The weekly clarion. [volume] (Jackson, Miss.) 1863-1882, 1877-07-11
THE IOWA RAILROAD CASE.
The Power of the Legislature 40
Regulate the Charges of GHe
Chicago. Burlington and
Quincy Railroad Under
Hts Charter Affirmed.


Its Charter Affirmed.
The following decision has been rem
dered in the Supreme Court OF the United
States:
No. 324-The Chicago, Burlington
and quincy Railroad Company, appellant,
VS.. NJ. E. Cults, Attorney General, ETC.,
ct al, appeal from the Circuit Court
of the United States for the District Of
iowa.
Railroad companies are carriers for
hire. They are incorporated as such and
given extraordinary powers in order that
they may the better serve the public IN
that capacity They are, therefore, en-
gagged in apub!ic employment affecting
the public interest, and, under the decls-
ion in Mum A. Scott VS.. The People,
Just announced, subject to Legislative
control as to their rates of fare and
freight, unless protected by their char
ters.
The Burlington and Missouri River
Railroad Company, the benefit Of whose
charter the Chicago Burlington and
Quincy Railroad Company now claims,
was organized under the general corpora
in reference to its business, the same as
private individuals, and to establish by
laws and make all rules and regulations
deemed expedient III relation to Its affairs,
but being subject, nevertheless, at all
times to such rules and regulations as the
General Assembly Of Iowa might from
time to time enact and provide. This is,
in substance, in charter, and to that ex
tent it is protected as by contract, for
it now too late to contend that the char
ter of corporation is not contract with
in the meaning of that clause in the Con-
stitution of the United States which pro-
hibits State from passing any law I'M
pairing the obligation of a contract
Whatever is granted is secured subject
only to the limitations and reservations
in the charter or in the laws or constitu-
tons which govern it. This company, in
the transaction of its business, has the
same rights and is subject to the same
control as private individuals under the
same circumstances 1t must carry when
| called upon to do so, and caa charge on
| ly a reasonable sum for the carriage. In
the absence of any legislative regulation
upon the subject the courts must decide
| for it, as they do for private persons
when controversies arise, what is reason
able; but when the Legislature steps IN
aud prescribed a maximum of charge 1t
operates upon this corporation the same as
| it does upon individuals engaged in SINH
| lar business. 1t was within the power OF
the company to call upon the Legislature
to fix permanently thislimit and make it a
part of the charter, and if it was refused,
to abstain from building the road and es-
tablishing the contemplated business II
that had been done, the charter might
have presented a contract against future
legislative interference. But it was not,
and the company invested its capital, re-
living upon the good faith of the people
and the wisdom and impartialitY of legis
lators for protection against wrong under
the form of legislative regulation. 1t Is
matter of no Importance that the power
of regulation now under consideration
was not exercised for more than twenty
wears after this company was organized
A power of government which actually
exists is not lost by non user. A gooC
government never puts forth its extraor
binary powers except under circumstances
! which REQUIRE it. That government i
I
duties, interferes the least with the Lawful
pursuits Gifts people.
In 1891, during the third year of tn
reign of William and Mary, Parliamen
provided for the regulation of the rate
Of charges BY common carriers. Thi
: statute remained in force, with som
amendment, until 1927, when it was re
pealed, and it has never been re enacted
r No one supposes that the power to restor
its provisions have been lost. A chang
of circumstances seemed to render such
t regulation no longer necessary, and it wa
z abandoned for the time. The power wa
not surrendered; that remains for futur
exercise when required. So here, tn
power of regulation existed from the be
ginning, but it was not exercised unit
in the judgment of the body politi
the condition of things was such q
to render it necessary for the commo
n good.
It 1t is held that it does not affect tn
8 case, that before the power was exercise
E the road had been leased and its incom
g pledged to the payment of its debts, an
d that as the road was wholly within tn
d State, the latter had full power in th
J. absence of legislation by Congress. 1t
q also held that the statute is not in confit
k nwlth the Constitution of the State conce
!, ing the privileges of citizens. Affirmed
{, The Chief Justice delivered the opin
e ion.
e Mr.. Fry set out to marry Miss Boil
d Amherst, Mass Their names are fairl
a indicative of the difficulties they encoul
s. tered. Her father opposed the mattel
;. and she went to family in which he
d sister lived. That sister, being also
Is love with Mr.. Fry, locked herin room
d and she only escaped by jumping frol
o the window at night. A clergyman
10 called on suddenly to perform the Ger
It. mony, read the baptismal service ha
re through before the error was discovere
5, The delay gave time for the father
lis arrive and forbid the marriage. tt
couple we're united, however, and the
final trouble came from the groom
les creditors, who seized his baggage.