Stone v. Farmers' Loan & Trust Co.

116 U.S. 307, 6 S. Ct. 334, 29 L. Ed. 636, 1886 U.S. LEXIS 1764
CourtSupreme Court of the United States
DecidedJanuary 4, 1886
StatusPublished
Cited by312 cases

This text of 116 U.S. 307 (Stone v. Farmers' Loan & Trust Co.) is published on Counsel Stack Legal Research, covering Supreme Court of the United States primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Stone v. Farmers' Loan & Trust Co., 116 U.S. 307, 6 S. Ct. 334, 29 L. Ed. 636, 1886 U.S. LEXIS 1764 (1886).

Opinions

Mr. Chief Justice Waite

delivered the opinion of the court. After stating the facts in the language above reported, he continued:

The argument in support of the decree below is :

1. That the statute under which the commissioners are to act impairs the obligation of the charter contract of the Mobile and Ohio Railroad Company;

2. That it is, so far as that company is concerned, a regulation of commerce- among the States;

3. That it denies the company the equal protection of the laws; and deprives it of its property without due process of law;

4. That it confers both legislative and judicial powers on the commission, and is thus repugnant to the Constitution of Mississippi; and

5. That it is void on its face by reason of its inconsistencies and uncertainties.

These several positions will be considered in their order.

1. The provisions of the Charter on which the claim of contract. rests are found in §§ 1,-7, and 12, as follows:

“ Sec. 1. And the said company is hereby authorized and empowered ... to transport, take, and carry property [325]*325and persons upon said railroad or way by the power and force of steam, of animals, or of any other mechanical or other power, or any combination of them which the company may choose to apply.”
“ Sec. 7. That the directors shall have full power to make and prescribe such by-laws, rules, and regulations as they shall deem needful and proper touching the disposition and management of the stock, property, estate, and effects of said company, not contrary to this charter or the laws of this State or of the United States; the transfer of shares, the duties and conduct of their officers and servants, touching the election of, and meeting of the directors; and all matters whatsoever which may appertain to the concerns of said company.”
“ Sec. 12. That it shall be lawful for the company hereby incorporated from time to time to fix, regulate, and receive the toll and charges by them to be received for transportation of'' persons or property on their railroad, or way aforesaid, hereby authorized to be constructed, erected,.built, or used, or upon any part thereof.”

From this it is claimed that the State granted to the company, for the full term of its corporate existence, that is to say, forever, the right of managing its own affairs and regulating its charges for the transportation of persons and property, free of all legislative control.

It is now settled in this court that a State has power to limit the amount of charges by railroad companies for the transportation of persons and property within its own jurisdiction, unless restrained by some contract in the charter, or unless what is done amounts to a reg k iion of foreign or inter-state commerce. Railroad Co. v. Maryland, 21 Wall. 456; Chicago, Burlington & Quincy Railroad Co. v. Iowa, 94 U. S. 155; Peik v. Chicago and Northwestern Railway Co., 94 U. S. 164; Winona and St. Peter Railroad Co. v. Blake, 94 U. S. 180; Ruggles v. Illinois, 108 U. S. 526, 531. This power of regulation is a power of government, continuing in its nature, and if it can be bargained .away at all it can only be by words of positive grant, or something which is in law equivalent. If there is reasonable doubt, it must be resolved in favor of the [326]*326existence of the power. In the words of Chief Justice Marshall, in Providence Bank v. Billings, 4 Pet. 514, 561, “ its abandonment ought not to be presumed in a case in which the deliberate purpose of the State to abandon it does not appear.” This rule is elementary, and the cases in our reports where it has been considered and applied are numerous. Thus, in Providence Bank v. Billings, it was held that the incorporation of a bank without any special provision for taxation did not imply a contract on the part of a State not to tax at all. ’ In Charles River Bridge v. Warren Bridge, 11 Pet. 419, 548, the court said this rule of construction was not confined to the taxing power, and accordingly it held that the charter of a toll-bridge company did not imply a contract not to allow the building of another bridge in the immediate vicinity which would materially interfere with its revenues. In delivering the opinion of the court, Chief Justice Taney used this language: “ This act of incorporation is in the usual form, and the privileges such as are comfnonly given to corporations of that kind. It confers on them the ordinary faculties of a corporation for the purpose of building the bridge; and establishes certain rates of toll which the company are authorized to take ; that is the whole grant. There is no exclusive privilege given to them over the waters of Charles River above or below their bridge; •no right to erect another bridge themselves nor to prevent other persons from erecting one; no engagemént from the State that another shall not be ’ erected;. and no undertak- • ing not to sanction competition, nor to make improvements that' may diminish the amount of its income.” In Minot v. Philadelphia, Wilmington & Baltimore Railroad Co., known as the Delaware Railroad Tax Case, 18 Wall. 206, 226, it was held that a provision in the charter tha.t the railroad company “ should pay annually into the treasury of the State a tax of one-quarter of one per cent, on its capital stock of four hundred thousand dollars,” without any words “ indicating the intent of the legislature that no further or different tax should be subsequently levied,” was not sufficient to show a contract binding the State not to make such a levy, the court remarking that “ the surrender, when claimed, must be shown by clear, unam[327]*327biguous language, which will admit of no reasonable construction consistent with the reservation of the power.” So, in Bailey v. Magwire, 22 Wall. 215, 228, it was held that a clause in a charter which subjected a corporation “ to taxation at the rate assessed by the State on other real or personal property of. like value,” did not relieve the company from taxation for other than State purposes. And here the court said: “Silence on such a subject,”' that is to say, taxation for other purposes, “ cannot be construed as a waiver of the right of the State in this regard. There must be something said which is broad enough to show clearly that the legislature intended to relieve the corporation from a part of the burdens borne by other real and personal property.”' In Fertilizing Co. v. Hyde Park, 97 U. S. 659, it appeared that a company had been incorporated with authority to establish and maintain, for fifty years, “ chemical and other works at the place designated . . .

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Cite This Page — Counsel Stack

Bluebook (online)
116 U.S. 307, 6 S. Ct. 334, 29 L. Ed. 636, 1886 U.S. LEXIS 1764, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stone-v-farmers-loan-trust-co-scotus-1886.