The Columbian. (Bloomsburg, Pa.) 1866-1910, May 05, 1871, Image 1

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    Sffoc dfotumbhut
ih I'i'iit.miii:!) i:vi:iiy i-mday moiinino
c ouiiT nouAi'iLooiisnuiiu, im ny
KtiiToii and ruoritlKTon,
Jena:--7wa Dollars a Year payallo la advanco.
jod rninTiNa
111 nil descriptions executed villi iionlness nml
dispatch tit reftsouablo rules.
Mnrrli 2!)lti ISTI. Iifforr Hit JnillrlArjr Cnnmltlro. In
Hi mslIlT of ll"- Alli-nnl I'lim-iii", or l.lorMlnnt
llnlri or Frrlalilf '-7 cprtalil lUllrtMiN.
It Is but Just to myfolf Hint I b1iou11
Hlnto that in proceeding to nrguo till9
question, I do so without tho ndvantiigo
of having been ulilo to seo u singlo lino
of tho testimony, or a single document
put In evidence.
Wlillo It Is ii freuuent bmcllen for
counsel to exaggerate tho I tnportntico of
mcir caso in oriier to attract lo it unustl
id nttentlon, no such necessity exists In
tho present lnstaneo. Tho fact that$300,
(IDO.OOO of capital hns eomhlncd to do
Hlroy nn organization numbering 10,000
men thu fact that for weeks theso linlls
havo been crowded with rnllrond presi
dents nnd superintendents with noted
mllllounrlcs nnd their satellites with
hundreds of brawny nnd mlno-ninrked
laborers with representatives from
labor associations numbering In this
Slutoover 00,000 men j tho further fact
that for months but n low tons of nnthra
elto coal have been shipped, nnd that by
an unprecedented ratio of freight on tho
coal carrying roads, miners could not
resumo furnncos nnd factories hnvo
been obliged to stop or pay tho unlawful
rates, and millions of people deprived
In midwinter of nn nrtleloof prlmo ne
cessity, proves tho importance of our
causo without argument.
Ho great has been tho cry of tho people
so loud tho demands of tho 1'rcss that
tho legal right of theso carrying compa
nies to chargo their present rates of
freight should bo examined, that at last
this branch ortho Legislature undertook
tho task, and your HonorabloCommitto
bus been engaged In tho investigation
Binco March 8th, Instant.
Without wishing to bo prolix, Gentle
men, permit mo brielly to recall lo youir
minds tho manner in which this ques
tion camo before you. On tho "1th of
February last tho following prramblo
nnd resolution was oll'orcd by Senator
Turner of Luzerne, nnd adopted :
"Viti:m:AH,Cheap fuel and cheap food
am essential to tho progress mm well
being of tho Stnto ; And wlitrcas, Cheap
freights nro essential to cheap fuel and
cheap lood ; Andwhercas, Further, somo
of tho railroads created by tho Statu
mainly for carrying tho nnthracilo coal
of Pennsylvania to market liavo ad
vanced freights so that tho coal of coal
is doubled to tho consumer, nnd tho
public threatened witli tho total loss of
this Indl-qictisubio nrticlo ; therefore,
Jlcsolccd, That tho Governor bo nnd
ho is hereby requested lo procure from
tho Attorney General of tho Common
wealth nnd lurnish lo this body, at tho
earliest posslblo moment, uu opinion
upon tho power of railroad companies to
Impost) such rates of freight.''
As tho resolution demanded haste, tho
distinguished Attorney Ge'.eral wrotou
report on tho following day in which
he stated :
"When tho wrong referred in thuScn
ulo resolution Is perpetrated by a single
corporation whoso charter is Hated sub
scquint to 1S3-3, tho Legislature can ex
crclso its power. When two or more
companies eonspiro to oppress tho pnb
lie the olllcers aro Indictable.
Tho Govornornlso volunteered a mes
sage, which, With tho opinion of tho
Attorney Oeneral was transmitted to tho
Senate on tho 23th lilt. In it lie uses the
following pointed language:
"About Iho middle of tho present
mouth an arrangement was ell'ecteel un
tier which tho work was resumed. After
few days' labor tho miners were in
formed by tho operators that tho trans
portation companies had largely increas
ed their charges for freight in homo
instances mom than doubled them in
consequence of which thu mining was
again suspended and so contliiinid. Tho
results aru that little or no eoal is being
mined or forwarded to market; miners
and laborers am out of employment ; thu
supply of coal on band Is becoming
rapidly exhausted ; forges, furnaces and
otiier manufacturers, whleh ti-o tho coal
for fuel, havo been compelled to stop,
throwing large numbers of laborets out
of employment to tho great loss ami
damage of all concerned, to the great
Injutyofour people, ami tho g'neial
prostration and derangement of nil thino
Important interests) connected with coal
operations. Theso things ought nut so
tuba ; and II is considered both tho right
and tho duty of tho Legislature to apply
tho proper remedy and arrest tho ovil."
Tho messago closes with tho following
"Timo will not allow further Investi
gations; but there is no doubt an ex
amination of tho charters of other
companies engaged In tho transporta
tion of anthracite eoal, would show
substantially tho samollmltntlons upon
their .powers to chargo freights, and
similar reservations of power to tho
Legislature to regulate tho charges, ro
sumo tho corporate franchise, repeal the
charters, or take tho roadsfor publiuuse.
lly tho oxlstlug condition of tilings,
miners and laborers, and depend
ent jipon them, aro greatly injured;
liugtf classes of our manufacturers aru
crippled In their business, or compelled
wholly to su-pend, for want of fuel ;
coal is vastly Increased In price, beyond
tho capacity of thu poor to purchase
oven Iho common necessaries oflife;
commerce, and other Important depend
ant Interests aro paralyzed ; and thogood
name of thu Stnto has lt uu mado to suf
fer reproach. Chartered privileges were
never grunted, or designed to bring
about tuch results as theso; and If, as
represented, tho corporations liavo mlii
Used or abused their privilege's, oracteel
In this matter without authority of law,
and thereby entailed upon us theso man
ifold evils, public duty, Justice and im
munity, nliko nppcal to tho Legislature)
for adtqimtuand speedy rcelross ; and It
Is earnestly hoped and expected tho
appeal will not bo mado In vain."
Upon tho reading of this messnirnnnil
tho opinion of tho Attorney General,
teenntur Turner offered Iho following :
"llcsolved, That tho message of tho
uovernor aim opinion of tho Attorney
General on tho subleet nf llm mimkI
railroad companies in relation to freights
charged on their roads bo referral to thu
v-t uiuiiieo on mo judiciary General,
i"siiui;uuiis to report, uy bill or
After Hoiuo discussion tho resolution
was mutinied so as lo read as follows
ueiuiuu, mat tho messago of tho
Governor, with tho opinion of tho At
torney General as to tho power tif rail
road companies to lmposo exorbitant
Heights on untlir.tclto coal, bo referred
to tho General Judiciary Committee,
with power to send for nursnna m,,i
pors, and report to tho Senate by bill or
otherwise as speedily as possible."
Senator Davis moved lo amend bv
lidding tho following: y
"And to ascertain if n fair and reason
nblo compromise cannot be effected bo.
tween tno conlllctliig interests in tho
nninracuo coat region."
To this feonntor Turner objected or
the reason that it "would be a, little hi.
coniruous. I think it tmnhi , ii,,,..n,
tr useless. The resolution refers mer'clu to
t'mvlAtnut vnlo nhn,,.! I... jr.. r .
- irwigiu TO tilts VUhlllll
Hies, ami refers lo no comlM ,!.,.,. '
cumlnri comnantea nml iim n,,,.,...,....
nor between the miners and currying
companies." J J
Tho amendment was HoJndoptoil, and
IIVI.IU UUL IUI11 II1111I1T fl-J 111 t ill Lruit,n
glvcil this Investll'nMnn 1
Iconcelvo, then, Gcntlomcn of Iho
Committee, tlml. Mm -,.. .....i ..)..
