Buchanan County bulletin. [volume] (Independence, Iowa) 1869-1891, 1874-07-10

Wfnneeheik. Observation-Disclosures. 81
BY order Of the Republican Congressional Com
nittee. j. W. THOMAS Chairman.
LASsIxG. Iowa. JrNE.:IQ. Is;4.
~ 1npeeSat Railaoad Decision.
The United States Circuit Court
sitting at Madison Wis. rendered a
decision on the 4th inst, concerning
the railroad law of that State. known
rs the ''Pottcr law" which Is Of inter-
est as it afiirms the constitutionality
of the act, and contrary to the re-
Gently published opinions of those
eminent lawyers Messrs Evarts and
Curtis. asserts the right of the Legis-
lature without limitation to alter or
repeal the charter of any corporation,
and to fix the rates which railroads
may charge forsthc transportation OF
persons or property.
The bill was filed in behalf of GER
tain stockholders in railroads in Wis
consin, to restrain, by injunction, the
enforcement of the Wisconsin rail-
road law. 1t was recited, that if this
law was enforced the railroads could
not pay operating expenses and inter-
est on the bonds. 1t was claimed al
so that if they were compelled to run
the roads according to the provisions
of the law, they would do SO at
loss, and the value of the property
would be destroyed. 1t was alleged
that the Potter law practically confis-
Gated the property Of the companies,
and was in violation of the contracts
between the railroads and the bond
holders. The court held however
that the charters of the roads were
conditional upon the clause in the
constitution of the State that reserves
the right to alter Or repeal the char
tiers of all corporations, and that they
were accepted with full knowledge
of such liability. They are thus de-
barred from protesting against any
sction Of the State in fixing fare and
freights. The question of the right
of the state to control rates on inter-
state commerce was reserved for FIJI
turc argument.
This decision applies generally as
as well to the Iowa law as that Of
Wisconsin and the publication of the
opinions was followed on Monday, by
a meeting in Chicago of the mana
gers of the roads operating in this
state for consultation as to the course
best to pursue under the circumstan-
ccs. The following is report
of said meeting;
There were present Albert Keep,
President, H. II. Porter, General
Manager, and B. C. Cook, General
Solicitor, of the Chicago & North
westc n Railroad; Hugh Riddle,
Vice lr, .idcnt and General Super
intcndcnt, and Thos. +. Withrow,
General Solicitor, of the Chicago
Rock Island & Pacific Railroad; ].
NJ. Walker, President of the Chicago,
Burlington & Quincy Railroad; John
Newell, President, and John NJ.
Douglass, General Solicitor, of the
Illinois Central Railroad, and Horace
Williams, President of several rail
roads in Iowa leased by Chicago
lines, and his attorney, Z. S. Bailey.
Some of the managers thought it
would be better to comply with the
Iowa law under protest, rs the Chica-
60, Rock Island u Pacific had al
ready done; but no unity of action
upon this basis could be secured.
Dir. Newell for the Illinois Central,
said that he could not possibly com
ply with the law, as his Iowa divi-
sion was composed OF three leased
lines which receive a part OF the net
earnings for their share. One of
these lines had already served him
with an injunction restraining him
from complying with the law, and
the other two lines would undoubt-
eddy do the same. Mr.. Walker, Pres
idcnt of the e. 3. & q, declared it
impossible to comply with the law,
for a similar reason. Mr.. Keep Pres
ident, Of the Chicago q Northwest
crn, said his road had already litiga-
ton enough on hand with the Wis
consin law: so he had sent a letter
to Gov. Carpenter, Of Iowa. similar
in tenor to that of Mr.. Riddle, of
the c., II. I. & p. road, stating that
his road would comply with the law
no far as his own line was concerned,
but protesting against it rs unconsti-
tutional and unjust, and that the rates
were ruinous. He explained that the
Iowa Division OF the &. g. N. is own
cd by that Company from Lyons to
Anamosa, distance of sixty-nine
miles, and from Stanwood to Upton,
distance of 81 miles. The rest Of
the line, from Clinton to Cedar Rap
ids, and from Cedar Rapids to Coun-
ell Bluffs, is leased from Horace
Williams. who states he will sue out
out an Injunction against the Compa-
N.Y.. enjoining them from complying
with the law. Mr.. Williams gets for
his rent portion of the net earnings,
which would dwindle down to Il very
low figure if the law were complied
with, and therefore he will sue ont
the injunction, claiming that he is en-
titled to interest on his investment.
Mr.. Williams, being present, dcplor-
cd Mr.. Keeps determination to
comply with the'law, and reaffir'ned
his determination to sue out IN ILL.,
junction restraining the Company
from complying with the law as far
~ his portion Of the road was con-
ccrncd. After several hours the
meeting adjourned, no nearer any ~,
i.,stment than at the beginning, and
with little probability Of agreeing up
on any common policy hereafter.
= ~, =, a. MI. T.:on hos sllu-