The Illinois Central Railroad vs. McLean County: A Landmark Decision
In 1853 McLean County levied a property tax on Illinois Central Railroad land within its borders. As the railroad passed through dozens of counties and hundreds of local government jurisdictions, this action posed a major threat to the railroad.
Lincoln argued the state charter governing the railroad and state taxing powers trumped local authority. In 1856 the Illinois Supreme Court agreed with Lincoln and ruled in favor of the Illinois Central Railroad.
The decision saved the railroad thousands, if not millions of dollars. Ironically, Lincoln had to sue the railroad to get his $5,000 fee. He won. It was the most money he ever made from a single case during his entire law career.
“Allow me to suggest that it is not safe to regard the case too lightly. A great stake is involved and it will be fiercely contended for.”
— A. Lincoln To James F. Joy, Illinois Central General Counsel
January 25, 1854