, ....... ,,,u ,v, ,,,m Uliiv DlIU'
Ject oncn for Invreiiim-ii.-.,, ,,.i:, .i..
.cw.u,.u.. jiisniun is whether certain
jail roads engaged In tho transportation
of anthraclto coal hnvo charged oxbrbl-
" n ",u '"Mwiy ! m too inception
VOLUME V.--M0.18.
of ti ls In vcstlgallon, I had formed tho
opinion that you were no more author
ized to Inquire ns to whether murders,
ofj""!." other crimes had been com-
... I I '""mining regions than you
were to Invcstlgato tho sanitary contll
tloti of the I'io-nn linllina nr ii,,.
?tl outrages committed by tho "Kit-
KlUX'Klall." If rrlirau nrrn,r,,..,il,..,i I..
Schuylkill, tho courts there nro open,
""'I tho oirenders can bu properly trloel
IIM body has no power to try nml pun
Ish tho criminals. It has power and
control over the corporations created by
It. Lven if lawlessness was riru In tho
mining regions, It would bo no justifi
cation for these overgrown corporations
to charge exorbitant or Illegal rates of
freight. Ono wrong does not justify
another; two wrongs cannot nmitn mm
Tim nf ImiiiiiK Hum urilinr. ...............
Hons to shield themselves iy alleging
Hint certain coal oncralors nml
employers do not work harmoniously
s n weak evasion and tho old cry or
'StOOTh ef'' Wll I Ima ,.rlJ,..,l
this Investigation for weeks, it has not
diverted nubile attention from 11 If) Yt ll
question at issue.
I havo prepared n syuoplsof tho char
ters and their supplements of tho var
ious rail roads in uuejtlon. I be'lo
Vith tho Philadelphia .fe llenillnir It. It.
Co., which was incornorated in lSSJI.
eo 1. I,. 151.1; anil tho rato of tolls
were not to exceed an nveruiro of four
cents per ton per mile, tho Legislature
reserving 10 useu tno right to resumu
tho grant If llio company at any time
should abuse or mlsuio lis nrlvilesret.
In addition to the main road, tho I'hlla.
dclplila Heading Co., havo acquired
control, by purchase, lease, or merger,
i a cauai, ainiaooui iwenty-nvo other
an roam, i navo not too timo to glvu
on a synopsis of all theso charters, but
may statu that they nil do not glvo tho
right to chargo four cents per Ion per
mllo for tolls, Tho Mount Carbon nod
Port Caibou It. 11. Co.. for Instance, in.
corporatcd by anactapproved April fitji
ion, i: ii. ujj, umiis eno tons on ca.u
to two cents per ton per mile.
Thoorlgen of tho Lehigh Coal and
Navigation Co sometimes culled the
ehlgh fc Stiiduehunna was under an
act parsed JIarch !)th 1771, for tho im
provement oi tno navigation or the Lo
high Hiver, under commissioners there-
u named, jsy an act liasscil l'ebruary
7th 17'JS, proceedings wore to bo instl-
uletl to jirocuro a charter under thu
lamoof "Tlio Presitlent and JIanairers
of the Lehigh Navigation Company,"'
which charter was obtained in 181 1. In
1818, tho Legislature granted to Joslah
White and otners, certain rights for tho
Improvement of tho Lehigh, who asso
ciated together under thu namu of "Tho
Lehigh Coal Company", and subse
quently as "Tho Lehigh Coal and Navi
gation Company" which in 182:2 was de
clared to bo their corporate name. Un
der thu "Otli section of tho act passed
renruary zimi asm, it was provided
that "if they shall at any timu hereaf
ter misuse orabuso any of tho nrlviltirts
granted by this net, then or in either of
neso eases tno legislature mav rcsiimo
11 and singular tho rights, liberties and
rivllegcs licroy granted."
Ily an Act approved March l."th 18.17,
'. L. Oil) they were authorized to con
tract a rail road from thu LchiL'h
Hiver. to Wilkcsharro. Uy section Ii.
of the same act, the tolls were not to
exceed one and a Halt cents per ton per
lly an act approved April nth Isll,
thosamo powers as to transportation
over tho road were granted to them r.s
cnjeiyed by tho charter of tho Philadel
phia as Heading it. it. under tneir cour
ier of 1S!W.
lly an net approved March Itli 18(1:1,
they were authorized lo construct n
an roan irom ones- iiavcn io jinucii
.'hunk ; and by section live of thes ime
ct they were placed under llio loth,
lth. l'Jth. lllth. llth. loth. 10th. anil
18th of (he general railroad act approv
ed l'ebruary l'Jlh 18111. As all thu rail
roatls in question except thu I'liilailel-
ilila Cc iteadlug it. it. uo., aro under
his section. 1 will now read It:
That uiion tlio completion of anv
ailroad authorized as aforesaid, thu
mo shall lio esteemed u public high-
wav. lor tho conveyance ol passengers
and tlio Iransuortatlnn of freight, sub
ject to such rules and regulations In re
lation to tlio same, anil to tno si.o and
construction of wheels, ears and car
riages, tlio weight ot loads anil all other
matters and things connected with tho
uso of said railroad, as tho presitlent and
directors may prescribe and elect : 7Vo
vltletl, That the said company shall havo
exclu-dvo control of tho motive power,
anil mav from timo to timo establish.
demand and receive such rates of toll,
or oilier compensation for tlio uso of such
road and oi said mouvo power, aim lor
tho conveyaucu of passengers, tho trans-
lortatlem of mcrchandin) and commodi
ties, ami tho ears eir other vehicles con
taining the same, or otherwise passing
over or on tho saiil railroad, as to tho
president or directors shall seem reas
onable: I'toeitled hoiceecr, neurthtless,
1'hat nltl rates of toll and motive power
barges so to no established, tlemanded
or received, when thu cars used for such
conveyance or transportation are owned
or furnished by others, tlr.dl not exceed
two and onu-hall cents per mile lor each
ton of two thousand pounds of freight,
threo conls per mllo for each ins-enger
or baggage car, and two cents per milo
lor eacn nuriieu or ireigni ear, every
four wheels being computed near; anil
In thu transportation ot pa-seuger-', no
chargo shall bo mado to exceed three
cents per mllo for through passengers,
anil inreo auti a nan coins per miiu lor
way passengers."
lly an act approved July l)(h 1S07,
tho Wilkesbarro .t Scranton H. It. Co.,
Incorporated by act approved retiruary
l.j,18ol, under tlio provisions o ltho gene
ral railroad law of 1810, was merged Into
tho Lehigh Coal & Navigation Co.
ily uu act approved July, loth 18(17,
tho Lehigh & Delaware Water Gao it. It.
Co., Incorporated under tho provisions
of tho general rnllrond law til 1810. was
niso merged into tnu i.eguigii coal and
isavigauou uo.
Tlio l.elilgu valley H. It, Co.. wrs
neornoratod livanttet nnnrovod Anrl
Ulst 1810. and the charter is to bo found
in tno rampiiiei i.awsoi its is, page .17.),
under tho namu of thol)elawaro,Lehigh,
Sliuvlklll it Susiiuehanna H. H. Co. llv
section twenty-llrst of Iho act tho lolls
were uxeei at ono mid a nan cents per
ton per mile, and at the same amount
for transportation. Ily section twenty-
two It was provided that if tlio not
proms on tno capital biock exceeded ten
per cent, tlio tolls were to bo reduced so
as to Keep tno pure.'ntago iwiow mat
Jo lS.'il! tho name was changed to llio
Lehigh Valley it, II. Co. In lh,j(i (IV
u. uoj tno company was placed under
the general railroad law of 18 ly, anil tho
uimiicr oi irsi i was rniicnii'ii.
Tills road also owns mid operates tho
Pa. & N. Y. Canal & H. It. Co., Ineorpo-
rntml In IRivi ,m.ln. .1... ............ 1 ....1
........ mi-..-.! tuu i;i-u.-im liuiiu.m
KIW Ul iOl'-J.
