The times. [volume] (Richmond, Va.) 1890-1903, 1902-02-05

Corpora lions. III bis Was due PROBABLY 10
the fact that since the last Cons titutlon
and previous ones We're iorm n l &c, ti.e
business world had evolved from tndlvl-#
dual to a corporate existence. and the
present generation had witnessed COM
pIete. though gradual, revolution in all
the relations of corporate life to the ge1-
eral public.
AS 10 FREIGHT.
He stated that the freight charges OF
railroads alone amounted to more than
five times the sum paid in revenue each
wear for the support Of the United States
Government. Such corporations mad
tax-levying power that no modern gov
ernmeut would dare arrogate io@ltseiT.
Without discussing or queSuonlhS the
right of such transportation companies
toT1egitimately conduct its business with
profit to themselves, the committee had
deliberately come to the CONCLUSION IN
consonancc with other great states, ,that
such an enormous power in the hands OF
a creature of the State should De SO
regulated and restrained under cotts'i-
tutional provisions that this really tax
levying power should be subject TO con-
troll For these reasons a corporation
commission had been provided for TO act
as a representative of the government
and of the corporal tons alike.
Mr. Braxton. read from a great many
authorities to support the CONCLUSIONS
and recommendations of the committees,
and discussed at length the whole sub
iect of corporations and the modern gov
ernmental methods of regulating without
retarding their progress or injuring their
chartered rights.
He also went into the question and rea-
sons for exercising the right of fixing or
regulating rates on common carriers, ana
said this right was based on the fact
that everything a man ate, drank, apuilt
f,r wa cIhioct tn the indirect levy
of a tribute from these companies IN the
shape OF freight or, transportatlon
charges, and any uncontrolled use OF
abuse of it amounted to surrender OIL
ADMITTED RIGHT.
He contendco that Tie .ecommenda-
tion of the minority necessarily ADMITTED
the right of the State to regulate ths
corporations and their public charges, LII
they provided for a commissioner 70 70 H.
The question then was the metnod OF
regulation. Mr.. Braxton here read from
the reports of the Interstate Commefce
Commission, in which they had repeat
eddy pointed out the impossibillty OF ell
fective service under the powers given
them in the act creating the comiliis-
sion. He called attention to the sllni-
larity of the minority report. ana -siis
Interstate Commerce act, ana ciaiineu
that it contained the identical defects
that the reports of the commission had
often pointed out to Congress as pre-
venting them from exercising the proper
control over the subjects they were
created to control ~
He declared that the conceded lish. -
the state to fix rates was but SOUNDING
f.raes and a. tinj1ling cyrlt;ti unless so1Ic
method was provided OF eNecutiiiS the vi
ders and regulations MADE.
Mr. Braxton said the railroad lawyers,
with one accord said give US the Mas.
sachusetts Commission ana SAID the M
dustrial commission had declared. that 1t
was nothing but a shadow without
semblance of authority.
Referring to the railroad Giant: t'''l
disaster would follow the enactment Of
any such law. he said they predicted the
same tt,in. about the Interstate Com
merce act and fought it for eleven years
rIe cited MANY s'r,iinr instances OF cas-
sandra-like''. predictions.
nc s;alu Mr.. ltuntlnSton predicted tHdt
if the Texas law was passed there would
be no more railroads built there, ana ne
showed that the law was passed IN op,
position to the great railroad man cis
of destruction, and last year there were
over 900 miles of new railroad built III
Texas and only twenty miles III VIZ
ginia.
PRESIDENT QUOTED.
Mr.. Rraxton then argued that unless
tho Increased rate of taxation, which the
railroads had agreed to pay, was not
co,,nIed With a mower to regulate and
control freight charges. every dollar of
if would be collected out of the public by
Increased freight charges and quoted a
railroad president as having recently said
to a member of the convention: You old
fogies down in Virginia don't, know the
first principle OF getting around us
Mr.. Hunton asked if this remark was
made III connection with the Corporation
Committee or the Finance Cotnn..t:ee.
Afr. Braxton replied that it was spoken
while discussing the Finance Committees
proposition, but he considered the princi-
PIE underlying both as Identical.
With respect to private corporations he
pointed out that the Corporation Commits
sion would have nothing except a minis
terial relation to them, with no power or
authority except that which the State
Auditor at present had. He discussed
the sections referring to private corpora
tons and claimed that their effect and
operation would prove a great blessing to
all concerned. The scope of these pro-
visions had been mlsrepresented or mis-
understood. and the committee mad care
+1,. ,kaf 1onn rrjfj-