The New York herald., 1874-07-08
THE RAILWAY CONTEST.
The Injunction Suit in
Wisconsin.
DECISION OF TEE CIRCUIT COURT.
The Legislature Has Power to
Alter Railway Charters.

{From the Chicago Tribune.]

{From the Chicago Trbune.]
MADISON, Wis.,, July 4, 1874.
The Court met promptly at eight O'Clock this
morning. After the announcement OF the declsio on
in minor case the motion for an injunction to
restrain the enforcement OF the Wisconsin Rail-
way law was oyerruied for the following reasons,
stated by Judge Drummond:-
THE OPINION.
We nave not had time to prepare any opinion
there should be a decision upon tue motion for an
injunction am instructed by the Court to present
tue following as its conclusions upon the points
made for preliminary nJunction-
J. On the assumption that the act OF the 11th Of
March, 1874. 'reasng 10 railroads. express and
telegraph companies IN the state Of Wiscon-
SIN are invalid, we think the court has juris.
diction OF the case. Ine blll is filed on be-
half of citizens OF Europe and OF other States to
enforce equitable rights, ana to prevent action
by the Railroad Commissioners whicn may result,
was not necessary to wait until theSe the com@son ss
ers had put the law in ull operation and its effects
upon the railroad company had become complete,
before the application against them was made to a
Court OF equity. very important function OF that
Court Is to prevent threatened wrong to the rights
OF property.
2 We are OF opinion that the act Of the 11th OF
March mentioned above was not repealed by the
which declares ''al existing corporations within
this state SHAH have and possess all the powers
spective charters;n aud the act OF the 18th Of
March, 1874, the ninth section OF which imposes
a penalty Tor extortionate CHARGES. There
are apparent Inconsistencies between these
last two named acts and that OF the llth
OF March; but it becomes question OF intend
ment on the part OF the Legislature. On the same
day Joint resolution was passed March 12) d.
rectng the Secretary OF State not TO publish the
act of the 11th OF March until the 2Sth OF April In
t.is state no general law is IN lorce until after
publication. We may consider the joint resolution
In order to determine whether the Legislature In
should repeal the act OF the 1lth OF March and
from that 1t is manifest such was not the intention
g. The charters Of the railroad corporations
under the constitution OF Wisconsin ''may be
altered or repealed by the Legislature at any
fore, there was Incorporated in all the numerous
grants under which the Northwestern Railway
Company now claims It's rights oil franchise and
property in this State the foregoing condition
contained in the constitution. 1t became a part,
by operation OF law, OF every contract mortgage
made by the company, or by anv of its numer-
predecessors under which 1t claims. The
share and bondnolders took their stock or their
securities subject to this paramount condition and
OF which tney, in law, mad notice. II the corpora
ton, by making contract or deed OF trust on its
property, could clothe its creditors with an abso
lutte, Interchangeable right, it would enable the cor
poration by IT'S own act to aDrOgate one Of the pro-
visions OF the fundamental law OF the state.
l. The principle is not changed by authority
from the Legislature OF the State 10 a corporation
to consoiidate With tne CORPORATION Of another
to the constitution OF Wisconsin ana there is no
power anywhere to remove 1t beyond the reach of
Its authority.
s. AS to the rates for the transit Of persons and
property exclusively within the limitations OF this
State the Legislature had the right to alter the
terms OF the caarter of the Northwestern Railway
Company, aud the fact that such alteration might
AFFECT the value OF ITS property or iranchises can
ture. The repeal OF It's franchises would have we'll
nigh destroyed the value OF its tangible property;
and while the latter as such, could not be taken,
Still its essential value for use on the railroad
would be gone.
Congress to the State cannot change the rights OF
the corporations or Of the creditors. II the state
has not performed the trust it must answer to the
United States.
Z. The act Of the Ilth of March. 1874 while
not interfering with the rates OF freight on
property transported entirely through the State
to and from other States, includes within It's
terms property and persons transported on
railroads from other States INTO Wisconsin, and
from Wisconsin into other States. This act either
establishes or authorizes the Railroad Commits
on such persons and property. The case OF 'The
State Freight Taxi reported in 18th Wallace,
p. 232, decides that the last described traic con-
stitures "cOmmerce between the several States"
and that the regulation thereof belongs exclusively
to Congress. II becomes. therefore, very grave
to x Se9sa ass
the transportation Of persons and property
lower .a.' rates implies also the right to raise tnem
There may be serious doubts whether this can be
done. THIS point was not Iuy argued by the cOun-
sel and scarcely at all by the counsel LOT defend
ants; and, under the circumstances, we do not at
present feel warranted, on this ground alone, TO
order the issue OF injunction. II desired by the
paintlfrs. 1t may De further considered at future
time either on demurrer to the bill or in such
other form as may fairly present the question for
The motion for an Injunction is overruled.
SUGGESTIONS.
In view OF the decision Just rendered, we trust 1t
will not be considered out 0 the line Of our duty to
make q suggestion concerning this litigation TO the
counsel Tor the defence. 1t is manifest tnat the
questions involved are grave ones and that the
Courts OF last resort VIII ultimately have to pass
aecson in winch paes are ytay tr
cannot be obtained unless there is harmony
oI action. On the ptrt OF both the com:
while this litgaton Is in progress would 1t not be
better Tor the defendants, as far as lies IN their
power, to have prosecutions for penalties sus-
pendedi These prosecutDns are rot required to
settle rights. They are attended with great ex-
pense, and II enforced While an effort is making,
In good faitn to test the Hadlty OF this legisla-
ton, must cause serious Irritation, and cannot be,
as 1t seems to US, productive of any good results.
Mr.. StOughton inquired the Court would give
any Instructions regarding the point On which Is
would hear further argumnt.
Judge Davis-YOu mad bitter consult with the
other side. Vi course youcan make demurrer
to the bill or make Application for an Injunction II
you see fit. We thought OR decision and the sug-
gesti0ns made would enate the parties to come
to some arrangement wnehby the matter could be
speedily adjusted and futher litigation be sus-
Assistant Attorney Genenl Sloan said he hardly
felt authorized to make suc an agreement
1ange ason Ssicn 70 snat m
better to suspend afilrmate action until final
decision Is secured.
III tHc itpiy W VIC NHeu tuc CouIt WVuiu
consent TO hear lurther ariumeDt, Judge Drum
mond said If there were to q any IL could be made
at once.
Judge Hopkins-It appeas 80 the Court that
the defendants did not anticipate the question OF
Interstate commerce, so dit not argue 1t all.
Judge Davis-There is anohef point about this
litigation, and 1t Is this-It tould be practicable
to get the whole question Il the Supreme Court
at the october term. and tht is what mean IN
my suggestion. 1t is probabi, that case could be
head there at that term. Tn question Is whether
affirmative action had not better be suspended un-
til that question Is disposed q
Attorney General Sloan a3ured the Court that
there was no intention on thepart OF the kalTOad
Commissioners to interfere With Interstate COM
merce or cause any trouble tIfhat regard.
Judge Davis-if prosecuti&s on that account
are stopped there Is nothing \ be gained by the
other side by applying for injunction. Ii you
will harmonic together withhe view or getting
| oil these disputed questions Aeedily into the Su-
preme Court we do not sedFhy they cannot be
| disposed OF at the October teY1.
Counsel for the compaipanInoped further argu-