The Lake Superior Ship Canal, Railway & Iron Co./%& v. Cunningham case is significant because it involves the construction of a ship canal through the neck of land between Lake Superior and Portage Lake in Michigan. The canal was completed in 1873 by the newly formed Lake Superior Ship Canal Railway and Iron Company, which charged a heavy tax on vessels using the waterway to recover construction costs. The case also involves a dispute over the ownership of the canal and the land surrounding it, with the Lake Superior Ship Canal Railway and Iron Company filing an action of ejectment against Walter A Cunningham. The case ultimately resulted in a judgment in favor of Cunningham, with the court directing the verdict of the jury in his favor.
The Lake Superior Ship Canal Railway and Iron Company was formed after the original company responsible for the canal's construction went bankrupt due to poor financial management and planning. The government granted a total of 450,000 acres of land over several years to support the project, and by 1874 the canal was finally completed. The use of the canal generated $8,000 in annual income by 1882. The case is significant because it highlights the challenges and complexities involved in large-scale infrastructure projects and the legal disputes that can arise over ownership and control of such projects.