The weekly democratic statesman. [volume] (Austin, Tex.) 1871-1883, 1881-08-18


gantlc in its power. What is needed
is not so much a single management
as harmonious management under
the sanctions and requirements of a
single law and common supervi-
sion by the government. Mr.. Rea-
gan contends that his bill will give
the people and the railway compa-
nies all the relief required, and he
thinks it only a question of time
when congress will be convinced OF
its merits and adopt it. Surely
something must be done. AS it now
is there is no general policy
governing the business of these
carriers, and the laws in one state
conflict with those in others, pro-
ducing when enforced hardships
which none have the right to i'm
pose. In the meantime the courts
are hammering away as best they
may, enforcing the rights of states or
of corporations. just the other day
Judge McCrary, of the eastern dis
trict of Arkansas, declared that the
power of states over railways can
not be disputed, and so say many
judicial decisions, but in a country
where states lines do not mark the
operation of railways their regula-
ton should be fixed on some method
to be enforced throughout the en-
tire country, and this seems best
proposed by our distinguished
Texas congressman. OF the plans
presented, however. for the
settlement of the railway prob
lem none is so original as
that of the celebrated South Car
olina financier, Col. w. L. Trenholm.
He argues that it is inconsistent and
unwise for us to initiate the Euro
pean or monarchial methods in
dealing with these subjects, and in
sists that the state can not govern,
and should not seek to govern,
either its corporations or its in
diYidual citizens by bureaus, or to
fetter their business by statutes /;
that to such cases should be applied
American or republican methods,
giving to the corporations cOnstitu-
tions framed with a view to practi-
cal self-government, and holding
their officers responsible for re-
suits. "Our system of political gov
ernment," says Col. Trenholm, "re-
quires local representation and con-
current majorities, and we should
apply that principle to our corpora
tions. We should require them to
be so organized as that every inn
portant interest in the territory de-
pendent upon each may find repre-
sentation in its board of directors,
and such representation as will be
vigilant and effective. To accom-
plish this it win be necessary only
for the state to pass law that in
every corporation chartered each
share shall be entitled to vote for
but one director, and that the board
shall be composed of a fixed number
of persons obtaining the largest sup
port in this way. The effect of such
law will be to give to each sharehold-
er his own special representative in
the board, to make these representa-
tives Independent of each other,
and to fix upon each director a sole
and separate responsibility requir-
ing him individually to be vigilant as
to the interests of that particular
section of the shareholders which
he has been selected to represent.
Suppose a railroad with 10000
shares and twelve directors. If the
10000 votes were equally distri-
buted, each director would repre-
sent the holders of 1888 shares );
but the probability is that some di-
rectors will obtain more than
the requisite number, and then
even smaller number of
shares than S33 will have
of their own. By
this simple method the state will re-
move the opportunity for few per-
sons to control the corporation, and
will secure representation in the
councils OF the railroads themselves
to every interest IN the state sufi-
cient to obtain control of votes
enough to secure one director to its
exclusive service"