Grant County herald. [volume] (Lancaster, Wis.) 1850-1968, 1874-07-16
TIE Potter Law Sustained by the
United States Circuit Court.

Tue United States Circuit Court
in session at Madison, by denying |
the injunction asked by the Chicago
DC North western Railr ad, has prac- !
tically declared the Potter law to be
constitutional, and that the railroad
companies must obey it. The case
was ably argued by eminent couns'l
on each side, and the opinion of the
court, no doubt, given without bias
purely on the merits. Judge Drum
mond delivered the opinion, which
was eoncurred in by Judge Davis, OF
the United States Supreme Bench,
and Judge Hopk ms, of the United
States Circait Court. Il is as follows:
United States Circuit Court Madison, July lth, lS54
William Peik ct al, Geo. IL. Paul ct al, and
the Northwestern Railroad Company. Motion oI
Injunction. Drummond, Justice,
Tie following the conclusions Of the court
upon the points made. The motion is fer prelimi
on the assumption that the act OF the 18th OF
March 1874 relating railroads, express and tele-
graph companies IN the state VI "iSN"h'AA 40
| We think the court has
JURISDICTION
Of the case The bill ia filed by the hendholders,
citizens of Europe and of other states to enforce
eonjtable RIGHTS and prevent action by the rail-
road commissioners which may result, as alleged, in
serious injury 10 their rights 1t was not necessary
Ia wait until the commissioners had put the law in
mil oneraton and until its effects upon the railway
companies had become complete before application
against them was made 20 a court Of equity very
! imoortant fu notion of that court is TO prevent
| threatened wrong to the rights OF property
THE ACT OF MARCH H.
2. We are of opinion that the act OF the llth OF
March mentioned above, was rot repealed by the
ac Of the 18th OF March, 1874, the Sec nd section OF
which declares that all existing eorporaGons within
the state shall have and possess az me powers ana
pr yIeces mentioned in their respective Charters and
The act of the 18th of March, 1874 the ninth section
of which imposes penalty for eNorbitant charges
There are apparent Inconsistencies between these
last named acts and that of the 18th Of March But
il Incomes question of ntendment on the part OF
The Iegislature and on the day joint resou.
ZION was passed March l2th directing the Secretary
of State not to publish the act OF March 18th until
the 2Stb sf ri Facts of 1874 p 599 In this state
no general law is in force III after p9Dlcauon' We
think we NAV consider the joint resolution in order
10 determine whether the legislature intended that
the two acts passed the same day should repeal
the act of the nth of March, and from that il is
manifest such was not the intention OF the legislature
TIE RESERVED POWER.
g. The charters of railroad corporations under tn
constitution of Wisconsin may be altered or repealed
nv the LEGISLATURE time after their passage. In
legal effect therefore, there incorporated in all
| the numerous grants under which the Chicago 6
| Northwestern Railroad Company now claims its
rights of franchises and property III this state, the
foregoing condition contained in the constitution 1t
became part by operation of law, OF every contract
/ or mortgage made by the company or by any OF it's
| numeroHs predecessors under which ii claims. All
/ share and bondhoders took their stock OF other
entities subject this paramount condition, and Of
/ which they in law had notice II the corporation,
Inv making a contract or a deed of trust of its prop
erty could cothe its creditors with an absolute I'M
changeable right it would enable the corporation by
its act to abrogate any Oh the PROVISIONS OF the
| fundamen tal laws OF the state
the legislature of the state to corporation OF an
other state. The corporation OF this state is still
subject the constitution OF wisconsin, and there IS
no power anywhere to remove beyond the reach OF
its authority to the rates for 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 Chicago Northwestern Rail
| road Company and the tact that such alteration
might effect the value of its property or franchises,
cannot touch its property or franchises cannot touch
the question of power in the legislature me repeal
of its franchises would have well nigh destroyed the
value its tangible property, and while the latter,
such could not be taken, st its essential value
/ for the railroad would be goHe
| tsUBsIDIEs.
g. The fact that grants of land were made by Con.
gress to the state cannot change the rights Of the
corporation OF the creditors If the state has not
| performed the trust it must answer to the United
1 States.
| INTERSTATE COMMERCE.
T. The act of the 18th of March, 1874 while not in
terferIng with rates OF freight or property trans
ported entirely through the state to and from other
states. includes within its terms property and per-
ansported railroads from other states into
| Wisconsin, and from Wisconsin into other states.
This either establishes authorizes the commits.
soners to establish fixed rates of freight and fare
| such persons and property. The of the state
freight tax reported in Is Wallace 23 decides that
the last described traffic constitutes commerce be-
tween the several states, and that the regulation
thereof belongs exclusively to Congress- 1t becomes
therefor e, very grave question whether it is COM
petent for state arbitrarily to fix certain rates for
| tIausyuI OF persons ana property IN
ter state commerce. As the right to lower rates i'm
plies also the right to raise them, there may be Sc
| rious doubts whether this be done This point
was fully argued by the counsel and scarcely at
all by the counsel of the defendants and under the
circum stances do not at present feel warranted
on this ground order the an ipjunc-
ton. Ii desired by the plaintiffs, it may be further
considered a future time, either demurrer to the
bill in such other form may fair present the
| ouestion to our consideration. The motion for