The sun. [volume] (New York [N.Y.]) 1833-1916, 1896-03-25

Vt not
A active illustration of the danger Of GOV
eminent construction and operation Of railroads
brush c'oIony" Of Nusitroia FH,e facts =, wore trS
brought out IN a gree! libel suit which not long
sD.Gs Wa Wa t1iGd IN thst tol1nyi = case Which
alone were s25,OOO. The editor Of the Mel
bourne Aos was sued by the Chief OF Railroads.
and tho Jury rendered II verdict IN all points in
favor or the newspaper. The injury TO the
country caused by the Government ownership
the editors leading counsel, the Hon. 4.
l., purves. lie snid; 'The history OF the
sUciated up to II certain time with prudence.
foresight, and circuinspectlon But there came
a mad era Of railroad. building, public %cxpendi-
lures, and spcculations that was almost un-
parnlleled. Parliament was disorganized. The
constituencies were dcmoralt2cd and corrupted
by enormous railroad expenditures. Each man
IN tho Constituencies. speaking generally. was
urging upon his representative In Parliament
to obtain some advantage from the general
community In favor Of some particular district
or individual. The public service was demornl-
lied aud Parliament, spurred on 10y the electO-
rates aud by the log rolling OF the members, op;
posed no check on borrowing and spending and
THE state ownership of railroads has never
found favor in this country. and 50 the owner
ship OF u railroad by II city would be objection
able under our form Ut government. AS Judge
ffaiiisi and Whfrip4Hoi Railroad rompanry' Sios
New York: 1t would be impracticablc and con-
trary to our usage, for the State To enter upon
the general business or constructing and operat-
ing railroads. and In analogy To the delegation
OF the powers Of eminent domain 70, turnpike
and canal companies. IL wisely delegates to
corporate bodies the right to construct aud
maintain railroads as public ways for the trans
%portation OF freight and passengers. and a. incl
dent thereto the right TO take private property
under the power OF eminent domain on making
"6f course. we know that the gentlemen who
now compose the Board OF RAPID Transit Com
few years they will all have passed away, and
It Is quite within the range Of possibility that
scrupulous and unworthy of public confidence.
The trouble with this scheme is that IL would
vest In the lands Ut unscrupulous individuals
governmental power and unlimited patronage.
II would equip with deadly material an enor.
nous engine of political corruption.
"ln the case of the People on the relation OF
Bolton against Albert. as reported in 20 New
York, you will find four rules laid down for our
guidance as to the constitntionality OF the law.
These are. in brief: First. that the written Con-
s%titutioE is n permanent law of the land: sec
ond. that it Is equally obligatory upon the Leg
islature ms upon other Departments II Govern
iints1 and N mea any Of the t" instrn un", ' eSnt 1rIs
rs to its prohibition; and fourth, an act in in
Tyssion rs as i rIchhr!y vo.m as as n s1pres - f1Ehih-
tempted erasions of the prohibition of the Con-
transit acts. chapter 1872 Of tile Laws OF 1914
and chapter 80 OF the Laws OF 1898. are un-
tho provision found alike In the old and in the
new Constitution; that no county. city. town.
or village shall hereafter give any money or
property. or loan Us money or credit to or In aid
of any individual. association. or corporation.
or become directly or indirectly the owner OF
stock in or bonds OF any associations or corpora
ti9ns; nor shall any such county, city. town. or
village be allowed to incur any Indebtedness
except for county. city. town, or village pur-
poses
here found: First. that no city shall give any
money or property.o or loan its money or credit to
or in aid OF any Individual, association or cor
pora,ion; second. that no city shall incur any
Indebtedness except for a city purpose. Mark
,ional provi.ion Which for6Ids a city giving its
money or property OF lending its money or
credit. not only to any individual, association oc
Enrnnrntlnn INIT evan in aid N amy lnIIviInnl /
association, or corporation, showing that it Was
clearly the intention of the lawgivers to frame !
this wise constitutional provision to prohibit
even the slightest assistance or benefit to any /
one through n use of the public credit or ths
The whole rapid transit plan would seem to
be q scheme 10 enable private persons to reap
or the public funds. A careful examination of
the acts will demonstrate tina: the provisions
event of the contractors future. while in the
event Of success the contractor win reap the
in the city, the partnership with the bidder
makes II IN reality a, private enterprise. II is
ton OF the constitution. The city Of New York
lends ITS credit for private emolument-tha is
corporation that takes the contract to construct
and operate the road.
Section "a of the act of 1894 contains some
extraordinary provisions. The Board OF Rapid
Transit Railroad Commissioners shall enter
INTO a contract WIZ any person nrm' or cor.
ronds, and on such terms and conditions as the
board shall determine. The contract must pro-
vide that the person, firm. or corporation so
contracting to construct. the road shall equip.
Ilaintain, and operate the road Tor a term not
less than thirty-iye years. and upon such terms
and conditions as the Board shall deem to be
hest suited to the public Interests. For this the
contractor shall pay into the city treasury
only the annual interest upon the bonds issued
by the city, and a sum in addition to said inter
est not less than one perccntum per annum
upon the whole amount OF said bonds.
The trainers of these rapid transit acts seem
to have become even more SoiIcitous III 1898 for
the benefit OF the future contractor, and we find
certain significant changes made in section -
Board in the act OF s94 to contract for the con-
s%truction Of the whole road or all the roads in a
ing for the construction of parts OF the roads. is
enlarged 10y a new permission t" contract for
over a part OF the road or roads, and afterwsrd
OF one or more additional tracts over IA part or
parts OF 1re sTGh road 1,s or roads d, Then ihnenm, follows a
vested right in the future extension OF
the railroad system. And then comes the fol.
the city an insurer or guarantor for the con-
tractor, and promises that the city shall protect
the contract rom all right, claim, or interfer-
ence by any person whomsoeyer: such contract
shall further provide by proper stipulatiOns and
said city shall secure and assure to the con-
t~racto", SO long as the contractor shall perform
and operate the road as prescr bed in
the contract, free Of all right. claim. or other in
reference, whether by injunction, suit for dam
ages or otherwise on the part OF any owner,
lbu,ting owner or other person..
ne pTONlSlOu u lhc hCI u 1924. INHL De-
sides the annual interest upon the bonds issued
by the city, the contractor shall pay IA further
,un equal to II percentage Of not less than one per
renturn per annum upon the whole amount Of
said bonds, Is altered in two ways The words
per nnnum arc left out, and II IL further pro-
Vided that in estimating such annual interest
anu additional percentage there shall be de-
lmount thereof issued to pay for rights, terms,
easements. privileges. or property other than {
ands acquired in fee I
Not satisfied with the loans or gifts already I
made by the act OF 1894 to the contractor. the !
promoters of this scheme would seem TO have I
been DESTROYS IN 1898 to make IA clear additional I
yitt 10 the contractors, by the present To him Of I
all the bonds which might be issued to pay for
terms, easements, privileges, or property ]
Ither than lands acquired in fee, II seems to h
ne that II does not require any extended argu- I
nent to show that these rapid transit nets give I
he money and loan the money and credit of the J
,lty TO the contractor. I
After making the small payments provided Z
or In section ~. that is to BAY the interest ON .
he bonds issued by the city for the COnstruc- ]
ion of the road ana IA single payment Of one 4
Jsr Centum upon the amount of the bonds, all u