The New York herald., 1874-07-08
The Railroad Controversy In Wis
cOnsin.

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Company involves principles OF such far
reaching consequences that it may be said,
without exaggeration, that the value of all rail-
road property and railroad securities in the
United States depends upon the nature of the
final decision in this remarkable case. 1t is
already in q court of the United States, and
viii ultimately find its way into the Supreme
Court, the tribunal of last resort, whose de-
cision will define the limits of Stat authority
over the railway corporations which are links
in the great chain of interstate communica-
ton. We print this morning the decision of
the United States Circuit Court, de-
livered at Madison, Wis, July 4,
denying q motion for an injunction to re-
strain the enforcement of an act of the last
Legislature Of Wisconsin reducing passenger
fare from four cents to three cents q mile.
This Circuit Court was clothed with the dig
nifty and authority it could derive from the
presence of all the judges entitled to sit, some
Of them attending, as they stated, at great
personal inconvenience, from their sense OF
the deep importance Of the question.
When this great case comes before the Su-
preme Court at Washington for final adjudica-
ton it will attract more attention and excite
profounder interest than any suit which has
been argued before that tribunal in our time
The most interesting part of the judicial
proceedings at Madison on the 4th was not
the decision denying the injunction, but the
colloquy between the Bench and counsel
roN -; a.
Davis bore the leading part speaking as
friendly adviser of the parties, and not in his
Judicial capacity. The two judges who sat
with Justice Davis shared his anxiety to
hasten its progress to the Supreme Court,
where alone a binding decision can be had.
Readers of the colloquy which followed the
decision at Madison will be impressed with
the sagacious good sense Of. Justice Davis in
counselling the parties to this great suit to
forbear vexatious proceedings and promptly
do whatever is necessary to expedite the trans
fer of the case to the only tribunal which can
put the controversy at rest. 1t is really Of
little consequence what the intermediate
courts may decide. The defeated party will
inevitably appeal and the law cannot be de-
cided nor the parties understand their rights
until the court of last resort shall have pro-
nounced its judgment
This important legal controversy represents
the great popular movement which has tor
the last year or two been the engrossing popu-
lar topic in the West The complaints
against railroad monopoly and extortion have.
unfortunately, too much foundation but the
justice of these complaints, as we understand
the question, is not involved in the validity of
the Wisconsin law, which the present suit is
brought to resist So far as this suit is con-
cerned it is question whether the State gov
ernment can apply remedy. Should it be
decided by the Supreme Court that the
Wisconsin law for regulating railroad
charges is unconstitutional the question will
reappear in another shape. It will then have
to be decided whether Congress, in the exer-
else of its power to regulate commerce between
the States, may not abate the extortions and
restrain the exorbitance of these rapacious
corporations. If the States cannot apply o
remedy the federal government may. If the
Wisconsin law is set aside by the Supreme
Court q fresh impulse will be given to the
agitation which is directed to securing COM
prehensive federal law for protecting the CON-
merce Of the Union, OF which railroads have
become the main channels, against the grasp
! ing, oppressive avarice of soulless corpora
tions. The pending litigation should there
fore be regarded as bearing only on the ques-
ton whether redress of this abuse falls within
the scope of State authority or of federal
authority. If the Wisconsin law is adjudged
void relief will be sought from Congress.
The weak side of the Wisconsin case, as
now presented, lies in the fact that it affects
important interests outside that State The
Chicago and Northwestern Railroad is o line
which lies partly in the State of Wisconsin
and partly in the State of Illinois. 1t was
formed by consolidation of shorter separate
railways by permission Of the Legislatures of
both States. The value of the property de-
pends upon the unity Of the organization and
the continuity of the line under the same
management, and its franchises are in the na-
ture of contract The federal constitution
forbids the States to pass any law impairing
the obligation of contracts, and it is contended
in behalf of the road that when il
receives from the State charter
authorizing it in explicit terms to establish its
own rates of fare the State could not after.
wards withdraw this concession without o
plain violation of contract, which the federal
constitution forbids 1t was maintained by
counsel for the road that the State merely
granted the right of way; that the full value Of
the property thus taken was paid to its private
owners that the State did not provide g
dollar OF the money with which the road was
built /; that it is the exclusive property Of its
stockholders and can no more be converted tC
public use without just compensation thar
the land it occupies could have beer