New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1865-05-09
.rr.TOK FOLGER's SPEECH ON
THE NEW.YORK CENTRAL FAN T.
BILL.

BILL.
We present some extracts from Mr.. Foiger z
elaborate argument in the Committee OF the " uoio y
nc Senate April l3 1865 on the bill TO rehe'e Wv
EewYork Central Railroad Company from the res''''
ton TO two cents per mile fare fiOm way passens
Mr.. Folger discusses first the question "he'H0'
limitation in the consolidation act was "o. w re-,
Of a bargain between the representatives VI W -,
spt companies and the Legislature anu " 49,,
ouo,es the following testimony from 'uDs'
Of the counsel for the Company IL, h.ro bcon
,T,. 49,, ,issrent companies which nave oc.n
INC l.I '' ~. ,be defendeul's corporation VIZ,
S - rasneetiye charters, authorized w 10
Tor fare for passengers from net Of 1853
~ etsn iJ an implied contract was enlelo" od I'M
n.ao The State and the ten companies tbe-, as
r, ~ win the defendant tePiesehu,I c,,nany
sac Gct' w " rS TewYoik Central Railroad Soihi'u!
S an s mart TO reduce ts fare RON sly, NV 20 two
80 three cents rliie for eaeh wa. ,rort 10 the
.an,s. and the State agreed on us pau ~ -, ornora
Wy Central Elilroad Company one DIV V =, tbe
Ton repreeentng the ten eouptnesl, ~ privilege of
sther privileges speelned Oy i"e"Sad during the
Sns,ap,ting nroperty upon It's r'lhVau uui"7 ,rc.
ea, fee from toll. These were mu'. -,
mcnts being respectively the re deeudnn,
NJ In nnrsnance Of tins contract u'e uee'". -,
Iod the Vav passenger fare Of The ten com"li ~
seu san, mile and has continued that iaTe al sue"
reduced rate to this day
And then proceeds
IN, 7 chance 10 have further information upon this
subject An able Peqecss1f ar n wb) informed nc
o. en-, ~ the later steps IN the passage OF thus eGnsoh-
Saion act bv which it reached 10 present lo ~ IL We
hanging in Inc balance Ii was doubtful whether w
tSn Seyonld mass the senate and become law. lnese
CORPORATIONS here pressing LOT tns la"' J'et "
thew are now here. in their continued GO, 800 80
uressing for the passage OF thS plli blhctcnt
ators resisted il. They thought-and wisely though
that the operation OF the act would be 10 Si,a'e
mighty neutrality-suspicious. a moiopoY-"nlyI5 -
Te0ne could not resist and with which There couu ~
no com petition FOX way trayelthet by the law WouI
practcany be acquired the sole route ana IiSAt y,
irsvI and of carving messengers between Buffalo and
ALBANY and intermediate points, anu th"t Aa'ls SUI
power the people could not resist II or us tA'co
hatbev what thew might These Senators sat mere ana
ressted sny act OF consolidation. for these reasons
The senator 70 whom ! oude (Nr. James Muhr'e o'
OnoRdags) consulted with John Wilkinson OF o!IsoIse,
one of the most sagacoUs railroad managers VIZ nh
lived in this s. ate and asked hin upon his honor anu
as tie result of his experience IN the mauagement or
one Of these corporations at what laIe per iV s ,e
a having profit. Mr.. Wilkinson Informed him that Two
cents per mile An Ampe ia.v ~.
Nouroe drafted the seventh section OF Inc cohsoiluA
sion act which is in these words IL, ..,.