I next eonio to tho Dolawnro, Lacka
wanna ix vtesiorn ll. it. Co. Jt was
originally tno Llggett's Gap H. H. Co.
incorporated In I8ii (P. I,, si-jn. iiv
sections Mini tt'jin t 1.cn111111
tlio tolls wore llmltod to ono tuuf a lialf
cents per ton per mllo, nnd In section
thirty-four tlio Legislature reserved "tlio
rigni to alter, unienit or repeal this char
ter whouover Its privileges shall bo
abused, or found Injurious lo the citizens
oj lias Loninwnweultli,"
Uy act of 1810 (1'. I,. 010) tho corpora
Hon was authorized to purchase ono
thousand acres of coal Jund, nnd bectlon
flvo, repents sections twenty-six and
twenty-seven of tho act of Incorporation
so far as rclato to tho ratuof tolls, accept
the proviso to section twenty-seven, which
left the rales as to coal unchanoed. Sec
tion soveu realllrms tho power or tlio
Legislature In caso of abuse or misuse.
Hy section two, net of I80O (P. L. 110)
tho act of April 7th 18:i:!-scctlon tlilrty-soveu-ls
construed to mean that tlio
company may furnish exclusive motlvo
power for freight, Ac., charging such
sum as shall not exceed tho tolls men
tioned in said act, mid subject to tho
control nnd power of tho Legislature.
lly section flvo or tho net of 1851 (P.
L. Oil) tho name or llio corporation was
changed to tho Lackawanna A Western
11. H. Co.
Ily section one, act or 183:1 (P. L. 102)
Iho Delaware A Cobb's (Jap it. it. Co,,
Incorporated April 7th 1810) was merged
into tho Lickawaniia A Woitorn It. It,
Co. Hy section four, tlio corporation
was placed under tho provisions of tho
lsth section of tho general railroad law
of 1810, nnd by seutlon flvo of tho satno
act tho liamo of tho corporation was
changed to tlio Delaware, Lackawanna
A Western It, H, Co.
lly section lour of an act passed In 18"j
(P. L. 110) tho Company was authorized
to hold l!,UU0 acres of coal land. I may
hero remark that while.- under this net
tho right of tho Company lo own coal
lands is limited to L',000 acres, they in
fact now hold nbout 11,000. It Is no
answer to say that they havo merged
oilier corporations Into theirs which had
tho right to hold additional eoal lands.
If such charters oxlst they should havo
been given in ovldene In order that wo
might cxamlno tlicm. 1 therefore claim
this company hold 0,000 acres of coal
land in violation of law.
Hy section two, of nn act passed in
1850, (P. L. 107) tho Company was re
strained from purchasing anthracitu
coal mined from other lands than their
own when tho charges from Scranton to
Klizabethport for thu use of tlio road and
motlvo power in tho transportation of
coal exceeds two cents per ton per mile.
I di'slro to call your attention to tho
fact that Gen. Hrishln testllled, some
what reluctantly it Is true, that tho
Company has charged mora than two
cents per ton per mile from Scrantoii'to
llllaabctbporl when they havopurchased
anthracite coal mined from other lands
thauthelrown; but tho Delaware, Lacka
wanna A Western H. It. Co., attempt to
justify this by tlio plea that under tho
act approved March SM 1S05, (P. L. Gil)
which they are placed under thu general
railroad law of 18 10, so far as relates to
tolls. I!ut tho net of 1SI0 relates exclu
sively to the rates of freight on eoal and
other articles shipped by others, anil in
no way alters or changes the net of lS.Ki.
It remains In lull forco and ellVct, and
tho Company should bo held responsi
ble forlts violation, irthey can, as tho
allege chargo unlimited rates or rreight
they can and will crush out every opera
tor in that Held who is obliged to send
his coal over their roads to market.
Owning over twenty-ono coll lerloo-ovcr
hair thu mining facilities in that section
owning tlio only outlet for coal from
Scranton to Now York State and city,
they can carry it at cost while other
operators must pay enormous tolls.
Owning tho mines and railroad they
cm mlno nml ship millions of tons to
market, and then icallso immense pro
fits by compelling a suspension, as they
havo dono in tho pie-icnt instance by
reducing mo wages oi minors .Torn 1 yi
per ear to E0 cents per tar, and at the
sumo time trebling the usual raits of
Height. If thu Legislature does no1
e'aeck this wrong tlio day is not far dis
tant when New York capitalists will
havo crushed out all tho small oneralors
in t hut region, and without rivals tho
tho Delaware, Lackawanna A Western
H. It, Co.. can rozulato the nrico of eoal
In New York 111111,111 other points as
they seo fit. They nro now trying to
crush tlio men ; If they succeed tho
opeiators will bu their next prey.
1 no oniy otucr railroad in question is
tho Lackawanna A Hloomsburg, which
was incorporated In lsr.i (P. L. 07.1) un
der 1110 general railroad law of lsi'.i.
Its charter contained thu usual clau-.o
that the legislature may lestime, alter,
or amend thu charter, or tako tlio road
lor public iisu in ease ol an abu-u or
misuse of its privileges.
llv an act parsed In ISoiS (P. L. 71) tho
18th section of tlio general railroad act
1810, which relates to tolls, was ro
pealed so faras this load waseoncerned,
when tho distanco that ears or freight
shall bo transported, or passengers con
veyed, shall not exceed ten miles,"
'lo this act, however, .1 supplement
was pas-ed, approved May nlth 18,0,
not in tlio Pamphlet Laws.) repealing
thu nt of 18.10, and providing that said
company may chargo twenty cents lor
ach passenger, anil iwemy cents per
ton for freight for tho whole disUiieo
thu same may be carried, whenever thu
rates llxcil by Iho Jbth seetion of the
ilroad law of 181!) shall not amount to
the saiil sum.
Hie Philadelphia A Heading H.H. Co.,
tlalnis to have had 11 judicial construc
tion of Its charter as to tho rigid to
chargo tolls in 11 decision iiiuilo by tho
Supreme Court i.f tills State, April 1st
istl7, In the cjsj 01 iioyiu e'liio rniia-
Iclpma a- Heading Ji. it. ct)., 1 i i
.Smith, (ill). Tills was a stockholder's
bill, alleging that tho ileiendants charged
mora for thu transportation of merchan
dise, Ac, than authorized to do by their
charter. Thotlerendants tiled an answer
tatlng that thu word "tolls" as used in
their charter was for tho use or tho road
way alone, and that for supplying mo
tive power, cars, Ac, they might collect
"reasonable" and "Just" compensation.
and averred that their "charges aro anil
always had been most moderate and
reasonable.' The case was beard on bill
and answer at Nisi 1'rius, and Judge
Strong delivered an opinion, dismissing
the bill. Tbociimplaliinut appealed, but
was not Hii'lalned. 111 niostnnco too
decision was that Iho defendant could
charge moro than lour cenls per ton por
nine, aim mat 1110 worn --nins- nppiiefi
to the Uso of tho roadway uloiie. in
order to moro fully understaiidtlils do-
cision It may bo hero stated that at tho
timo tho complainant's bin was uteii
tho Heading road wascharglngonlyf.'l.iVl
ner ton Irom Port Carbon to I'll adel
nlila 11 distance of O'l miles, or about
twenty cents per ton less than they were
authorized to do by their charier, whero-
as I heir jwcsait rates aro $0,08 timfur
the tame ttUtttnec, an Increase of over two
and it halt' cents per ton per mile over
thu rates charged when tho above caso
was decided. The Company at that timo
only claimed tho right lo charge ircinoa
nlle and just compensation, and did nut
protenu to httvo tho privilege 01 elinrg-
dig exorbitant rates. Kven JililgoStroug
neiioveii unit such rates had been guar
tied agaliiil, and lie stated. "Kxcesslve
rates wero guarded nmilnst liv L'ivhiL' to
tho puhli'j tho right to put tholr own
ears and vehicles upon tho road without
danger or being driven nil' by exorbi
tant tolls; and it was well known that
competition 111 thu carriage or property
was inevitable, because a canal had
already been constructed and was In
successful operation between Phlhulel
phla and I'ottsvllio," Those reasons
liavo not been sulliclent to check exorbl
tant rates. In imu'tlcu It would bo
almost Impossible for shippers of coal to
furnish locomotives, ears, hands, Au. As
to eompteltlon by tho canal, that lias
been prevented by tl
10 Headluir road
securing a leaso of it for uluo humlieii
and nluety-nlno years.
