Edinburgh Street Tramways Co. v. Magistrates and Council of Edinburgh

Subject_1 Tramway Subject_2 Sale to Local Authority Subject_3 Profits Subject_4 Rental Value — Tramways Act 1870 (33 and 34 Vict. cap. 78), sec. 43. Facts: By the 43rd section of the Tramways Act 1870 it is provided that where the promoters of a tramway in a district are not the local authority, the local authority may, after the expiry of twenty-one years from the time when such promoters were empowered to construct such tramway, require the promoters to sell to them their undertaking, or so much of the same as is within such district, “upon terms of Page: 599 ↓

The Edinburgh Street Tramways Company were incorporated by the Edinburgh Tramways Act 1871 (34 and 35 Vict. cap. 89), and further statutory rights were conferred upon them by subsequent special Acts. The Tramways Act 1870 was incorporated with the company's special Acts.

In exercise of the powers conferred upon them the company constructed a system of tramways in Edinburgh and the vicinity, and carried on the business for which they had been incorporated.

The pursuers pleaded, inter alia —“(3) The referee is not prevented by the Tramways Act 1870 from considering, taking into account, and valuing the tramway lines of the pursuers falling under the statutory sale according to their rental valuation; and in refusing such valuation as being excluded by the statute, he has acted in error and ultra vires , and has failed in his duty to proceed with and exhaust the reference, and to issue a complete and final award and determination.”

The defenders pleaded, inter alia —“(3) The referee having valued the tramway lines in accordance with the provisions of the Tramways Act 1870, the defenders should be assoilzied. (4) On a true construction of the Tramways Act 1870, and especially of section 43 thereof, the defenders are not liable to pay for the rental value of the lines, and decree of absolvitor should therefore be pronounced.”