Chippewa Valley & Superior Railway Co. v. Chicago, St. Paul, Minneapolis & Omaha Railway Co.

44 N.W. 17, 75 Wis. 224, 1889 Wisc. LEXIS 44
CourtWisconsin Supreme Court
DecidedDecember 3, 1889
StatusPublished
Cited by23 cases

This text of 44 N.W. 17 (Chippewa Valley & Superior Railway Co. v. Chicago, St. Paul, Minneapolis & Omaha Railway Co.) is published on Counsel Stack Legal Research, covering Wisconsin Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Chippewa Valley & Superior Railway Co. v. Chicago, St. Paul, Minneapolis & Omaha Railway Co., 44 N.W. 17, 75 Wis. 224, 1889 Wisc. LEXIS 44 (Wis. 1889).

Opinion

Cassoday, J.

This action is brought to enforce the specific performance of the contract or contracts set forth in the foregoing statement. By virtue of those contracts the [239]*239plaintiff claims the right to the equal undivided one-fourth of all the lands 'and the avails thereof granted to the state for the purpose of aiding in the construction of a railroad from Superior to the junction near Veazie,— a distance of about sixty-two miles, — and said to contain 400,000 acres of land, of the value of $2,000,000. The state granted all of those lands to the Portage. & Superior Company in 1874, for the purpose named and upon the conditions set forth in said statement; and that company continued to hold the same down to the time of executing the first of said contracts, January 10, 1882. It had failed, however, to construct any portion of the sixt\7"-two miles of road between Superior and the junction, as required by such grant, and it had also failed to construct any portion of the road from the state line at Genoa to said junction, as required by such grant. It was, moreover, then insolvent and wholly unable to complete any part of either of such roads, and the owner of nine tenths of the Iona fide stock of that company was then offering to sell the same to different parties, and particularly to the Chippevoa, St. Paul, and Omaha Companies, respectively. The fact of such insolvency and default on the part of the Portage & Superior Company, and the further fact that the time limited in the grant for its completion of the entire road would expire about May 1, 1882, had, prior to the execution of the contract, January 10, 1882, induced the Chippewa Company, in its own behalf and in the interest of the St. Paul Company, and the Omaha Company, respectively, to apply to the legislature, then about to convene, for said grant, and to ask that the same be conferred upon its company; but in view of the fact that should these companies, respectively, enter into a contest before the legislature for such grant, they might thereby defeat each other and prevent any disposition of the same, it was deemed advisable by them to enter into an arrangement whereby.such conflicting interests should be harmon[240]*240ized, and but one road constructed over the proposed route, with running arrangements for both, as set forth in the statement made. To secure such objects, the written contract of January 10, 1882, was made and executed as stated; and thereupon, and in pursuance of said contract, the Chippewa and St. Paul Companies ceased all negotiations for the purchase of said stock, and made no application to the legislature for said grant, and rendered to the Omaha Company “ all such reasonable and proper assistance as thej7 were able to give in the premises,” and “ in good faith in all respects observed, performed, and to their utmost ability carried out, the terms and'provisions of said contract;” and the Omaha Company was thereby enabled to purchase said stock and obtain said grant from the legislature by virtue of ch. 10, Laws of 1882. The contract executed June 10, 1882, was a substantial copy of the one executed January 10, 1882, including dates, except as set forth in the, foregoing statement.

The validity of ch. 10, Laws of 1882, has recently been challenged, on the ground that the grant to the Portage & Superior Company in 1874 gave to that company the right to earn the land therein granted, and was in the nature of a contract, which the state legislature could not impair, and also upon the ground that the legislature passing the act had been influenced or misled by false representations made to its members respecting the intentions, financial condition, etc., of the Portage & Superior Company. The conclusions reached by Mr. Justice IIaelaN, in an elaborate and well-fortified opinion, were to the 'effect that the question of such undue influence and misrepresentation was not • one to be determined by courts or juries upon evidence; and that, assuming the act to have been unconstitutional and void as impairing the obligations of contracts, yet after the time for constructing the road by the Portage & Superior Company had fully transpired, the legislature had confirmed [241]*241such revocation and resumption of the grant, and the conferring of the same upon the Omaha Company by ch. 29, Laws of 1883. Farmers’ L. & T. Co. v. C., P. & S. R. Co. 39 Fed. Rep. 143. In this case, however, we must assume what counsel on both sides have assumed, that ch. 10, Laws of 1882, was a valid grant to the Omaha Company. The right of the Portage & Superior Company was, at most, nothing more than to earn the lands granted, upon the terms specified therein.

The important question here presented for consideration is whether the agreements contained in the second contract, and here sought to be specifically enforced, are valid. We .are all agreed that the validity of that contract stands upon the same basis as the first, since it was made without any •other consideration and is substantially the same as the first, .so modified as to include the Chippewa Company as a third party, as it was understood in the negotiations and at the time of making the original contract that the St. Paul Company in fact represented the Chippewa Company as well as itself. Especially would this be. so if the Omaha Company .is forced to rely for its title upon the act of 1883 instead of the act of 1882, as suggested in the case cited. The only ■considerations for the agreements here sought to be enforced -are such as are specified in the fourth subdivision of each •of the contracts. The mere option given in the third subdivision cannot be regarded as a consideration — much less .a separate and independent consideration. The clause therein to which the arguments have mainly been directed, as found in the second contract, reads as follows:

“In consideration of the above agreements, the said parties of the second and third part hereby agree that they will not make any effort to procure said lands to be granted to them, or either of them, or aid or assist any other party to procure the same, except the party of the first part, and that they will render to said party of the first part all rea[242]*242sonable and proper assistance which thejr may be able to give in procuring said land grant to be given to the party of the first part by the legislature, and will aid said party of the first part in any negotiations which it may set on foot with the said Chicago, Portage & Superior Railroad Com panj*- for the purpose of acquiring the same.”

The able and learned counsel for the plaintiff insists .that the presumption is always in favor of the legality of contracts, and hence that the “ effort,” “ aid,” “ assistance,” and services thus agreed to be made, rendered, and performed must be regarded as such only as were not illegal, improper, or vicious; and then it is assumed that if such effort, aid, assistance, and services were lawful in themselves, then it was competent for the Chippewa, and St. Paul Companies, respectively, to contract with the Omaha Company to make, render, and perform the same. In support of this contention, the same counsel suggests numerous things which the Chippewa and St. Paul Companies, respectively, might innocently have done under the contract. Among these, it is claimed that such company,

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Bluebook (online)
44 N.W. 17, 75 Wis. 224, 1889 Wisc. LEXIS 44, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chippewa-valley-superior-railway-co-v-chicago-st-paul-minneapolis-wis-1889.