Lewistown gazette. [volume] (Lewistown, Pa.) 1843-1944, 1867-03-27

the various chartered privileges, the pre-
occupancy of nearly every possible rail-
road route in Pennsylvania with the
privilege of branches and lateral roads in
a large majority of the counties. AS shown
by official reports, it has, besides nearly
eleven hundred miles of roads in Penn
sylvania, its extensions to Marietta, Co
lumbus and Cincinnati, Ohio, and to Chi
cago, Illinois, and holds large, and, in
some instances, controlling amounts of
stock in other railroad companies. When
such extraordinary powers are attempted
TO be granted for an unlimited period,
consider it palpably contrary to the spirit
and intention of our institutions. The
present directors, it may be assumed, are
honorable gentlemen, for they assert they
have good intentions for the public inte-
rests, as well as for those of the company;
but time may effect a change, and Il new
board that may not recognize their duty
to the stockholders and to the rights and
interests of the people, and forgetting their
patriotism, might be found arrayed against
the country when its services were re-
quired. 1t is not an impossible hypothe-
sis that its capital stock might be extend
ed to one thousand millions of dollars, or
even to an amount equal to the present
national Indebtedness.
The whole control of the institution,
and of the issue of its bonds, necessarily
lie in the hands of a few directors, and
not in those of the stockholders whose
real interests should be represented. The
facilities by which any board of directors
could perpetuate power in its own hands
might be an inviting temptation to mo-
nopolize or engrOss a sufficient number of
shares of stock by purchase, and proxies
from non-residents too cOnfidingly given,
or perhaps by fraudulent issue, to control
the vote of the stockholders. The same
board might by fair means thus be per-
petuated, or by a dexterous mixing or
misrepresenting of accounts, with not
much risk or responsibility on their part,
might fraudulently control forever the af-
fairs of the company. In my opinion the
stockholders themselves, who, like the
people in our form of government, are the
true source of power, should closely ex-
anime into the responsibilities just pre-
sented if they would preserve and perpet-
uate their own rights within the corpora
ton. | am not aware of any instance
where company has been destroyed by
the immediate action of its stockholders,
but where too much power has been placed
in the hands of directors and officers, of
reckless, speculative and adventurous
character, the instances of failures and dis
grace are almost innumerable. In all the
bearings which can be taken upon this
measure, in the event of the directory of
the road passing into the hands of ambi-
tiOus and unscrupulOus men, / can see
nothing but an eventual monopoliZatiOn
of all the railroad privileges of this State,
and perhaps of the United States, and
"such other purposes connected with its
business as the board of directors of said
company may deem expedient." They
being their own judges, what might not
IL. ,lor 4 -
iness? May not any and almost every
branch of industry ry-manufacturing, agri-
cultural and commercial-be included p
There is danger, too. that with such vast
power, such ramifications in the business
departments of the country and such un-
limited capital, there might be reason to
tremble for the purity and sanctity of our
elections, or what is equally as bad, that
our governors, Legislators and other State
authorities might be affected with the
Establishments of its power, its offices and
its wealth.
They could make the rich richer and
the poor poorer" They could, in a word,
make their organization monopoly-a
term which a distinguished jurist and
law-giver defines to be ''that which grinds
the people between the upper and neither
millstone;" and its power would become
so great, that should any citizen, or even
an officer of the Government, attempt to
restrain it within its chartered limits and
proper franchises, he would be made to
feel its whitening influences. There is
always danger in the creation of monopo-
lies, for in proportion as they are increased
are the rights of the citizen abridged
Had such proposition been made in the
early days of the Commonwealth, or even
quarter of a century ago, or when this
company applied for its charter, it would
have been rebuked by the people, without
distinction of party, upon its first annun-
citation.
I am not inimical to the Pennsylvania
railroad company; but [ am positively its
friend. | honor the management for the
energy displayed in the share they have
taken with others in the development of
our State, and am determined that it and
all other corporations shall be protected
and defended in all ther rights, privileges
and franchises already derived, or that
may hereafter be derived from legislative
action; but when they ask for unlimited
privileges which can and may be used as
engines to threaten, endanger and control
the interests and perhaps the very action
of the government, by the absorption of
our internal Improvements and every
branch of industry within the State, and
the holding of many thousands ofour peo-
pie in dependent condition, they must
be refused.
1t is said that other corporations have
had unlimited powers conferred upon
them, and no evils have resulted. Butas
far as such cases have been cited, find,
upon examination, that they were almost
without exception, conferred upon the
stockholders on terms, and with limita-
tions, and not upon the directors. And
if there were such, and they were known
to be wrong in principle, it is one of the
best and strongest reasons why the prac-
tice should be discontinued. Ifit is right
that the Legislature should confer unlim-
tied powers upon one institution, it has
right to multiply such corporations at its
pleasure, and if they should be managed
by those whose predictions and interests
would be similar, the control of the Com
rnnnwealfh would be irrnfriaVahIU com