Sunbury American. [volume] (Sunbury, Pa.) 1848-1879, 1873-08-08
miscellaneous.
RAILROADS AND CANALS.
SpeecL, ocEEOm. Joseph BaiIy,

Of Perry County, a Delegate 10 the COnren-
ton to amend the Constitution, Dclirered
! July 10h, 1873.
! The fifth section of the article on Rail-
roads and Canals being under 'considera-
/ ton. Mr.. Joseph Baily, of Perry, made the
| following remarks
MIR. Dlny said If the people Of Penn.
! sylvana are to have such safe guards Iu-
COrporated in the Constitution az to afford
them protection from the dangerous power
of railroad monopolies, then other RENE
dies will Eave TO be adopted than those
/ contained in the report of the committee
of the whole. ii is true that there are ma
ny sautary provisions in that report, but
they are all rendered nugatory by the
| sweeping powers contained in the last
clause of the fifth section. The section
reads as follows:
mo railroad or canal corporation doing
! business as common carrier shall, either
directly or indirectly, hold, guarantee or
| indorse shares in the capital stock, bonds
or other Indebtedness or any other corpo-
ration, individuals or partnerships, ercea
those doing the business Of common carriers "
If gentlemen will examine the section
carefully they will perceive that if the eight
last words were not there the section would
contain direct prohibition to deal ia each
| others stocks and bonds by railroad and
canal companies, but the insertion of them
changes entirely the character Of the Sec
| ton.
This power to purchase the stocks of
each other, together with the power to pur-
chase or lease the chartered franchise Of
each other, has been the fruitful cause of
| building up the great monopOlics which
now stretch themselves like great giants
across our fair Commonwealth. With
such power these great companies can pre-
! vent the construction of rival roads by SIM
| ply purchasing majority of their stock,
thereby changing the ownership aud di-
reciion. The fourth section of the report
| prohibiting the consolidation of parallel or
competing lines is rendered nullity by
this power to purchase each others stocks.
Before a competing line can be built and
in operation, majority of its stock will be
secured by its more fortunate ncighbor,
and absorption will be the consequence.
If the Convention deem 1t wise TO legal
/ ize monopolics, then the proper plan has
been adopted in this fifth section. But if,
on the other hand, this Convention con-
siders the rights of corporations as subor-
dinate to those of the people, then this fifth
section should be amended by a provision
prohibiting railroad and canal companies
from purchasing each others stocks, or
chartered franchise or leasing the same.
] offer this amendment with view Of
! protecting the rights of the people, and in
no spirit of hostility to any company. |
VIII never consent to deprive any railroad
or canal company of any right essential TO
their usefulness as public ins tilutions but
to confer powers injurious to the weil.be-
ing OF the institutions 0S thG Common
wealth is another thing, aud, 50 far as |
! am concerned, will be resisted.
j believe the amendment will operate as
an eilectual remedy for many of the evils
complained Of 1t contains nothing new (;
nor is il the radical and dangerous mea-
sure that many persons believe il to be. 1t
only restores the provisions of the original
charters of all the older railroad compa-
nies. The Philadelphia aud Reading, Ian
caster and Harrisburg, Cumberland Val
! ley, Minehill and Schuykill Haven, West
! Chester Valley, and many smaller railroad
companies, had no grants Of power in their
original charters to buy the stocks or fran
chise Of each other, but on the other hand
such grants were scrupulously withheld.
/ These are the oldest railroad companies in
the State. The Pennsylvania railroad com.
pany. chartered in 1876, had no such grants
| OF power in its original charter, nor could
/ it have obtained such grant at that time
These grants have boen insidiously obtain
ed from tine to time by special legislation,
and have been the fruitful source cf the
! corruption aud Generalization of legisia-
tors aud other pablic men, and not until