This suit was brought by appellant against the city of South Bend and certain of its officers, to enjoin them from interfering with appellant in its attempt today a second
The errors assigned are the sustaining of each and all of the demurrers to the amended complaint.
After the preliminary allegations of the complaint, it appears from the first paragraph thereof that on or about October 24, 1866, the city of South Bend, by William G. George, mayor, and fourteen individuals, executed articles of association, to incorporate, for the purpose of building, owning and operating, a railroad to be known as the “Peninsular Railroad Company of Indiana,” running from the north line of the State of Indiana through South Bend, and thence in the direction of Chicago, and to be about eighty-five miles long; that the articles of association were filed on December 10, 1866; that on March 2, 1868, the common council of the city of South Bend enacted an ordinance, No. 62, whereby authority was given, granted and duly vested in the Peninsular Railroad Company of Indiana to construct and maintain a track for its said railroad within the city of South Bend upon the following terms, to wit: ‘ ‘ Commencing at the eastern limits of said city, at the east end of a twenty-foot street laid out and dedicated on the south side of Samuel Gottrell’s addition to the town of Lowell, or at a point on said twenty-foot street that the company might see proper to adopt, thence across the St. Joseph river to the eastern end of the extension of Division street, and its extension in said city so far as said company might desire, crossing all intermediate streets and alleys, and to run locomotive cars and trains over said road so far as might be necessary for
The second paragraph of complaint is the same as the first, so far as any question involved in this appeal is concerned. The only material difference is as to the manner of acquisition by appellant, of the rights, franchises and property of the original company, and no question is raised by appellees as to that matter. There is the additional allegation in the second paragraph that appellant, supposing its title in all respects perfect, kept up and maintained its line through Division street, and expended on the whole line of railroad $1,000,000.
The questions which need to be here decided are: (1) Did appellant as successor to the rights and privileges of the original Peninsular Railroad Company of Indiana acquire, by virtue of the grant contained in ordinance No. 62 of the common council of the city of South Bend, the right to lay an additional track on Division street between Michigan and General Taylor streets'? and (2) if it obtained that right under
1. The legislature, primarily, has control over streets, as well as other public highways. They are the arteries of the State. State, ex rel., v. Board, etc. (1908), 170 Ind. 595; Cones v. Board, etc. (1894), 137 Ind. 404. And this governmental power of control cannot be surrendered or contracted away. It is a part of the police power which cannot be alienated or placed beyond municipal control. Northern Pac. R. Co. v. State, ex rel. (1908), 208 U. S. 583, 28 Sup. Ct. 341, 52 L. Ed. 630, and cases cited; State v. Barrett (1909), 172 Ind. 169; Indiana Oil Co. v. Calvert (1907), 168 Ind. 321, 10 L. R. A. (N. S.) 780; Vandalia R. Co. v. State, ex rel. (1906), 166 Ind. 219, 117 Am. St. 370; Cleveland, etc., R. Co. v. Harrington (1892), 131 Ind. 426; Stone v. Mississippi (1879), 101 U. S. 814, 25 L. Ed. 1079; Boston Beer Co. v. Massachusetts (1877), 97 U. S. 25, 24 L. Ed. 989; Northwestern Fertilizing Co. v. Hyde Park (1878), 97 U. S. 659, 24 L. Ed. 1036; Board, etc., v. Phillips (1903), 67 Kan. 549, 73 Pa. 97, 100 Am. St. 475; 3 Elliott, Railroads (2d ed.) §1082; Elliott, Roads and Sts. (2d. ed.) §§741, 742, 758.
2. But the legislature may delegate to a city or town the power of control over its streets. State, ex rel., v. Board, etc., supra; Town of New Castle v. Lake Erie etc., R. Co. (1900), 155 Ind. 18; Burkam v. Ohio, etc., R. Co. (1890), 122 Ind. 344.
