Ohio & Mississippi Railroad v. McClelland

25 Ill. 140
CourtIllinois Supreme Court
DecidedNovember 15, 1860
StatusPublished
Cited by22 cases

This text of 25 Ill. 140 (Ohio & Mississippi Railroad v. McClelland) is published on Counsel Stack Legal Research, covering Illinois Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ohio & Mississippi Railroad v. McClelland, 25 Ill. 140 (Ill. 1860).

Opinion

Walker, J.

The appellants became an incorporated company, under an act of the legistature, adopted in 1851. . They organized, constructed their road, and have ever since continued to operate it, under that act of incorporation. On the 14th day of February, 1855, after the completion of their road, the legislature adopted the act requiring all roads in the State then completed and open for use, within six months after its passage, to erect and maintain sufficient fences, on the sides of their roads, to prevent live stock from getting upon their tracks. The act imposes as a penalty for a non-compliance with its requirements, that the corporation, thus neglecting, shall be liable to pay for all damages which may be done to such stock on their road, by their agents, or engines. Appellants insist, that inasmuch as these requirements were not embodied in their charter, and have not been assented to by them, that they are not bound to conform to the provisions of this act, as it is in violation of their chartered privileges.

They urge that this act contravenes the 17th section of the 13th article of our constitution, which provides that, “ No ex post facto law, nor any law impairing the obligation of contracts, shall ever be made,” etc. The decisions of the British and American courts are numerous, and believed to be uniform, that a charter of a private corporation, not created for public or municipal purposes, is a contract between the government and the corporators. When such a charter is granted and accepted, it creates an implied agreement that they shall be permitted to exercise the rights and franchises conferred, and that they will, on their part, in good faith accomplish the objects of their creation, and discharge all the duties imposed by their charter. Being a contract, it necessarily follows, that any act of the legislature which repeals, materially impairs, or alters their rights, without their assent, would be in contravention of this constitutional provision.

This then presents the question whether this act, not assented to by the company, deprives them of any material vested right, secured by their charter. The charter is in the usual form of such acts, and if exemption from a compliance with the requirements of this enactment is possessed, it is not by any express provision of the charter, but is by implication, or legal intendment. It is a rule of interpretation, that grants made by the government are to be liberally construed in favor of the public. In other words, when such a grant is made, whilst the grantee takes the thing granted, with all the reasonable and proper means of its enjoyment, yet nothing else passes by implication. When a charter of this description is granted, the corporators take as an incident, the right to employ all reasonable, necessary and proper means for the accomplishment of the end of their organization, unless limited by the charter, or reasonably controlled in its exercise by the legislature. And in these, as well as in the express grants and exemptions, they acquire a vested right, subordinate only to the general welfare of society.

In this age of improvement, and rapid advance in material development of the wealth of the country, when incorporated bodies are created in such numbers, for the advancement of this end, and when legislative bodies grant corporate privileges with such freedom, for almost every conceivable purpose, and when' they are created for purposes which, but a few years past, private enterprise or ordinary copartnerships were supposed to be fully adequate, it becomes a question of no small moment to ascertain and clearly define their general privileges, and the extent to which they may be controlled by legislative action. It never could have been the legislative will, that these bodies, when created, should be wholly independent of and irresponsible to the government. If such was the operation of their charters, then we have created in the heart of our government, an uncontrollable power, which must, sooner or later, become dangerous to our rights, if not to constitutional liberty itself. But if, on the other hand, they, like individuals, are under the reasonable control of the government, they may accomplish the purposes of their organization, and prove a blessing to civilization, and not destructive to government.

In the formation of government, the great object sought, is to afford protection to the citizen or subject, in the enjoyment of his rights, and thereby promote general happiness. To accomplish this most important of all purposes, adequate power must be delegated to the constituted authorities, to employ the most appropriate means, not prohibited, for the attainment of the end sought. And to maintain the order and well-being of society, it becomes the duty of government to exercise that power, and not only to exercise, but to preserve it. In exercising this power it becomes a duty to maintain and preserve the person of each individual member of society, from aggression or injury from others ; and to maintain and preserve the general and special rights of each individual, and also each member of the community, in relation to his property. These duties devolving upon government are paramount, and in the absence of authority conferred by the fundamental law, it may well be doubted whether the legislature can alienate them to another body, or organization. The power thus conferred upon government is in the nature of a trust, created by the governed, and should only be exercised by the officers, and in the mode prescribed by the organic law.

The end and object of government, then, being to promote the happiness and prosperity, and to secure and protect the community in the peaceful enjoyment of their rights, and safety of their persons, it can never be intended, in the absence of express language, that government designed to part with the power of accomplishing these great objects of its creation. It cannot be intended, in the absence of the clearest expressed intention, that it was the design of the legislature to surrender this power to a body of individuals, in no manner connected with the government, and the moving consideration of the members of which, at its creation, was only to advance their pecuniary interest. Government would cease to be of any great value, if it were to disarm itself, by grant or otherwise, so as to be unable to exercise the power, and perform the duty, of protecting its citizens, in the rights, to secure which government was organized. If these powers were irrevocably yielded by the government, to irresponsible corporations, that result must inevitably ensue.

In granting this charter, the legislature has not, in terms, surrendered the right to subject it to general police regulations. If such a result has ensued, it is alone by implication. But we have seen that in the absence of express language, such an exemption cannot be inferred. When these bodies are created, although they are artificial persons, intangible, and only existing in legal contemplation, they are held to|be subordinate to, and under the control of the government to the same extent as individuals. They have at all times been required to conform to the general laws of the State, precisely as if they were real and not artificial persons. To hold otherwise, would be to say that the legislature might create an imperium in imperio. “ A government existing within another government.”

The principle governing this case has undergone much discussion and judicial consideration in other tribunals. In the case of the Providence Bank v. Billings et al., 4 Pet. R.

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Bluebook (online)
25 Ill. 140, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ohio-mississippi-railroad-v-mcclelland-ill-1860.