Van Steuben v. Central R. R.

Citations

• 178 Pa. 367
• 35 A. 992
• 1896 Pa. LEXIS 1179

Syllabus

<p>Railroads — Corporations—Lease— Grant of power.</p> <p>One railroad company cannot loase to another its franchise of operating a railroad, built or authorized to be built, unless it can show a grant of power from the sovereign in express terms, or by necessary implication.</p> <p>Corporations — Foreign corporations — Conflict of laws — Comity.</p> <p>■ A. corporation being the mere creature of local law can have no legal existence beyond the limits of the sovereignty where created. The recognition of its existence, even by other states, and the enforcement of its contracts made therein depend purely upon the comity of these states, a comity which is never extended where the existence of the corporation or the exercise of its powei's is prejudicial to their interest or repugnant to their policy.</p> <p>Public policy — How deduced.</p> <p>The public policy of a state is to be deduced from the general course of legislation, and the settled adjudications of its highest courts.</p> <p>Railroads — Leases—Public policy — Connecting roads — Acts of April 23, 1861, P. L. 110, and February 17, 1870, P. L. 31.</p> <p>The statutes of Pennsylvania conferring leasing powers on railroads are limited to railroad companies created by or existing under the laws of Pennsylvania, giving them leasing rights with foreign or domestic railroads, provided that they shall be connected with each other directly, or by intervening railroads.</p> <p>A railroad lease made without clear and specific authority is against public policy and utterly void, and the liability of the lessor is entirely unaffected by the void lease.</p> <p>A railroad company, which was a corporation of the state of New Jersey, leased a railroad belonging to a corporation of the state of Pennsylvania. Subsequently the lessee executed a lease of its own roads and its leased roads to another New Jersey railroad company whose line was not shown to be in any way connected with the railroad of the Pennsylvania corporation. He