4. It is not an open question in this State that to cities is delegated the power of permitting the laying of railroads in their streets; but such power is the grant of the State. Town of New Castle v. Lake Erie, etc., R. Co. supra; Burkam v. Ohio, etc., R. Co., supra; Kistner v. City of Indianapolis (1885), 100 Ind. 210; Tate v. Ohio, etc., R. Co. (1856), 7 Ind. 479; Haslett v. New Albany, etc., R. Co. (1893), 7 Ind. App. 603; City R. Co. v. Citizens St. R. Co. (1897), 166 U. S. 557, 17 Sup. Ct. 653, 41 L. Ed. 1114.
5. The question of the character and the measure of the grant is a different one. “In so far, however, as such control consists in regulation merely, and is demanded by considerations of public health or safety, it is now well understood, that a grant does not involve such surrender, since it is impliedly subject to such reasonable safety regulations as may be imposed from time to time. The grant may surrender to some extent the previous liberty of common use of the public property, but it does so only for the purpose of substituting other, and presumably more valuable public facilities.” Freund, Police Power §575. It is justifiable, if at all, upon the theory that a railroad is in some sense a public highway — a means of rapid travel. Toledo, etc., R. Co. v. Pence (1873), 68 Ill. 524; Clark v. Chicago, etc., R. Co. (1895), 127 Mo. 197, 29 S. W. 1013; Sharpless v. Mayor, etc. (1853), 21 Pa. St. 147, 59 Am. Dec. 759; Davidson v. County Commissioners, etc. (1872), 18 Minn.
6. It is settled in many jurisdictions, and is accepted in this State, that an ordinance imposing terms and conditions for the use of streets, when accepted, becomes a binding contract, but- not to the extent that the police powers are surrendered. The distinction in the cases will be found to lie in the subject-matter; that is, such contracts are inviolable as applied to the business concerns of cities, but are subject to regulation when the public interest intervenes. As marking this distinction on the one hand are the cases of City of Indianapolis v. Consumers Gas Trust Co. (1895), 140 Ind. 107, 27 L. R. A. 514, 49 Am. St. 183, Meyer v. Town of Boonville (1904), 162 Ind. 165, and City of Indianapolis v. Indianapolis, etc., Coke Co. (1879), 66 Ind. 396; and on the other hand are the cases of Western Paving, etc., Co. v. Citizens St. R. Co. (1891), 128 Ind. 525, 10 L. R. A. 770, 25 Am. St. 462, Muncie Nat. Gas Co. v. City of Muncie (1903), 160 Ind. 97, 60 L. R. A. 822, City of Rushville v. Rushville Nat. Gas Co. (1905), 164 Ind. 162, and City of Noblesville v. Noblesville Gas, etc., Co. (1901), 157 Ind. 162. The question is as to the nature of the contract, the character of the legislation, the implied conditions, and the public policy which necessarily enters into it.
8. “All parties dealing with a sovereign power, or one of its functionaries in the exercise of governmental power, the subject of^which pertains to government, do so lmowing that it can not contract away the power conferred for self-protection or self-preservation. The rule, therefore, that the legislature can pass no law impairing the obligation of contracts does not apply to parties dealing with a department of government concerning the future exercise of powers conferred for public purposes by legislative acts, where the subject-matter of the contract is one which affects the safety and. welfare of the public.” Board, etc., v. Phillips (1903), 67 Kan. 549, 73 Pac. 97, 100 Am. St. 475. See, also, Northern Pac. R. Co. v. State, ex rel., supra; Jackson County Horse R. Co. v. Interstate, etc., R. Co. (1885), 24 Fed. 306; Cincinnati, etc., R. Co. v. City of Connersville (1908), 170 Ind. 316; Mayor, etc., v. Second Ave. R. Co. (1865), 32 N. Y. 261; New York, etc., R. Co. v. Bristol (1894), 151 U. S. 556, 14 Sup. Ct. 437, 38 L. Ed. 269.
