The Rutland daily globe. [volume] (Rutland, Vt.) 1873-1877, 1874-07-11
Es1E WESTERN RAILROAD CON
TKOVEIsSY AND sTS LESSONS.

There has been evidently for some years
an antagonism springing up between the
people and the railroads, which has culmi-
mated in some of the western states, in the
enactment of statutes, fixing the rates of
fare, and, in some, the tariff of freights on
several of the leading lines, which has re-
suited in an appeal to the courts. Ii is
perhaps well TO have taken place at this
time, as the relation of tie state to rail
roads, and how far the state can control
them or interfere with their vested rights
seems probable to be settled by this contro-
versy. 1t is none too early Tor this question
to be settled, lest on the one hand the
people in their haste to correct what they
deem oppressive, shall do injustice and
positive wrong to railroads, by so limiting
and restraining them as to destroy their
working power, impede their progress, and
interrupt the channels of commerce. On
the other hand ii is well for the railway
managers to have their status and rights
defined and know how far they are com
PEELED to hold themselves in abcyancc to
the state. The settlement then of this
question has come none to carly, foran an
tagonism between the people and railroads
is greatly to be deplorcd, as it would be
probable to Obstruct our progress as n
country, and interrupt seriously the lines
of ntercommunication between the leading
npp oil of thn npl
The discussion consequent thereon, and
the facts eliminated IN the controversy,
will undoubtedly teach useful lessons,
which both railroads and people may heed,
resulting in harmonzng the conflict of in
terests upon an equitable basis.
In Fridays GLOBE brief statement of
the controversy, as presented in the courts
was gwen, but, perhaps, a more detailed
review OF the issue is desirable for public
Information
The first issue made in court, as we I'M
derstand it, against the Wisconsin railroad
law, has terminated unfavorably to the
railway companies. The Wisconsin stat
ute is not so burdensome in its effects upon
the railroads as the Iowa laws, but it is
based on the principle of the right of the
state to have entire control over such COM
panies which is the foundation Of all SINH
lar legislation in Iowa, Wisconsin, Illinois
and Minnesota. The Chicago and North
western railroad company and the Mlwau-
kee and st. Paul railroad company not ac-
inowledging the right Of state control, de-
liberatcly violated that provision of the
Wisconsin law which fixed an unalterabe
rate Of passenger and freight tariffs for the
road and the question thus raised by the
enactment of the statute went to the Unit
ed States Circuit Court of Wisconsin for
adjudication. The company appeared in
court through two of its bondholders, ask
ng that the Railway Commissioner and the
Attorney General of Wisconsin, who by the
petition are made defendants in the case,
be restrained from taking measures to exc
cute the law in question. The position
taken by the railroads was that the
operation Of the law would be a
crty, and it was shown, by a table of earn
ings and expenses, that under such reslric.
ti0ns that the income of the Chicago and
Northwestern railroad would amount 10 but
about thrce-quarters of Il million of dollars
annually, not sufficient to pay the interest
on more than Sne-fourth of its debt. Not
only would there be no possible surplus to
divide among the stockholders IN dividends,
but the great majority Of bondholders
would be shorn of the profits on their prop
erty and the company be reduced, from no
fault of their own, to a condition of bank
ruptcy. When the presidents of these two
roads notified the governor of Wisconsin
of their intention to place themselves in
defiance of the law, they also gave notice
that they would only yield to it after every
attempt at legal redress had failed, and
presented to him the opinion of William
M. Evarts, of New York, and Judge b. r.
Curtis, of Boston, in proof of its unconsti-
nationality.
The Governor of Wisconsin had an
nounced his intention of enforcing the law,
and Matt Carpenter had given his opinion OF
its validity The Chicago & Northwestern
railroad had made application to the Judge
of the U. s. Circuit Court against the State
of Wisconsin to restrain them from carry