The Columbian. [volume] (Bloomsburg, Pa.) 1866-1910, 1896-05-28

vented the idea of q franchise He was
genius and has been followed by many
alleged statesmen and lawmakers. A
river is natural highway, which men
from earliest times have utilized for
purposes of intercommunication and ex-
change Of surplus produce.
Where nature has not provided nat
ural ways, such as oceans, seas and
rivers, men have supplied roads, canals,
railroads, etc.
The state may build them itself and
charge toll or stipulated price TO rec
ompense itself for the expense of build
ing and operating, or it may grant the
right to private persons or private cor
poration to bald the highway and equip
it and allow it to charge toll or a
specified sum to reimburse it for its out
lay. Such grant is called a franchise
Kent defines a franchise to be "a par
ticulaT privilege conferred by grant from
government and vested in individuals "
Blackstone says it is "a branch of the
kings prerogative subsisting in the
hands Of a subject"
By virtue of this governmental privi-
lege these persons or corporations can do
the same things and exercise the same
powers as the government itself in open
ing up highways.
So it is usually left to fix its own
schedule of prices as to what it will
charge for its services so as to reimburse
itself. And the excessive charges that
these corporations have collected are
great burden to the people. The rail
roads are the greatest sinners in this re-
spect, for they control and carry nine
teen twentieths of the commerce of the
country.
There is an opinion that the railroad
companies own their roads and right of
way. 1t is erroneous as proposition Of
law. They no more own them than an
overseer of country road or q street
commissioner owns them. They simply
manage them for the public.
All that they have right to charge
is reasonable amount to pay them for
the expense of opening the highway and
maintaining and operating it, but they
have proceeded upon the principle of
Charging" all the traffic will ''bear. +"
Our laws have, under the guise of q
franchise, the same power to extort that
the old German baron took to himself,
and our modern baron has perfected it
i'll detail, filed off the rough corners and
made it more comprehensive. To give
an example of how this franchise bust
ness is utilized to extort from producer
and consumer alike: A few men get a
right to build railroad. They can go
through anybody's land, because they
are opening public highway. They
further have right to Immediately
take charge Of the highway, lay the
tracks and operate the road. Suppose it
costs them $1,000, 900 to do this, they
would be entitled TO charge enough to
pay them q good return for their invest
ment and the operating expenses Inves-
tigate any Of these concerns, and you
will find that little attention is paid to
what is invested, but rather, what can
the commerce along their route be made
to payg The capitalization stocks and
bonds usually run up to 8, 10 or 10 times
the amount they have invested.
This is usually termed water" and
1t is equal to the value Of franchises.
Garrison and Gould bought the Mis-
souri, Pacific railroad from the state of
Missouri in 1879 for Sc, 900, 900. We're
they at all punctilious about making it
earn dividends only on Sc, 900, 900? No.
They had the power under the laws Of
Missouri to fix their own charters So
inside Of five years they increased their
capitalization to $40, 600, 900, the profits
on which the people tributary to that
road have been paying ever since. The
New Work Central railroad, extending
from New York city to Buffalo, dis
tance of 401 miles, was built for
about $40, 600 per mile or $l8, 045, 900,
yet the owners have capitalized it for
$l52, 900, 600, or, in other words, the
state, by giving them the right or fran
chise, made them "a present of $134,
900, 900.
The Western Unions plant can be
nproduced for $15, 900, 900, yet for
years 1t has paid 81 per cent ON capi-
talization Of over 800, 900, 900, and in
1890, think, had a $18, 900, 900 sur
plus.
Estimate the cost of plant, deduct