Clearfield Republican. [volume] (Clearfield, Pa.) 1851-1937, 1867-04-11

five hundred dollars be enough to allow
the incorporation of companies under
the law as it now stands, surely four
thousand dollars is enough to give
them life under the new bill, when our
purpose is declared 10 be, "to author
ize the formation of railway compan-
les"
The provisions of this section alsc
initiate new policy in our State. II
imposes upon all stockholders liabil.
ity for debts incurred in construction
maintenance and operation, equal tc
the amount of their stock As | un-
derstand this, if the road be insolvent,
the stockholder not OILY loses his
stock, but must pay an amount equal
thereto upon the debts of the com.
pany. 1t is urged by the friends OF
this provision that he can only be re.
sponsible to the amount of the cash
value of the stock, and if he has paid
that, he can be held for no more. II
this be true, why insert such a provis-
ion 7 The stock, il unpaid, can be
reached by ordinary process, or, il
paid up and expended, it is in the road
and its equipments, which can be lev
led. 1t will bear but one construc.
tion, which is the one already placed
upon the individual liability clause in
manufacturing charters, viz +; that the
stockholder is liable to an amount
equal to his stock, in addition thereto.
The chairman Of the Judiciary Mr..
Shoemaker admits this to be the true
construction, and asserts its correct.
ness as principle, assuming that, like
all manufacturing companies, these
corporations should be held TO a strin-
gent rule. He forgets that this class
Of corporations stand upon very differ
ent and much higher ground than the
other class. These create and develop
wealth wherever their ramifcations
extend they are public benefit, and
nourish and invigorate all other enter
prises. All regard them as powerful
agents in producing wealth for the
State, the people and the nation. The
other class Of corporations upon which
this clause has been imposed are pri.
vate enterprises for personal gain, con.
fined in their operations to a narrow
sphere and often productive of injury
TO the mass of the people. Their priv
ileges are special, and give them ad
vantages over private capital; the
mass of the community are not beno.
fitted, and they may well be placed
under restrictions that arc totally in
applicable to railroads. 1t is contend
ed that the laborer will suffer and lose
his wages if this clause be not insert
ed. If | thought so, | would assured
ly desire its preservation, but such is
not the experience Of our people rail
roads are built by contract, and the
contractor employs the laborer; it is
the rarcst occasion that he docs not
assure himself of his pay before he
goes on with his work. Noindividual
liability clause is contained in our
railroad law of 1S49, nor does it appear
in any of the special charters hereto
fore granted Why, then, shall we
change the rule Z sOur policy upon
this subject is settled, and it is wrong
now to unsettle it. This provision
will operate as a serious hindrance in
the way of securing capital, and is an
unnecessary and unwise restriction.
1t is almost an adage in our system OF
railroad financiering that the stock
mus. be sunk once before the road
will pay, and this risk is sufficient to
impose upon our capitalists. II this
be the case, the State is still the gain
er, for although the capital is gone,
travel is facilitated, production is rem
dered easy, and the hidden resources
Of the State are developed.
The proviso to the dfth section linn
its the new companies to certain spe-
cifc rates of toll upon coal, iron ore,
pig metal, lumber and agricultural
products. This provision, in itself, is
wise and just, and commends itself to
our Judgment as a protection to the
people; but when we remember that
the rates of toll herein fixed are the
maximum, and that every railroad
company in existence in the State is
now charging higher rates of toll than
these, IL becomes apparent that this
is an unjust discrimination against the
new companies, and that some rule
should be adopted that will bear equal.
ly upon the old companies, as well as
the new, and also save the people from
enerous charges.
In offering the amendment TO the
seventh section, authorizing connec.
tion at the State line with railroads OF
other States, and empowering the ex-
ecution OF contracts win them, 4,
seemed, to my mind. so plainly ncccs-
sary, so vitally essential to the success
of the system, so clearly conducive to
the interests of the Commonwealth,
that l hoped for its success. In this,
as in our other efforts, l have been
disappointed. TO myimmediate con-
stituents this is vital amendment.
1t is for them a practical good, an in
dispcnsable element in the healthy de.
velopment of their incxhaustiblc re-
sources. By your decision they are
remitted TO the future, and to that
future, and the tribunal of the people,
they confidently appeal.
Other amendments less vital than
these have shared their fate With
these amendments, the bill would have
been useful and practical; without
them, it is but the vehicle into which,
eventually, the machinery necessary
to its harmonious and beneficial work
ing will be put.