The true northerner., 1897-01-13


orally speaking there has been a reduc-
tion OF rates by legislative enactment.
II will thus he seen that any proposed
reduction OF railroad passenger rates
of fare or OF freight charges has its
precedents IL the changes made from
time to time I'm the past history OF these
corporations. The right of the legisla-
ture To fix maximum rates has been
contested by interested corporations
and the supreme court has held that
the legislature has the right TO fix such
rates.
passenger fares exist which should be
adjusted by the Legislature. All of these
inequalities OF charges are within the
power or partly within the power Of the
legislature of Michigan 10 correct. And
their correction In my firm belief would
prove To be for the benefit OF the rail-
road companies as well as for the peo-
pie of the state. / therefore recon-
mend that the legislature take into con-
sideration the question of passenger
fares at cents per mile in Michigan
The Referendum.
The referring of important acts OF
the Legislature TO a popular vote for
final adoption by the people Is the ex-
tension of the well-known principle un-
derlying the practice i'm this state of re-
ferring proposed changes of the consti-
tuition, and in certain local cases, mat
ters of extraordinary expenditure in
volving the issue of bonds, TO the vote
of the people.
/ am not prepared TO state how far
opinion favorable to the extension of
this method of legislation has pene-
trated the state generally; but / am
acquainted with the opinion of the peo-
pie of the city OF Detroit, which Is IA
vorable to it's extension TO the granting
of street railway and other quasi-pub-
lie franchises as a check upon corrupt
public officials in cities.
Trusts and Combinations.
There is growing up in this country
a system of trusts and combinations
which is becoming more and more i'm
pudent and eXtortionate. It's influence
Is felt i'm the home of every citizen.
The necessities of life are made instru-
ments OF oppression in the hands OF
those who reap a rich reward from
the weak and the helpless. Such trusts
and combinations destroy competition
and throw thousands OF worthy people
out OF employment. For this reason
the consuming power Of the people Is
destroyed and the producing power 10
just that extent Is affected. Such COM
binations are illegal upon the broad
grounds OF public policy, but whole
some laws should be enacted against
them. | do not propose TO suggest the
form OF the laws nor the penalties for
their violation, but they cannot be too
strong. In the presence of threat
ened destruction OF individualism and
the breaking Of the spirit OF independ-
ent effort. ii Is high time that the maxi
ers OF the laws should be the peoples
representatives. whose names are upon
the roll of your houses. and not MEM
bers Of third house who infest the
halls OF legislation for evil purposes
Control of Corporate stock.
We should be extremely jealous OF the
reputation of our business interests
All investments should be given such
guarantee Of safety by law as TO in
spire confidence in those who deal with
US. Capital should be encouraged TO in
vest in the development of our varied
resources. Investments made within
the state should be governed and pro-
tected by wise laws and not be dis
turbed by frequent changes in the
laws that govern them. The burden OF
taxation should be equally distributed.
all property bearing its just share. The
issuing of stocks and bonds should be
so regulated that when the investor
seeks for proper security, he will find
that the state has guarded him in his
investment against the purchase Of art
ificial values by way Of watered stocks
and bonds.
Under the laws that now exist manu-
featuring and other corporations are
permitted TO do business alter having
paid 10 per cent OF the authorized capi-
tai without the residue being sub
scribed for. and upon this payment of
10 per cent, and upon the strength OF
the authorized capital, and the fair
standing of the men connected with
the corporation. and possibly TO some
extent the fair prospects of the bust
ness, large credit has been obtained by
the corporation. in some cases many
times larger than the actual capital
paid in. The practical workings OF this
law are unsatisfactory to creditors be-
cause in many instances the creditor
after the corporation has failed to be
successful has been found to be the
largest investor in the venture. In or
der TO protect the creditors OF corpora
tions OF this character. l recommend
that you increase the responsibility OF
the stockholder by making him indi-
vidually liable for such deL.s as are in
CURED beyond the amount of capital
actually paid in, at least up to the
amount of the authorized capital of
the corporation. In other words when
a corporation obtains authority to do
business with a certain amount OF cap
itai. that capital should exist in good
faith for the security of the creditor.
In the case OF banking corporations,
much greater liability Of the stockhold-
ers exists under the law with salts
factory results TO the creditors OF the
banks and to the people generally. In
this connection ii would be we'll to con-
slider such supervision OF corporations
by a corporation commissioner, whose
duty IL shall be to ascertain what the
exact available assets OF a corporation
are before it Is permitted TO enjoy cor
porate privileges and enter upon the
business for which lit is created In
short. l deem it as important that al!
corporations dealing with the public
should be under the supervision OF a