Atkins v. Shreveport & Red River Valley Railway Co.

Citations

• 106 La. 568

Syllabus

<p>Syllabus.</p> <p>Í. A clause In a contract evidencing the grant of aid to a railway company, which is to construct a line of road on the east side of Red River, that the company shall operate tow boats with convenient barges at points on the river so as to furnish transportation to freight and produce, and to operate the boats as low down stream as the lower boundary line of the parish granting the aid, is held to mean that the railway company should run a boat or boats, towing barges when necessary in seasons of law water, up and down the river front of the parish, making frequent connection with the railroad at the points in the parish where the railroad touched the river, to the end of giving the people of the .parish living on the river, especially those on the west bank, direct, easy and continuous connection with the railroad.</p> <p>2. It was altogether competent and legal for the railroad company to stipulate to do this. There is nothing of ultra vires character about it.</p> <p>3. Besides, if the stipulation was not intra vires, it does not lie in the mouth of the railway company, which received the aid, to set the same up as defense.</p> <p>4. Such a stipulation is a consideration of the grant; it is more — it is a material consideration; and the railway company fails to earn the tav whenever it fails to meet the condition.</p> <p>5. The obligation of the railway company in this regard is not fulfilled by a contract with a boat already in the river making fortnightly trips from New Orleans to Shreveport, to receive and transport such freight and produce as may be offered for shipment.</p> <p>6. Since the railway company could earn the tax only by running boats agreeably to the intent of the contract, a putting m mora was not required.</p>