The comet. [volume] (Jackson, Miss.) 1877-1882, 1881-03-19
=" VESTED RIGHTS"
Judge Woods Recent Georgia De-
eisiou.

Il
press Of the State Of Mississippi that
has misunderstood or mislnterpreted tn
late opinion Of the Hon. w. b. Wood
rendered at Atlanta Ga, in the case ,
George II. Tillery, W. the Savannah, Flol
Ida = Western Railroad Company, Jane
NJ. Smith, Campbell Wallace and Sam. Bul
nett, Railroad Commissioners for the Stat
Of Georgia, in the United States Circul
Court for the Southern District of Georgia
in reference to the doctrine of veste
rights. 1t is alleged by some that Judg
Woods has, in this opinion, uprooted an
overturned the ancient and long establish
ed doctrine Of vested rights. In order +
correct this impression, l send you tina
portion OF the opinion that bears directl
upon this question. 1t is copied from tn
opinion itself, and | assure you that
give it as it appears in the opinion -
"Woods Circuit Justice.
The question for solution is whethe
the case made by this bill and amendment
and the affidavits in support of it entities
the complainant to the the writ of injunc
ton as prayed for In the bill.
"The first inquiry that arises is, wha
are the rights of the Savannah, Florid,
and Western Railroad company under the
law of its organization? On behalf of thu
complainant it is averred that the Railroad
Company has the right, within limits pre-
scribed by the Charter of the Atlantic and
Gulf Railroad Company, to fix its own
schedule of freight and passenger fares
and that this right is not subject to legisla.
tive control.
at is settled that Railroad Companies
are subject to Legislative control MS to their
rates of fare and freight, unless protected
by their Charters. Num- VS.. Illinois 94,
United States, 1l3. Chicago etc., Railroad
Company VS.. Iowa, "a United States, 101.
"When the charter of q Railroad Com
pany allows it to charge maximum rates of
fares and freight, but the right is reserved
to the Legislature to repeal or amend the
charter, 1t may change the rates prescribed
by the charter by establishing maximum
limit beyond which they shall not go.
Pick. VS.. Chicago, etc. Railway Company,
"a United States 1874.
"By the Act of the Legislature Of Geor-
gia Of February 80, 1876, entitled an Act
to enable the purchasers of Railroads to
form corporations and to exercise corporate
powers and privileges, under which the
Savannah Florida and Western Railroad
Company was organized, it was clothed
with all the rights, privileges and immuni-
ties of the Atlantic and Gulf Railroad
Company. 1t Is necessary therefore to
inquire what were the charter rights of
the latter Company. 1t was organized by
and Gulf Railroad Company and the
Atlantic and Gulf Railroad Company, by
authority Of an Act of the Legislature Of
Georgia, approved April IS, 1868. When
this Act was passed, sections 1851 and 1852
Of the code of 1858 were In force. The first
Of these sections declared: "Persons are
either natural or artificial. The latter IRE
the creatures Of law, and except SO far as
The law forbids is subject to be changed
modified or destroyed at the will Of their
The second declared: "In all cases of
private charters hereafter granted the |
state reserves the right to withdraw the |
unless such right is expressly |
In the charter"
From these sections of the Code It Is
apparent that the rights, privileges and
franchises of the Atlantic and Gulf Rail-
'oad Company were subject to alterna-
ion, amendment or withdrawal ut the
Will Of the Legislature. This point has been
decided by the Supreme Court
# the United States In the case OF Railroad
company vs.. Georgia-9s, United States,
80.
In that case IL was held that by the con-
olidation under the act Of April Is, 1868,
4 the Savannah, Albany and Gull Rail-
DAD Company, and the Atlantic and Gulf
abroad company, said companies were
issolved and anew corporation ito wit the
atlantic and Gulf Railroad Company was
reated and that shis new company became
lbject to the provisions Of the Code of
Georgia above recited.
And 1t has been expressly decided by
he Supreme Court of Georgia that all the
harters granted by the State since the
ioption OF the Code Of 1868. are subject
, the provions of section 1882 above quo
ID. West End Co. VS.. Atlanta, 40 Ca, ISL.
1t must, therefore, be considered as |
settled that the right Of {
Ie Atlantic and Gulf Railroad Com. 1
my to establish its own schedule of /
eight and fares within certain limits was
Ibject to legislative modification and con- ,
oil.
The Savannah, Florida and Western Rail-
al Company having succeeded to the
ghts and franchises of the Atlantic and I
estcrn Railroad Company is subject to
me reyisory power. \
But so far as the Savannah, Florida and I
estern Railroad Company is concerned v
c right Of legislative control over Its a,
Inchise has been placed beyond all dis I
tie, IL any remain, by section 8 Of the
under which the company was organ
ID. That section declares: "That moth "
Z in this act shall operate TO vest In any p
rchaser Of any railroad and It's function
les any exemption from taxation exist o
I or claiming to exist In the corporation n
itch shall have been the owner Of said N
lroad and its franchises, or to limit the
wer of the legislature to alter, modify, q
withdraw the charter and franchises =,
rein provided" :, q
from the foregoing 1t is apparent that =,
distinguished Judge explicitly recog- a,
ed the doctrine, that where the charter :,
any railroad company conferred upon IL A.
power TO fix its own tolls, and the State n,
not at the time expressly reserve the A,
yer to alter, modify, or withdraw such m
yer when 1t saw proper to do so-the a,
road would have the right to fix Its own n
Q. and the State could never interfere ar
h the exercise OF such right. N,
Yours truly, nm
Il. L. RUSSELL. AZ