over any post road. But now a railroad corporation
operating a post road, and wishing its right of way occupied only by a
single company with which it may have a special business arrangement
for its own purposes, need not make even a secret agreement granting
exclusive privileges to that company. It need only keep silence and
withhold its assent to the occupancy of its right of way by another
company, and in that way give exclusive privileges to the company with
which it has a special arrangement; it may be to one organized wholly
in the interest of the railroad company. In the Pensacola Case it was
said that one of the objects of the act of 1866 was to prevent state
monopolies in telegraphic communication, and that the privilege
granted by that act was a national privilege. Now, although state
monopolies cannot exist, railroad monopolies in telegraphic
communications may exist; and the national privilege granted by the
act of 1866 is left at the mercy of railroad companies operating the
post roads of the United States.
Practically, the railroad corporations operating post roads-looking
to their own interests and perhaps caring little for the general
welfare- are recognized as now having more power
[195 U.S. 540, 593]
than a state. I cannot assent to any interpretation of the
act of 1866 from which such a result can follow. No such result is, in
my opinion, consistent either with the words of the act or with the
objects which Congress, as this court has said, intended to accomplish
by its passage. The act, reasonably interpreted, was, I think,
intended to give a telegraph company accepting its provisions the
absolute right to put its wires and poles upon any post road,-a public
highway established primarily for the public convenience,-if the
ordinary travel on such road was not thereby interfered with.
For these reasons, I am constrained to dissent from the opinion and
judgment of the court.
Brewer, J., concurring:
I concur in the judgments in these cases, but do so distinctly on
the ground that the questions have been settled in prior cases. If the
matter was res integra, the views expressed by Mr. Justice Harlan
would be very persuasive. Pensacola Teleg. Co. v. Western U. Teleg.
Co.
96 U.S. 1 , 24 L. ed. 708, and Western U. Teleg. Co. v. Ann Arbor
R. Co.
178 U.S. 239 , 44 L. ed. 1052, 20 Sup. Ct. Rep. 867, seem to me
controlling. In the first of these cases the scope of the power and
authority granted by the act of 1866 was distinctly presented. It was
within the proper limits of inquiry, and the opinion of the court
shows that it was fully considered. The declarations in that opinion
are clear and precise, and cannot be considered in any just sense
obiter dicta. The decision was announced in 1877, and was reaffirmed
in 1890 in the Ann Arbor case. If the court erred in its construction
of the act, Congress has had twenty-seven years in which to correct
the mistake. Its omission to take any action must be considered as an
acquiescence on its part in that construction. And I am of the opinion
that when this court has construed a statute of Congress, and that
construction has remained for more than a
[195 U.S. 540, 594]
quarter of a century, neither ther changed by any judicial
decisions nor set aside by any congressional legislation, it ought not
to be disturbed except for the most cogent reasons.
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