Grant County herald. [volume] (Lancaster, Wis.) 1850-1968, 1874-05-14

expenses must remain as before thu
passage of the law, provided we com
bine to operate the road as a frs
class road and so as to accommodate
the public The entire reduction in
our rates made by this act is, there
fore, reduction from our net earn
ings. The average expenses of opera.
ton are not less than two thirds oil
our entire gross earnings, leaving q
net of about one.third.
This act, as we have seen, propos-
es TO take from us twenty-five per
cent. of our gross earnings. There
fore deducting this amount, equal to
rs per cent of our entire gross earn
ings from 80 per cent, our average
net earnings on business would leave
as only sauan per cent. of our gross
..rnings, as the entire net earnings
of the road, out of which must be
paid the interest on our bonds and
tho dividends OF cur stockholders.
1t is therefore manifest that this law
will taks from us over three-fourths
of the net income received under our
present tariff, and yet the total net
income of last year was not sufficient
to pay Six per cent. on the actual
cost of the property. Comment is
unnecessary upon law which pro-
poses thus to deprive capital, perma-
nently invested under the sacred
promise and pledge of a great state,
of suitable and reasonable return.
Can it be that such a law, and
passed under such circumstances, is
constitutional and binding? Can
the sacred obligation of the state to
US be thus impaired !? And can our
property, invested on the faith and
credit of the state, pledged in our
charter, be thus confiscated l do
not believe it, and shall not, until
compelled to do so by the decision of
the highest court authorized to pass
upon it.
The board of directors have caused
this act to be carefully examined
and considered by our own counsel,
and by some of the most eminent
jurists in the land, and after such ex-
animation they are unanimous in
their opinion that it is unconstitu-
tional and void. The board of d.
rectors are trustees of this property
and are bound faithfully to discharge
their trust and to the best of their
ability protect it from spoiIation and
ruin. They have sought the advice
of able counsel and after mature con-
sideration, believe it their duty to
disregard 30 much of said law as at
tempts arbitrarily to fix rates of COM
pensation for freight and passengers.
| regret the necessity that compels
the company to take this course, but
1T is the only one left to preserve the
property, and properly test the
question raised by the act. An I'M
constitutional act is void--a law
that contravenes the constitution is
of no effect. 1t is no law--the de-
cision of the court only ascertains
and declares that it is vOid-it Is
none the less unconstitutional and
void, before it is so declared, then it
is afterwards. Hence, such q law
has no more binding force before
than after the decision of the court.
1t is no justification for any act done
or omitted at any time. The only
difference is that parties obeying, or
disregarding it, before the courts de-
eide upon it, are, in either case, act
ing upon their peril. Should we
obey this law, and by so doing allow
the property committed to our trust
to suffer waste, the law would be no
legal justification of our conduct
should it afterward be adjudged I'M
constitutional, and 80 if we disobey
it, our act will be justified or not ac-
cording as the court may finally de-
termiue. Being placed therefore in
position where we are compelled to
It, we have determined to act in ac-
cordance with the advice of our
counsel, as we are fully satisfied that
it is only by so doing that we can
protect and guard the important in
terests committed to our charge. 1t
is from no disrespect to your Excel
lency or the constituted authorities
of the state, that the board of direct
ors have determined on this course.
They are fully aware that they are
not able to contend with the state,
or defy it's laws, and were it not for
the fact that they are fully convinc-
ed of the unconstitutionality of this
act, would not adopt course of &C
ton which would seem, even, TO con-
travene law of the state. But be-
ing fully conscious that the enforce
ment of the law will ruin the proper
ty of this company, and feeling as
sured of the correctness of the opin-
ions of the eminent counsel who have
examined the question, the direct
ors feel compelled to disregard the
provisions of the law, so far as it
fixes tariff of rates for the compa-
ny, until the courts shall have finally
passed upon the question of its va
lidity.
Respectfully yours, &c,
ALEX. MITCHELL, President.
FROM PRESIDENT KEEP, OF CHsoAGo
d N. W. R. r.