Middletown transcript., 1891-03-12
ANNULLING CHARTERS.
sourrHrNG OF INTEREST TO THE
RAILROAD COMPANIES

OF INTEREST TO THE
RAILROAD COMPANIES
New YoRK, March 10, 1891.
Mr.. Editor The State Of Della
ware has 3 magnificent opportunity
to trv Al experiment in the way Of
ra;lway :, transportation that is possess
ed Iy few States, if any, other in this
Union. By provision IN the State
Constitution, charters of all corpora
tions within the State can be repealed
Or annuled by an act Of the legisla-
tnre. This provision is magnificent
safeguard against the aggrandisement
Of power BY. corporations that no
other state possesses; and perhaps
The history Of how it came to De a
part Of the Constitution of Delaware
NAV not be uninteresting reading.
When the convention met which
formed the present Constitution,
among its members was DR.. Handy
from Newark. Doctor Handy was a
man full Of ideas; so full that many
Of his neighbors looked upon him as
sort Of crank. He was, however, a
man well esteemed, and possessed of
considerable influence in that conven-
tion. This protection Of the people
against the possible powers Of corpor-
ations was one Of his hobbies. Cor
porations had not then asserted them
selves as they have since and it was
inconceivable to most Of the delegates
that any danger would ever come to
the people from cooperative powers.
This DR.. Handy was especially friend
" with John NJ. Clayton; and Clay
ton had certain pet ideas he wished
to become the organic laws Of the
State and knowing The influence that
Doctor Handy possessed with some
members, he accepted DIR. Handy
provisions against monopolists, there
by securing help forshis own schemes.
Probably even Clayton had no very
definite idea OF the magnitude Of DR..
Handy's proposition. It is evident to
my mind that after forty years, very
few people in the State Of Delaware
possess any idea of the magnitude
and yet the concrete wisdom which
comes to man from the forty years
experience after the adoption of DR.
Handy's proposition into the organic
law Of the State Of Delaware could
not frame better one.
BY simple act Of the legislature
of the State Of Delaware, the charter
Of every railroad within the State can
be repealed. The property Of the
railroad company would be made al
most valueless. Consequently, should
the State desire to possess the proper
ty Of any corporation within the State
they cannot be forced to pay more
than its real worth. Corporations
have no power to coerce the peo.
pie into bargains not in their interest
But the people, through the legisla-
ture, have the power to coerce the cor
porations; because they have ths
power, simply by a vote of the two
houses, to press them out. Now, ]
would by no means for a momen
sanction any acts Of the legislature
that would be unjust to anyone, OF
inimicable to the interests of the cor
porations as class ; because the con-
centration Of the wealth into the hands
Of corporations at this stage of civil
ization, is necessity for the develop-
ment Of communities, and the COM
forts Of those communities. But ! dc
claim that the legislature Of the State
should, when, they discover that the
people Of the State would be benefited
by such an action, take possession oi
those corporations required to thus
benefit the people, by giving to the
corporations only the value of the
property taken from Them. The
State should give them no profits ;
nor should it give them any consider
alton for the value of the franchise.
Now, the State of Delaware owns q
large interest in all the railroads
within the State. It would require
but very small bonding of the State
to purchase the entire railroad inter
est. / do not mean to say that the
State should pay the Pennsylvania
railroad what that company thinks
the road is worth to them, but that
they should simply pay that COM
pany what it would cost to build such
a road, less the wear and tear, and
depreciation Of value from the use
that has been made of the road.
I think am safe in saying that
twelve thousand dollars mile would
be far in excess of the real cost of the
road. I have understood that the
Old Dominion Railroad Company
system cost not exceeding seven thous-
and dollars a mile. There are about
two hundred miles of railroad within
the State. $1,50O,000, in addition to
the State interest in the roads, would
be ample to purchase those roads.
Now, after the road is purchased. the
manner of operating it could be very
simple. In the matter of passenger
traffic the State could fix the rate per
mile per passenger through the State
al whateyer would be right and pro-
per perhaps one cent mile for the
States share or less, and the railroad
companies would operate the passen-
ger lines just at present. But the
freight which SO much interests the
people Of Delaware, could be and
should be operated on entirely differ
ent lines. The State should own or
lease the freight rolling stock. Leas
ing rolling stock from car manufac-
turers by railroad companies is gener-
al throughout the United States; SO
there would be no difficulty whatever
in the State Of Delaware leasing all
the rolling stock that would be neces-
sary for its business. 1t would be
necessary to have State Board Of