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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:
... * *
The agreement contains the following provision:
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:
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:
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.
In Pensacola Teleg. Co. v. Western U. Teleg. Co.
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:
This language and the distinctions imported by it were approved in Western U. Teleg. Co. v. Ann Arbor R. Co.
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.
So also must be limited the language in Western U. Teleg. Co. v. Texas,
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.
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,
In Kohl v. United States,
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.
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,
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.
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.
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,
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.'
Kohl v. United States,
In United States v. Jones,
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.
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.
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.
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Citation: 195 U.S. 540
No. 199
Decided: December 12, 1904
Court: United States Supreme Court
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