The Empire County argus., 1854-04-15
EXECUTIVE DEPARTMENT,
Sncrnmnntn CITY. Anril s. 1854. I

Sacramento City, April 8, 1854. !
To the. Senate and assembly Of California:
After a careful examination, deem 1t my duty
to direct the attention of the Legislature to the
several Acts on the Statute oook concerning Oor-
norations and more particularly to the chapter in
relation to the formation OF Steam Navigation
Companies
The evils which may result from the passage Of
laws under which powerful .nonopollcs can be or
panzcd are considered of such magnitude as not
only to Justify but require, careful revision OF all
mast lcGislaton on the subject with view OF sup
plying the restrictions and limitations necessary 1of
1he protection of public rights and interests.
The fact that companies have been organized
and exist under the acts heretofore passed, it is pro-
rer to state docs not interfere in the least with the
rpht of the Legislature either to amend, repeal,
any. or all Of them.
The 3lst section of the 18th article Of the Consti-
tuition. provides for the formation OF corporations
under general laws, and that 'all general laws AVID
spccal acts passed pursuant to this section, may be
uttered from time to time, or repeated )" and the
Both section of the act Of 1850, under the head of
general proysions, authorizes the Legislature at
any time ''to repeal the act and dssolyes all cor
porations created under It,"
The right of the Legislature to amend or repeal
the several existing laws concerning corporations,
must therefore he conceded and that they re-
uire revision it is believed, will be admitted by ALL
after careful examination.
I'm the formation OF laws authorizing the organ
izatjon of companies the manifold interests of the
public should be carefully guarded either by fixing
reasonable rates in the ITSELF by vesting the
power to prevent exhorbitant charges upon com
mcrce ana travel, in the courts to be exercised
whenever necessary.
The existing corporation laws, in fact, are all
more or less defective, and require care oiul modfca
tions, to fully protect the public against 'n-
reasonable exactions.
Comparatively but few companies have, as yet,
been organized under the existing laws, and all the
notifications necessary for the security of public
interests and to relieve the people from the opprcs
sive cxactons of existing monopoies, can now be
made without material interference with the rights
or interests of any portion OF our citizens.
The Act authorizing the formation of 'Stcam
Navigation Companies and the Act of l4th April,
1853 so far as relates to the organization of corpo
rations for the purpose of engaging in any species
of trade or commerce, foreign, domestic" are
loo.e and vague in their terms, aid contain pro-
visions protecting the public against unreasonable
charges for travel or freight.
The 33d section of the Act authorizing the for
nation Of Railroad companies approved April %,
1859, provides that "it shall be unlawful for the
corporation, its officers, or employees, to charge
more than twenty cents per mile for each passen-
ger, and sixty cents per mile for each ton OF
freight" and for every transgresson Of such llml-
tatlOll, tne COrpordlOH siial pc Hdolc w 'H0 P
suffering thereby, treble the entire amount OF
freight charged to the party" And, further, that
"any reduction below the rates above mentioned
shall be left entirely to the decision and control OF
the corporation ITSELF This act, it is true, fixes
charges which cannot be erteeded but 1T also pro-
yides that the power of reducing them can only be
exercised by the corporation ITSELF thus leaving the
people without remedy against exhorbltan cAac-
tions.
The charges allowed in the section, above refer
red to- it will be observed, are enormously high,
and were the same rates applied to the Pacific Rail
road, 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 per-
anitted to be exacted under the existing law, and
their reduction placed solely in the discretion OF the
corporation itself.
Experience has demonstrated the necessity OF in
cooperating in all acts authorizing the formation
of corporate companies, such restrictions and liml-
tations as to render them, in the exercise of the
privileges granted, beneficial and not detrimental
to the prosperity of the whole people. 1t has been
well said that "there necessary evils in gov
ernment and that its evils exist only in its abuses
That 'ii the full enjoyment of the gifts of Heaven
and the fruits of superior SKILL industry and
my, every man is equally entitled to protection by
law, but when laws are so framed to add to
these natural and just advantages, by granting ex-
elusive privileges which make the rich richer, and
the potent more powerful, the humber members of
society," who have neither the time nor the means of
securing like favors to themselves, have right to
complain of the injustice of the government
Industry and enterprise, unaided by tho special
privileges enjoyed by corporations, have, in few