Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1886-02-13
EXCLUSIVE PRIVILEGE AND FRAN
CHISES.

6AOAO0A w LII N4A3-d1 A2to 4AA-As
CHISES.
A San Francisco Journal speaking of
the tendency to increase special taxes,
says:
The underlying principle is that the weight of
taxation should be thrown upon privileged
classes-that is upon corporations which OBJ
tain under general laws or by special charter,
exclusive franchises from the commonwealth.
It is believed to be just that they should pay for
the exceptional rights they enjoy.
IF there is any sincerity in the claim
whatever then it means that taxation
should be thrown upon corporations hold
ing United States patents for inventions,
since they and inventors themselves enjoy
the only real monopoly known in this
country. There are no other exclusive
privileges known to our laws, except such
as are assured under patent and copyright
laws. 1t is very different in monarchical
countries, where grants of exclusive priv
ileges are made, and true monopoly is
often reality But under our system
there are granted and can be assured no
exclusive privileges upon which to main
tain monopolistic character. Whatever
one combination OF citizens, as corporate
body under the law, may engage in, Is
open for competitive entry 10 all others.
Take home case as in point and railroad
corporations as examples. The Central
Pacific Railroad corporation secured a
franchise TO lay and operate line Of rail
road through the city OF Oakland. At that
time Oakland was mere village, suburb
Of San Francisco Of insignificant import
anee. Its population scarcely aggregated
5000. After the company had built its
road upon the basis of the concession to
pass through the city, and which was not
and could not be an exclusive privilege
after it had erected wharves, and works,
and expended large sums of money in per-
manent Improvements and in establishing
quick, cheap and frequent communication
between Oakland and San Francisco, the
result was found to be that the village had
grown to city of some 10000 inhabitants;
that property values had greatly appreci-
ated; that easy and cheap access
to the place from the city had
made it especially inviting for those
desiring suburban homes, and that in every
way the grant of the non-exclusive privi-
lege had been godsend to the place. Then
came another association of citizens as o
corporate body, operating the South Pa
cifc Coast Railroad. They, too, asked the
privilege of building and operating the
read within the municipal bounds. And
for the nominal sum Of S. in hand paid a
franchise was granted to them to operate 8
parallel and competing rail line Now it
is a notorious fact that there is not to-day
in all the United States railroad corpo-
ration that has built and operated roud
under the privilege known as and called
franchise that may not be paralleled by
competing lines over and again without
end That is, the so-called privilege is
not an exclusive privilege The mere
geographical bounds of a single street may
limit the lines that can be laid on it, and
municipal regulation may do the same, Just
as it may regarding water supply, gas sup
ply, motor supply, Geographic and other
companies, but no such considerations rest
upon the basis of exclusive grant. Legiti-
mate enterprise has no barrier in this
country. Commercial environment may
limit the wisdom of such investment. but
exclusive privilege never. In some parts Of
the country the theory has been advanced as
an economic doctrine that the burden of
taxation should wholly be visited upon
corporate property or income or earnings,
etc, But nowhere in this country has it
ever been advanced upon the assumption
that corporations enjoy by right under the
law exclusive privileges or franchises.