The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-01-27
EARLY RAILROAD LEGISLATION.

The prompt action of the Legislature on
the line suggested by the attorney general
will probably result in bringing about what
should have been had long ago, viz, a
searching Investigation of the question
whether the Vandalia Railroad is indebted
to the State in any sum whatever. and if
so. how much. 1t is not creditable TO the
business methods of the State in past years
that this should have remained an open
question for more than forty years, and in
the interest of all concerned it should be
settled without further unnecessary delay.
If the company owes the State anything
it should be required to pay it. and if it
does not it is entitled to nave the fact OIL
cially ascertained.
The general public may not know that
the alleged claim against the company
dates back TO the time when it was oper-
ating under a special charter and embraces
only that period. This means the period
from 1s47. when the road was chartered.
TO 1873, when il accepted the terms and
provisions of the general railroad law and
changed from a special to a general char
ter. Such railroads as were projected in
the State prior to the adoption of the
present Constitution were organized under
special charters. and it is probable that the
abuse of this practice in the case of other
corporations as well as railroads caused
the Insertion of the provision in the Con-
stitution that in all cases where a general
law can be made applicable, all laws shall
be general and of uniform application
throughout the State. The first Legislature
under the present Constitution passed a
general law for the organization of corpo-
rations, and since then all railroad compa-
MES have organized under that Law. The
results under the special charter system
were most unsatisfactory. but they were
not as disastrous as in those cases where
the State undertook TO build certain rail-
roads and became a stakeholder in them
to "a large amount. This was the case with
the old Madison & Indianapolis Railroad.
and the old New Albany * Vincennes road.
In 1896. when a wave of internal improve
ment swept over the State. the Legislature
passed An act to provide a general sys-
tenn OF internal improvements. 10 prescribe
their management" etc. 1t provided for the
construction of the Whitewater canal, the
Central canal. the Wabash and Erie canal.
the New Albany * Vincennes Railroad, and
"A railroad from Madison through Column
bus. Indianapolis and Crawfordsyille to La
fayette, to be called the Madison * La
fayette Railroad, to construct which, the
sum of S1,3oO.oD is hereby appropriated"
All these undertakings proved disastrous
failures under state management. In id2
a law was passed by which the State sur
endered and granted all it's unfinished pub
lie works 10 such private companies as
would accept and prosecute them under
certain conditions. The auditor of state in
his report for 1916 showed thai the total
amount expended by the State on the Madi-
son & indianapolis road up TO that time
had been 81. 1924. 6o3. and the total amount
received from Ii in tolls as they were
then called. was sss.1S2. leaving an excess
OF expenditures over receipts of 81. 56l. 42l.
The States account with the New Albany