The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-05-31
CORPORATE RIGHTS AND POPULAR
RIGHTS.

In connection with the strike Of the an
thracite coal miners a question has been
raised relative to the charter rights of the
coal-carrying railroads of Pennsylvania
that ought TO be tested in the courts. on
general principles al corporations should
be held strictly 10 the exercise of their
corporate rights and in the present case
the oppressive policy of the coal-carrying
roads towards the miners and their defiant
attitude towards the public disentitles them
to any favor whatever beyond what the
strict letter of the law allows them.
1t is a general rule of law that corpora
tons may not engage in any business not
expressly covered by their charters or in
cluded within their grants. Thus a bank
may not engage in the manufacturing bust
ness or a railroad company in mining UNI
less authorized to do so by their charters.
This principle is embodied in the present
Constitution of Pennsylvania as amended
in 1873, as follows:
No incorporated company doing the bust
ness of a common carrier shall directly or
indirectly prosecute or engage in mining
or manufacturing articles for transporta-
ton over its works, nor shall such com
pany directly or indirectly, engage in any
other business than that of common car
riers, or hold or acquire lands, freehold or
leasehOld, directly or indirectly, except
such as shall be necessary for carrying on
its business; but any mining or manufae-
turing company may carry the products OF
its mines and manufactures on it's railroad
or canal not exceeding fifty miles in length.
Presidents, directors, officers, agents ana
other employees Of railroad and canal com
panies shall not engage or be interested,
directly or indirectly, otherwise as stock
holders in such railroad or canal companies,
or the transportation of freight or passen-
gers, as common carriers, over the works
of any company of which they are presi-
DENTS directors, agents or employees.
At the time this amendment was adopted
certain railroad companies of Pennsylvania
were already engaged in mining and IN
carrying their own coal over their own
roads at a profit and the object of the
amendment was to put a stop to the bust
ness, or at least to its extension. On the
ground. probably, that this provision could
not operate retroactively for the abolition
of vested rights it was further provided IN
the Constitution that % No railroad, canal
or other transportation company in exist
/ ence at the time of the adoption of this
article shall have the benefit of any future
legislation by general or special laws ex-
cept on condition of complete acceptance
of all the provisions of this article" In
der the operation of these two provisions,
while the railroad companies which had the
right to mine and transport coal in 1873
could not be deprived of it, they could not
have the benefit of any future legislation
without FORGETTING the right The miners
claim that the coal-carrying roads have had
! the benefit of laws enacted since 1874 and
! yet have continued to openly violate the
provision first above quoted In this con-
tention they are probably right. Examina-
ton of the laws enacted in Pennsylvania
/ during the last twenty-five years would
| probably show that the railroads have had
the benefit of many of them. If they have
knowingly profited by or accepted the
benefits of a single law passed since 1874,
while continuing to engage in mining and
! to carry their own coal over their own
roads at excessive or even at regular rates,
they have forfeited their charters If the
point is well taken it furnishes a tremen-
dously effective weapon for the miners
| against the roads, and it also involves the
important question whether rich and pow
erful corporations can violate constitutions
and laws with impunity. a decision against
the coal-carrying railroads would be one of
the most important yet made in the direc-
ton of resisting the aggressions of cor
| porations