Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1874-07-05
RAILWAY CHARTERS.
Decision az the UBifed states Circuit
Court In the Case Of the Chicago
9nd Northwestern Railway.

MILWAUKEE,, Wis, July 4.-The
United States circuit court at Madison
this morning refused to grant the injunc-
ton asked for by the creditors Of the
Chicago and Northwestern railroad COM
papy, and decided that the provision Of
our constitution relating to charters
forms part of every charter and, every
corporate Te obligation. No opinion was
expressed as to the regulation of freights
between States. That question Is left
open. The.opinion was delivered byJudge
Drummond on q question of jurisdiction.
He holds that on the assumption that
the law is invalid, the court had jUris-
diction, as the plaintiffs reside, some in
Europe and some in other States of the
Union, and as an important function OF
equity is to prevent threatened wrong
to the right of property. He then de-
cides that the sO-ealled Potter law was
not repealed by the act Of the twelfth Of
March. He admits that there are some
inconsistencies between the two acts,
but concludes that the legislature did
not intend to repeal the former by the
latter. The court then holds thar the
clause in the constitution of Wisconsin
which provides that the legisla-
ture may alter or repeal the
charters of railroads at any time,
is in legal effect imperative in the
charter Of the Northwestern railroad
company, and that all share and bond
holders took their stock or their seeurl-
ties subject to this paramount condition,
of which they in law had notice. This
principal is not charged by authority
from the legislature to a corporation
to consolidate with a corporation OF
another State. AS to the,rates for trans
portation of persons and propertg eX-
clusively within the limits Of W4scon-
sin, the legislature had the right to alter
the terms Of the charter of the North
western railroad company, and the
fact that such alteration might affect
the value of its property or fran
chise cannot touch the question
of power. To repeal its franchises
would have well nigh des, rOyed the
value of its property, and which tine
latter as such cOulu not be taken. StiI
its essential value for use would be gone.
The fact that grants Ofland were made by
congress to the State cannot affect the
rights of corpOrators or creditors.
The court has serious doubts
as to that of law which regu-
lates rates from other States into
Wisconsin, and from Wisconsin into
other States. AS the question was not
fully argued, the court does not feel
warranted in granting an Injunction on
this point alone. II desired by plain
tiffs, it may be further considered in tu-
ture. The motion foriDjunctiOn was over
ruled. Judge Davis added suggestion
that the question will obviously have to
be decided by the courts of last resort,
and the harmony between the plaintiffs
and defendants will be necessary to Sc
cure an carly decision. They then asked
if it would not be better, while the liti-
CATION is in progress, for the defendants,
as far as possible, to have the prOsecu-
tions for penalties suspended, as these
prosecutions are not required to settle
rights, and must cause serious irritation,
and cannot be- seems to the court, pro-
ductive of any good. 1t is probable that
the question as to intestate traffic, re-
ferred to in the above decision, will be
argued in Chicago Friday.