The Placer herald., 1857-02-07
AUBURN, FEBRUARY 7, 1857.
The Steam NAVIGATION COMPANY.

pOhes that had been organized under them
and particularly the Calforn Steam Naviga
ton Company Since that article was writ
ten we perceive that some of our co-tem-
poraries, the State Jouynal and Sacramento
Times (now defunct.) in particular have been
endeavoring to ridcue the efforts of some
members Of the Legislature to amend these
laws. These papers in their attempts to cast
obloquy upon the bill of Senator Norman,
publish articles like the following:-"We
understand that the Legislature are about to
pass an act regulating the price Of water in
the mines and the amount of gold miners
should take out of their claims" We do
not pretend to quote Language but the above
is a sample Of the general tenor of the arti-
cles referred to-
We now propose to reply to the arguments,
if arguments they may be called, inasmuch
as they are the only ones that have been
used by the opponents of Senator Norman's
Bill. The Legislature do not propose by
this bill to assume the power of regulating
prices in merchandise, agriculture or any
branch of business. This corporation-the
Steam Navigation Company-has been or
ganized under an act of the Legislature. 1t
has avaled itself of corporal powers confer
red by law-it is the law which gives it its
power for mischief. Our State Constitution
provides that the Legislature shall have the
right to amend or repeal this law.
The interrogatory will doubtless be put,
how does the law increase the power of cor
poratons' We answer that by the law the
stockholders meet, and choose three direc-
tors, under whose management the affairs of
the company are placed. The directors are
the head Of the company. They regulate
freights, passage, buy property, commence
and carry on suits build boats, and DO all
other things which persons can do, and all
in the name of the Company. If few stock
holders are dissatisfied they cannot apply to
Court of Equity for sale of the property
and division cf the proceeds as can be done
in partnerships. Their only remedy is to 90
into the market and dispose Of their stock
The directors always manage to keep the
stock at a low figure in market, and in the
end it is absorbed by few leading men.
Jaintstock companies, and partnerships
are governed by the general voice of all who
are interested--any member can at any time
apply to the Court for dissolution Not
so with corporations. They can only be dis
solved by vote Of twothirds of all the
stockholders. Hence the secret of their
power-its vast capital is concentrated and
placed under the control of Directory
This capital cannot be drawn out Whether
any dividend shall ever be declared. depends
on the will of the directory. They may
spend the receipts in salaries and the purchase
of property. Those who are the heaviest
stockholders and controle majority of the
stock, are generally the recipients of the saa-
ries The profits are thus eaten up, until
those managers absorb all the stock
1t is to regulate these evils that we ad-
vocate the passage of Senator Norman's
bill, or one of a similar import. That bill
proposes to fix the price Of freight and pas
sage which shall be charged on steamers be-
longing to companies organized under the
act of the Legislature. 1t also proposes to
fix those prices at so low a rate, that not
much profit can be realized, for the express
purpose of compelling this mammoth com
pany to dsincorporate itself. Ifthe company
does not like the act let the stockholders
meet and resolve to dissolve the corporation.
Then they can charge just what price they
please. Then, too, our rivers and bays would
be open to competition, as are the Hudson,
the Ohio, and the Mississippi. The act will
effect no one who does not choose to avail
himself Of the benefits Of the Corporation
law. And then if lie wishes to avoid the
provisions of the bill he has only to renounce
his corporation existence. This corporation
law was, as we said ia our former article. q
bad law. 1t should never have been passed. !
But it is now a law, and there is no other
way to avoid the consequences of the folly
of the Legislature in enactiog it, than to !
amend it in such way as to BENDER it use
less to those who avail themselves of it,
Suppose an act were passed declaring that
John Doe and Richard Roe and fileir asso-S
eiates should have the exclusive right 10 na-
vgale the waters of this State, and charge
such prices as to them seemed best. No
member Of the Legislature who voted for 1T
could be reelected And yet the Legisls-
sature, by means Of this Corporation Law,