Savannah morning news. [volume] (Savannah) 1868-1887, 1881-03-24

AugssstG chroa&ess and Coastitut1eadlisf
We present this morning an article
from Georgia Railroad stakeholder op-
posing lease of thar road by the Central,
upon legal and constitutional grounds
His points are fairly made, and he argues
from an evident and honest purpose to
prevent any lease of the Georgia Rail.
road. Where stockholders and officials
OF both companies, however, seem so
determined to effect some such combina-
ton, and where matters have ripened
into open negotiation, it is presumable
that all legal Instructions have been anti
cipated. We confess apprehension
less the spirit Of the statutes be evaded
by some arrangement which will allow
private stockholders of the Central, or
other railroads. to lease the Georgia
Railroad, nominally in their own per-
sonal interests, but really for control by
the corporation they represent. The
charter of the Central Railroad. an
amendment Of which the Chronicle yes
terday published, allows that company
to lease roads (which now, or may here
after, have their lines connecting with
that railroad" The Supreme Court,
our correspondent, Stakeholder, says,
hold that 'the charter of the Central
Railroad gives it no right to control any
road that may be competitor to it.
And yet it is well known that the
Central Railroad has, time and again,
leased roads that may have been
competitors to it." The Augusta and
Waynesboro Railroad was built to open
up that section for Augusta, and as
feeder to Augustus sea coast connection
at Charleston; and yet the Central Rail
road, so soon as it commenced TO
operate injuriously against it, leased il
for ninety nine years. Has it not always
been Mr.. valleys policy to get control
of all connecting, competing or conflict
ing lines? The Georgia Railroad, GER
tainly connects" with the Central; in
the proposed lease, indeed, it is endeav-
ored to be shown that the lease is to be
formed, not for the destruction OF either
line, but for the protection of both.
Stakeholder also calls attention to
par. W., section H., article H., of the
constitution of Georgia:
The General Assembly Of this State shall
have no power to authorize any corporation to
buy shares or stock, in this State or elsewhere,
or TO make any contract or agreement what
ever, with any such corporation, which may
have the effect, or be intended to have the ef-
feet, to defeat or lessen competition in their
respective businesses or to encourage monopo-
ly; and all such contracts shall be illegal and
void
Obviously, the defense of the lease
must be that its object is to break down
outside monopoly, and to increase COM
petition in Georgia. Paragraph H., of
the above section says that "no provision
of this article shall be deemed, held or
taken to impair the obligation of any
contract heretofore made by the State of
Georgia" The amendment to the char
ter of the Central Railroad, approved in
1852, granting their right to lease con
Meeting lines, is vested right, not an
nulled by this constitution. Any amend
ment to the Centrals charter giving them
the right to lease the Georgia Railroad
would operate as a novation to their
charter and bring it under the proyls-
ions of the constitution; but as any like
application would also turn loose the
State powers of taxation upon the Cen
trail Railroad and all its branches, it is
not at all probable that such an amend
ment will be asked for The Georgia
Railroad will simply be leased under the
conditions of controlling connecting
lines" Exactly what a connecting"
line is will be the only question to set
tie.
To the Chronicle, it seems that the pro-
visions of this lease are we'll laid and
deep rooted. Whether it will be effect
ed IN way that the courts can take hold
of it or not, remains to be seen. That
it will be unpopular in this section, we
well know and were such plan consum-
ated, it :maY incite harsh legislation
against railroads by the State General
Assembly in the future. The people are
viewing the powerful combinations of
corporations and all tendency to monOp-
oply with great distrust. The State of
Georgia was among the first to adopt
system of legislation regulating
railroads. Such principles were fixed by
General Toombs, in our organic law, be-
fore the abuse of power had grown
fragrant in the South, and before extor
ton in tariff had become noticeable.
The legislation which was thereby
prompted should have been moderate
and conservative, necessitating neither
heroic measures nor arbitrary,regulations
Such Is the feeling among the people,
that they might now favor limiting the
pOWSIS " Tic 4kdiIIOeu NOtumISslpu3 anu
diminish the tendency to injure valuable
railroad property in Georgia. These,
then, are the reasons why the Chronicle
deprecates all efforts for consolidated
power, and all treaties for railroad
monopoly. Judge Woods rightly said
that the foundation of wise and innoxu-
Gus legislation lay in the virtue and in
telligence of the citizens of the State.
1t is to the interest of all railroad compa.
MES, then, in Georgia, to educate public
opinion, as they have developed public
resources; to abuse neither the rights of
their customers nor their chartered privi-
leges; for their best defense is in the
General Assembly. and their highest
tribunal rests in the favor of the people.