Columbia gazette., 1854-04-15
SPECIAL MESSAGE
OF GOV. BI0LER,
In relation to Steamboat and Railroad
Monopolies.


In relation to Steamboat and Railroad
Monopolies.
EXECUTIVE DEPARTMENT,
Sacramento City, April 8, 1854.
10 the Senate and Assembly of Cali
formia
After careful examination, I deem
it my duty to direct the attention of the
Legislature to the several Acts on the
Statute Book concerning Corporations,
and more particularly to the chapter in
relation to the formation of Steam Nav
igation Companies.
The evils which may result from the
passage of laws, under which powerful
monopolies can be organized, are con
sidercd of such magnitude as not only to
justify, but require, a careful revision
Of all past Legislation on the subject,
with a view of supplying the restrictions
and limitati MS necessary for the protcc-
ton OF public rights, and interests.
The fact that compani haze been
and exist under the acts here
tofore passed, it is proper to state, does
not interfere in the least, with the right
of the Legislature either to amend, or
repeal, any, or all of them.
The 3lst section of the 4th article of
the Constitution, provides for the for
nation of corporations under general
laws, and that call general laws and
special acts passed pursuant to this sec
ton, may be uttered from time to time.
or repealed" and the 3oth section of the
act of 1850, under the head of general
PROVISIONS" authorizes the Legislature
at any time 'to repeal the act, and dis
solves all corporations created under it. :"
The right Of the Legislature to amend
or repeal the several existing laws con-
cerning corporations, must, therefore, be
conceded; and that they require revis-
ion it is believed, will be admitted by
all, after careful examination.
In the formation Of laws authorizing
the organization Of companies, the man
fold interests of the public should be
carefully guarded, either by fixing the
reasonable rates in the act itself, or by
vesting the power to prevent exorbitant
charges upon commerce and travel, in
the courts, to be exercised whenever
necessary.
The existing corporation laws, in fact,
are al more or legs defective, and re
luire careful modification, so as to fully
protect the public against unreasonable
exactions.
Comparatively but few companies
have, as yet, been organized under the
listing laws, and all the notifications
.c~"s.a-u for the security Of public in
erests, and to relieve the people from
he oppressive exactions of existing mo-
nopolies, can now be ;:,,sde without ma
terial interference with the rights or "a
tercsts of any portion of our citizens.
The Act authorizing the formation Of
'Steam Navigation Companies" and the
Act of 14th April, 1858, so far as re-
lates to the organization of corporations
''for the purpose of engaging in any
species Of trade or commerce, foreign,
or domestic" are loose and vague in
their terms, and contain no provisions
protecting the public against unreason-
able charges for travel or freight.
The 33d Sec. of the Act authorizing
the formation of Railroad companies,
April %, 1858, provides that
cit shall be unlawful for the corpora
ton, its officers, or employees, to charge
more than twenty cents per mile for
each passenger, and sixty cents per mile
for each ton Of freight" and for every
of such limitation, the cor
poration shall be liable to the party suf-
fcring thereby, treble the entire amount
of freight charged to the party" And,
further, that "any reduction below the
rates above mentioned shall be left en-
tirely to the decision and control of the
itself" This act, it is true
fixes charges which cannot be e.rcesded,
but it also provides that the power of
reducing them can only be exercised by
the corporation itself, thus leaving the
people without remedy against exorbi-
tant exactions.
The charges allowed in the section,
above referred to, it will be observed,
are enormously high, and were the same
rates applied to the Pacific Railroad,
passage to the Missouri line, computing
the distance at twenty-five hundred
miles, would cost FIVE hundred dollars.
and each ton of freight fifteen hundred
dollars. And yet these charges are
permitted to be exacted under the ex-
sting law, aud their reduction placed
solely in the discretion of the corpora
ton itself.
Experience has demonstrated the
necessity of Incorporating in all acts, au-
fhorizing the formation of corporate
such restrictions and limita-
lions, as to render them, in the exercise
Of the privileges granted, beneficial. and
not detrimental to the prosperity Of the
whole people. It has been we'll said
that "there are no necessary evils in
government" and that its evils exist on
y in its abuses" That sin the full en-
oyment of the gifts of Heaven and the
ruits Of superior skill, industry and e
every man is eqtally entitled
o protection by law, but when law are
o framed O. to add to these natural and |