The Portland daily press., 1870-08-09
DAILY PRESS.
ND
Tuesday Morning, August 8, 1870.


For the Press:
notice you take a due degree of interest in
railroad matters, posting up your readers es-
pecIally In regard to the consolidation move
ment in this State. You recently introduced
into your paper an article on the subject, from
the Skowhegan paper, rather sneeringy no.
tcing the Portland Citizens Committee CIR
cular on consolidation. Now, as this Show
hesan editor has not probably had very
large experience in railroading, while the
great and thriving State of Illinois has had
much, suppose you should offset your Skow-
hegan extract and still further enliehten your
readers on this important subject by giving
them brief statement of what the people of
LIMOS think OF consolidation and of 'water-
ing railroad stocks. They have thought and
they have spoken in thunder tones. Not only
have the citizens of one city, but of that wbo'e
State, taken the liberty to meet together in
convention and consult on the dangers of
railroad monopolies, ard of such grave mo-
ment have they considered it, that they have
embodied their convictions on the subject in
the fundamental law OF their State-beyond
the reach even of the Iagislature-and the
people have just now most empt aticar on
dorsed the convention. 1t cannot harl -
people of Maine to read and ponder
these provisions of the Illinois Censti'
especially at this particular time, bero.s 1t
shall be forever too late enclose a SYNOPSIS
of some of these provisions, cut from the last
New York Independent, with its comments
thereon, which will save me the trouble of
writing another word-at least, till we hear
from Skowhegan again. F.
Among these provisions we name the fol-
Lowing: 1. That there shall be no vonsolida-
ton o. rdit,cdy companies Owai0g parallel
or competing lines IF road 2. That in all
cases in which different companies are consol-
idated, at least sixty days previous notice
shall be given to the stockholders, in a manner
to be provided by law. 3. That no company
shall issue any stock or bonds except ior
money, labor, or property received by the
same, and actually used for the purposes tor
which the company was organized. A. That
all stock dividends and every fictitious in
crease oil capital stock or bonded Indebtedness
shall be unconstitutional. s. That no compa-
ny shall add to its capital stock for any pur-
pose whatever without a previous notice to
the Stockholders of at least sixty days.
o. That the legislature of the Slate shall
have power to regulate the rates of fare OF
freight, SO as to provide against abuses. ex-
tortlons. and unjust Determinations, and ell
force It's control by iequate penalties ex-
tending even to a forfeiture of both the prop-
erty and the franchise, in its discretion.
The Illinois convention was composed of
some OF the ablest men in the State; and, hay-
ing done its work well, the people have also
done well in endorsing its work and giving to
1T the authority OF constitutional law. In this
respect Illinois has now set an example
which other States would do well to initiate.
1t has been increasingly evident for several
years tha. great abuses of power, sometimes
grossly fraudulent, on the part of directors,
have been gradually creeping into the railway
system of this county. One OF these abuses
consist in the consolidation of competing
lines; thus giving to a single company the
monopoly cf the whole business, and enabling
it to fix its rate of charges almost at its own
pleasure. This places the general public at
the mercy OF such company, with no re-
straint upon it in the healthy competition of
rivalry. The history of railways. especially
Tor the last hive years, shows veIy strong
tendency toward this kind of consolidation.
The people of Illinois have now made it con-
stitutionally impossible in that State.
Another most glaring abuse is the specula-
system Of secretly wdsering railway stocks
by issuing new stock, not for puraoses con-
templated in the charters of railroad COM
panies, but intne interests OF stock "rings,v
who, being directors, resort to the secret, and
fraudulent mannuvers as a matter of priva'e
speculation. In this way hundreds of millions
OF purely fcticiOus capital have been added
to the stock OF railway companies within the
last fifteen pears, while The largest part of the
profis has gone into the hands of compaIa-
lively few persons. All these watering
schemes are simply so many frauds pelpetra-
ted by directors against the rights Of bona
tide stockholders. The constitution OF Iii
nois now saws that this system of fraudulent
ly issuing stock shall exist no longer; and it
will be well if the same provision Wore incor-
pOrated into every cOnst tuition of The land.