Freeland tribune. (Freeland, Pa.) 1888-1921, 1896-05-21

II. S. JULIAN.
vented the idea of 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 nasre 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 build the highway and equip
it and allow it to charge a toll or
! specified sum to reimburse it for its out
| lay. Such grant is called franchise.
Kent defines franchise to be "a par
ticular privilege conferred by grant from
government and vested i'll individuals F."
Blackstone says it is "a branch of the
kings prerogatiye subsisting in the
hands of 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 us to reimburse
| itself. And the excessive charges that
these corporations have collected are a
great burden TO the people. The rail
roads are the greatest sinners i'll this re-
spect, for they control and carry nine
teen-twentieths of tho 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 II country road or a street
commissioner owns them. They simply
manage them for the public.
All that they have right to charge
is a 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. "
| Oul laws NAVE ullNltI lllt RulSt Vi d
franchise, the same power to extort that
the old German baron took to himself,
and our modern baron has perfected it
in 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
right to build "a railroad. They can go
through anybody's land, because they
are opening "a public highway. They
further have a 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 a 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 pay? The capitalization stocks and
bonds usually run up to 5, 10 or 10 times
the amount they have invested
This is usually termed water" and
it is equal to the value of franchises.
Garrison and Gould bought the Mis-
souri, Pacific railroad from the state of
Missouri in 1872 for $4,000, O0O Were
they at all punctilious about making it
earn dividends only on So, 600, 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, 900, 900, the profits
on which the people tributary to that
road have been paying ever since. The
New York Central railroad, extending
from New York city to Buffalo, dis
tance Of 401 miles, was built for
about $45, 600 per mile, or $18, 045, 900,
yet the owners have capitalized it for
1852, 600, 600, or, i'll other words, the
state, by giving them the right or fran
chise, made them a present of $134,-
0O0 600
The Western Unions plant can be
reproduced for $15, 600, 900, yet for
years it has paid 6 = per cent on a capi-
talization Of over 800, ,O005000 and in
1890, l think, had $13, 900, 900 sur
plus
! Estimate the cost of plant, deduct