Wo think It well established that no
corporation takes additional powers by
Implication; and that in caso of doubt
Its privileges uro to bo strictly construed
In ravor or tho public nnd against tho
corporation ; nnd that tlio present rates
of toll aro unjust, unreasonable', against
tho public good, and tho Legislature has
amplo power to limit them.
Without multiplying authorities on n
point that lias been ho often decided,
permit mo to quoto tho languago of
Judge Illack In tliocaso of Krlo A Nortli
Last Hullroad Company v Casey, !lnd
Casey p. !lil.
"Wo nro obliged hero again to repent
what has been so often said, that 11 con
tract between thu Stato nnd n corpora
tion cannot bo raised by Implication.
Judicial construction in favor or a com
pany will go so, nnd so rar only, as
thostitoor her authorlzjil ugcnLs in.
tended to (jo when tho contract was
mado; and that intention must bo ex
piessed In words too plain (or doubt."
Again; "Hallroads built under tho
nutborlty or law i'or tho general pur
poses or commerce, aro public high
ways. On this principal nlono
wo h.tvo always held that no Individual
or corporation can possibly havo any
right or prlvllego connected with them
except what tho law hns expressly con
ferred." Hut tho Legislature, In tho caso of tho
road in question, expressly reserved to
Itseir tins power: "That if the said
company shall at any lima misuse or
abuse any of thu privileges hereby yranx
ted, the LeyUlaluee may resume ait ana
singular the rights ami prlvlleqca hereby
granted lo Ihesald corporation. 1 ' As a s I m
Har reservation was mado In each ortho
charters in question I can do no belter
at this point than to quoto from tlio
nblo opinion of Chief Justice Hlacl: in
Iho caso of Krlo A North bast Hallroad
v Casey, and Casey l!37, in which this
entire question was fully til-cussed.
Tho charter was repealed by Iho Legis
lature for "misuse ami abuse."
Tho learned Judge In delivering tlio
opinion of tlio Court, says: "A grant or
eorporatoprlvllcgesloraspceillcd period
cannot bo resumed by tho Stute within
such period. If tlio charter bo without
limitation ns lo time, it Is forever irro
pealablo. It docs not lollow from this
khat corporations aro beyond tho reach
oi puuuu comroi. wnen 1110 privileges
they enjoy aro fraudulently abu-ol,"
and t beg thu committee to mark dis
tinction, "tlio courts may pronoutico
them forrelted. 1 11 somo cases, also, tho
Legislature, when granting tho rran
clils.'H, reserves to itself tlio right to
revoke them. When tho charter con
lains such a stipulation, it is as much a
part of tlio contract as anything elso
thatls in it. Tlio Legislatlvo repeal of
such n charter bears no resemblance lo
the Judgment of a court against n cor
poration on a quo mtr.-tudo. They pro
ceed upon principles ns diil'erent as tho
functions of tho Legislature aro tlllfercnt
from thoso of tho Judiciary. If tho
power to repeal ba reserved, its exerciso
is merely carrying out tho contract ac
cording to its terms; and tlio Stato ii
using her own rights; not forfeiting
thiHoof thu company."
"In tho charter now under consider
ation, tlio following clause occurs : "If
tho cald company abuse or misuse any
of thu privileges hereby granted, tho
Legislature may rcaumu tho rights gran
ted to tho said company." This was a
reservation ur tho right to repeal tlio
charter in case It should bo violated. U
it was violated, then tlio repeal was not
breaking tlio bargain but keeping It;
not iiiipniriiig,hx.ciiforciiig tho obligation
ottho contract.
"Tho plaintiff's counsel Insist that
inasmuch us thu right to repeal depen
ded on matter of lact, tho right could
not bo uxreised until the lact was asccr-
ained by a judicial trial." (And I may
add, gentlemen, that that will bu insis
ted 011 nuru.) "Jiilt 11 tins were not a
mlstako tho reservation would bo nuga
tory. When tho abusu of tho charter is
judicially ascertained tho corporation
will be eussoivod wunotii tno interven
tion of tho legislature, and tho court
mid not decide tho fact to bo truo with
out pronouncing tliojudgment of forfeit
ure. Tlio legislature certainly meant to
i-rve something moro than the right
o dissolve thu corporation after it should
bu ills-nlvi'd by a court. Tho power lo
kill what Is nl ready dead Is no power at
all. The argument of thu plaintiffs 011
this point is altogether unsustalned by
authority. There aro 'everal eases di
rectly against it. In Crease c llabcock,
llio Supremo Court of Ma-sachiisetts
:.iKi, mat when tno legislature reserved
o itself the right to repeal a ciiartcr on
tlio happening of a certain event, they
might enact the repeal whenever thu
event happened; It was not a reserva
tion ot judicial power. 10 tno same
t'Hect is MavL-irrcn v rotmuigtun i
1'aigc 107), and lu tho Miners' Haul: v
Tho United States (1 tiWeiiuGI,) it was
held not only that the fact, 011 which
thu right of lupoid depended, might be
noticed by thu legislature without the
assistance f thu judlclaiy, but that Us
truth could nuver afterwards bo ques
tioned by uny court.
It Is said that tho leneal eiu be
jiistllUil only If tho violation of tho
narier was wiiiui. ism tuu rignt is
riven to repeal not for a wilful, but for
any abu.-o or misuse. Tho word tcilftd Is
not in thu reservation, and we cannot
Insert it by construction. Hut suppose
it to bo in, Is not any positive viola
tion ol tlio charter. Wh eh iiiltrlit have
been avoided, a wilful misiisu and abu-e
of it V
Again, "Judges and chancellors liavo
stahlishi'd certain rules of proceeding
ror their own guldauco In tlio distribu
tion of lust leu among suitors. Ono of
theso rules Is, that a party lu certain
cases bhall not be permitted to aver the
truth; and this is called an estoppel,
llut tho legislature is not restricted by
it. Tlio General Assembly can make
and unnrakoall rules of practice, plead
ing, anil evidence at us pleasure. The
parly that makes thu law must, in its
nature and essence, lie so totally diil'er
ent from the power which administers
the law, mat it is most illogical 10 reason
from 0110 to tlio other. Tlio limitations
em tlio legislatlvo power of the btato are
not tj bu found in tlio guueral body of
thu law, but only In tlio constitution
Itself, which Is tho li.c leaum, or law of
"These corporators havo suffered at
thu hands of tho legislature nothing bat
what they expressly agreed to suiter in a
certain contingency. That contingency
lias literally eomo to pass. Their jutci
Inn hue been abused and mhusej. Hut
they insist that tho penanco they were
lorced 10 undergo, ougut to bo accejncd
in placo of thu obedience which they
promised. That is not lu tho bargain.
and since thoy stand upon their contract
wo 110 not seo now wo can givo mom
moro than what is there sat down. Tlio
legislature agreed lodlsarni Itself of tho
repealing power on condition that tlio
corporators would nbldu and remain
within their charter: when they went
out of It, the condition was broken, Thu
fact thai they lelt tho path or duty is
not disproved uy 1110 otner lact mat
thoy afterwards returned to It. Nor Is
their caso at all helped by showing that
they wero driven back under tb lash of
a court. Their Independence of legisla
tive control was to ho'a consequence of
innocence, not 01 guilt, loiiowuu ny ro
pentanco and restitution."
Airaln. "Tho corporation llfelf can
not add anything to tho charter, not''
run It do so even with the assistants of
tlie executive anajuaiciary, it still nas
no mom than wliatthu Leglslatuiogavo
It, and tho Legislature did not glvo what
it now Claims."
