Washington Market Company v. District of Columbia (172 U.S. 361)
The Washington Market Company was incorporated by act of congress approved May 20, 1870 (16 Stat. 124). Authority was conferred upon the company to construct suitable buildings and operate a public market on the site of the 'Center Market Space,' situated in the northwest section of the city of Washington, between Seventh and Ninth streets and B street and Pennsylvania and Louisiana avenues. With the exception of the sixteenth section, the provisions of the statute related solely to the public market thus authorized, and the operation and duration of the franchise.

The sixteenth section is as follows:

'Sec. 16. And be it further enacted, that the city government of Washington shall have the right to hold and use, under such rules and regulations as the said corporation may prescribe, the open space at the intersection of Ohio and Louisiana avenues with Tenth and Twelfth streets as a market for the purchase and sale of the following articles, to wit, hay, straw, oats, corn, corn meal, seed of all kinds, wood for sale from the wagon, cattle on the hoof, swine on the hoof, country produce sold in quantities from the wagon, and such other bulky and coarse articles as the said corporation may designate. And from and after sixty days from the passage of this act marketing of the products named herein shall be excluded from Pennsylvania and Louisiana avenues and the sidewalks and pavements thereon.'

The present litigation was begun on January 17, 1892, by the filing on behalf of the Washington Market Company of a bill in the supreme court of the District; the defendant named therein being the District of Columbia. The bill averred that the complainant was vested by the section above quoted with authority to establish the rules and regulations therein referred to for the government of the wholesale market authorized to be established, It was also averred that, under authority of what was claimed to be a contract arising from correspondence had with the District, complainant in 1871 entered into possession of a part of the open market space referred to in said section 16, and in 1886 of the entire space. The correspondence relied on is set out in the margin.  It was alleged that the complainant graded the grounds, and made valuable structures thereon; that it had operated, and was still operating, a wholesale market thereon; and that it had received and was receiving the sources of revenue mentioned in the alleged contract, except as to certain charges which it was averred defendant had wrongfully abolished.

It was charged that not only by the abolition of tolls referred to, but by other acts of interference by the District, and also by recent public assertions of an exclusive right to possess and regulate said market, the receipts from the operation of the same had been greatly diminished, so that the expenses of maintaining the market had been largley in excess of the sum received from its operation. It was prayed that an account might be taken, and the District decreed to pay the losses occasioned by it; that the District might also be restrained from prescribing or attempting to prescribe rules and regulations for said market, from interfering with the sources of revenue mentiond in the contract, and from forcibly ousting, or resorting to legal proceedings to obtain possession of the premises. General relief was also prayed.

The answer of the District asserted the invalidity of the alleged contract; averred that the District alone was entitled to occupy said market space, and to establis  rules and regulations respecting the conduct of the market; and further averred the legality of any action taken by or on its behalf respecting said market space, and the tolls imposed in the operation of the market.

The court entered a decree dismissing the bill, and on appeal its action was affirmed by the court of appeals of the District. 6 App. D. C. 34. An appeal was then taken to this court.

William Birney, for appellant.

S. T. Thomas, for appellee.

Mr. Justice WHITE, after making the foregoing statement, delivered the opinion of the court. 

Notes

November 8, 1871.

Hon. Henry D. Cooke, Governor of the District of Columbia:

Sir: In section 16 of the charter of this company of May 20, 1870, the open space at the intersection of Ohio and Louisiana avenues with Tenth and Twelfth streets is assigned as a market for cattle, and bulky and coarse articles to be sold in quantities from the wagon, and the marketing of such products in Pennsylvania and Louisiana avenues is prohibited.

Notwithstanding this prohibition, dealers are continuing to occupy Louisiana avenue, in defiance of law, and to the great injury of property holders on that avenue. This company has been unable to enforce the prohibition, because the open space above referred to has not been properly prepared to enable dealers to occupy the grounds for market purposes as provided in the law.