9. That such contracts are not strictly private contracts is pointed out in the case of People, ex rel., v. Suburban R. Co. (1899), 178 Ill. 594, 53 N. E. 349, 49 L. R. A. 650. “The rights of municipal corporations to property in lands and its usual incidents, and to create and establish ferries and railroad franchises, are quite distinct and separate from the duty as legislatures, having authority to pass ordinances for the control and government of persons and interests within the city limits. The latter are powers held in trust, as all legislative powers are, to be used and
10. Corporations which receive franchises from the state, or from municipalities duly authorized to grant them, take the granted privilege subject to the power of the state to require them to at all times do whatever may be necessary for the health, safety, and welfare of the community. No grant can devest the sovereignty of the authority to enact measures for this purpose. City of Chicago v. Chicago, etc., Traction Co. (1902), 199 Ill. 259, 65 N. E. 243, 59 L. R. A. 666; 3 Elliott, Railroads (2d ed.) §1096ae; Town of Westbrook’s Appeal (1889), 57 Conn. 95, 17 Atl. 368.
6.
In the case of Snouffer v. Cedar Rapids, etc., City R. Co. (1902), 118 Iowa 287, 92 N. W. 79, the ordinance authorizing the laying of a track in a street had been in force six years, and had been availed of as to other streets, but no track had been laid on the particular street, when the ordinance was repealed, and it was held that while the right of control cannot be exercised arbitrarily or unreasonably, the council could not pass an irrevocable ordinance, for the reason that it is the trustee for the public, and cannot abridge its legislative powers. The case is an instructive one, and strongly in point here. In the ease at bar, the ordinance had been in force over thirty-eight years, without any avail being made of it, or any money expended with a view to double-tracking, so far as any allegation of the complaint discloses.
The learned counsel for appellant direct our attention to the cases of Africa v. Board, etc. (1895), 70 Fed. 729, and People’s Passenger R. Co. v. Baldwin (1880), 14 Phila. 231. We add the case of Hestonville, etc., Co. v. City of
3. The causes seem, however, to have been disposed of from the purely contractual viewpoint, as the police power seems not to have been invoked, referred to nor considered. Our cases hold that cities cannot by contract surrender any of their legislative or discretionary powers confided to them for the public good, or held in trust for the public, and the great weight of authority is to the same effect. City of New Albany v. New Albany St. R. Co. (1909), 172 Ind. 487; Indiana R. Co. v. Calvert (1907), 168 Ind. 321, 10 L. R. A. (N. S.) 780; Vandalia R. Co. v. State, ex rel. (1906), 166 Ind. 219, 117 Am. St. 370; Schipper v. City of Aurora (1889), 121 Ind. 154, 6 L. R. A. 318; City of Peru v. Gleason (1883), 91 Ind. 566; Northern Pac. R. Co. v. State, ex rel., supra; Union Bridge Co. v. United States, supra; Chicago, etc., R. Co. v. People, ex rel., supra; New Orleans Gas Light Co. v. Drainage Commission, etc., supra; Mayor, etc., v. Baltimore Trust. etc., Co., supra; New York, etc., R. Co. v. Bristol (1894). 151 U. S. 556, 14 Sup. Ct. 437, 38 L. Ed. 269; Lake Roland, etc., R. Co. v. Mayor, etc., supra; Town of Clarendon v. Rutland R. Co. (1902), 75 Vt. 6, 52 Atl. 1057; Thorpe v. Rutland, etc., R. Co. (1854), 27 Vt. 140, 62 Am. Dec. 625; Binninger v. City of New York (1904), 177 N. Y. 199, 69 N. E. 390; Columbus, etc., Coke Co. v. Columbus (1893), 50 Ohio St. 65, 33 N. E. 292.
9. The apparent conflict between the eases touching the character and force of city ordinances with respect to their being licenses or easements, or, when acted upon, becoming contracts, and inviolable, has grown out of the failure in all cases to distinguish between the legisla
12. Such contracts are necessarily legislative in the sense that the power primarily inheres in the legislature, for the legislature has the authority to grant railroads the right to lay tracks in streets without the consent or over the objection of municipalities, if it sees fit. Cook v. Chicago, etc., R. Co. (1898), 83 Iowa 278, 49 N. W. 92; Ingram, Kennedy & Day v. Chicago, etc., R. Co. (1874), 38 Iowa 669; Chicago, etc., R. Co. v. Mayor, etc. (1873), 36 Iowa 299; City of Clinton v. Cedar Rapids, etc., R. Co. (1868), 24 Iowa 455; Borough of Millvale v. Evergreen R. Co. (1890), 131 Pa. St. 1, 18 Atl. 993; 3 Elliott, Railroads (2d ed.) §1076.
