The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1871-04-19
Centinne.i from tae srran.i rrn,.I

the Schuylkil region, and representing yearly
tonnage OF over four millions tons, refused 70 send
ton of coal et the exorbtant rate of wages de-
manded by the Workingmen's Benevolent Associa-
Iont ana 9io not every operator belonging 90 that
Board testify that charges upon the Reading rail-
road had nothing whatever to do with the cessation
OF his shipments It is true that one coal operator
used the word prohtbtory, in speaking of our pre-
sent charges but, as he Is about the only one who
has kept MS colieres constantly at work, it will
readily be seen that the prohibition has in
ner affected him: and all tho others have testified
that at the rate Of wages demandedby the working
men, they would not have started their colleres
ner sent one ton of coal the railroad matter
how low the charges for transportation might have
been.
But if we have abused or msused our powers, It
must have been to the injury of some one. Are
che coal operators here 10 complain OF us? DO the
manufacturers who use coal say that our course
has injured them? Above and beyond ALL is the
great body of consumers of coal represented here
asking you for any relief against us? mol The
coal operators say that our course is iustihable
one. The iron manufacturers have sent represen-
Catlve men here TO say that we have not, in any
manner, injured them-that our course has their
entire approval; Who then complaints? Who is
our prosecutor? Upon whose information, and
for whose benefit, have these proceedings been
instituted, and the great expense of this in
information, and for the benefit, of 6the
Workngmen's Benevolent Association. And
what injury have we done to them Why,
they tell us that we have prevented them from
adding forever hereafter fifty cents ton 60 the
price of all the anthracite coal that will be mined
in Pennsylvania that have prevented them
from taking additional eight or ten millions of
dollars per annum out of the pockets of two mil
lions of people poorer than themselves and dvid
ing it amongst 900 members of their association
in addition to the exorbitant wages they are now
enabled to receive. Well, gentlemen, If this really
has been the result of our action, if while attempt
ing to ourselves from ruin, have also saved
TO the customers of coal this enormous tax, equal
at present to the interest upon $3.50 900 000 then
should be considered as public benefactors rather
than as criminals. II a should attempt to
blow up house with gunpOwder for the more graft
fcation of a taste for pyrotechnics, he should be
treated either as a criminal a lunatc; but if,
during raging conhagration in a large city, the
spread of the flames is arrested, and millions of
rth hya NALL dfrnn fad
explosion which destroys some intervening house,
then 1 apprehend that the man who applied the
match to the powder would be entitled to the thanks
and admiration of the community. The miners
must be taught one great lesson, viz, that there
would be well for those who profess such profound
sympathy for the Workingmen's Benevolent Asso-
citation to remember, that for every of its
members interested in keeping up the price ofcoal,
there are one hundred other peOple-most ofwhom
poorer than, and as much deserving as, the
miner-who are deeply interested in having a regu-
lar supply of cheap fuel.
But, for the sake of the argument, let me assume
that an abuse or misuse of corporate franchise has
been shown to exist Does it follow that the Legis
lature of Pennsy ylvania has the power to determine
that question, and, having determined it, to enter
judgment in its own favor against the company?
Can the legislative branch of the government act
judge and jury in its own cause? The charter of a
company is a contract between the corporation and
the State m which it is provided that for any abuse
or misuse of power the franchise can be resumed
by the Legislature. But in dispute as to whether
there has been such abuse on misuse, can of the
parties to the contract undertake to decide the
in its own favor? The Constitution provides that
the right of trial by jury shall remain inviolate
and the citizen whose property is represented by
railroad shares bonds is as much entitled to the
protection Of the Constitution as he whose property
is in houses or lands.
The question of abuse misuse can only bs in
vestgated and determined by the Courts, and ac-
cording to the settled law of the land; and shall
say more upon this subject than simply to refer
you to the Connelsville Railroad cases. where, both
in the State and Federal Courts, the doctrine for
which am now contending was fully sustained by
all the judges.
1t would perhaps not be courteous to my friend
Rrnn nkxUay hn mad lie fnr fhaN Unrlr
ingmens Benevolent Association, ii did not refer
to two three points made by hun during the
course of his argument. He had been poring
the report of the Reading Railroad Company to the
Auditor General, and he discovered, by some
fahOmabe process of calculation, that the Rail-
road Company, out of about SS, 900 900 of gross
ceipts upon COAL had earned over 900 900 of net
profits. Now we all know how valuable to his
clients Mr. Brockways services as a lawyer
but if he succeed in demonstrating to the share
holders of our Company that we made so much mo-
ney. think his services as railroad expert would be
worth at least half million of dollars per annum,
fear, however that no other demonstration than
the actual distribution of the money would satisfy
those of who have been accustomed to believe
that net profits are simply the difference between
gross receipts and actual expenditures Ii this six
millions of dollars or net profits exists, the money
must be somewhere. AS Mr.. Brockaway has dis
covered the existence of the profits he must be held
responsible for the production of the money; and,
on behalf of our shareholders, must ask him to
show me where can lay my hands upon it, for it
belongs to us. Until he does that, must continue
10 believe that he will remain more celebrated as a
lawyer than as an accountant.
trust that will not be considered egotistical
when say that | believe | know more about this
question of profits than Mr.. Brockway does. know
that last year transported 800 900 tons of COAL
and that we made but 81 cents per ton, which is
more than could have been made if we had had
simply owned our coal cars, and had hired them TO
other railroad companies. That is, in consequence
of the long suspension caused by the order OF the
Workingmen's Benevolent Association did not
make any more money out of capital of $20 900 900
invested in railroads motive power and cars than
might have made out of So, 100000 of capital in
vested in cars alone.
When MIR. Brockway speaks of the enormous
profits realized by coal operators, think he is still
further from the real facts than he was when he
announced his discovery Of railroad profits. do
not believe that the aggregate capital invested in
realized an average income of 2X per cent. to its
owners. There have been, of course, some for
tunate adventures; but, taking the good with the
bad, very much doubt whether even ~ per cent.
per annum has been realized upon all.
But in his examination of that seductive volume
the railroad reports, Mr.. BrockWay has found an
other mares nest, and with great confidence he
announced that he had ascertained that the Della
ware, Lackawanna and Western Railroad Com
pany has actually cheated the Statdout of 5000 900
of taxes. Now, know something about those two
kinds of persons, natural and Notwithstanding
about men and something about corporations. know
that all men must die, and that i'm Pennsylvania
all corporations must pay their taxes and so long
my friend General Hartrantt is Auditor General
of the State believe that the doom Of the corpora
ton is inevitable as the doom OF man. and upon
this subject speak from painful experience
1 was somewhat at a loss TO know why evidence
given to show that proportion of the stock of
the Reading Railroad was held abroad; but before
MIR. Brockway got through with his argument
was enlightened. You know that parOl testimony
is frequently given to lay ground for the introduce
tion of some documentary evidence; and this tes-
timony, it appears, was offered to lay ground for
the introduction of the rhetorical flourish with
which my friend closed mis- argument, viz: THAT
British I'd, which had driven his clients from the
homes olstheir ancestors, still continued TO perse-
cute them in the land of their adoption"
F-iav ali Ii.