Wood County reporter. [volume] (Grand Rapids [i.e. Wisconsin Rapids], Wis.) 1857-1923, 1874-07-16

ne United States Circuit Court, COM
prlslng Judges Davis, Drummond and
Hopkins, on the 18th inst, At Madison,
WIS, rendered decision adverse to the
aPpilcatIon of the bondhOlders of the
cnlcago X Northwestern Railroad for an
I'M Gnction restraining the AttOrney-Gen-
eraI and Railroad Commissioners from en-
forcing the law regulating railrOadS passed
by the last Legislature. Judge Drum
mona Salu there had not been time pre-
pare an opinion in the case, but he pre-
sented the following as the conclusions
OF the court upon the points made IN the
ho'loh Ior preliminary injunction:
/ On the assumption that the act of the 18th of
March ia relating railroad. express and tele
ColD PaleS III the State of Wisconsin, Is IN
valid, We think the court has jurisdiction of the
case. Inc Dill as filed by the bOndholders. citi-
Zehs OF Europe and of other States. seeks TO en-
l4rcG e?uIta0e rights and to prevent action by
the railroad Commissioners which NAV result. as
aIeSeu, III serious injury these rights. 1t was
Hot necessary TO wait until the Commissioners had
pIl lHe law mo full operation, and its effects
upon Inc railway companies had become COM
ple!e' before the application against them was
made to a court of equity, as a very important
| function OF that court is to prevent threatened
wrong TO the rights of property
- e are OF opinion that the act of the 11th of
Mat mentioned above. was not repealed by the
act OF the 18th OF March, 1874 the second section
OF Wnlcn declared THAI all existing corporations
Wlthlh the state shall have and possess all the
powers ana privileges contained in their respect
I've charters. and the act of the 18th Of March.
! 4St4 me ninth section of which imposes pen
| ANY LOT eGorDltant charges. There are apparent
| lhconSlstencIes between the last twO-named acts
| ana mat OF the 18th of March: but it becomes Il
/ question OF lntendment on the part of the Legis-
! azure; On the same day joint resolution was
p%ssed-March 12-dlrecting the Secretary OF
! State not to publish the act of 18th March unul
! Ihe 5oth OF April Acts of 1874, pages 500, 693
'oo 8: IN TINS State no general law Is enforced
I I.afT AF, W. IL
sluer the JOINT resolution in order TO determine
| whether the Legislature intended that tn, two
acts passed the same day should repeal the act OF
! tne llth OF March, and from that it Is manifest
that such was not the intention of the Legisla-
| ture.
}. The charter of railroad corporations. under
! the Constitution Of Wisconsin, may be altered OF
repealed by the Legislature at any time after their
passage. In legal effect, therefore, there in
| c0rporated IN all the numerous grants under
1 Whlch the Northwestern Railway Company now
claims its right of franchise and property in this
State, the foregoing condition contained in the
! constitutions 1t became a part. by operation OF
| law. OF every contract or mortgage made by the
! company or by any gifts numerous predecessors,
under which 1t claims All share and bond hold
erS took their stock their securities subject to
| this paramount condition. and of what they in
/ law had notice. II the corporation. by making a
! contract or deed of trust on its property. could
clOthe Its creditors with an absolute, unchanged
bic right 1t would enable the corporation. by its
own act. TO abrogate of the provisions Of the
! fundamental law Of the State
| 4. This principle is not changed by any author
ity from the Legislature of the State to corpora
| lon to consolidate with corporation OF another
State. The corporation of this State is still sub
ject to the Constitution Of Wisconsin. and there
Is no power anywhere to remove it beyond that
| authority.
). As to the rates for the transit of persons and
| property exclusively within the limits Of this
State, the Legislature had the right to alter the
| terms OF the charter Of the Northwestern Railway
Company. and the fact that such alteration might
AFFECT the value OF rs property or franchises can
! not touch the question Of power in the LCgisla-
| tJre. The repeal OF its franchises would have
Well-nigh destroyed the value of its tangible prop
erty; and while the latter. as such could not be
taken still its essential value for use on the rail
| road would be gone.
3. The fact that grants of land were made by
| Congress to the State cannot change the rights
| of the cOrpOrators or Of the creditors. If the
State has not perfected the trust. it must answer
| to the United States.
Z. The act Of the 18th of March, 1874 while not
interfering with rates of freight of DrODerty trans
| ported entirely through the State, to from
other States, includes within its terms property
| and persons transported ON railroads from other
! States into Wisconsin, from Wisconsin into
| other states. This act either establishes. or
| authorizes the Commissioners to establish fixed
| rates OF freight and fare such persons and
! property. The case Of the State freight tax re
| ported Ill Is Wallace 232, decides that this last
| described traffic constitutes commerce between
the several States and that the regulation there
! OF belongs exclusively to Congress. 1t becomes,
| therefore. very grave question whether 1t Is
| competent for State arbitrarily to fiX certain
| rates for transportation of persons and property
| of this Interstate commerce. As the right to
lower rates implies also the right TO raise them
| there may be serious doubts whether this can be
| done. This point not fully argued by cOun-
sci and scarcely at all by the counsel of defend
ants; and under the circumstances we do not at
| present feel warranted, on this ground alone, to
order the issue of an injunction. If desired by
the plaintiffs it may be further considered at a
future time, either on demurrer to the bill or in
such other form may fairly present the ques
ton to consideration. The motion for an
Injunction is OYerrnled