Page:Federal Reporter, 1st Series, Volume 3.djvu/11

4 FEDERAL REPORTBR. �of the defendant is that it appears from the face of the bill that the Union Paciflo Eailway Company, Eastern Division, had no power or authority to enter into the contract in ques- tion, and that the same appears to be against the statute, contrary to public policy, and void. �1. Although the bill avers that the railway company had povrer to enter into the contract in controversy, it must be assumed that by this allegation the complainant intended to eay that by virtue of the law of ita being it had such power; and it is, therefore, necessary to look into the statutes under which it was organized, and by which its powers -were defmed Rndlimited. A corporation can possess such powers only as are expressly conferred by statute, or incidental to its express powers. �2. It is conceded that the Kansas Paciiic Eailway Company, Eastern Division, was originally chartered by an act of the legislature of Kansas as the"Leavenworth, Pawnee & Western Eailroad Company," and had, by virtue of its state charter, authority to make the contract in question; but it is insisted that, by aecepting the terms of the act of congress makingit a branch of the Union Paciûo Eailroad, it became subject to the laws of the United States relating to that road and ita branches, and was thereby disabled from making such a con- tract. By section 9 of the act known as the original Pacific Railroad Act, approved July 1, 1862, it was provided that the Leavenworth, Pawnee & Western Eailroad of Kansas might construct a railroad and telegraph ' line over a pre- scribed route, "upon the same terms and conditions, in ail respects, as are provided in this act for the construction of the railroad and telegraph lines just mentioned." �By other provisions of the act, and by its amendments, large subsidies were bestowed upon the companies building the branches, as well as upon the company which was to build the main line. I am of the opinion that by aecepting the terms of the acts of congress, and receiving its benefits, the Leavenworth, Pawnee & Western Eailroad Company be- came subject te ail the terms and conditions imposed by'thosa jacts, and that neither it nor its Buccessors could enter into a ����