The daily Argus. (Rock Island, Ill.) 1873-1877, 1875-07-27
The Daily Areas,
Confined from second page. J

traffic to sustain a road economically con-
strueted and operated; or. if favorably To-
Gated, Its construction was marked by such
lavish expenditure, such reckless specuIa-
tien and corrupt management that it be-
came loaded with debt il WAS in no wise
able to bear; or. after construction its
stock was fraudulently ''watered," and
other fraudulent devices resorted to, to
I'LL the pockets of those in control, at the
expense of those honestly investing in il, SO
that in nine out of ten of these cases the
road was virtually bankrupt when it COM
menced to do business. ~.
/ Construction companies, fraudulently or
gained inside of the boards of directors
themselves, have in most cases enriched
themselves from the profits Of extravagant
contracts fraudulenty made between them
selves, and Slapped the lite blood of the
corporation, before it was ready to start in
the race of corporate life, as a common car
rier for the public. Here, then, it will be
seen that these roads commenced their
business with an absolute certainty of fail
ure.- No rates of freight or passenger
tariff which they could have devised would
have saved them. A road with a debt
bearing an interest, say. of one million dol
lars annually, cannot expect TO live, if its
net earnings. after paying operating ex-
penses only amount toa quarter or u half
million. s-
But even these roads, so. badly crippled
at the start by their own managers, have
been really protected by the legislation of
this state, instead of injured by it. They
have been allowed to charge greater rates
than the leading roads, and in most in
stances their charges have been lower than
the limit allowed under the law. Most of
them are the newer roads, having eastern
connections, and the managers, as class,
have always alleged that the law did not
injure, but benefited them.
There is one prominent instance, how
ever, of an east and west road now in re.
ceiyer's hands, which, has met its failure
by assuming too great load of debt, in-
CURED in building long branches, or from
leasing improbable connections. This
road, the Toledo, Wabash & Western, was
few years since in a fairly prosperous
condition, with paying traffic upon it,
as main trunk line, but it has a mania
for new branches, and for leasing every
thing which would serve as feeder to it.
self. 1t now has, either as branches. OF
as leased lines, the Decatur and ST. Louis
the Pekin. Lincoln Il Decatur, the La Fay
cite Il Bloomington, and some others
which, in time, must, as feeders, serve tt
make the main line a very profitable road
But the assumption of so large a debt fol
rental, or guar nteed interest, in the sho
space of three or four years, became tot
great an incumbrannce, and this compan,
has reached its present condition by it.
in ~
of the railway law of the state as produc
ing the result.
Representative roads of the TWO classes
prosperous and the reverse, have been con
sidered in this article. The reports Of
: three leading and prosperous roads hay
been analysed as regards their net profit
for 1874, compared with the previous year
aud they are shown to be as successful a
any good business man could expect hi
= own business to be, even under advantage
n GUS circumstances and in years of bus
i mess activity. A general and truthft
view of the causes which have ruined th
newer and weaker roads has been taker
: and it is found that they have not suff4re
: at the hands Of the lawmakers.
A glance has has been given at tn
Il status of pending litigation under the al
E law, for exceptional violations Of its pr,
+ visions, andit must be seen that the prospe,
b for the future of fair discrimination an
a just decision by the court of last resor
between the rights and interests of the pu
: lie and those of the railway corporation
! is certain to be reached at no late day, an
the nature Of the decision muslin reason
favorable to the public. as should be il
. by ferred from the dictune or the iptimatio
!! OF the supreme court in the Lexingto
case. And if,as is likely, the question sha
. reach the supreme court of the Unite
States, the public may find relief in Il
celebrated Dartmouth College decision
D $50 confidently relied upon to sustain ii
of railroad view of the case)in the words
Chief Justice Marshall:
). IF the act of incorporation be grant
political power, if it create civil instit
IS ton to be employed in the administrati'
= of the government, the subje
is one IN which the legislature of the sta
| may act according to its own judgmeI
n unrestained by any limitation of its pow
: imposed by the constitution of the Uuit
II States"
y A further: 'The same institutions, CT
ated for the same objects, though n
incorporated, would be public institution
y y and, of course, be comfortable by the leg
ep lature."
te Very few at this time will deny til
H. Il. railway corporations, exercising the rig
nd of eminent domain, are such public lbs
yer tutious," or that the railroads are pub
highways" Decisions of all courts. til
out of mind, have established the law
Or be, that railroad corporations are pub
nd institutions" and their roads public hie
ways"
ST. This being so, the judgment of t
Us supreme court of the United States 10
ed reasonably be presumed to be. when C:
'eo involving the validity of the Illinois r;
road Law shall reach it, that these corr
yht rations are public institutions, and,
IL, to course, comfortable by the legislature"
A. A. stated by Chief Justice Marshall. A
nat then will be settled the matter, as to
5 or. right of the state to control corporate
All created by its grace, for the public welfa
vill
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