The clarion. [volume] (Jackson, Miss.) 1883-1888, 1883-05-02

!
reasonably high, because such rate i
practically the same thing as no limita
ton at all. The conclusion that all tn
railroad corporations in the country ma
be constitutionally restrained to reason
able and just charges, is not merel,
drawn from the fact that railroads ar
public highways. If they own the cor
pus of the road and use it in the bust
ness Of common carrier, they might b.
compelled to behave themselves Justly II
all their customers, and submit to an,
regulation for the public good tn,
unanswerable opinion of Chief Justice
Waite, in Mum VS.. Illinois, a Otto, p
ll3) settles that
HOW TOLLS OUGHT TO BE REGULATED
The reasonableness of the freight toll,
or taxes that may be charged upon any
railway will depend on the expenses OF
running and repairing it and on the
cost Of construction. The latter will, OF
course, be the principal element in the
calculation, for the tolls ought to be
high enough to give the corporators a
fair profit on the capital they have
actually invested. But many Of these
corporations have issued large amounts
OF stock and mortgage bonds for which
the holders have paid nothing, or much
less than their nominal value. Another
way OF enlargiag their apparent di1nen-
slon3 IS to water their stock under the
pretcnsc of increasing their capital,
while, in fact, the additional shares are
divided among themselves without put
ting new dollar into the business. OF
course nobody thinks that the real cost
OF the road is to be measured bv the
nominal amount of these bonds and
shares. 1t is easy for a competent engi-
nccr to tell how much any road ought
to cost, supposing the work to be hon
estly done and literally paid for That
being ascertained, you have the true
basis OF calculation which will show
how much the tolls ought to be. Most
OF our western roads were built with
the proceeds of public lands granted
medlately or Immediately by the United
States to the several companies which
now have them in charge They did
not really cost the stockholders any,
thing, and i'll some cases they got lands
worth a great deal more than all ex-
penses Of making, stocking and running
the road. The two companies between
Omaha and San Francisco raised in cash
out OF government bonds, land and
mortgages Of their franchises four or five
times as much as they necessarily ex-
pended upon the road, and the stock
holders, without paying any thing, put
the enormous surplus into their pockets.
These roads, thus built at the public
expense, and in some cases paid for by
the public times over, are now claimed
as the private property of the companies,
ana the right Of the public to use them
as highways is utterly denied.
Nevertheless, ! think the claim of
these companies to take reasonable tolls
stands upon the same foundation as that
OF companies whose roads were built bv
the stockholders themselves at their own
proper expense. The grant of the lands
invested the grantees with title which
could not be revoked if the condition of
1t was performed. Ii they sold or mort
tagged to thousands and invested the pro-
cecds Ill the construction of q railroad
under a charter from the State or gcner-
al government, which authorizes them
TO take tair profit in the shape of tolls,
they have as good right to the tolls as
II the capital to build the road had been
raised by themselves; that is to saw.
those companies which built the rail
roads with capital donated by the pub
he, have the same right as other com
panleS to charge a reasonable toll. hut
tielr demand~of excessive tolls, though
not worse in law, seems in the eve If
natural reason greater outrage.
THE POWER or CORPORATIONS.
II railroad corporations have Che un-
limited power which they claim, then
an business Is at their mercy; agricul- |
ture, G0mmerce, manufactures. must
sufIer what they choose to infict. They |
may rob labor Of the bread it wins and |
Ine,priVe all enterprise of it's Just reward. |
l hough this power does not belong to |
them legally, they have been permitted |
70 usufp 1t, and | need not tell YOU that
shey nave grossly abused it. They avow
mat they make their exactions with an
Eye single to their own advantage, with
lut considering any right or interest of
he public. They boldly express their
determination to charge as much as the
rattle will bear" that is to saw. thew
WI take from the profits of every mans
business as much as can be taken with
'ut compelling him to quit it. In the
aggregate, this amounts to the most
'normous, oppressive and unjust tax
mat ever was laid upon the industry Of
my people under the sun. The irregu.
arity with which this tax is laid males
still harder to bear. Men 20 into
BUSINESS which may thrive at present
ates, and will find themselves crushed
y burdens unexpectedly thrown upon
mem after they get started. 1t il the
laDlt OF the railroad companies to
mango their rates of transportat;on {
ften and suddenly, and in particular '
asses to make the charges ruinously
ugh, without any notice at All The
armers OF the great west have made a {
lrge crop of grain, which they NAV sell I
I ialr prices if they can get it carried !
the eastern ports even at the unrea.
onahly high freights of last summer J
'ut Just now, it is said, that the raiIwov I
ompanles have agreed among them. I
Ewes 70 raise the freight five cents nor |
nu1rpI u.ai,rbA. ~ iAtp pNi !