The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1892-10-26
THE COAL BILL VETO.
Good and Bad Points Of the Read
ing Combine as Governor
Albeit Saw Them.

The scheme of the original act is not a
novel one in the State of New Jersey. All
the great railroad companies crossing our
State, except the New Jersey Central, are
in the control OF aud operated by foreign
corporations unde acts legalizihg the
leasing of domestic corporations. The
Central Railroad was formerly operated
by the Philadelphia and Reading Rail-
road Company, a foreign corporation,
under a lease dated May 20, 1888, which
was set aside in 1865 by the Chancellor.
(See Mills VS.. Central Railroad Company.
IA Stew. ~ Under this general policy
the State has not suffered any injury, I'M
less the fact OF the foreign control OF our
domestic corporations is, in itself, harm
full.
It is plain that the members of the Leg
islature considered that they were. in
passing this bill, pursuing the settled
policy Of the State, which has been to en-
courage rather Than discourage the con
solidation of railroad corporations having
a common interest in travel and business
NO AUTHORITY TO INCREASE PRICES
A careful examination of the act in
question fails to disclose any authority
conferred by it which would authorize or
assist any combination to control the
necessaries Of life. There is nothing in
the bill which authorizes a control Of
prices by corporations beyond the natural
rule of supply and demand. 1t has been
commended hat this bill would authorize
a combination of ownerships and interest
that would increase the price Of coal
to consumers. The experience OF the
past as to the consolidation OF rail-
roads does not show that an increase in
the price of the article transported is a
natural result of such railroad conso ida
tons, where there are other railroads and
transportation facilities which are IN
competition with such consolidated in
terests. A com bination of all railroad
companies carrying coal across our State
might place it within the power of these
corporations to control the prices and
output of coal. but SO far as this act IS
concerned. there is nothing in the provi-
sions, or in the joint business proposed to
be carried on by the companies in whose
interest this legislation was urged, which
would deprive the public of the benefit
of competition between the consolidated
corporations to be affected by this act,
and the other common carriers of coal
across our State.
CHEAPER RATES LOOKED FOR.
The reason Influencing the members Of
the Legislature who voted for the passage
of fhic hill &c p.oea,a&1J -
First. The belief of some of them, which
belief they then entertained and still en-
terrain, that this new combination under
the control of the Reading interests
would create a strong competitor to rail-
road consultations of other corporations
already existing. aud in this view they
voiced the wishes of their constituents in
voting for this act.
They believed that this new force
would enable them to obtain additional
railroad facilities of which they were de-
prived under existing combinations.
Second, In the Judgment of other men,
bers, the result of this legislation would
be to decrease the expense of bringing
coal into the markets of this State. This
would undoubtedly enable the roads
operating under it to reduce their ex-
penses and the cost of coal. but the ques-
tion still remains, "Who is to receive the
benefit OF this reduction?" Is it to be
the consolidated companies or the con-
sumner?
Third, This bill was undoubtedly
passed with the understanding, and I'M
der the conviction that it's effect would
be to reduce the price of coal to consum-
ers in this State.
Fourth, The fact that the bill was not
delivered to me until the day of final adj
journment, and Information received
from members, convinces me that the
Legislature relied upon the Executive to
see that the interests of the people were
protected, as those interests should be de-
veloped by a thorough consideration of
this measure in all its bearings. With
thisv view / have made the most careful
and exhaustive examination of all the
questions involved, SO as TO reach a cor
rect conclusion.
SPECIAL SESSION IF NECESSARY.
| am satisfied that this bill was not in.
tended to increase the price of coal to the
people OF u State, whatever might be
It's effect upon the In other
States. 1t. however, I am in error in this