Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1910-06-13
SPECIAL SESSION
IS ASSURED

of New Jersey as he may deem proper and
necessary in the premises.
The resolution for the formation Of
a commuters league follows:
Whereas, There exists among the people
of the State of New Jersey a feeling of
general disapproval of the recent action OF
the railroad companies operating through
our State in the establishment of passen-
ger rates involving a substantial increase,
which we believe to be unwarranted and
unjust to the travelling public; and
Whereas. We believe some organized
effort should be made to restrain the said
railroad companies from putting into oper-
Resolved, That we favor the organiza-
ton of the commuters league of the State
OF New Jersey. and that the chairman OF
this meetisg be empowered to appoint q
committee to a k such action as 1t may
deem expedient to effect such organization.
Governor Forts Speech.
Governor Forts speech was as fol
lows:
The uppermost question in the public
mind today Is the regulation of quasi
public corporations; II will not down:
President Taft, at Washington. regards It
as the thing Of first Importance in his adj
ministration. That statement is equally
true In our State. The officers and direcr
tors of railroads in this country have for
so long a period handled railway transpor-
tation problems as If they were private
matters that it seems hard for them 10 re,
alize the true situation and the real legal
conditions. These gentlemen seem to think
that their first duty Is TO make all the
money they can out of the public for their
stockholders. Such a theory of their duty
has no support either In law or fact. .
Railway companies are mere agencies OF
the State. In their relations to the public
they are in no sense private concerns. They
have the States power of eminent domain;
they make take land for their purposes as
the State might. In their public relation
they act for the State, and, under their
charter, build and operate railways. The
slider what is for the interests of the pup
lie. 1t is only a secondary duty to fix
rates or charges SO that a reasonable divi-
dend may be paid TO stockholders. The
Supreme Court of the United States has
said that a limit by the State of this divi-
dend to stockholders to 6 per cent. is not
unreasonable. More than that. the State
has the power to so limit 1t by the charter
of the company, or by general law, II 1t
so desires. Excessive dividends encourage
value to its stock far In excess of the com
mercial value of the money invested by
the individual investor. Every dollar OF
railway charges exacted In excess of actual
reasonable dividend on the actual cash in
vested by the stockholder is wrongly taken
from the people and should have been LETT
with them by a reduction In transportation
chat ges.
Quasi-public corporations are not char
tered by the State to take money from the
people In excess of reasonable dividends
and necessary expenses, hut solely for the
convenience of the public.
The State could build and operate the
railways itself. but ii chooses to create
these agencies to act for it and in its
stead. For this 1t permits a reasonable
return to persons who invest in building,
equipping and operating the road.