Georgia v. Trustees of the Cincinnati Southern Railway

Background

The State of Georgia sued to stop the Cincinnati Southern Railway’s trustees and successors from occupying part of the Western and Atlantic Railroad’s right-of-way that the State owned. In 1879 Georgia passed a statute granting “the use” of a portion of the State railroad between Boyce’s Station and Chattanooga to the trustees of the Cincinnati Southern Railway, describing track spacing and grade and noting lessee consent only about lease term. In 1916 Georgia attempted to repeal the earlier act and treat the grant as a revocable license, prompting this suit.

Reasoning

The Court read the plain words of the 1879 law and concluded that granting “the use of that portion of the right-of-way” conveyed a right-of-way in the ordinary sense. A grant to a corporation or to perpetual trustees holding for corporate uses need not include extra words like “in fee” or “and its successors” to be permanent. The Court also rejected the argument that the grant was an unconstitutional gratuity, finding the conveyance served a public purpose and gave mutual benefits that supported permanence. Because the language and purpose pointed to a lasting conveyance, the State could not undo the grant.

Real world impact

The Court dismissed Georgia’s suit and left the 1879 grant intact. That protects the railway and any long-term investments made to build and maintain tracks on the granted land. The decision limits a State’s ability to reclaim state-owned railroad land when the statute’s words and public purpose indicate a permanent grant.