, 1874-07-06

The question OF tho consttutionnlity Of the
by the Circuit Court Of tho United States Sit.
ting at Madison. No more important suit Inns
ever come before tho Courts than this. twas
bill filed on behalf OF certain cili2ons Of Europe
and Of tho Unitod States to restrain, by injunc-
tiop, tho enforcement Of the Wisconsin Railway
law. 1t WAS urged in tho bill that ii the law
onfosssa .hu railway compansnn wnnsa nut
doriye, from al their SOURCES Of revenue, d sllm
auiaciant to pay operating expenses md Tho in
terost on their bonds, or to keep tho roads in
state Of efficiency, to say nothing Of paying divi-
dends to their stockholders, OF making provisions
for sinking fund to retire the bonds Which arc
becoming due. II was olatmed MISC that, II thoy
rere compelled to operate tho roads at the rates
named in the act, they would have to run them
at 4 loss aud that their value would be destroy
cd. 1t was shown that the Potter Law was an act
to conhscato property; and that it violated the
ooptracts made between tho companies and their
topdboldera. For NIL thcao md other aIm,lar
reasons, 1t WAS supposed that tho Courla Of the
United States would hold tho law to ba not eon-
stitutionnl
It has turned out othcrwiee. Tho constltu-
tionality Of the law las been affirmed On the
ground that, uudor tho Constitution Of Wiacou-
ain, the charters Of all corporations IN the State
may bo ''altored or repealed at any tln1o after
their passaeo." This article of the Constitution,
tue Court hold. was introduced a. a condition
into all tue numerous granss under which tho
companies claino their rights Of franchise and
property. THE ownors Of tho railway stock aud
the holcra Of tts socuritsoB took them subject to
thia condition. Tho corporations could not, by
making contract or decd Of trust OF their prop
erty, clothe their creditors with any higher pow
ors thau they had recelved, for II they could do
thla thcy might BY t1ois own act abyogate tho
! Fundamental law Of the State.
All the world knows that tho State Of Wiscon-
sn has resoryod to itself tho right To alter or re-
peal the charter Of any corporation In that State.
| Whatis tho e1act moaning OF tho words altc1
or repeal" waa matter Of dispute until tho de.
clsion by Judge Drummond in the Injunction
casa was nude known Saturday last at 3fadf,
son, 1t il now understood that tloy moan tlut
the Stato Of Wisconsin has the power, not tc
tako the property. but to destroy tho revenue oI
any corporation in 1t. anl to hamper 1t 30 hat |,
Hhall not be nb1e to pay its iudobtodnosa AND
not for good reaaon shown, but arbitrarily, be-
cauAe such III It's good sill md pleasure. Ths
decision ,noana that no corporation In Wisconsin
railroad. lifo, or fro insurance company, manu-
featuring, educational, or other, las any right
which tho State is necessarily bound to respect
II this bs the correct Interpretation Of tho Con
stitution Of WiHcons!n-aMd Judge Drum
monds authority IL 10 high TINT We cannot gnin
nay lit contains tue germ at aome grave mis-
fortunes to the State, torit isoqu,yalout to pro
vihion warning capital out Of tho stato. I
strikes q blow at tue credit Of tile State abroad
Where thore Ia no credit tl.oro will be little Oh
tospriHe or capital and whero thera Is little cap
ita', thore ia little Of anything that makes lif
desirable or enjoyable. Whoro thoro IL III
credit, foreign capital will not CONF, md hom
capital viii not stay. There ia no credit whor
there Is nc security, mud there Is no aoourlt
whore. by tho fundamental law o
the State, millions Of capital mn
at any time be destroyed, m,lllonu o
lobt he n,ads irseooverable aud thousands 0
contracts ,nyslldatea. II the railWay corpora
tlonu Ut Wl4consla mara to sspudlats (suppoainl