New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1877-03-24

,hscpce of such a reservation the charter OF
n cornorat,on was n contract the court say:
." This is in substance its charter, and to that
extent il ia protected as by a contract, Tor 1t
dis uo,c loo late TO contend that the charter Of a
{" co,noraiiop is not q contract within the meaning
of that clause in the Constitution Of the United
d" St,fes ,rIicL prohibits a State from passing
ann lar i'm pairing The obligation Of a contract"
I'm this opinion the court were unanimous
Whatever doubts previously existed, they
must be removed by this decision. Charters
TO the extent of the clearly defined powers
and privileges contained in them are pro-
tected from all hostile State legislation.
This class OF property rests upon as solid
foundations, henceiOrth, as the tito TO
real estate or the rights OF personal
security. One qualification to this is estab-
lished by those decisions. If, in the Con-
sti,ution or general laws of any State granting
n charter, there was reserved ut the tlme tne
grant was made power to "alter, amend,
cor rcpeal' the charter, or to make such
"rles and regulations" concerning 1t as the
Legislature might from time to time enact
and provide, then maximum rates Tor trans-
portation may be made by the State, notwlth-
standing the provisions OF the charter. III
must, however, be remembered that such max
imum rates are limited to the boundaries OF
the State making them such laws can have
no tra-tcrrltOrial effect.
H. These facts enable us to estimate how
far these decisions are likely to affect the
Granger roads themselves and other corpora
tons similarly situated. AS an example, let the
Chicago and NOrth-W estern Company be taken.
Its charters were granted by the four States
| in which its principal lines are situated. VI
these, tw0-WiscOnsn and lOwa-haye, under
tbese decisions, the power to establish max
imum rates The Others-Michgan and Illinois
have by the same decisions no such power.
When that company was Incorporated no
mower to "altcr, amend, or repeal" or to make
"rules and regulations concerning the charter,
was reserved to the Legislature of either
State by its Constitution or laws; whatever
the charter contained was granted without
reservation of any kind. Upon the subject of
rates the Illinois charter provides: :" The
"sad corporation Is authorized
to prescribe the rare
"Of toll for transportation OF persons ma
"propery thereon" Such grant would
seem to be contract, if clearly expressed
power given to a corporation could ever be-
come such.
A very large proportion Of the business of
that corporation is probably done to and from
Chicago, the principal terminal point OF all Its
lines 1t is probable that the larger part OF
all its earnings is derived from business using
lines in more than one State, one of which
must be Illinois, or from business local to that
State. There is no State therefore that can
"regulaten its rates on all the business to and
from the City of Chicago. The power to regu-
late must be confined to that small portion OF
its business arising and terminating within
the boundaries of the regulating State. All
this is true also of the NJ. and st. Paul, the
c., B. and O.. and the c., r. /. and p. K.
Companies. On the whole it would seem that
there is no real occasion for any mistrlSt OF
corporate property in general growing out OF
these decisions.