The Jasper weekly courier. [volume] (Jasper, Ind.) 1858-1922, 1905-07-07
ROADS AND CORPORATIONS
Railroad Corporations Primarily for
the Benefit OF the People-Trusts
Benefit Stockholders

The railroad magnates and Ieir ON
.ials. attorneys and agents are tryinf,
TO excite the trust magnates TO join
with them in their fight against sOy-
eminent control, claiming that the
trusts also being corporations Will he
subject 10 having the price at which
they can sell their products regulated
by law. as IL is now sought 10 control
railroad rates. IL is we'll 10 keep strict
~ in mind the difference between the
railroad monopoly and other monopo-
lies. The railroads are granted by the
state unusual public powers, such as
the right OF eminent domain and ac-
cordingly for the protection OF the peo-
pie are subject 10 regulation by the
state. The industrial corporations
called trusts will also be controlled,
but in another way. which IS partly
provided for in the sherman antitrust
law. which Furnishes by fine and i'm
prisonment for combinations in re-
straint OF trade.
We do not have TO 30 outside OF the
ranks OF railroad men themselves 10
ind clear recognition Of the principle
which underlles the whole matter Of
state control OF railroads. Thus the
late William II Vanderbilt. of the New
York Central road. and Mr.. Jewett.
then president OF the Erie road. ad-
dressed a letter 10 the so-called Hep
burn legislative committee back in the
seventies. in which the following prop
ositions are laid down as to be con
ceded.
That it is the primary duty OF the
state 10 furnish highways. whether
they be the road, the canal, the turn
pike or the railroad. the state alone
having the right OF eminent domain. ="
That for prudential and other rea-
sons the state OF New York preferred
70 engage the services and capital OF
her citizens 10 do what was her duty
10 do. granting them certain powers
under certain limitations and restrict
tiOns.
The state places such citizens in her
place TO perform her duties and for
this purpose clothes them with the i'm
perial right OF eminent domain"
The ordinary corporation is organ
ICED for the special pecuniary profit of
its shareholders, the profit Of the pub
lie being secondary. The railway cor
poration is organized primarily for the
benefit Of the people OF the state, and
The peculiarly consideration is second
airy.
This statement. II seems to US.
should leave nothing further 10 be said
regarding the broad and radical differ
snce or distinction existing between
the ordinary corporation engaged in
competitive business and the railroad
which IS m~onopolistic in the very ma
ture OF the case.
And now as 10 the extension of pub
Tic control OF railroads To include their
.harges 10 the public. If we admit the
soundness Of the above Vanderbilt and
jewett positions. as. Il would seem.
must necessarily be done. then it fol-
lows that government control of rates
is exactly as defensible and called for
as any other government restriction
upon railroad corporations. For, the
railroad corporation. according TO this
line OF reasoning. is the agent OF the
state. performing a state or public
junction; but the state or its govern
ment is the agent Of the people, sub
iect 10 the control OF the people and
held responsible 10 the people in see
ing hat principles OF justice and rea-
condolences are applied and enforced.
Il follows evidently that the railroads
as the agents Of the state are subject
to the same rule and are TO be held
thereto by the state itself.