The Wilmingtonian., 1886-04-17
Franchises and the Legislature.

Franchises and the Legislature.
The power of the Legislature, or its con-
stitutionalty in attempting to break IA con-
tract, that con ract being of a qul>i-public
nature, one party to VIII ch is the Legislature
ITSELF is always subject attractive to the
ny as well as the legal mind.
Iii the recent debate at Albany upon the
Anuulling bills of the Broadway Surface
railway, the speeches made in the Legisla-
ture bore directly upon the power Of the
legislature to void contracts.
Perhaps the most gureible speech was that
Of Senator Low, chairman Of the Railway
Committee who said that, though lawyers
might differ and honest men cliticse the
bills there was no doubt no question what
ever touching the broad general facts ON
which they where founded. 1t had hardly
been questioned by any one that power lay
in the Legislature to evoke the charter of the
Broadway Surface Railway Company. There
was ample precedent to establish the
existence Of such power. The Dartmouth
College case was an eminent example The
Massachusetts, case of Greenwood vs. The
! Flcight Company recently deci e in the
United States Supreme Court. afrl ied an
exact parallel 10 tie present case, even in
respect to the status Of the Broadway and
Seventh Avenue Company III the premises.
Considering it as established, then, that
the power of APPEAL lay in the Legislature, it
should Immediately suggest itself, the Sena-
tor thought, this was an unusually strong
case. 1t was true that the mere sembancs
of the forms of organization of company
had been gone through but from the very
inception every step Of the process was taint
ed by bad faith The only money that was
ever paid in was paid by R chnuud it was
$500, and even that was never used The
organization of the company was mockery
and defiance of law, which made its exist.
ence disgrace to the Stae. But when
created thing was thus tainted with fraud
aud perjury and bad faith, was it not the
duty of the power which createl it to iuflct
merited chastsement
One Of the counsel, who appeared before
the committee to oppose the repeal of the
charter, had said that not in our four hun
dred years had such power been exercised
on such scale. Not in four hundred years
said Senator Low, had there been a case that
cried out so loud.as this for such an exercise
OF power. No. in this State, nor in the Uni
| ted States, nor in;auy civil zed country had
there been case OF the Gnormity, the ven
ality, pf this. Even if such power had not
been exe cised in thousand years, suieIy
the time had at last come that should call
it into activity.
But it was proper fur the W. gislature to
frankly consider the oi,itet.o ,s thathld been
laised to the proposed bills. These we're
were mainly two :-F,rst, that the proposed
repeal was violation uf the obligations Of a
contract aud tile rights OF property, and,
second, that it would work unm III ell riu-
ry to innocent parties. Ia response 70 the
fist of these objections it was cl,arly dem
opstratable that the repeal involved no vo-
ation Of contract, since in any contract that
might have been made by tile annulled com
pany, the contingency nt anunmeul vas an
Inherent condition. NJ corporation could
pretend to make a 'ntract thas was 10 opcr-
ate beyond the period Of its uwn tXi-tIrce.
As to the second objection it Was Of no vulue
in law, Conceang forthe sake Of argument
though the speaker by ne ne',n, conceded
it as Cact-that suffering 4ht t,tll M per-
sous who had au iunogent iulrgest IN he
corporation, still if the facts warranted such
an action, aud no law were broken by it, the
Legislature should no. for moment allow
the consider tinn Of such suffering deter
them from tile annulpcnt
Bat it was Morth' npuirms, tho speaker
went On, ;S t. the 5 alu, nc thc innocent
bondholders. No property rights Of the
! company were TO be forfeited by the com.