The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1906-02-26
TO REGULATE ROADS
IS GOVERNMENT RIGHT
Question Is Most Practicable and Equitable Action, Says
Albert E. Clarke, Former Railroad Counsel, Discussing
Regulation from Standpoint Of a Lawyer.
BY Albert E. Clarke of Minneapolis. Formerly General Counsel Of the Minneapolis
a#%# # %E%Ha## q St.L ous Railroad Company & ##@# ###

state control Of public corporations.
There are but few who seem to appre.
ciate the wondrous forensic knowledge
Of the great judge, who, in those days
Of little things, as compared with the
things of today, in, constituting the claw
with reference to the charter OF this
little New England school, pronounced
an opinion which, in this age of cor
porations, is as far beyond criticism,
in logic, language, and principle, when
applied to existing conditions, as, it was
when applied to the facts Of the case in
which it was written. 1t applies, with
out the alteration of a sentence, to the
Situation with which we are confronted
to-day. aS.s
The rules which. seem to be clearly
established by the decision in he Dart
mouth college case are as follows:
The state cannot, by the repeal or
amendment Of the law which consti-
tutes the charter Of a purely private
corporation, divest such corporation OF
any right, franchise or exemption, with
which it was invested by it's charter;
nor can it vest the property of such
corporation in the state, nor dispose OF
the, same without the. consent, or de.
fault, Of the corporation.
A purely private corporation may
lose its franchises by misuser, or non
user; and such franchises may be re-
Isumed by the government after. a
judicial Judgment Of forfeiture.
The state may regulate, modify, 9
large OF restrain the powers of public
corporations. p:
Public Character Established.
The public character of railroad cor:
porations is established by the single
fact that they are permitted to exercise
the right of eminent domain. Eminent
domain is the right, or power, OF a
sovereign state, to appropriate private
property to public use. Its exercise en-
ables railroad corporations to condemn
land for right Of way, and other pub
lie uses. G @it.~r -
The right Of eminent domain is al
attribute of. sovereignty; it is inherent
in the state, as the trustee OF the SOY
ereign rights of the people. 1t canno'
be exercised except by express authorl
ty from the state; and, under the con
stitutions Of the several states, al
) well as the federal constitution
cannot be delegated to any cor
, poration for it's personal benefit. B,
! its acceptance and exercise, a RAILROAD
corporation admits it's W public char
: acter, places itself beyond the hmlta
=. ton Of the provision Of the fedora
!, constitution which ESforbids a state t.
4 pass any law which violates the obliga
l ton. of a contract, and, under the rul
established in theaDartmouth colleg
case, subjects itself, as a public corpo
ration, to government regulation. Thl
. right Of regulation IS fully established
s It is exercised in many ways. The COZ
gress, and the state legislatures hav
exercised it by requiring the use of AT
tomato couplers, air brakes and othe
: safety devices; by compelling railroa
q companies to build connecting tracks
d establish stations, supply track scale
and comply with numerous require
e ments Of public convenience and safet,
d The right to regulate the rates an
charges for transporting persons an
property exists at common law; it wa
e Exercised by the courts before the frs
railroad was built and is exercised !
s, Preference to railroads today. Th
e doctrine that railroad carriers have tl
right to charge what they choose fe
3, the transportation which they sell, an
y which constitutes their whole stock.i
'e trade has neve been recognized. "a
y has never been the law of this, or p,
II any other country. The right to reg
< late railroad rates 20 has existed ev'
J since railroads have existed; to deny
is useless and as illogical as to deny IL
~ right of the state to regulate the met
10 cd of exercising the elective franchis
u There is but one, question concernir
- the right Of railroad regulation whit
- remains open; that is the method Of e
~ ercising the established right.
It is a curious fact, that the stor
. center of the argument in behalf
:. railroad interests, is this question whit
10 has never been a. question. Write
of, more or less ability continue to arg
in favor of the right of railroad ca
j. rriers to charge what they please f
n the transportation they have for sal
st seeking to apply to these public servi
~ corporations, which exist thru the gra
~ of the state, and build up their proper
=" by the exercise Of the delegated powe
n Of the state which created them, t.
a1 same rules which govern the ventur
49, Of private business.
ne + !. !.
ct -
ne Difficulties Not Insurmountable.
Oo & rw- -.