River Falls journal. [volume] (River Falls, Pierce County, Wis.) 1872-2019, 1874-06-02
THE RAILROAD LAW.
The Attorney General Declares it Con.
siitutiOnal.
4 synopsis of His Opinion.

IdcI Oh TIC passage Oh Ille act, ana tlat
it classified all the roads,. fixed and
limited the compensation for freight
and passengers thereon, and provided
for the appointment of commissioners
and their duties, that the question as
submitted to him is as to the constitu-
tionaIity of this enactment.
Then follows reference tb Tie Con-
stituticn ~ this state, article IL, sec
ton /. The railroads take and hold
their franchises subject to this article.
But upon this there is q difference of
opinion. Since the decision Of the
DARTMOUTH College case by the SUI
preme Court of the United States, in
which IL was held that charter of in
corporation was in the nature
of grant creating contract
beyond the power of the Legisla-
ture to impair, many of the states have
adopted articles reservins that tight
To sustain this he gives the following
reference, IS Wells Reports, 45l. Our
courts have also referred to this consti-
tutional provision. Although they have
not passed directly upon this question,
they have expressed opinions as to the
purpose Of its adoption and its effect,
Wis, 287. And so in the case of
Pratt VS.. Brown, 3 Wis, COB. Mr.. JUS
tise Smith, after referring 10 the doc
trine established in the Dartmouth
College case, proceeds to say it is COM
petent, nevertheless, for each state by
constitutional regulation or specific
Legislative enactment, TO reverse the
power to modify or repeal all such acts
of incorporation where the power of
modification or repeal is reserved either
III the one mode or the other. 1t is OBJ
viOus that the grantees must rely for
the perpetuity and integrity of the
franchise granted to them solely upon
the faith of the sovereign grantor, and
all such corporations now rest upon the
faith of the state, taking care to deserve
its favor or command its justice by OBJ
serving strictly the limits of their powers
and accomplishing by all Legitimate
means the objects of their creation.
These citations sufficiently show the
opinions entertained by the courts
| OF our own state as to the de-
sign and extent of the reservation,
and seem to warrant the conclusion that
there can be no such limitation of the
power as is now claimed for it. or that
can effect the validity of the law under
consideration, and the adjudications in
the courts of the other states and of the
Supreme Court of the United States
are in entire harmony with our own,
and abundantly sustain the Legislation
of last session and its constitutional va
lidity.
In the case of McLaren V. Penning-
ton, Paige, l02, Chancellor Walworth
delivering the opinion, said that not
only the power to repeal existed under
the reservation, but that the court
would not presume it to have been i'm
properly exercised. In the Penn Congo
eases, l3 Wall, 1870, Mr.. Justice Cliff
ford uses this language "Char-
ters of private corporations are
regarded as executed contracts be-
tween the government and the corpora
tors, and the rule is well settled that
the Legislature cannot repeal, impair or
alter such charter against the consent
or without the default of the corpora
ton iudicially ascertained and declared.
OF course these remarks apply only to
acts of incorporation which do not con-
tain any reservations or provisions an
nexing conditions to the charter modi- |
flying and limiting the nature of the |
contract. Cases often arise where the |
IN granting an act of incor-
poratlon for a private purpose, either
makes the duration of the charter con-
iitonal, or reserves To the state the /
power 10 alter, modify or repeal the |
same at pleasure. When such a pro-
vision is incorporated IN the charter it
IS clear that il qualities the grant, and |
that the subsequent exercise of that
reserved power cannot be regarded as
an act within the prohibition of the
After great many more references /
the attorney general enters upon dis
,ussion of the opinions that have been
given in opposition to its constitution
atty, and then general discussion of
the reservation of this power and its
effect The corporations have no natu-
raj existence, but are created by legis-
Iative enactments, and their power "a
net is derived from the state. He then
answers some of the claims that are
set up by the railroads as to what is
granted 10y the state and accepted 10y
The corporation.
The creditor Of the corporation con
tracts with it subject to the power of
lhe grantor to alter or impair the obli-
CATION. No right can vest. for it is
agreed 10y both the grantor and credi-
or that none shall vest. The creditor
makes his investment cum OReFC. and
'annot complain that the alteration of
he charter impairs his obligation, be-
ausc 10y its terms it admits of the very
alteration imposed.
The conclusion reached is that said
napier 273 is not obnoxious 10 any of
lie objections urged against it, but is
constitutional enactment, and ms
uch entitled to obedience.
Mn. JouN WARREN, of Nashua, New
has the colors of the sec
i III. /