The Daily state journal. [volume] (Alexandria, Va.) 1868-1874, 1872-12-16
MONDAY EVENING, DEC. 10. 1871
GENERAL RAILROAD LAW.

GENERAL hAAL0OAD LAW
An acquaintance with the history of rail-
road companies and Of their organization
and general operation IN this country, is
essential to q clear understanding Of the
laws which should practically enter into
their successful management and govern
nent in the future. In some of the mo.
narohicai governments Of Europe, where
railroads have been considered as sp-
pendages to the prercsatives of the
crown, and where the principles Of con-
stitutional government have no recogni-
ton, tho grants to these corporate
companies have been almost as simple in
theory as they have been in fact. There
the franchise is royal one, and its grant
is only limited by such individual restric-
tons as the will Of the grantee may impe-
riously decree. A monopoly may be Gre
ated or not, just as it pleases the royal
owner and dispenser of the franchise. But
generally, in consideration Of the exclusive
grant or monopoly, the companies taking
the franchise and building the roads agree
diers and munitions of war when necessary
At nominal rates, and to surrender their
roads, with their equipment and improve.
ments, into the hands of the government
at the expiration of their charters, which
generally run from fifty to ninety years. !"
Besides this, the government retains the
right 10 regulate from time to time the
rates charged the public for freights and
avel, so that the profits of the compa-
mics shall not become exorbitant or
oppressive to other interests in the state.
The governments Of France, Austria,
Prussia, and some of the other continental
nations have exercised this control oyer the
franchise, aud made similar arrangements
for the construction of railroads.
granting charters only for specified
term Of years, after which the roads
are to revert TO the government
upon tho recognized principle that it
holds the franchise in absolute right Of its
own, and exercises control over it even
after it has passed into private hands. In
some OF the European states, as in Bel
GUM, there are government roads under
the management Of bureau, over which
the proper state officers preside, and to
whom is committed general supervision
Of all private companies, on the principle
that the public interest is the paramount
end and aim Of the government in granting
shese franchises.
The Same principles are or should be
applicable in this country, with this differ.
once only, that the franchise ia one which
belongs to the people in their collective
capacity, and the grant comes from them
as an adjunct to their prsrogatves. and
not the prerogatiye of crown. When the
first charters were granted in the United
States, it was felt that the expense Of con-
structing these roads would be too great
tax upon the financial strength Of the states.
and the most liberal provisions entered into
them, go far as the supervision and control
of the franchise were concerned. The
states not only made en- absolute surren-
der Of the right to control and operate
lines of railway, but indirectly lent the
credit of the people to aid in their con.
struction, guaranteeing to protect them
from competition, and granting other priv.
ileges Of monopoly which were pardonable
enough in the infancy Of tho system, but
which would be criminally improvdent in
view of the gigantic strides it has since
taken in the direction Of consolidated
power.
What Is now demanded at the hands of
state legislation In this country, is O fuller
recognition Of the principles which underlie
the European system, and an abandonment
Of the policy Of granting special chartered
rights by which the railroads may DO run
tn the interests of gigantic monopoly to the
dstFiment Of the collective public.
The necessity for such legislation is
becoming more and more apparent daily.
Railroads are now an absolute public ne
eessity. The very existence Of many Of
our branches of industry are dependent
upon them. They move the products OF
our labor to every quarter Of the repub-
lie, and without them many Of our most
important commercial transactions would
cease. To leave them any longer to selfish
competition and unlimited individual con-
troll would be almost us criminal an act as
1t would be to give to private companies
the right to coin money or to regulate, in
their own interests, our system of weights
and measures.
Fortunately for US, the system in some Of
the states has been under such wise regu.
l.tion and control that we are not without
tie proper light for legislative guidance.
7 &c State of Illinois was among the first
{ comprehend the magnitude OF the rail
ad system, and as early as 1910 she began
{, legislate with an intelligence and an
effect similar to that displayed by the more
lrghtened- governments Of Europe.
Sc passed a general railroad law n
t1lt year, giving to any five
or more persons who should become an in.
oo-,orated COMPANY under it, the right TO