, 1874-12-21

Wo hayo already called tho attention Of the
readers Of I'nE TRIBUNE to the decision Of
Chief-JuBtico RYAN, Of Wisconsin, in tho sail-
way injunction suits. We hive seen how tho
Supreme Court OF Wisconsin1la held, III thoso
cnscs, that the power reserved to the Lcgis.
latare' OF the State to alter or repcal the char-
ters of corporations Mt my time aftcrthcy hayo
bocn granted is unlimited, aud, VIC may soy,
arbitrary. Under tho decision just named,
the railroad companies Of Wisconsin may ba
compelled to operate their roals at any rates
whatever fixed by tho Legislature, ant, for all
TINT We can sec, without being entitled
to my compensation whatever, should
the Legislature 70 decide. This doc
trinc is SO ,nanifestly opposed to all good
policy, SO glnringly ut variance with all prin-
ciples Of justice, so directly calculated to
strike at tho material development Of Wis.
consiu mud tho Wcst that wo think it not III.
appropriate to direct public attention to thu
grounds of its untenablencss. It is emil
,leutly just and proper that corporntiona
| should DO ever untler tho control OF the state,
and TINT the Legislature should reserve to
itself tho power ut any time to alter or repeal
| their charters but it is cminently unjust
md improper that tho power should be un-
| limited and arbitrary. Wisconsin is not the
!! only Stato in which the charters Of corpora
tions are subject to Legislative repeal, nnaend'
| me,lt, or alteration, at my timo after they
have been granted; nor is tho supreme
Court Of Wisconsin the first that has
been called upon to put judicial
construction on tho reserved power
to alter, amend, or repeal. We doubt, how
ever, whether tho question Of tho precise e.
tont Of the power was eycr raised till it was
raised in Wisconsin in tho railway injunc-
ton suits. No other Court, it would seem,
was ever called upon to decide whether
tue power was imitad or unlimited. The
Wisconsin, Court waa. Says Chief-Justlco
RYAN in his decision: "It was argued for tho
defendants that tho power is O limited one.
It was SO said in MILLER %. State, anu
I1o1.ro1E gs. LYMAN, sup'1; and III some
Massachusetts casos, TINT it must be reasona-
bly, exercised" Chiof-Justico RYAN does not
accept these viows, and holds that tho power
is unlimited, aud TINT, il case tho Aegle-
]aturo exercises it unreasonsbly, no mat
tor to what extent, tho corporation
has no remedy in 4 court Of Justice. NOW,
while it is true tlat tho question OF tho pre-
c;so oxtont Of tho powor Of amendment had
mover before been markcd cut by eny Court,
thoro il ample ground for saying Tint Courts
hive uniformly dec!ared,-it may havo been
only as <lcta,-aul iutimated, that the re-
served power is limited and must rocelYe
reasonable construction. III tho case o1
| Al111En rs, State, referred to by Chiof-s snstlod
RYAN, tho Supreme Court Of the United
States observed: "powey to lcgisletc, found
oil upon such reservation IN u charter TO
private corporation, ia eeFfat"fy not with.
out limit, and it may well 10 admitted
that 1t Cannot be exercised to take
away or aestroy rights acquired by
y;rtne of such cl,agtor, aud which, by d
legitimate uso Of the power granted, lava
hccomo vested in tho corporation; but il
,nuy safely 10 a.lh1ued TINT the reserved
| 1,owcr 1,ay be exercised to almost nny extent
to cary into effect The original purpose Of
tho grant, or to secure the duo administration
Of its affairs so rs to protect Tho rights Of its
stockholders and Of creditors, ana for the
proper distribution OF Tho assets" This shows
i. clearly enough what the mind Of the snprema
Court of tho United States 10 Oh tho con-
strnotion Of the power reserved over tAa
charters Of corporations. 1t says that it is
certainly not without limit, mud intiniates
| very strongly that it can 10 exercised onl,
. to protect tho rights Ut tho public, or secure
tho duo administration of tho atfaii1 of tAe
corporation, or to protect tho rights OF stock
holders or Of creditors. Now, the pubic
: heyo'no right to causo railroad to 10 operat
0 ell at a losa to its owners; in othor words
b thoy Auyo no right to inliot awrong on cor
: poration by virtue Of the power reserved Il t!
: altor or repoal its ohnrtor. 1t cannot be Bait
o Tint tho wisconsin Railroad Inv WIS passot
t !n tho intcrest Of the creditors Of tho Ioad
. for 1t was arguod for tho roads il tho 1njnno
|, ton quits that it violated the oon
a troota Of tho roads with thoir credit
i ora, innan,uch ~ 1t deprived thcn
/ Of tbo ability to pay Tho interost On thoi
!, |,oudcd iulobtetlnosB. Tho faot Ia that, l
d ! tAo fsprukautatiYod ot tho xalltusd sompRnt&