This railroad has had other names, but this contract has been upheld several times, even in the U.S. Supreme Court. The city was poor and the railroad was rich. Each time the city won.
This time is different? The contract hasn’t changed. The U. S. Constitution hasn’t changed. I suspect it’s the times. Wealthy big business ignores regulations, especially if their former lobbyists are in charge of the regulatory agency, get sweetheart deals for no taxes, roads at taxpayer expense, and all kinds of corporate welfare.
Apparently, if you’re a big company with lots of lobbyists you can just void existing business contracts with local governments at will. It doesn’t matter if you hurt a town that gave you large sums of money and land. The workers don’t matter anymore.
https://www.palestineherald.com/news/php-letter-to-the-editor-fighting-union-pacific-worth-the/article_b4ed152e-1e1a-11ea-8884-cb5a24c3108c.html