"Contracts between MioStuUuuiilcor
borate bodies cannot bo Implied from
anything but pluiu words; nod thoso
words must no spoiten ny 1110 uencrai
Assembly, nnd enrolled In solemn form
among Its acts."
"Wo think tho construction wo havo
given to this reservation Is not oniy
required by tho established rules or In
terpretation, but Is In accordance with
thu most liberal Intent that can bo as
cribed to tlio Legislature In making It.
Men who nrocapablo or abusing a priv
ilege eonrcrrcd 011 tliem by tho special
favor of tho State, aro unworthy to
havo It. Tlio Statu had 11 right to test
tho prudence or bur bounty by this
standard to fix her own locus penilen.
tlaelo try tlio grantees or tlio privi
lege) and seo whether they would bo
havo themselves well. SI10 kept lu her
haiidsthu short, sharp remedy or repeal,
to bo applied whouover tho conduct of
tlio corporation would demonstrate that
n remedy was needed. Thu error was
to bu repaired by tlio samo body that
committed It, at any timo after the
error was ascertained. Ir tho satno
offence, tho charter might havo been
rorrelted on quo warranto, but another
modo or reparation was adopted Tor tho
very reason that theStatodld notchooso
to undergo tho risk, and cmbarrnssmont
and delay of njudlclal trial. SI10 would
not liavo tho machinery of n court In
terposal between her nnd her rights.
Shu did notdeslro to play with lawyers
and Judges at tlio game of special plead
ing. Shu was unwilling to go for Jus
tice to a placo where estoppels might
prevent her from asserting tho truth.
She would retain tho right of legislatlvo
repeal frco from all restraints but those
Imposed by tho constitution, or elso
she would not grant tho charter. If tho
corporators did not Intend to obey It
When such was tho stipulated penalty
for disobedience, It was folly us well ns
wickedness to accept."
"This corporation, after its privileges
wero abused, had an estate at will, and
tlio Commonwi'altli chose to demand
repossession. That terminated ostato
as completely as an estate ror years
would bo terminated after tho expira
tion or tho term. Tho grant was ex
hausted, tlio corporation lived Its timo
out. Its leaso or lift) was expressly
limited, at tlio day or Its creation, to
the period when thoLeglslaturo should
dlssolvo It ror misconduct. When tho
legislative will was spoken, its hour had
The learned Judge then recapitulates
thu main points in his argument as' fol
lows :
I. Tliis charter was granted with a
reservation ortho right to repeal it, If
the franchises should bo abused or mis
used. II. Wo nro satisfied that, lupolutof
Tact, tlio-.o franchises wero abused and
III. After that event happened, tho
General Assembly was invested with
full power to repeal tho charter, and
tho corporators held their franchises
from tho Stato merely as tenants nt will,
In tho samo manner as If there had been
an unconditional reservation of tlio
right to repeal.
IV. After tlio Interest of tho corpora
tors had been thus cut down by their
own misconduct loan estate at will, the
legislature only could enlarge tho char
ter, so ns to mako It a perpetual grant,
or put tho corporators on another term
of probation.
X. Tlio Judicial proceedings against
tlio corporation did not and could not
disarm tlio Legislature or its reserved
right to repeal, nor enlarge theestato or
tlio corporation in us iraucmses, nor
ciiatigo the terms 01 tlio original grant,
ror theso are things which tliojudlciary
cannot do, nor thuoxectitivo cither.
VI. Tho power of tho Legislature Is
not restricted by tho rules of pleading
and ovidenco which the courts havo
adopted ; and therefore tho Stato may
act in thu Leglslaluru upon a truth
which shu would havo been stopped to
show in a court if tlio Lcghlaturu hud
not Interfered.
VII. Thu )0 wer to repeal for abuse
of corporate privlbgos is 11 different
right Irom that of demanding a judi
cial sentence of forfeiture, and Is reserv
ed for tho very reason that It may af
ford a remedy when a quo warranto
would not.
VIII. Tho charter being constitution
all v repealed, thu franchises are. as a
necessary consequence, resumed to tho
State, and tho road remains what It
always was public property.
IX. The corporators canuot 00 enti
tled to compensation, for they had no
property in tho road, and after their
default they held tho corporate) fran
chise's at tlio will of tho Legislature,
and the exertion of that will, lu the re
sumption of tlio franchises, ilid them
110 injury but what tney agreed to sub
mit to,"
Judge Lowrio in concurring lu this
oijiiilon, said :
"It is objected that this power Is not
to bo oxercis.'d, unless tho corporation
mlsit-u or abuse itS privileges. Hut, as
Legislative power must bu guided by
its own wlsdo.n nnd knowledge, so ;(
11111.1 take its met v:al if informing itulf;
and thu com Is ciuiiot set aside its ac
tion, on thulr supposition or conviction
that it is founded 011 misinformation.
If tlio com ts must llrst declare the abuse
then an express Legislative function is
mado dependent upon thu Judiciary,
which is simply absurd. That tho law
making power should bo controlled in
its action by previous law Is even moro
palpably so."
lu tho above case, irom whlcli 1 navo
looted so llberallv. tliu defendants ob
tained leave to amend their bill, and
tlio subject was again brought buforo
tlio Supremo Court, Without wearying
the committee by many ftirther ex
tracts, let mo glvu tho Court's opinion
as to whateonstltutes"abusOoriiilsuso"
or a charter. As that is tlio cs-enoo or
this ease I will bo pardoned for quoting
tho learned Judge's opinion fully on
that point.
"Now what isnhusoor misuse '.'There
Is nothing profound or mystical nbout
tliesu words. They uro not terms of art
in tlio law. Thu popular sense in which
the-y uro used every day is well known.
To abuse, is compounded of no nml
utor ; and In strictness It signifies to in
jure, diiniuisii 111 value, or wear away,
by using Improperly. Catiline nbusod
tho patience of tho itoman Senate. A
man anuses nis constitution ny excesses
which impair us vigor, a judge iiuuscs
hisolllco not only by taking bribes, but
uy any misconduct which detracts from
its dignity and usefulness. To abtiso
tho frecduiu or tlio press, or tho right of
debate, is a puraso irom widen wu tuKo
n periecuy iieiiuuu idea, wo Know
very well what Is meant when it Is said
that Legislative authority or oxecutlvo
power has been abused. Why, then,
uro wu expected not to know that a
corporatu prlvllego has been abused,
wnun wo seo it used as a eenour ana a
pretext for that which tho law pro
noiiucis a wrong and Injury to tho pub
lic'.' Misuse Is still a simple word. It slg-
nilles merely to uso amiss, lie who
would prove thaf any power has not
been misused, must show that It has
been always used rigidly, or elso not
at all,
,Uut I admit that these words, llkoall
others, may havo diil'erent meaning,
when spoken with reference to diil'erent
objects. Acts which would bo an ubuso
of ono thing may bono nbusoofanother.
Wo are therororo to ascertain precisely
what is abiiso or misiisu or corporatu
privileges uy 11 company, auuso in
cludes misuse. Wo tako them both to
gether and ill lino them thus : Any pos
itive act in violation or tlio charter, and
in derogation or publle right, wilfully
dono or caused to bo dono by thoso ap
pointed lomaniigo tho general concerns
ot tho corporation . Let us analyzo this
1. Tlio Illegal act must bo iiosltlvo. A
mere omission, Hko tho failure of n
bank to mako its annual returns, Is not
enough. Nonuso Is n different thing
rrom nbusoor misuse.
U. A disregard of tho charter which
Is Injurious only toprlvato Interest, and
which therefore admits of private com
ponsatlon, Is not. I think, within tho
lair mcnnlng or tho words. It must bo
somo misconduct which Infringes upon
a right reserved by tlio Stato for tlio
buncllt of tho publle.
