Dodgeville chronicle. [volume] (Dodgeville, Wis.) 1862-current, 1874-09-25
THE POTTER ACT.
The Supreme Court Says the Railways
Must Obey the Law.


The following is an abstract of the de-
cision of the Supreme Court, prepared
by Chief-Justice Ryan, in the case
brought by the Attorney General and
Railroad Commissioners for an injunc-
ton to compel compliance by the Chi
cago g. Northwestern and Chicago, Mil
waukee & ST. Paul Railway Companies
with the provisions of the Potter law:
| This court has no original jurisdiction of
proceedings by injunction at the suit of
| private persons, or to enforce private rene
| dies, but has jurisdiction of the writ in mat
tiers public, upon information of the
Attorney General, in the nature of an
injunction bill to restrain excess where
mandamus would not 60 to rem
edy the defect The writ given to this
court in group Of prerogative writs is given
as quasi prerogatiye writ for prerogatiye
purposes [Atty.-Gen. Blossog, Wis. 317l: Con
sdered and approved independently of Secs.
Is and H. Chap 14S, Revised Statutes courts
Of equity have jurisdiction, upon information
of the Attorney General er ottcio, to restrain
corporations from excess or abuse of corpo-
rate franchises or other violations of public
law under color of franchise to the public in
jury. These sections confer no jurisdiction
in this court. Whether they operate to limit
the jurisdiction of the Circuit Courts is not
here considered 1t is for the court to deter
mine, in such an information, whether the
acts charged work a public injury. This
jurisdiction was an established equitable
jurisdiction at the time of the adoption of the
State Constitution, and Sec 5, Art. l,
of the Constitution, in relation to trial
by jury, has no application to it,
Were this otherwise, the questions raised
by these informations are questions OF
law, and the Jurisdiction of them in equity de-
prives the defendants of right of trial by
jury. Chap. 273 of 1874, is not repealed by
Chaps 1872 or 341 of the same session. All the
CHAPTERS can and will stand together. The
court finds no difficulty in holding that the
Chicago, Milwaukee q St. Paul Railroad
Company is the corporation designated as the
Milwaukee q St. Paul Railroad Company in
! Chap. 273. The corporation is sufficiently in
| Dictated by the name used in the statute,
although it had a month before added the
prefix of Chicago" to its name. The consti-
| tutional amendment of 1871 prohibiting spe-
| cal acts of the Legislaturefor granting corpo-
rate power or privileges except to cities is
prospective only, and has no relation to exist
ing corporate charters by special acts before
the amendment. These may be amended or
repealed by special act, as before; The
rule established in the Dartmouth College
| case, of Woodward A. Wheaton 5, Is, is con-
sidered and disapproved as far as it extended
| to quasi private corporations intrusted by
| charter with public interests so as to consti-
tute them quasi public corporations. This
! rule is followed, nevertheless, by the court,
because it is the rule of the Supreme Court of
the United States of the construction of a
clause in the Federal Constitution; but the
reserved power in the State Constitution to
| alter or repeal corporate charters was de-
| signed to take and does take, all corporations
created under it out of the rule in the Dart
mouth College case, and the Legislature has
the same power over such corporations as if
the rule in that case had never existed. The re-
served power to alter or repeal has no other
| limit in law than is implied in the words
used-the power to alter or power to amend
charter without entirely changing its pur-
| pose or character. The exercise OF the
power should be under the guidance of ex-
| IRENE moderation and directions, and should
| not be oppressive and unreasonable. But all
this rests in the legislative discretion. So far
as corporate franchises are concerned, the
! Legislature is under a moral obligation not
to reduce the tolls of railroads. below fair
and ADEQUATE amount, but their power over
the franchise is absolute But the power to
alter or repeal cannot affect the property or
| corporations other than the franchise. Such
right of property is inviolable.
1t is not material here whether the defend
ants had elected to accept or reject the altera-
| ton of their charters. By. Chap. 2l3 they
/ were bound to obey the statute or to discon-
tinue their operations as corporate bodies. In
| either case they had no right to conduct their
operations in defiance of public law. Chap.
273, of 1874, so far as its provisions are before
| the court in the cases, is a valid amendment
of special charters of defendants, granted by
| the State Whether it would be a valid
amendment of the General Railroad act of
| 1872 is not here considered. The Territorial
| charter of 1917 of the Milwaukee d
! Waukesha Railway Company, extended
! by the Territorial act of 1885, is the
| subsisting charter OF the railway builtunder 1t
| from Milwaukee to Prairie du Chen. 1t does
| M N whether the charter
was accepted and the corporation organized
| under it before the adoption of the State Con-
stitution. There is a presumption in the cir
cumstances that they were. Such being the
| case, the charter is not subjectto the reserved
power to alter or repeal, and, as Chap. 273 of
| 1874 would impair the obligation of franchise
of that charter within the rule in the Dart
mouth College case, Chap. 273 of 1874
| cannot be held to apply to the. railroad
built and existing under that charter if
accepted before the adoption of the
| State Constitution. An information in
equity by the Attorney General e. ?tteao
has the same effect as to answer and injunc-
ton as bill in chancery verified on informa-
tion and belief. Now the question is unim-
pertant, because the violation of Chap. 273
charged is apparent from the affidavits on
| both sides. There is a judicial discretion to
withhold an injunction and mandamus in aid
/ of private remedies, but there is no such dis
erection at the suit of the State in matters of
public injuries. In such cases writs 60 per-
emptorily er de5ito .itsticio.. The court has
discretion to withhold either of the writs
in cases of positive public injury. The
motions of the Attorney General must be
! granted, and the writs issue as to all the
roads of the Chicago & Northwestern Railway
Company, and all of the roads of the Chicago
Milwaukee d ST. Paul Railroad Company ex
cept the railroad from Milwaukee to Prairie
du CHEN, built under the Territorial charter
of 1917 and 1913, but before the writs issue
| the Attorney-General must file in these causes
his official stipulation not to prosecute the de
PENDANTS for forfeiture of their charters for any
violations of Chap. 273, charged in these in
| formations, before the 1st day of October next,
that time being allowed by the court to the
defendants to arrange their rates of toll under
Chap. 273.