The daily exchange. [volume] (Baltimore, Md.) 1858-1861, 1860-03-02

chants and others DESTROYS of having their bust
ness cards inserted, can be accommodated BY
leaving their orders at the Counting-room during
the day. .-....
The Bill providing for an increased representa-
ton of the private Stockholders in the Board o.
Directors of the BALTIMORE and ONO Railroad
Company comes up in the Senate to-day. After the
extraordinary vacillaton displayed by the Senate
in reference to the Bill two days ago, we cannot say
that we shall be surprised at any result. Our only
surprise has been that the Bill has found any sup
porers in that body at all. Independently of the
weghty, and as we think, conclusive objections
which have been urged against the measure, nc
good reason has been or can be assigned in its
favor The argument, based upon what its advo-
Gates pleased TO term the "original theory of the
'charter," could scarcely impose upon the simplest
understanding. 1t is, in effect, saying that a
great public work which was commenced in 1926,
when the science of rairoading was in its infancy
and which was itself an experiment--the subscrip-
ton to which was fixed in the first instance al
$4,000, 900, and which has cost $50 900, 600
should be managed for all time to come in accord
ance with the crude ideas and imperfect experience
OF its first projectors. This would be sufficiently
theory" relied upon in the present instance,
as an argument in behalf of the Bill, could be
proved as n fact The theory of the charter was,
say the advocates of the Bill, that the private
Stockholders should be allowed twice the repre-.
sentation for the same amount of Stock, which
was accorded to the State of Maryland and to the
MAYOR and City Council of Baltimore. At least
this was the ratio of representation at first deter
mined upon. In 1927, however-the very year
after the charter was granted-anoth,r act was
passed, by which the State agreed TO subscribe
S5o0O0 on condition that the private Stock
holders should double their subscription. This
was accordingly done, and as no provision was
made in the act for the increased representation
on the part of the Stockholders the effect of the
increased subscription was to abrogate the
"original theory Of the charter. In 1885, the
State and City came to the relief of the road with
an additional subscription of So, 600, 900 each
The Acts of Assembly which provided for this in
creased subscription also provided for an increased
representation on the part of the City AMI State of
one Director for every $780, 900 subscribed This,
say the advocates of the Bill, had the effect of
restoring the 'original theory of the charter" 1t
had the effect of giving to the representation of
the City and ptto ito E,r,sv.It lropuntre
Board Since then, in consequence of the issue
of dividend stock, and the sale by the city of
Baltimore Of its share of such stock, the number
of shares owned by private individuals (incudng
the city of Wheeling) has increased from 30 900
TO SO, 262, without any corresponding increase of
the private Stakeholder representation. The
charter made no provision for such increase 1t
is asked for now upon the hypothesis of ''origi-
''nal theory" which was departed from the year
after the charter passed-was temporarily
restored ten years subsequently-and which, by
the natural operation of the charter and of the acts
of 1885, has been departed from again, and now
nothing but special legislation can restore
Another argument in favor of the Bill, hardly
less vulnerable than the one we have been consid-
ering, is that based upon the alleged danger of
party politics being introduced into the manage
ment of the road through the preponderating infu-
ence of the State and City Directors. But it be
asked-would the road be altogether exempt from
the same danger in the hands of the Stakeholder
Directors? May not Stakeholder Directors be
partizans as well as those of the City or State :?
IF we mistake not the most recent as well as the
most pernicions abuse of the power and patron
age of the BALTIMORE and ONO Railroad for party
ends, was when the whole influence of the road
was thrown in behalf of Mr.. SWAMI in his first
contest for the Mayoralty, and the Eighteenth
ward colonized with its servants to secure his
election. Was that the act of the State and City
Directors? Besdes-the evils of political manage
ment ordinarily do not extend beyond an abuse of
the patronage of the road; they seldom affect its
line of policy. They are in their nature, of tenn
porary duration, and would in most instances,
cure themselves. An unwise policy may eventu-
ate In the destruction of the road and of the inter-
ests it was designed to foster and promote In
fact we cannot conceive of the BALTIMORE
and ONO Railroad being exposed to any
greater danger than that which would
arise at this time from an unchecked and
unfettered liberty of control on the part
of the private Stockholders. Independently
of the danger upon which we have heretofore
commented, of the road passing into other hands,
and being controlled by influences hostile to its
prosperity, and to that of the city of Baltimore,
it should be considered who and what these Stock
holders are, and what is the nature of their in
terest in the road. We make no invidious dis
tincton between them and persons interested in
similar works of internal improvement elsewhere,
when we say that their interest is, for the most
part, temporary and ephemeral. 1t is an interest
rather in the price of the stock, than in the per-
manent prosperity of the road. They have
bought the stock, not TO hold it, but to sell it
not as an investment, but as a speculation. As a
stock paying good dividends is worth more than
a stock paying small dividends or none at all
they will naturally seek to make dividends; but
they will be more anxious to declare them than to
earn them. As dividends represent the difference
between the receipts of the road and the expenses
Of working it-they will endeavor to increase the
former and to reduce the latter; and it must not be
wondered at if in seeking to enlarge the revenue
the road they sacrifice some of the interests it vast
intended to encourage and protect, and if, in the
strlcness OF their economy they should suffer its
efficiency TO be impaired. The result of such a
policy will be felt by their successors and by the
public, not by them; and it is not to be expected
that men should feel any particular interest in the
stock or in the road, after they have parted COM
pany with both. This is the evil of stock iobbing as
contradistngushed from stock-holding interest
controlling the road-a difference as palpable as
that which exists between the owner of horse
and the hirer of horse and which shows itself
plainly by the different degrees of care taken of
the animal by the two. Now it is the stock-iob-
bling interest, Wilhelm the case of any road
whose Stock like that of the BALTIMORE and ONO
road, is a leading fancy in the market and is con-
stantIy changing hands-is most likely to deter
mine the complexion and influence the views
of Stakeholder representation. This is why
we do not wish to see that representation in
creased at least not to the extent of destroying the
praponderance of that of the City and State, which
wevaue as the most important conservative element
in the Board, and which can not, in our judgment,
be removed without great risk of injury to the in
teresfs of the road and the public We have here
toore considered other grounds of objection to the
Bll--but failing all these, we should take our
stand on those we have above stated, and find in
them sufficient justification for our opposition TO
its passage and for its rejection by the Legislature.