By the act of congress the Washington Market Company is entitled to establish the rules and regulations which shall govern the market upon the open space, but it is a question whether or not it was the intention of congress that this company should delive any income therefrom.

Under these circumstances, to meet a pressing public necessity, this company proposes, with your permission, properly to grade the grounds, and to place thereon suitable platforms, of inexpensive construction, which will enable the marketmen to do business on the open space as contemplated by the act, charging them for the use of their stands such sums as you and the District authorities may prescribe, not to exceed the interest on the actual outlay, and the actual expenditures for keeping the market in order.

There can be no possible objection to this course of action, and we trust you will give it your approval at once, as there is a necessity for immediate action.

We have the honor to be, very respectfully,

T. C. Connelly,

Hallett Kilbourn,

Adolf Cluss,

Wm. E. Chandler,

Committee of the Washington Market Company.

Approved, subject to such regulations as the legislative assembly may hereafter prescribe.

H. D. Cooke, Governor.

Washington Market Company.

April 8, 1872.

To the Governor and Board of Public Works of the District of Columbia:

The Washington Market Company is now in possession of the open space at the intersection of Ohio and Louisiana avenues with Tenth and Twelfth streets, in accordance with the Sixteenth section of the act of congress of May 20, 1870, and the arrangement made with the governor of the District, as per agreement of November 8, 1871, as follows:

[Here follows a copy of the letter and approval printed above.]

Since taking possession of the open space thus assigned for a wholesale market, the company have purchased from the District authorities the buildings thereon belonging to the city of Washington, have suitably graded the surface, and have also commenced the erection of structures thereon necessary for wholesale market purposes, having already completed an open market or platform shed on the north side of B street over 200 feet long, also an open platform shed 200 feet long on the north side of the grounds, with eatinghouse and storehouses, and have in addition made arrangements to erect a large, open building for loads of hay, grain, and wood, and suitable stables, pens, and cattle yards, as soon as the concrete paving company, now occupying the western portion of said ground, shall vacate the same; all to be done to the satisfaction of the District authorities, and in such manner as to furnish creditable accommodations for a wholesale market.

In order to more effectually carry out the foregoing arrangement, entered into November 8, 1871, the company now propose to the governor and to the board of public works, which by law has control of the streets and avenues of the District, that the said company shall be allowed to collect of dealers in said wholesale market the following sums:

Amount

per Day.

Each one-horse tea..  $0.10

Each two-horse team....  15

Each three-horse team..  20

Each four-horse team...  25

Each head of neat cattle.  20

Each cow and calf......  25

Each swine.............  05

Each sheep.............  05

The market company also to charge such reasonable rent for storage as may be agreed upon with the parties using their buildings.

The company will also keep an office open at all hours of the day and night for the accommodation of dealers, where produce can be measured and weighed, and will furnish suitable watchmen to take charge of the market and collect the revenues thereof.

From the revenues collected the market company will retain sufficient to pay all expenses of managing and keeping in repair and good condition the buildings and grounds, with ten per cent. annually on the cost of improvements, which are to be made at the company's charge; and the company shall pay over to the District authorities the residue or balance of the revenue by them collected.

If, by authority of congress, the company should at any time be dispossessed of the use and occupancy of the market grounds, it shall be entitled to receive a fair compensation for its buildings and improvements thereon.

Washington Market Company,

By M. G. Emery, President.

Board of Public Works, District of Columbia.

Washington, April 26, 1874.

The Washington Market Company:

In reply to your communication of April 8, 1872, I have to inform you that the board have this day passed the following vote: 'To approve the arrangement with the Washington Market Company, proposed in the company's letter of April 8, 1872, relative to the open space at the intersection of Ohio and louisiana avenues and Tenth and Twelfth streets, used as a wholesale market; this arrangement not to prejudice any lawfal future action of the board of the legislative assembly, or of congress.

Very respectfully,

Alex. R. Shepherd, Vice President.
Uncategorized United States Supreme Court decision