James Clark McReynolds

“ October 1, 1889, with the express assent of the Superior Waterworks Company and in consideration of the waiver of certain rights by the latter, the city of Superior amended section XIII Ordinance of October 15, 1887, so as to provide that, if purchased, the price to be paid for the waterworks plant should be ascertained by capitalizing the net earnings of the preceding year at 5 per centum. ”

“ The power is one of regulation and control, and does not authorize interference with property rights vested under the power granted. * * * The reserve power stops short of the power to divest vested property rights, and is embodied in the state Constitution for the purpose of enabling the state to retain control over corporations, and must be construed in connection with the other provision of the Constitution to the effect that private property shall not be taken for public use without compensation. ”

“ It further empowered the city—
'to provide for the purchase, construction, maintenance and operation of waterworks for the supply of water to the inhabitants of the city, and to supply such city with water for fire protection and other purposes; and to secure the erection of waterworks, said city may, by contract or ordinance, grant to any person, persons, company or corporation, the full right and privilege to build and own such waterworks, and to maintain, operate and regulate the same ”

“ The court further said (174 Wis. 288, 181 N. W. 124) :
'The manifest purpose of the provision was to assure the water company one of two things: either a renewal of its franchise for another period of thirty years or a sale of its property in case such franchise be not renewed. The franchise called for was one having 'the same terms and conditions as may exist between the said village or city and the said Superior Waterworks Company at the expiration of the first thirty years.' The franchise which it had at that date was the indeterminate permit. That was either its franchise or it had none. ”

“ The integrity of contracts-matter of high public concern-is guaranteed against action like that here disclosed by section 10, art. 1, of the federal Constitution, 'No state shall * * * pass any * * * law impairing the obligation of contracts.' It was beyond the competency of the Legislature to substitute an 'indeterminate permit' for rights acquired under a very clear contract. ”

“ Merchants' Mutual Insurance Co., 14 Wis. *295; Kenosha, Rockford & Rock Island R. R. Co. v. March, 17 Wis. *13; Whiting v. Sheboygan & Fond du Lac R. R. Co., 25 Wis. 167, 3 Am. Rep. 30; State of Wisconsin v. ”