I). It must ba wllfull, that is, Invol
untary, accidental, or tho consequence
or mere mistake. Hut I mean mis tako
or r.ict. Kvcry man Is bound to know
tlio law. Especially aro tho grantees
or a prlvllego llko Oils, bound to know
tlio law which limits nnd defines Its ex
tent. They bargained to obey tho char
ter, not ns they nnd their successors
might happen to understand It, but ac
cording to its truo intent and meaning,
ir wu could allow them lo havo nn nil
vantagu rrom their own errors of inter
pretation, then every grant of cornor-
nlo privileges must bo measured not by
tno terms 01 tno grant itsun, out ny tuo
lgnoranco of tho grantees. A power
not largo when understanding nil
ministered, might become enormous In
tho hands of dunces; and tho dimen
sions or tho samo charter would dllato
and contract In proportion to thodegrco
or Intelligence that each now set of di
rectors would uring to 1110 business, fcio
lileli a premium for lgnoranco would
causo It to bu feigned sometimes, when
it does not exist. Tho rulo is a wlso ono
which conclusively presumes that tho
managers of railroad companies, llko
everybody else, understand thu law
which prescriucs tneir uuuej.
1. It cannot bo said that thu company
has been guilty of abuso and mlsuso
every timo a subordinate officer or agent
transgresses tno act 01 incorporation,
without authority, oxnrcss or Implied.
rrom tlio board of directors. It is not
sulliclent, ror Instance, that a conductor
of Ids own Head Biiouiti eiiargo an exor
bitant faro. Jim u the directors should es
tablish a tariiY of tolls nrcatcr than the law
allows, and cinnptl the public to pay them,
tins wotihl be a manliest abuse.
I havo tiuotcd nt somo length. Gentle
men of the Committee, rrom this mem
orablo case, not only because It Is
rrom tlio lien of onu of our ablest living
Jurists, but becauso It covers all tho
points in tins caso iiku 11 uuimtui, snow
ing nliko tho duty and powers of tho
legislature, as well as that of corpora
tions created by its authority. No lan
guago of mlno can add forco lo what
has been so ably said by Judgo Hlack,
and It would bo pedantry to rofor to tho
numerous authorities whleh sustain
It will bo contended here, I havo no
doubt, that the principles of this decis
ion aro overruled in tlio caso of tho
Commonwealth v. Tho Pittsburg A
Connellsvlllo Hallroad Company, 8 P.
K. Smith, pngo "0. Without going Into
detail as to tliu merits or that case, bo
causo undoubtedly tho Commltteo will
fully oxaraluo It, I may state that In it
n general demurrer was lllcel by tho
Commonwealth to tho rejoinder of tho
defendants, which, ns stated by tho
Court,"unqucstlonnbly admits tlio truth
of all tlio facts averred in tho rejoinder."
As slated bv Judiro Sharswood. who de
livered tho opinion of tho Court, "Wu
havo 110 difficulty in saving that upon
theso pleadings It Is admitted that no
misuse or abuso bad taken place, which
would irlvo any constitutional right to
tho legislature under tho HOth section of
tho original act 01 incorporation, to ro
sumo the rights and privileges granted
to tlio defendants."
Tlio case, then, was decided on tech
nical ground'', tho Commonwealth hav
ing admitted that "no nbuso or misuso
had taken placo." Judgo Sharswood, In
commenting upon Krlo A North Kast
itallroau uo., r. uasey, expressly says,
in speaking nf the conclusions arrived
at by Judgo Illack : "After so clear nu
enunciation ny tnu court itseii 01 tno
conclusions at which they had arrived,
It would bo altogether a work oi super
ligation to examine and analyze thu
reasons upon which they uro based.
rnatcase musinoconsiucrcd an autiiori-
t y in this slate for tlio nositloti that thu
legislature is not thu final Judgo of
Whether me casus Jucaeris, upon which
1110 authority to repeal is based, lias oc
curred." It will bo observed here.
Gentlemen, that tho casu of Krlo A
Nortli hast Jtailroad Co., r. Casey Is not
overruled, but cndoisid, and contains no
dental oj authority tn the J.eglflature to act;
and Irom tho instances cited by tliu
learned Judgu bu only concludes that
thu legislature "has not claimed an
absolute right lo tlecldo conclusively
upon the facts of mlsurer and abuse."
1 may add that becauso shu lias not
claimed tho "absolute lUht," does not
destroy It hut ns a 111 liter of fact in
several Instances shu h..i claimed nnd
exercised It. He-lde, it is not llio abso
lute lorfelturo or those euarters that wo
now demand, but the curbing of these
corporations which an doing enormous
daiuagu to tliu peoph at largo by charg
ing their present raie.s ot toll.
Astbucasooi thu Cumberland valley
Hallroad Company's Appeal, 111 P. K
Smith pugoSIS, may ho alluded to, I
desire simply to stato that It bears no
analogy to tho present caso. That Com
pany by tneir cnarior wero permitted
lo chargo "four cents per ton per mile
for toll, and tlireu cents per -ton per
mllo for transportation." As they had
not exceeded their charter liuiits tlio
Suprcmu Court sustained them. They
kept within their contract;, they had not
misused or aiiusen tneir privileges.
I could multiply authorities beurlnir
uu thu points 1 liavo advanced, but not
wishing to tax tno patioucu ot tliu com
mittee further on this branch of tho
question, I desire to call thulr attention
to a recent tiecision py tno bupremo
Courtof Illinois, repotted lu tho J'ubllo
llceord or March lath 1871, Tho court
says: "A railway company becomes a
common carrier by tho accoptaneo of its
charter, which constitutes its contract
with tlio public, unit its duties are tlxttl
by such contract and tho law applicable
to common carriers, Theso require it to
recclvo nnd transport all freight, with
out discrimination, ami for reasonable
To conclude on this point, Goutlemon:
abovu and beyund all this there resides
in tliu btato mat attribute 01 sovereign
ty, thu power of eminent domain. On
this point the authorities aro so mu tl
tifdlnous that I can refer only to only a
few. Says Couley,ln Ids admirable work
on Constitutional limitations, nago 2S1.
"The grant of an exclusive privilege
win not prevent tno legislature irum
exercising tno power of eminent do
main in respect thereto. Franchises,
like ovcry other tiling of value, and In
tho naturuol property, within thu State.
aro subject to this power, and any ol
tlielr Incidents may bo taken away, or
themselves altogether annihilated by
Its exerciso. Anil It Is believed that an
express agreement In tho charter, that
tlio power of eminent domain should
not bu so exercised as to Impalror effect
tho franchise granted. If not void as bu.
yond tlio power of tlio legislature to
miiKo. iiitiii uo considered as only n
valuable portion or tho iirlvlleircs secur
ed by tho grant, nnd as sucli liable to bo
appropriated under tho power o emi
nent domain. Tho cxcluslvoness of tliu
grant, and tho agreement against Inter-
lurcuco wiiu it, u valid, constitute ele
ments In Its value to ho taken Into ac
count In assessing compensation ; but
appropriating tho franchise In such a
casu 110 inoro violates tlio obligation of
DEM. - VOL. XXXV NO. 11.
tho contract than does tlionnproprlatlon
or land which tho Stato has grantod
under nn express or Implied agreement
ror quiet enjoyment by tho grantee, but
which may nevertheless be taken when
tho public need roepiiros."
Mr. Grconlcaf, in a note to his edition
or Crulso on Heal Property, Vol. 2, p,
07. says !" Any net of tho leglslnturo
disabling Itself from tho future exerciso
of powers Intrusted to it for tho public
good must bo void, being In effect n
covenant to desert lis paramount duty
to tho wholo people."
In tho cases before us thu legislature
has o granted nway Its powers or con
trol, but expressly nnd in mil words ro
served them.
Cooley,ln tho samo work, p. r!17, says:
"Thu nuthoritv to determine In anv
caso whether It Is needful to exerciso
this power must rest with tho Stato
Itself, and the nntstion is ulwaus one of a
strietjuyliticnl character, not requiring any
hairing vponthe facts, or any jttdicialdctcr.
