346 THE GROUNDSWELL. 



the public, even if the highest attainable profits were not realized. 

 The company had, it was true, a private duty to its stockholders of 

 paying the rate of interest that is reasonable in permanent and not 

 fluctuating investments. But besides this, it owed the duty of cheap 

 rates and large business, so as to build up the country through which 

 it passes. 



The common carrier could limit his business. The railway com 

 pany was in duty bound to find railway service, at least to the capa 

 city of the average freight and passengers offered. 



The common carrier was liable to have his rates of fares and freight 

 fixed or limited by law. They might say to the railway : &quot; If you 

 don t want to carry passengers for three cents per mile, you can sell 

 out to some one who will, or tear up your track and let another com 

 pany see if they can not serve the public at reasonable rates.&quot; The 

 Dartmouth College decision was referred to. Eailway lawyers told 

 us that a railway is a private corporation ; that a charter of a private 

 corporation is an unlimited contract between the State and the cor 

 poration ; that the Constitution of the United States forbids a State 

 from passing any &quot; law impairing the obligation of contracts ; &quot; that a 

 law fixing reasonable maximum rates by our State Legislature was an 

 impairing of the charter contracts existing between the State of Illi 

 nois and many or most of the railroads in it, and therefore unconsti 

 tutional. All of which was based upon the Dartmouth College case. 

 But the railway received and used privileges which the State had no 

 right to confer upon private corporations, and therefore had admitted 

 itself, by its own solicitation and acts, to be at least a corporation 

 with a public function ; and in no wise in a condition analogous to 

 that of Dartmouth College. Then it was by no means an unques 

 tioned doctrine whether all charters, even of private companies, are 

 contracts. It was a most dangerous doctrine. It implied that who 

 ever can buy or steal a bill through the Legislature shall be protected 

 in his iniquity by that &quot; contract &quot; forever after. In any event, the 

 railway was reduced to this dilemma; either the State had conferred 

 upon it, and it had exercised, privileges to which it is not entitled, 

 and is a trespass upon the rights and property of others, or else it had 

 admitted its obligation to serve the public and the public welfare, and 

 is subject to regulation as a common carrier, perhaps, in either case. 



Another class of roads were not only chartered, but received a 

 grant. The Union Pacific had received immense donations of this 



