, 1869-02-01
Gt)e TeihumG.
GOV. PALMER And THE RAILWAY
fA1E BILL.


FARE BILL.
Our Springfield dispatches state that
Gov. Palmer has taken the Railway Fare |
bill under Adylsement, and that he will
no. sign 1t until the parties whose rights |
arc affected by 1t shall have an opnor-
tunity 10 flo their objections to it. We
hope that h. will give the Legislature an
opportunity to reconsider il. The State
OF Illinois has some rights to be affected |
By it, and these ought to be duly Needed.
We have given our views heretofore OF
the probable consequences Of the bill, If
it becomes law, uoon the States claim
10 seven per cent ct the gr:ss earnings OF
the Illinois Central Railway. We he
llerc that its effect can be no hing else
than to release the company iron the
payment OF that s.ipe3d, which nov
amounts to $45o,o00 per aunum, and
is increasing year by year. Tue
charter Ct the company, by virtue Of
which this seven per cent is paid into the
Stale Treasury, has been twice declared
by the Supreme Court OF Illinois to be Il
contract When contract is made be-
tween two parties, and is violated by oce
OF tttm, the party whose rights are IL
fr,nged msy 60 into court and COM
pei the other party to fulfil it a1d gay
damages for his wrong-doiuc, or he may
d.c'sra it yitia,cd ard iosfei:3d, and re-
nj the Other party to his remedy q. Law.
Tie parry who bas committed the wrong
thin comes into court in the attitude Of q
H1cng -dc,r. If he has any sa:d;ng
there at sll, 1t is an exceedingly bal
Sanding. If we suppose that h. is not
Immediate : non-suitcd, the Cours will
inquire whether the vio!stion Of contrac:
is Of that radical and flagrant character
that vitiates and disso1ves it altogether,
CT whether it is merely technical and SUI
pe1ficial.
To ars2G this question We must see
what the contract between the State and
the Illinois Central Railway Was. The
eighth section OF the act OF the Legisls-
ture incorporating the Illinois Central
Railroad Company, approved February
10, 1851, says:
..The Board Of Directors thall have power to
estabieh such rates OF toll for the conveyance Of
from ,1ne 10 time. by their by.ia.s,, direct and
The use Of esid company"
The eighteenth section of the same act
IN consideration Of The g:dsfs, pricAtgts and
{rdneAis,s herein COL fesTed upon ta1d company.
ehsli. On the n1tt Mondays Of December and Junc
in each year. pay into tie Treasury OF The sts:G
Of noa &c per e,nt1m On the gF2s9 ct foa
said .cad ind branches for the siI no1shs thvn
LeIi prcced1Ig.'
The etwcnty-second section of the act
reauires the company to pay two pei
centum additional in lieu Of taxes.
It was not in consideration OF th'
'sgrants" merely, but also of the priv
ileg.s and franchises" that the pc
centsgc OF gross receipts was 10 bo pais
into the Treasury Of the Stale. Amen.
these privileges aud franchises WAS III
right to establish rates Of toll Tor the c VI
yeyauce Of persons and property. ",
this right vital and necessary one to en
able the company to make any paYmen
whatsoever to the Treasury OF The State
Was 1t such a privilege and iranclis
that substantial violation, retr.ctio
OF Withdrawal Of the same would 60 I
the root of the contract, ant kill it in til
contemplation Ct laws We think tht
it's.
In order thst railroad may have an.
thing TO pay to anybody, it mus. posse
The right to establish rates OF toll whit
will pay, Jirst, its operating expense
seeonz, the cost of maintaining its tra.
and buildings. and, third, the intcrcs. {
its bonded debt. The average operatil
expenses Of railroads in Illinois are ski
seven pcr cent Of their gross clTnln!
Two-thirds OF all the money they rccci
is paid out for waees, fuel, supplies,
pairs and replacement OF machiucl
The remainder goes to the neintenan
Of track and road-bed, to payment
interest on bonded debt, and to the stcc
holders for the use and risk OF their ca
ital. A railroad may be operated in su
manner, or may be located
such places, or may meet such competisi
that lis receipts will not equal it's oie'
Ing expenses. The Chicago & al
Railroad, and the Chicago, ST. Paul
Fond du Lsc (now the Northwestc
both went under the Sherif's ham1
and were sold to the bondholders by I
son Of their inability to pay the interest
their debts-the former being at one t
unable to pay even the wages Of its
ployes. The Chicago s. Milwaukee, Il
road for many years. paid nothing It
stockholders. The Keuosha s Rock
Road never paid anything. The Iii
Central paid no dividends, VIC bell
during the first ten years Of its exist
certainly none tor q long pc
after its completion. Il was
structed on q line at 81
angles to the natural course of trade
travel. It was not optional with
company to construct it on any dide
line. lis course was rlgidly detued
charter. The obvious Intent and pu1
OF the State Vas to use the land {
winch it had received from Congre!
encourage the building Of road up
line which private capital and pr
enterprise would not alcp.-:o bring
DIR cultivation and settlement vast I
Of land which would otherwise re-
lnoccupied for many years. We I
bold TO say that the act Of Februsr
1851, incorporating the Central Rs:
Company, was the wisest act ever ?
by the Legislature Of Illinois, If nj
wisest ever passed by any Legislat
The United States.
We now return to the qu
whether the franchise and prl
granted IN the eighth section Of the
ter, viz, the right to establish IA
toll, was vital and necessary pos
enable the company TO pay scve
cent OF its gross receipts into the
Treasury. Every dollar OF mon
vested in the road twenty millions
was placed there On the taith and
that the company should hare the
to fix rates OF toll which would ult
~ enable them to pay the COS: Of
tion and maintenance, interest on
borded debt and remuneration fol
own cspital, over and above the
per cent eross which vas to be pail
Stale. The seven per cent OF gros
ipgs paid to the State, adt
the sixtY-seven per cent Of ope1ati
pcnses, mikes total expense &C
seventy-four per cent, leaving TIVE
per cent OF gross earnings apple
all other PURPOSES. It would be
show that an act OF the Legislature
ing the ratts OF fare on road l
through spa1eely.settled country
tight angles to the natural cou1see
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