Again, tho Stato has n general police
power over all theso corporations ; nnd
without elaborating tho subject I would
refer you to tho opinion or Chief Justice
Hedileld lu Thorpe v. It. A H. H. H. Co.,
7 vt, 1 10, where ho states : "Wo think
tlio power of tho legislature to control
existing railways In this respect may bo
found In tho goncral control of tho po
llco over tlio country, which resides In
tho law making power in nil thu states,
and which Is, by tlio fifth nrticlo of the
Hill of Higlits in this state, expressly
declared to reside perpetually and Ina
lienably in llio legislature, winch is,
bcrhaps. 110 more than tlio enunciation
of n general princlplo applicable to nil
freo States, and which therefore cannot
bo violated so ns to deprive tho leglsla
luru of tho power, ovon by express
grant, to any mere private or public
corporation. And when tho regulation
of tho pollco of a town or city, by gener
ul ordinance, is given to such cities or
towns, and tho regulation 01 tneir own
Internal pollco Is given to railroads, to
bo carried into effect by their by-laws
and other regulations," (Just what theso
corporations claim), "it Is, of courso,
always, in all such cases, subject to tho
superior control of tliu legislature.
Jhat is a responsibility whien legislatures
cannot dicrsl themselves nf, if they would.
On tho same) point 1 refer also to India-
nations cSC it. 11. uo. v. Jvercnevai, id
Intl. 81: Ohio As H. It. Co. v. McClell
and 21 III. 11!) ; Stato v. Kayos, 17 Me.
Now. ttrc tho present ratos of freight
on tho railroads In question exorbitant?
Tho testlmonev of witnesses produced
on this point is ns fresh lu tho minds of
tho Committee us in my own, anil tno
rates or freight charged ut different
times is before you in tliu slinpo of doc
umentary evidence. In tliis connection
I will only idludo lo tho ovidenco or it
few witnesses ; becausu us wo wished to
occupy but llttlo of your timo wo havo
called only a small number, when wo
might navo cumuiaieu testimony oy
hundreds of them, us tho Commltteo
well understand,
In the llrst place, then Col. llltner, a
manufacturer of Iron, distinctly states
that thu rates ot freight are exorbitant,
and that alone, and not the prica of
mining coal, is tho causo of the present
trouble. Ho believed tho charges of
1 03-100 cents per ton per mile for freight
were exorbitant nnd much more so the
present chargo of C) cents per ton por
mile. Messrs. Fulton, Kcndrick, and
other prominent men called by tho de
fendants testify to tliu eamo effect. Gen.
Hrisbin, general counsel of tho Dela
ware, Lackawanna A Western H. H. Co.
regarded tho rates as prohibitory. Gen.
Cake thought If thu tolls bad not been
Increased, two-thirds of tho collieries In
Schuylkill county would now ba lu op
eration. Mr. llorda. thu agent of llio
Philadelphia A Heading H. H. nt tho
N. 1. meeting there alleged that thu in
tention was to put up tho ratis of
freight to such "fancy rates" that it
would bo iuiiiossiblt! for any operator in
tho Schuylkill region to ship coal, ami
tnal sialenirnt remains uncontradicted.
Messrs. lie dev. oiiiev. A Watters stub
that different operators told them long
before tho present rates of freight were
anopieu mat tnu men rates wereexorbl
taut on tho Philadelphia A Heading H.
H,, and prevented them Irom competing
Willi thu other anthracite regions. Tlie
pnicnt rates arc itcaily four times as much as
thin were then!
Messrs. Foley and Ilallman represen
ting nut only thu National Labor Asso
ciation In this Stale but thu 2100 men
composing their Union in Danville,
swear that tho great works there are
stopped, not becauso of tho strlket, but
uec.iuso 01 mo cxorouuni, prohibitory
rates of freight 011 tlio Lackawanna A
Hloomsburg. 11. H. Tho iron manufac
turers of Danville and their miners In
Luzerno wero in accord, but tlio extra.
ordinary increase of tolls on tlio Lacka-
wanna a istoomsburg 11. 11. chilled
tlielr furnaces and reduced thousands of
men in that thrivluir town to want nnd
In Hloomsburg, as appears by tho tes
timony of Mr. Drlnker.tho furnaces lire
working nt the samo disadvantage, and
though shlpplngeoal for tlielr furnaces It
It is tremendously enhanced In value by
the lacreaso of freights.
Look ut It. Gentleman of the Com.
mtttco! Kven now, as appears by tho
testimony, a ton of chestnut eoal en.ts
at tlio mines in tho Schuylkill region
nut .,ue, anil tno ireignt is 4-0,00 to
Philadelphia 1 Tlio Philadelphia Coal
Company only chargo that amount now.
If the Philadelphia A Heading H. H.
only charged ?2,00 per ton, (more than
tlielr usual rates), tlio suffering thous
ands of Philadelphia, despite suspen
sions, would pay only $1,00 per ton at
tno point 01 delivery wnero they aro
1 1 1 ) , unused 10 paj fo,y-j,
If these creatures of tho State, then.
may eharguuiii amount for transporta
tion 01 coai, us uu!i, urisiuu und other
witnesses bttttu. Is It not timo tho Stato
should htep in and limit that power? If
they can lay an embargo on this urllclu
or prlmo necessity, can they not do tho
samo on grain, or any other matter of
commerce? If they call ilrlvo coal from
tho market by a combination n con
spiracy (becauso that It Is such thu sim
ultaneous r.uu 01 irclghts alter tho
Philadelphia and New York Meetings
of tho operators nnd railway managers
nbundantly proves) for thulr own good
nun ngaiust tuu puuiiu weai, 1 nout 1110
umo has como wneu tlio stato under her
power of eminent domain. If under uo
other, should step In, and lor thu pro
tection 01 1110 puuuc say "thus lar you
may go and no ftirther."
Hut, say theso corporations, "wo need
tho fostering caro of llio Statu; capital
must bo protected." As statetl by tills
Honorable Committee in their prelim
inary report, to which I most huartlly
agree, "capital Is In itseir aggregation,
association, combination." ir capital
can protect Itself, w hy glvo It furthor
assistance, when thu result Is lo timu
down tlniso who mako capital for oth
ers, tint never prollt by It themselves I
Tho Statu having given theso railroads
extraordinary privileges and marked
a lino beyond which they should not
go, has Iho right and It Is her duty to
step in Tor popular protection.
Hut havo tlitso cororatious suffered?
Let mu examine two or tlireu or them
and see. T';o Philadelphia A Heading
H.H., has a capital or over $;W,000,000,
n largo proportion or which Is owned
in rairopo, wnero money is cons tiered
well Invest-.! wheu It brings four per
centpr, milium; yet this Impoverished
corporation for years bus been declaring
ten per cent dividends, ns appears by
tlielr returns to tho Auditor General,
One Inch, (twclvo lines or
Nonpareil type) one or two
three Insertions, 12. 00,
lti cuijvnlciit In
lncrllon, 11.50
One Iiicli........IIM
Two lnrlics..H.H.H8)0
Dm. ex, It.
11,00 to.oo m.oo
7,00 9,00 15,00
9,00 12,00 18,00
11,00 17,00 SMI
11,00 20,-10 30,00
SO 00 80,00 (10,00
40,00 00,00 100,00
Three Inches 6,00
I'onr Inches 7 00
tluftrter colnnin,, 10,00
Half column .15,00
Ono columii......30,0U
Exceulor'a or Ailmtnlnlrator's Notice, (3.00
Auditor's or Aulgnco'n NoUee, 12.00.
tflcitl notices, ten eent n line.
Cards In Iho "Business Directory" column , l'J.00
per yenr for tho llrsl two lines, ami (1.00 for ench
addlllnuM line.
and bow much moro In ways known
onlv to tho managers, tho gifted $30,000
per annum Prcaldont of that Buffering
concern mono can ten. an ibu-j too
length of track under Its control was
1111 0-10 miles. Now itls much greater.
