The weekly clarion. [volume] (Jackson, Miss.) 1863-1882, 1879-12-24
The Question OF Legislative Supervision
of Railroad Corporations.
$500

The Question OF Legislative Supervision
of Railroad Corporations.
Meridian Mercury.
With the becoming modesty, we hope, WI
dare to hold to the opinion that this subJec
has not yet been exhausted, not even by
NIississippis Governors late pamphlet upon
the question. There is something more tC
be said, and it is our purpose to say 1t IL
our way to-day.
There has, probably, not been within
history of the world so many and varied
attempts to regulate any subject, or thing
as that of transportation since the discovery
of steam and its application to carrying
purposes. Although of English and Ameri-
can origin, it rapidly spread among the
christian nations and the same policy OF
laws does not exist among any two nations.
Nor, could this be expected within the short
period of scarcely more than fifty years
since steam was first applied a motive
power for carrying for the public.
At first England made the foremost
efforts to regulate and control by law the
/ system of transportation by railway, found
| ed upon their old and we'll tried laws upon
| Common Carriers, engrafted upon their
laws concerning Bridges and Highways.
There was an early desire in Great
Britain to construct railroads, and Parlia-
ment, keeping in view the old legal land
marks, granted charters to private corpora
tions, not unlike many in the several States
of this Union, but always retaining a SUI
pervis0ry control Of management, rates of
freight, of passage, &c.
In course of time, however, the railways,
unable to obtain sufficient money from
stock, mortgaged the property and borrow
ed money upon bonds, conditional upon the
payment of agreed interest, or, in case of
failure to pay as stated in the mortgage
deed providing for sale of the property
in satisfaction. At this point, Parliament
again took up the subject, and said by their
legislation, you may sell the property, but
the stock is owned by individuals, and this
cannot be sold by virtue of any mortgage
without impairing or destroying your char
ter, and we will grant no new charter in
such case.
France granted similar charters in some
early cases for facilitating construction, but
always rigidly adhered to government SUI
pervision While Belgium began with and
continues the management and entire
control. There is, therefore, in that coun-
try, but little clashing of interest or cutting
of rates. In these countries too, the stock
can never be wiped out or destroyed, and,
in sale, the purchaser and new owner
always buys a majority of the stock and
operates the road under the original char
ter.
The United States is composed of many
States, each ofwhich has authority under its
Constitution to grant charters according to
the wisdom of their Legislature, and while
some of them were conservative, retaining
power to modify or repeal the charters,
others believed that competition would
eventually reduce the charges to a reasona-
BILE point and satisfactory to the people.
Massachusetts,, except IN the first charter,
from Boston to Albany, retained the right
to modify, amend, or repeal New Jersey
gave exclusive rights to corporations for 80
wears, while, in the Southern States, the
the charters were perpetual and not subject
to amendment or repeal New Jersey gave
the Camden and Amboy route an exclusive
charter from Jersey City, opposite to New
York, in the direction of Philadelphia.
South Carolina chartered the South CarOli-
ma railroad from Charleston to Hamburg
Virginia the Richmond and Fredericksburg
railroad in the direction of Washington,
and those two latter charters provided that
no competing roads should ever be construc
ted within a parallel line of 80 miles. From
the earliest foundations of the State govern
ments, charters had been granted for
causeways through swamps and bridges
over rivers with an exclusive right and
provisions forbidding the construction of
other parallel causeways and bridges for
the transportation of passengers and
freights over the swamps and streams with
in a limited Enthusiastically ten miles
on either side. In after times came the
railroads. and many of them crossed the
swamps and streams within the distance
made exclusive in causeways and ferry char
ters. and attempts were made to make rail-
roads responsible in damages for infringe
ment of chartered rights, but the courts
held the railroads harmless upon the grounds
that the charters of the causeways and fer
ries. in comforting exclusive rights, were
contrary to public policy. Railroads contln-
ned to increase and invade territory made
sacred and inviolable by previous exclusive
charters. For many years, New Jersey was
regarded as under the control OF the Camden
and Amboy Railroad Company, and no
charter was granted leading in the direction |
80 PbiladelDhia or New York which might |
nrove a competitor for the immense business
between those two cities-lndeed, IL was
commonly said that the State OF New jersey |
was owned by the Camden and AmOoy Hall- |
seemed to be required by the people were
chartered by the Legislature of the State OF
New Jersey, apparently, not in conflict with |
their first charters, and there now are three |
treat lines between Philadelphia and New |
TorIr formed by lease and consolidation with |
strnng companies owned in other States |
The Camden and Amboy Railroad Company |
or the present owners of the property, the |
Railroad Comparative not
claimed damages for Infringement or brought |
nit against their competitors. In Virgins,
he Fredericksburg railroad, leading in the
direction of Washington City. brought brought suit suit
\, the State Court against the Orange ana |
4 ,e-sndria road, when first completed, as |
i violation of their exclusive charter
These roads are in the same state-ior Alex.
.nSiria had been ceded back to Virginla from
he District of Golumbia.-and It seemed
Iben-Is5 impossible to transfer the case
= the United States Supreme Court Du.
n n 80 ...,,,;tv If LAWYERS devised plan, and
W. ssr Sany years, that court, in effect, deci-
led that the Fredericksburg charter was
. mi s 10 public policy. After the war,
~ see If south Carolina chartered and
. .om many Many constructed road from Columbia
. 1ugsls Georgia .s Ins SOh n isss, With
- nrivileee for fifty miles On
" 800. .;sIe.'f their road from Charleston g
1 Rs1au1I /. viii branchtQ Columbia DeneH'