Grant County herald. [volume] (Lancaster, Wis.) 1850-1968, 1874-05-14
THE RAILROAD QUESTION.
The Companies Reasons Why
They Can Not Obey the
Potter Law.
Letters TO Gov Taylor from Alexander Mitchell,
President of the Milwaukee aud 81. Paul
Company, and Albert Keep, President
OF the Northw estern Company.

The following letters from Presi
dents of the leading railway com
panies of the State, protesting agains
the law for their regulation, passed
by the last Legislature, were received
by Gov. Taylor on the 29th ult. i:
FROM PRESIDENT MITCHELL OF G. NJ. &
P. R. r. 90.
MILWAUKEE,, April %, 1874.
HIS ErcelIency, Wm. r. Taylor, Coz
ernor Of Wisconsin
DEAR SIR AT the last session o.
the Legislature an act was passed en-
titled San act relating 10 railroads
express and telegraph companies in
the State of Wisconsin," which as
sumes, among other things, to fix the
tariff for freight and passengers
which the railroads of the State may
hereafter charge. This act arbitrar-
lily divides the railroads of the State
into different 'classes and then de-
clares that one class shall charge one
rate, another different rate, and a
third class still another rate of COM
pensation for performing the same
or similar services, and affxes severe
penalties for violation of its pro-
visions. You are aware that this
species of legislation is entirely new
in this State, and in the broad and
sweeping terms of this act is practi-
cally unknown to any of the States
of the Union. The right of COM
pany owning a road to fix its rate of
charges was recently held in the Su-
preme Court of the United States to
be San attribute of ownership" Yet
this law wholly ignores that right,
and not only deprives the owner of
property, of the right to fix the COM
pensation to be paid for its use, but
arbitrarily fixes one price for one
and different one for another, with
out any inquiry as to whether the
price fixed ''is reasonable one, or
will afford fair and adequate remu-
neration and return upon the amount
of capital invested. The obligation
and promise, which Chief Justice
Dixon says, "spring from the act of
and invitations by the
State to persons, to invest their mon
9 yin the stock" of railroad compan-
les, that they shall receive fair and
reasonable compensation for the mon
ey expended, is wholly disregarded.
The roads now owned and operated
by the Chicago, Milwaukee 4 st.
Paul Railway Company were all
built under charters which provided
that "the board of directors should
have the right and power to regulate
their tolls" and that the company
should have the right to demand and
receive such sum or sums of money
for freight of persons and property
as they should from time to time
think reasonable. On this solemn
faith and pledge these roads were
built, and their right to fair and
return for the capital in
vested became fixed and settled, be-
yond the power of the Legislature to
abrogate or destroy. These roads
are property created under the sane
ton of law, and are owned by the
company. To arbitrarily deprive
the company of them or their bene-
fetal use, by act of the Legislature, is
the company of it's proper
ty without due process of law. 1t
is confscation. If it is claimed that
the public interests demand this &C
ton, on the part of the State, then,
submit, it is taking the property
for public use, and that just compen-
sation must be made. The present
company has succeeded TO all the
rights granted to the original CON-
panies by operation of law, and is
entitled to exercise them. The sad
spectacle is now presented of this
great State attempting to violate its
plighted faith and repudiate its SOL
emn agreement, after the roads have
been built, and the money of the
ockholders expended, after the i'm
provement has been made, and the
State received all the benefits expec-
ted.
| cannot believe that the people of
this State desire to be placed in any
such position, and am satisfied that
the action of the Legislature in enact
ing this law be repudiated by them,
as soon SIS it's real character is under
stood. That it has effeetually des-
troYed all future railroad enterprises,
no enc who is acquainted with its Of
feet in money centers will for q mo-
ment doubt. That, however, | do not
care to discuss at this time, as the
State has an undoubted right to pre-
vent further extension of it's rail-
road system if it chooses, although.
as citizen, 1 deeply regret such
short sighted policy. But as the rep
resentative of the Chicago, Milwau-
kee q ST. Paul Railway Company, a
part of whose system OF roads is in
this State, and who have expended
over s25, 900 in permanent I'M
provements therein, on the faith and
credit of the charters granted, all OF
which is directly and seriously affec-
ted by the law in question and must
be ultimately ruined and destroyed,
if this policy is persisted in and sue
cessfulIy enforced, | am compelled
not only to protest against such un-
Just legislation and violation of pligh.
ted faith, but also to inform you, and
through you, the people of the state
what its effect if submitted to, will
be, not only upon the company that
/ represent, out upon the whole rail
road system of the state, and the
business interests of the whole com.
munity. The entire road of tho
Chicago, Milwaukee and st. Pau
Railway Company, as now construc'
ted and equipped, has cost about
s26, 900 per mile. The portion ir
Wisconsin including oil our valuable
grounds and improvement at Mil