Its coal tonnago for that year a year
of strikes was -I,lp0.810 tons. Tho cost
or operating tho road was $2,.H0,2ll,ir,,
or Sil.0D0.7D3.G7 moro than tho cost of
operating tho entire roadl
Tho nvcrago cost per ton per mile for
transporting coal wos 80 100 of a cent,
wlillo tho nvcrago charge was 193-100 or
n cent. JVow tho chargo from Port Car
bon to Philadelphia down grado Is
over 01 cents per ton per mllo 1 Accord
ing to tho statement of Mr. Gowr.N but
12,000 tons por week nro carried over
tho road, or (121.000 tons per year. As-
sumlng tho avurago distance of trans
portation to do '.1:1 miles, 1110 tiisiaiit-o
irom Port Carbon to Philadelphia, at
nrosent ratos tho C2I.000 would 11.1v
i(Jo2,C0l moro than tho cost to transport
4.100.810 tons tho satno distanco ut 80-100
of 11 cent per ton per mllo lu 1800.
Again, ut hu iuo 01 a cent per ion p-.-r
mllo tho uctual cost of transporting 4,
U.0,810 tons of conl was only 83,110,82),
while tlio receipt wero $3,310,210,15 for
tho samo, showing n prollt of S3,2iW,115,
on that nrticlo alone.
Uut,say theso Impecunious gentloinen,
those oxorbltant rates uro Justified for
tho uso of cars nnd motlvo power; tho
four cunts per ton per milo being for
tliu uso ol tnu roauway. isow let 11 uo
remembered that for tho mere uso or
tho roadway, station ngonts, toll collec
tors, track repairers, and nearly nil tho
present machiuery or n transportation
company would bu required. Are theso
companies Justified In exceeding tho
limit ror tolls becauso they furnish cars?
We think not. A ftiur wheel cur costs
about $2o0. It carries tlvo tons, und can
easily mako 120 trips -a year, or carry
000 tons. If $2.00 per ton tliuu bo charg
ed fur car service, eacli car would earn
$1200 pei-uiiiiitniornboutyJcc times its costl
un tins subject tno testimony 01 ur,
Fiux'ic. a witness culled by tho defen
dants, throws somo light. Ho is now
carrying coal over thoSehuylklll Haven
A Mlno Hill H.H.,(a brunch operated
by tho I'hiiaueipiua a Heading it. it.,j
under uu old contract, under which liu
pays 1 cents per ton per 111110 ior too
uso of tlio road, nnd J or a cent per ton
per mllo ror ear service und motlvo
power, tho proportion or tho latter to
ll r... - l...ln.. nn in tttrnK.r. 'Phlj
Is tho proportion between tho two as
agreed upon between tho corporation
and operator. Applying tho samo xulo
to tho Philadelphia A Heading H.H.,
evon at four cents per tou per mllo for
tolls tho present ratoi or freight from
Port Carbon to Philadelphia would bo
only $1.03 por ton instead ol $0 03 us
now charged.
Lot us now turn ror a moment to tho
Delaware, Lackawanna A Western It.
H., n giant corporation which has ono
foot In Now Jersey, another In Now
York, and with Its Urlarcan arms grasps
tho anthraclto fields or tho Wyoming
region. Less than ten years ago Its
capital stock was $o,000,000. Now It 13
$13,803,850. It has not only declared
large uiviuenusnunuany, out uos ntrgu
lv increased Its capital stock, by tho
earnings of tho road, und, U3 I could
demonstrate, Dy a system peculiar 10
railroads, in a short time has swindled the
,(n(c out of over ?;joo,ouu 01 taxes atonei
Uy a supplemental report mudo to
tho Auditor General In 18G0 it appears
tiiat tlio stock was Increased watered
somo call It as follows :
July 20, 1803 S G13,0.j0.
January 4, 1SG1, I,131,3o0.
April 13, 180 1 300.
JunoO, lSlil 00.
November '. 1801 3,111,100.
"Tlio stock thus Issued," says tlio
Treasurer of tho corporation, "with the
exception of S3o0, represents the earnings
for the years 1S03 4 and the preceding years,
and whs distributed pro rata among the
stockholders'' I will not now go into
thu details or this subject, but will sim
ply call thu atlontion of tho Commltteo
to a few brief facts. Hy their report lu
I Ml!), (which shows a wonderful facility
for evading tho Inquiries mado by tlio
Auditor General) they carried 1,002,111
tons of anthracite coal, or only about
lOO.OOOmoro tons than wero transported
by tho Lackawanna & Hloomsburg H.
It , a small feeder to tills giant monopo
ly. Yet on thatgiven amount their re
ceipts must havo been $1,307,115. bo-
ciu-u tlielr general rreight receipts wero
$2,201,1 15, and as there was asuspcnslifn
Tor thu months of Juno, July and Au- '
gust, it gives us thotwerago receipts for
coal alone. Their average chargo, then,
from Scranton to tho Delaware a dis
tanco of 05 miles was less than $1.00
per ton, whereas now it Is S2.00.
Again, Gentlemen oi' tho Committee,
their declared dividends In 1800 wero
20 percent, and in 1800 thoy only earned
10;icr cent, according to their report,
yet In 1800 tlielr receipts wero $2,733, 100,
and their payments $7,310,351, wlillo In
1800 their receipts were $2,417,321, and
tlielr paymeuts only $3,832,221, or $3,
177,131 less than in 1800. Another fact,
in 1800 they paid tho Stato in tuxes, nc
cording to tlio Auditor General's He
port $205,121, wheieas in lfeOO they onh)
paid $17,010! "
As u further illustration of lids brnneh
of ths subject I will only cnll your nt
tentlon to ono o titer company tliu
Lackawanna A Bloomsburg a satellilu
of tho Delaware, Lackawanna & Wes
Although its Superintendent wns In
profound Ignorance ns to tho longth of
tho road, tlio distances from point to
point, tlio rates of rreight charged ami
the laws regulating them, who owned
or operated tlio road, tho facts havo
bcon obtained In another manner.
Thu road from Scranton to Northum
berland is 80 miles in length, und from
PIttstou 70 miles. Previous to tliis into
conspiracy among tho carrying compan
ies to raise freights, It cost $2.00 to car
ry n ton or coal rrom Pittston to Nor
Ihumberland ; and It hoio costs $2.75. It
fic cost $1.00 per ton from Shlcksliluny
10 iieacii iiavcn, u instance 01 soveu
miles; It now costs $2.00. Hemember,
gentlemen of tho Commltteo, that this
railroad under tho law passed last win
ter can only chargo in all twonty cents
per ton for distances under ten miles,
unless tho rntoi under tho 18th section
of tlio Act or 18 ID exceed that sum, so
mat tney cnargo ten nines tno amount
permitted under tho Act of 1870, and
nearly us many times more than tbev
are allowed under tho Act of 1810. l'n
u word, thev now ohnrtm ns much fur
soveu miles, as they formerly did ror
suvuiuy. 10 uiustran nirtner. Thu
distanco rrom Hloomsburg to Hupert is
iwo nines i nun yet mis company
charges 40 contH per tou transporting
nun tout instance; uouuio wnat tno
iaw 01 ism permits, ami so pronibitory
that tho Iron men or Hloomsburg find
It cheaper to boat tlielr Iron In summer,
and haul It by teams In winter.
Again, thu Iron men of Hloomsburg
gut tlielr Ilmestonoovcr this road inthtie
own caw, from Llmo Hldge, ti distanco of
six miles, for which they uro charged
25 cents per ton, when under tho Act of
1870, the limit Is 20 cents. It Is uo
nrgument to ullego that tho curs may
ovorrun lu weight, becauso both thu
company ami iron men assutuo tho ca
pacity of each car to bo 11 vo tons, and
havo always settled on that basis. H
theso Instances tin not constitute a plain,
clear, palpablo violation of tho law,
then I can concelvo or no combination
ot circumstances that will.
And now, gentlemen ortbocommlttee,
having gone over tlio general question
of thu light of railroads to chargo
IXISTINClillllX 10C11TH l'A01i