Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1870-03-08

COOtTOl any vi tuSm. Chc mas uot Oh c.1"1'
representation, nor equal voice with the private
stockholders, in proportion to her interest, in
auy of them In other words, the majority,
by the terms OF he law ITSELF is subordnated
10 the minority. La politics have always .
yielded my assent to the general principle that /
the msjority should rule, and [ can see DO rea- /
son Why the same principle should not obtain ,
in stock companies. II the state is 10 be l !
co partner in business with any OF her citizens, |
then let her be co.equal partner. If she owns
majority Of the stock, then, if she chooses, le!
her control the company. But am NOT ony
opposed to the unequal CO partnership, but
am also opposed to any c0.par'nershlp what
ever in matters OF business between the govern
mcnt and private persons. 1t has rarely prov.
cd successful to either party, and success is
the criterion by which tho world is accustomed
T., test the merits OF business as we'll as OF men.
The highest railway stock in Virginia to-day is
that company in which the state holds the
least. while the lowest is that one III which he
| holds he largest proportional amonnt OF stock.
| lift |, urged that the state ought not to o"n
and control the internal Improvement c0mpanles
because ut' the danger that they may he uSea
BY the dominant party Tor political purposes. II
may he successfully answered that the saIn1
| ohiection even in a greater degree, exists a5 IL
4 subordinate interest. In the former instance,
the Sa!e authorizes wou!d be- directly aT.1
wholly responsible for the management, while ~
the latter, that responsibility would be divided
between them and The private Stockholders, ana
u division OF responsibility aud OF coun'c!S "o9'
r,t TEND 70 promote efficiency Or honesty Ii
it be urged that there would be danger o! these
nrrut cOruuralions, exclusively Controlled by
nriya,e persons, becoming vast end powerful
monopolies it may lie answered that the same
J danger exists where, as here, the state Interest
is subordinatci 10 the private. Each Is anu
J must be regulated and controlled by the law,
and this en- he ~ ctfectuay r0!orced IN the
} ona case a. the other. ltappcara to lnc that
the pccu lar and appropriate spber: OF the
} state government l. the administration OF pub
lie affairs, and cx pcrien:e teaches that when 1t
J goes beyord that and enters the doulan Of
nriyatc business, misfortune aud disaster
j usually follow But do not, 1T this tImc,
intend to argue these questions as length. NY
object is simply 10 state some ot my oRJcctH'nS
10 the Internal Improvement policy Wh'ch mas
heretofore prevailed IN the state and, II posi-
biz, rnd some mode OF mitigating the evils
} resulting there!rom. Tines; objections arc not
= urred ia Splfit OF ccDrurc, or VI unlrrnn'Y
and disrcspccttu criticism oi our past IrgI;a-
ton !0r it. IL p.r,lhiG thai n The lght o! that
, neriod might nave corcurrcd III this same
{ rolicv, when HOW believe to lie erroneous.
+ 10 the language oi one OF Virginia j greatest
| soos Il have bat onc lamp by which my feet
' are gudcd ADD that Is the lamp oil eXpn-
$ ri.ucr." II experience has taught that our
! system j.. wrong, it is OUT duty to right Ii ! but
in doing this, great care must be used, e5' NJ
G rem ady prove 10 he worse han tie evil. Inc
e srstem has tcrOInr - ultimately lnter~0Vef
with our state ali tira, - fal2ili ct through every
!, vein and artery ct the body u0itIc, that All:
III c,1IIf I,ntv ALAG
would result inevitably IL very great disaster
; bo,i, to tie stat shd to the companies. The
change, ii nny !, now possible. sior:h b.
l,roulhf a,ynt gradually and in such manner
D as . tuy protect the interests OF the state, OF
the private stock hoiIeis, and at the public.
} Can it not b., inaIguratcl and eventually ac'
cGiurIi-hrd by permitting each company 10
} redeem l@ interest Of The ia c therein within
i reasonable time hereafter, AT rs option, ny
surrcGuerrn to the state, 10 be Cancelled, the
bonds n the state 10 an amount equal to such
Interest," lIthis Dcrmis ion be glTcn, Is 1t hot
} more than probable thal nearly or quite al the
stocks ,Jrc enumerated az rapidly increasing
} In raIu.. anI amounting to $lOO4S. 267 81
vii, within the next inw years, be redeemed
u:ll .l.n .r.ic 'l.ht reduced that amount, aud
the .aop'c prGnorionnly relieved from taxa
to!. ans; he con panios themselves BE- managed,
owned. and conirDled by eur own people? The
state il already Committed TO THIS policy 10 the
case Gi the in. slrcakc and Oh!j railroad com.
p.ny, above referred t., and again !,y al act
passed April IS, 1867, authorizing tic t0lma'
lon IT the Atlantic Mississippi and Ohio
rairr,I c0nl;any, by !hc consolidation Of the
) NCrinE and Petersburg, South Side, Virginia
and Tennessee, and Virginia ard Kentucky
railroad casnpaaica Bj' the last act the com
pan? was cpm applied 10 purchase the stock held
by tn. ste il Tie tour Companies named be
fore purchasing the bonds held by the state as
security for loans, While no such Wise provision
was Incorporated in the charter OF the Chcsa
prake anl th;o rafoal c0upaBy. As the
law low stands, the Chesapeake and Ohio
company m,y any day redeem, or pay OF IN
state bands, is bonded Indebtedness TO the
state, Oh which, s. long as outstanding, Ii Is
compelled 10 pay aHnua! interest TO The state,
and may decline to purchase the stock, which
Jaws no interest aud from which no revenue
IS derived to the state " neither this was an
oversight on The part OF the legislature or not
it was wrong, and ought net 20 he 70 lowed asa
| precedent in the future rs before stated, the
first mortgage bOii.% ~ all the companies held
by the state are amply sccnrcl, and at the pre-
sent time are Of higher market value than
state bonds, and from them he state derives
SURF aad certain annual revenue, while tie
stocks o. none oi them, save one, approximate
to the value u slate bonds, and from none Of
them does the .tlG derive any benefit whatever.
The principle Of the Atlantic, Mississippi and
| Ohio bill i he cofrGr on, Let these coin
| panlcs redeem the Interest In them held by the
state al the rcilicst Moment practicable with
an equal amount TT state b0uds, but compel
them, III such redemption. to commence with
that interest which is the lowest and close with
| that which is tbs highe-: in value By the
adoption uf this system, We shall gradually
and without any violent changes, ~ lrw
years, accomplish two very desirable results,
viz: the dissolution 9! the unnatural, unequal,
| and unfortunate co.pirn"lshlps between the
state add her citizens. ard 1t tho same time
tic reduction Of the state deb. to the extent
u! these interests. In the meantime, aud un-
al these companies Ate abe % redeem the
safe = interest in thHn, that interest may he
made available in aid Of the liquidation ol our