Source: https://supreme.justia.com/cases/federal/us/115/650/
Timestamp: 2019-04-22 10:58:00+00:00

Document:
Justia › US Law › US Case Law › US Supreme Court › Volume 115 › New Orleans Gas Co. v. Louisiana Light Co.
See also Greenwood v. Freight Co., 105 U. S. 20; New Jersey v. Yard, 95 U. S. 113.
That there is a power, sometimes called the police power, which has never been surrendered by the states, in virtue of which they may, within certain limits, control everything within their respective territories, and upon the proper exercise of which, under some circumstances, may depend the public health, the public morals, or the public safety is conceded in all the cases. Gibbons v. Ogden, 9 Wheat. 1, 22 U. S. 203. In its broadest sense, as sometimes defined, it includes all legislation and almost every function of civil government. Barbier v. Connolly, 113 U. S. 31. As thus defined, we may not improperly refer to that power the authority of the state to create educational and charitable institutions and provide for the establishment, maintenance, and control of public high ways, turnpike roads, canals, wharves, ferries, and telegraph lines, and the draining of swamps. Definitions of the police power must, however, be taken subject to the condition that the state cannot, in its exercise, for any purpose whatever, encroach upon the powers of the general government or rights granted or secured by the supreme law of the land.
See also West River Bridge Co. v. Dix, 6 How. 507, 47 U. S. 531.
a valuable consideration at the time advanced or for services to be thereafter performed, constitutes a contract within the meaning of the Constitution. Asylum v. New Orleans, 105 U. S. 368; Home of the Friendless v. Rouse, 8 Wall. 430; New Jersey v. Wilson, 7 Cranch 164, 11 U. S. 166; Bank of Ohio v. Knoop, 16 How. 363, 57 U. S. 376; Gordon v. Appeal Tax Court, 3 How. 133; Wimington Railroad v. Reid, 13 Wall. 264, 80 U. S. 266; Humphrey v. Pegues, 16 Wall 244, 83 U. S. 248-249; Farrington v. Tennessee, 95 U. S. 689.
P. 57 U. S. 429.
McClure, 10 Wall. 511; Ohio Life Ins. & T. Co. v. Debolt, 16 How. 429; Sedgwick's Stat. & Const. Law 637. And the obligation of her contracts is as fully protected by that instrument against impairment by legislation as are contracts between individuals exclusively. State v. Wilson, 7 Cranch 164; Providence Bank v. Billings, 4 Pet. 514; Green v. Biddle, 8 Wheat. 1; Woodruff v. Trapnall, 10 How. 190; Wolff v. New Orleans, 103 U. S. 358.
If, in the judgment of the state, the public interests will be best subserved by an abandonment of the policy of granting exclusive privileges to corporations other than railroad companies, in consideration of services to be performed by them for the public, the way is open for the accomplishment of that result with respect to corporations whose contracts with the state are unaffected by that change in her organic law. The rights and franchises which have become vested upon the faith of such contracts can be taken by the public, upon just compensation to the company, under the state's power of eminent domain. West River Bridge Co. v. Dix, ubi supra; 54 U. S. Railroad Co. v. Louisa Railroad Co., 13 How. 71, 54 U. S. 83; Boston Water Power Co. v. Boston & Worcester Railroad, 23 Pick. 360, 393; Boston & Lowell Railroad Co. v. Salem & Lowell Railroad Co., 2 Gray 1, 35. In that way the plighted faith of the public will be kept with those who have made large investments upon the assurance by the state that the contract with them will be performed.

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