Omaha daily bee., 1888-04-27
THEY FORFEIT THEIR LEASE.
The Supreme Court Decides the
Atohison &c Nebraska Case.
GREAT VICTORY FOR THE STATE.
An Order Entered Declaring the Lease
With the Burlington Forfeited
Final Action On the Franchise
Deferred Until July.
LINCOLN BUREAU OF THE OMAHA BEE,
1929 = STREET,

lub ueClSlOn IN tnp case DrOu0uJ Dy INC uI-
| torney general against the consolidation OF
| the Atchison & Nebraska road with the b. &
| NJ. was handed down to-day. The de.
cison is by Judge Maxwell and it is the
most important In the history OF the struggle
| against corporations in the annals Of the
state. II goes farther than the friends of the
case dared hope in defining the illegal and
unconstitutional acts of the roads in destroy
ing competition and swallowing up independ-
ent and competing lines. The decision is
upon the demurrer that the case did not cite
sufficient cause of action, but the argument
was largely of q character covering all the
points and the decision comes with full
weight accordingly As will be seen by the
opinion it now declares the lease with the b.
& M. forfeited and only postponos the day in
which to declare the franchise of the road
forfeited until July l, tnat the regular pro-
ceedings by answer may be heard. Nothing
In years has caused more discussion
in legal and business circles than
the decision in this case when it
became known in the city to-day, and
aside from those whose existence is in har-
mony with the corporations the feeling is one
of gratitude that the law has been defined
and that limit is laid down by the court of
not oross. ATTORNEY General I eese ond his
s.s.s. =. .,, ~ ,.'N, a"u N, NO
a''i'U'',, ~ '"e S"ee' W.T. " ". DaWes' We'e
the suolects Oh numerous congratuiatlons
over the successful decision gained, the COM
plete decision being given below.
The syllabi of the case is as follows.
1. In a proceeding by quo warranto against
a corporation to forfeit its franchises and
GUST it from the same for misuser thereof,
the corporation is the only necessary party
ueiendant In case OF forfeiture the court
VIII take tne necessary steps TO protect the
rights oi othep parties III tne premises
a. oection o9 Oh cnapter 10 OF tne compiled
statutes authorlzes the consoiidatlon OF two
lines OF railway only IN cases where the two
roads When so consolidated VIII form con-
tlnuous line, without oreak OF gauge or Inter
ruptlon.
3. Section "a, chapter 10, OF the compiled
statutes authorlzes the leasing OF raliroau
constructed by another company, only in
cases Where tne ROAD OF the lessee ana OF the
company making the lease Will form con-
tinuous line.
4. The Atchison & Nebraska railroad, eX-
tending from Atchison, Kansas, to Lincoln,
NeDraska, was completed 10 Llncoin in lSIl,
and leased to the Is. & NJ railroad in 1850.
Held, Ihat IL dld not form CONTINUOUS line
with the Is. 81 M. railroad, and was not
within the provisions of the statute authoriz-
ing .ne making Oh lease, ana that such
.tatnto nt cnnt;nnnus or oonnantad i;nas m wv a,,
cludes all others.
B. The powers of a CORPORATION organized
under legislative statutes are such, and such
only. as the statutes confer The charter of
n CORPORATION is the measure of its powers.
and the enumeration of these powers implies
the exclusion of all Others
G. Where a railroad company. without au-
thoritv of law. leases it's road to another
railway company with all Its rights, property
and franchises. for a long period OF time II
thereby abandons the operation of ia road
and is subject to forfeiture.
z. Section g. article XII of the constitution
solidating its stock, property. franchises or
earnings in whole or in part. with any other
railroad corporation owning parallel or
competing line The word consolidate is used
in the Constitution in the sense of 1oin orr
unite.
q Section K article XJ of the constitution
prohibits the issuing by a railway cornora.
tion of stocks or bonds except for the CON
cjderation ACTUALLY received One of the oh
iects of this provision is to enable the nblic
to ascertain the actual cost of such railway
in the state and to enable the leg1slature to
pass laws fixing an eouitable rata of TAXATION
and for the transportation of persons and
propertv so that Justice NAV he done alike
to the railway comnanv the pIhl,c and nri
vote indi,i5uals
The followino "a the oninion IN full follow
;rr, ,ho roo;toI % Tho ,,ot;tior ,,ror ,rioh tho
iiiS 'ho iooi'ai Vi 0ho p''i'ioh uPoh "uioh 'no
case was prought:
The exhibits attached to the petition and
made part of it show that on the oath of
May, 1867, certain residents of the city of
Atchison, Kan, organized corporation
under the laws Of that state for the purpose
of constructing railroad from some point in
the city of Atchison to some point on the
north line of the state of Kansas not further
west than twenty-five miles from the Mis-
souri, river, the length of said railroad not to
exceed forty-tive miles. The capital stock of
said company was fixed at 100000 In April,
1871, the Atchison, Lincoln & Columbus rail
road company was organized under the laws
of the state of Nebraska ''The
object and purpose of this COM
pany are to construct, maintain and operate
a railroad with single or double tracks, and
with all necessary branches, fences, bridges
warehouses, elevators, station houses and
such other appurtenances as may be thought
necessary or convenient, extending from
point on the southern line of the state of
Nebraska where the Atchison & Nebraska
railroad crosses said state line, northward
and westward through the counties OF Rich
ardson Pawnee, Gage, johnson, Lancaster
Seward and Butler by way of Lincoln to the
town of Columbus on the Union Pacific rail
road with branch road running westward
through the counties of Richardson Pawnoe,
johnson, Gage, jefferson and Saline, TO the
west line of the staten
The capital stock was taxed at the sum of
ShOO 600 In August 1871 the Atchison A, |