9. So far then as the ordinance is legislative, it is so in conferring the power, and with respect to legislative matters, but the distinction must be kept in mind between the power thus conferred, and the purely administrative, proprietary or business powers. This distinction is referred to in the case of City of Indianapolis v. Indianapolis, etc., Coke Co. (1879), 66 Ind. 396, where this court said on page 403: “This power to legislate within the authority delegated to them [municipal corporations] by law, is distinct from the power to contract, although exercised by the same corporation. They cannot, by contract, delegate, or restrict their legislative power, nor can they, merely by their legislative power, make a contract. These two powers need not be confounded. The exercise of the legislative power requires the consent of no person except those who legislate; while it is impossible to make a contract without the consent of another, or others.” As
Appellant urges that the cases of Lake Roland, etc., R. Co. v. Mayor, etc., supra, and Mayor, etc., v. Baltimore Trust, etc., Co., supra, are not in point, because as said, “the state court found and held that the power of the city council to amend or modify its ordinance was expressly retained in the statute of the state authorizing the passage of such ordinance.” We do not understand the court so to hold or declare, except in so far as the power to legislate in the future is an inalienable and continuing power, to be exercised when the necessity may arise, and that this is a reserve power in the legislature and in the city council. Cases involving the effect upon the abutting property, and individual rights, of third persons are cited and relied upon, but they have no relevancy here, w’here the question is solely one of public interest, and of power in the city council as trustee for the public.
15. 16. We cannot judicially know the width of the sidewalks or of the roadway proper. We cannot judicially know how much space is required for operating one track, but we do know that it requires more than double space for two tracks. The allegation therefore that the obstruction will be less with two tracks than one, is not only a solecism, but the allegation, if not a conclusion, is the allegation of a thing which necessarily could not be, and hence is without force and cannot be regarded. Jamieson v. Indiana, etc., Oil Co. (1891), 128 Ind. 555, 574, 12 L. R. A. 652; Jones v. United States (1890), 137 U. S. 202, 11 Sup. Ct. 80, 34 L. Ed. 691. There are eases in which the question of the degree of obstruction has been the basis of the court’s action. Of this class is the case of Nagel v. Lindell R. Co. (1902), 167 Mo. 89, 66 S. W. 1090, where the question arose between abutting owners and the railway company. These cases are contrary to the general doctrine that there is no power in municipalities so to restrict or obstruct the use of streets as to render such streets ineffective for the purposes of
17. We are left without any guide on the question of the degree of the obstruction; but, aside from that, the question is one for the city to determine, and we can only interfere where the action is arbitrary, unreasonable, capricious or whimsical, and we find nothing of this kind in the case. City of St. Paul v. Chicago, etc., R. Co. (1895), 63 Minn. 330, 63 N. W. 267, 65 N. W. 649, 68 N. W. 458, 34 L. R. A. 184; Vandalia R. Co. v. State, ex rel. (1906), 166 Ind. 219, 117 Am. St. 370; Indiana Oil Co. v. Calvert (1907), 168 Ind. 321, 10 L. R. A. (N. S.) 780, and cases cited. Nor is the fact without force, that no use was made of this claim of grant for more than thirty-three years, or until after the city had passed the repealing ordinance. It is argued that the grant was a continuing one, to be exercised when the necessities of appellant’s business required a second track; but it may equally as well be argued that the requirement of the public in the interest of safety and accommodation in the use of the street for its primary purposes demands a restricted use by appellant, as to which the legislative authority of the city is also a reserve and continuing power, and one in the exercise of which, in the absence of fraud, or unreasonable and arbitrary action, the city council is the sole judge. Indiana Oil Co. v. Calvert, supra; Gascho v. Sohl (1900), 155 Ind. 417.
11. The case of Vandalia R. Co. v. State, ex rel., supra, and cases there and herein cited, make the distinction which obtains here, viz: That ordinance No. 62, though quasi contractual in the one characteristic of mutual assent in its enactment, was not enacted in carrying on the business concerns, the economic policy or the ad
The judgment is affirmed.