SECTIoy = When any two more OF the railroad com,
ranir named this act dated such cono'aite
company shall cary passenger 0H 1AeH Iosa al ie'e o'
60 exceed two cents per mile. go, -,
And said 70 those petitioners for the bill and TO the
friends Of the if you Will take TINS RESTRICTION
in the bill the measure Will receive our Voies ana hol
otherwise As understand, the bill could not hs'
become law without the votes Of Mr. Dlunroe and oil
those who thought and acted with him. Nor as IN
derstand was this seventh section proposition hastily
made In the progress oi debate and accepted or voted
in on the spur OF the moment is often the case with
ont due cciberaon. But, on the contrary u was Ge
Iberately prepared and presented to those pnsng s
measure and made the condition OF the passage OF Tx
bin and was thus accepted by them deliberately Gnl
soemny as the price. part Of the price Of the favor
fhe ricl't tie privilege gwen 20 them bv the Legisa
turc II was then agreement a contract, between
tire Legislature and this disJonted Inc OF roads 1D'
Legsliture acting for the people has never sought
be relieved from avoid is port o. the agreement
but here we have the pOsuans FOR that favor seekll
70 be freed from then part Of the Obligation and as
primrry step denying that they ever maze one Ihis
will not DO either III morals or IN law.
TIE REASON FOR THE LIMITATION STILL TXls1s.
1t being urged that although there may have been
contract between the company adthe state ne reason
ofrequring the limitation has ceased, 1t IS replied III Al
the value Of the granted franchise Is si tbe same
And on the other side, the side of tie people, Tho
reason was that for the great privileges granted
was felt that some return hould be mads that at ht
same time a restraint should De put upon power SC
great tlat Which tbs consolidation act Wolll car
into being and that such restraint should operate to the
advantage OF the people The restriction OF the seventh
section of that act ia limiting Tbs rate Of fare. had
c SonSe npo RE growth in wealth aud power Of tie
corporation created lest getting nell and strong.
II become the master of the people and Of the state
rather than thor beneficiary Nor was this an idle
purpose The fear Of such growth the fear Of the at
tanment of sueh strength, was not gropnoless. Al
ready has this corporation made Itself felt ~ the egs
laOR Of the State. The abolition Of tie requirement
OF tolls spcD freight carried upon II drng tie season
of navigation and the former act in relation 70 fare
70 the inhabitants OF this cheap Of rapid
intercomtn un caiOn IL was considered flat If the
people conferred n valuable privilege il tie right
20 afix restraint upon the exercise " H. which, while
IL did not deprive OF It's value should make
turn to tie donors. have these reasons ceased TO
exist DO not they press powerfully today they
did when the act was passed. They have not ceased,
should the restriction cease
The argument that by increasing passenger fares the
Company might lower it's freight tariff il, says Mr.
Folger but argument 10 induce the people to facil
itate further competition with the canals w ch
one great Of the State and Of relief
the people from taxation. And be proceeds to demon
strate further the present
VALUE OF THE FRANCHISE.
The Senator from the XXVlIlth says that these
franchises worth nothing because the Company
be competed with theoretically this Is But prac-
fcsy from Albany ~ Buffalo II is lot And as the
Senator from the XIith Mr. Hastings) las appealed
from the Senator from The ANNlIIth 10 tie statements
OF learned counsel of this Company in support Of
Of his positions antagonstic TO that taken by the Sem
ator from the XXFIIItb. too will appeal from the
Senator advocating the passage Of tins bill 70 another
advocate Of this bill outside o! this body. We have all
read. because lave al been seeking information
upon this subject the able articles written in behalf III
this Company and published as Communications oyer
the signature OF Justice in THE NEW DIRK TRIBUNE.
What docs ." Justice say That another cOrpOTatiOn
of this Kind could not be created bet Albany and
Buffalo for $50 OOOO0; that the real estate, the road
beds, tracks waterAouses depots, fixtures and appur
tenances for corporation equal u property and c6pa
city could not be obtained ana created for less than
that sum. But the New.YoYk Central Railroad in
Its inception cost such sum- At the outside twenty
four millions VI dollars us capital at the outset and
have never heard OF The whole property of the
company rated al above thirty millions Of dollars.
Whence has come then the other thirty million of dol
lars that its properly is now WORTH but from the enjoy