The Toledo chronicle. [volume] (Toledo, Tama County, Iowa) 1873-1924, 1873-03-13
The Railroads and ths Peo.
plea

u . w
The consolidation of numerous
raiirord companies into few gigan-
Ire monopol,ss, welded by such men
as Scott, Vanderbilt, Gould and 9th
sr magnatcs and millionairss, is hook.
Cd upon by many thoughtful men as
one 81 tho most portsntous sghs OF
tho times. Il this process Of ABSORB
ton shall 81 ccntinued-and there 10
every Indication that it must 90 On,
unless impeded by legislation-halt
dozen large capitalists will soon
have the control Of the best part Of
our vast network Of railways, aud
weld 4 power superior to that OF
the great feudal barons during the
middle ages. Having at their dis.
posal an annual revenue OF several
hundred millions Of dollars, and
welding a patronage larger and
moro unlimited than that OF any
monarch, our gf. at railway kings a.
ready exercise An alarming control
ever the Law making branch of Gov.
eminent. ov~r-awe aspiring pollti-
clans, cbssin invaluable privileges
from vsnal. State Legislatures, and
presume even TO determine the de-
cisions Of the Supreme Court. I'm
like the despo,ism OF single indi-
vidual, or an assembly, which dlsap
pears with the death OF the ono or
the disp srsion OF the other, these a.
piring corporations never die; and
when they combine together, as 1T 10
their tendency and manifest interest
to do, the tremendous power they
arc able to WELD must, in the end,
bring the people into absolute boud-
age to them, if their power be not in
some way curtailed. The fact that
public sentiment is becoming alive
to tho Importance OF this subject, 10
to be regarded as hopeful indica
ton that some means will ere long
be adopted TO checkmate the aggres
sive tendencies OF these grca. corpor-
atoms.
The Chicago Railroad Gazette,
while admitting tina. the cost OF car
rying bushcl Of Gram from that
city to Now York by rail ia more
than the farmer realizes for vt, and
that relief is needed. argues that the
dividends paid TO stockholders do
not largely increase the charges OF
transportation, and therefore have
little effect on the prico OF Gram
Let US SEQ about that. Railroad cor
polations are the creatures OF special
or general ac,a of the Legislature
which makes the grant, and have no
powers but those which are express
ed or implled-the watering OF stock
not beng one Of them. The thing
created by this Watering process is
not stock. nor yet ar evidence OF
debt, but = certificate which pur.
ports to entitle the holder OF it to
payment of principal sum named
rateably with other like certificates,
at the pleasure OF the company, out
OF the future earnings, with divi
lends thereon at the same rates and
tunes rs dividends shall bs paid up.
on the shares gifts capital stock
Power is reserved 10 the company
to ccnyert the certificates which are
made transferable ~ ii stock-isto
the capital stock at par. The sum
named reach certificate is part OF a
gross eum which is fixed upon by
the directors or some one voluntar.
y. as representing supposed or tho
pretended value Of the particular
rosl and its equipments beyond the
amount of declared capital. The re-
la,ions OF the company to the pub
nc are charged instantly and immen.
sely by this process, inasmuch as
earnings are required to pay divi.
dends on tho true and the quasi
stock than upon the former alone !;
nd consequently an increased rate
for transporting passengers and
freight must b. charged. Az the
creation OF Unauthorized and
spurious stock affects in serious do
gree the commerce among States. it
is clearly within the power OF Con
gress to prevent unjust exactlons
from passengers and treightcrs to
pay dividends npon it, and to pro
hibit any future watering by making
Doth a mlsdemeanor punishable with
fine and imprisonment. The sooner
wo know what are the rights of the
people aud OF railway CORPORATIONS,