James Clark McReynolds

“ It would be against common experience to conclude that rational men wittingly invested large sums of money in building a railroad subject to destruction at any moment by mere resolution of county commissioners. ”

“ The Supreme Court of Ohio may have been influenced in its decision of this case by the fact that from the time when the development of the state became such as to make of public importance the terms of grants of street railway rights in the streets and public roads of that state, the General Assembly of the state limited to twenty-five years the term for which such rights might be granted, either by county commissioners or by municipal corporations. It is difficult for a man living in such a legal atmosphere with respect to such grants to think in terms of perpetual franchises. ”

“ It is suggested that in 1892 Ohio statutes only empowered county commissioners to grant franchises not exceeding twenty-five years in duration, and the present one accordingly expired in February, 1917. But by its final judgment (1915) the Supreme Court recognized a valid franchise existing in 1913 and declared it ended by the resolution of that year without discussing the subject of limitation. ”

“ Perpetual franchises have proved to be such a burden in communities upon which they have been imposed (Wilcox, vol. 2, c. 26) that, for the reasons so well stated in Blair v. Chicago, supra, it is impossible for me to agree that any grant is perpetual unless the language used i it is so express and clear that reasonable men cannot differ in giving to it that effect.
Thus for the reasons (1) that a perpetual grant is not 'in plain terms' made by the resolution of 1892; (2) that appropriate consideration seems to me not to be given to the decision of the Supreme Court of Ohio ”

“ The Northern Ohio Traction & Light Company through successive assignments from William A. Lynch acquired the interurban electric railroad between Canton and Massillon, Ohio, October, 1906; the Cleveland Trust Company is trustee under a mortgage on the road intended to secure an issue of bonds. ”

“ This form of franchise has been called 'a tenure during good behavior,' it has resulted in superior service to the public and, to the surprise of those who reason a priori on the subject, such franchises have proved in effect perpetual. ”

“ Where there are no controlling provisions in state Constitution or statutes and no prior adjudication by its courts to the contrary, we have distinctly held that franchises like the one under consideration are contracts not subject to annulment as here undertaken. ”