The farmer and mechanic. [volume] (Raleigh, N.C.) 18??-19??, 1907-01-15
IN IMPORTANT DISTINCTION BI.
TNEIN CORPORATIONS

difference las not always been CHAR.
I'll fact. III ha~ been deliberately 3D.
~curetl The accents ~ railroads ~
Telegraph ami telephone earaIantes 80
every other corporate child - STATE
sovereignty dependent FOR ~ vxt Irocv
upon the cNerc.s Of e%sslneut iouAlu
or franchise from the people have
been busily engaged IN confusing the
Issue As q result. an get ~ regulate
railroads. 10 secure 10 the people "a fair
share n the profits 4 enterprise the
capital of which is the GIT ~ the
State. to prevent eatortiens AMI as~ur,
fair plan has been nailed A. AN at
tack on corporate Interests In the
+, past some good men have been mis-
lei. They have failed 10 recognize
the distinction. They have confused
the priyat~ corporation. doins business
upon is oNn capital. and paying taxes
upon its property like an ordinary cit
ilzcn. With the public service curpor-
t alton. which is given rights which
fo4tify it in the exercise of a mors or
less complete monopoly If public nc
cessity. and which. from tire nature of
its privileges. Is proper subject ~ Statc
regulation and control III the interests
of the people who must trade vigh ii.
and depend upon its facilities. and pay
it prices. whether they viii or viii
not. For its success the private COR
! poration depends unon its enterprise
, and its product: the public service
corporation upon the peoples ncccs-
sity. That is a distinction. which jus
titles the widest difference iii legisla-
tive enactment.
ii is important II significant that
the present Legislature should have
recognized this difference in tho mat
ter. even, of committees. There is q
committee on corporations. but
there is also a committee on public
service corporations This should not
have been necessary: it has been made
necessary by the sedulous campaign to
confuse the issue, il to raise up that
class ~antagonism'' abou1 which rail
Dad interests are So FOND of prating
and upon which they SO uniformly
rely. in past years the appeal has
been made not without effect. Thc
cry of attack n corporations has
been needed and followed III quarters
where il should have been let pass.
Cotton manufacturers and furniture
manufacturers have in many instances
mistakenly made IN cause with
railroads upon a false assumption.
There is %rEothing, never was anything.
in common between the two for the
purposes of legislation. The railroad
is. il a true sense, a trustee of power
which lies alone i'll the State and
which has been leased through char
ter and franchise. IT is proper that
such power should be subject to con
troll at he hands of its real possossor.
1t is a power that. otherwise. is supa-
rior to that of ordinary citizens AID
of ordinary corporations and enter
prises. 1t may we'll be rashly used. 1t
may we'll do serious hurt. And vet
the cry has been raised-and it will
be continued-that regulation of the
public service corporation is an attack
on all corporations.
We challenge successful contradic-
ton Of the statement that there is not
now cXtant or has ever been passed
any law in North Carolina which JUS
titles this claim. The state has been
and continues to be exceedingly liberal
towards all manner of industry undal-
taken through the mcdiura of private
corporations. In encourages their or
ganization and protects them in their
rights. 1t demands no burdcnsome
conditions 10 their organization. conf
-~sistent with tho most elementary
safeguards which vie legislation |
throws about any organization for the
protection Of the individual stockhoId-
er, tie manufacturing and other on
tcrprises under corporate forms in
this state arc given as great freedom |
and are hcdged about with as little |
restraint as is the case in any civil |
lied sovereignty in the world. Pc
tween such exercise and the practic = |
of railroads which are sought to be |
corrected by the control of legislation. |
there is the fundamental difference Of
a thing which is authorized and a
thing which is given. 1t must be re
membered that the public service cor
poratiOn operates upon the basis OF a
gift: the private corporation upon the
basis of a right. Both must do equity
but the one which is given a peculiar
privilege must be held to a public OBJ
These are matters which each man
viii recognize for himself, but which
cannot be too strongly impressed.
Time vas when the army Of corpora
tons was made I'D without distinction.
whether they were public Or private in
character. The manufacturers form-
ed d solid phalanx Of offense and i'm
~aginary defense with the transported
ton companies. Now the wiser of
those among the manufacturers.
the Industrial corporations. are
recognizing their mistake. The fur
niture manufacturers IF High Point,
who. according to President Spencer
were built" by the southern Rail-
way. found that they we're being hurt
more almost than any other class ~
the neglect and the contempt of that
great corporation towards its duty