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vide for the registry and countersigning by an officer of the State of all notes and bills designed for circulation, and security for the full amount must be deposited with the auditor-general for the redemption of such issues. There are at present no State banks of issue. Charters for banks and savings institutions are issued by the secretary of the Commonwealth. No corporate body possessing banking privileges can be created without three months' previous notice as prescribed by law, nor can such charter be granted for more than twenty years (192).

Corporate Stocks and Bonds.—Corporations cannot lawfully issue stocks or bonds except for money, labor done, or money or property actually received; and all fictitious increase of stock or indebtedness is void (188).

Telegraph Lines: Consolidation.—Corporations organized for the purpose, and individuals, have the right to construct and maintain lines of telegraph within the State, under the general laws enacted by the Legislature. The consolidation of competing lines is prohibited (193).

The Governor Approves: Bonus.—The Governor's approval is necessary to the granting of any charter of a corporation for profit organized under the general laws; and he issues letters patent to all corporations for profit created under the general laws of the State. A bonus of one third of one per cent. of the capital stock must be paid in full into the State treasury by all corporations, except building and loan associations, before papers can be filed or recorded in the office of the secretary of the Commonwealth, or letters patent can be issued by the Governor.

CHAPTER XIX

RAILROADS AND CANALS

Importance of Railroads.—The railroads of the State are the most important factor of all concerned in the commerce of the Commonwealth. Indeed, it is impossible to understand the domestic commerce of the State without a thorough knowledge of its transportation system. Without railroads, stagnation of business would result on all sides, and disturbed conditions would prevail throughout the State. The railroads are very important to those persons who depend upon their daily toil for their subsistence. The number of employees alone is over five hundred thousand, and there are at least two million persons who are sustained through the employment given by the railroads of Pennsylvania.

Public Highways: Common Carriers.—Although they are of great public utility, railroads are not properly public works, since in this country they are constructed and controlled by companies incorporated for the purpose. In one sense, railroads are public highways (195) and post roads. All railroad companies are common carriers, that is, they carry goods or passengers for hire. As such they are bound to carry in all cases when they have accommodation, if the fixed price is tendered; and they are also liable for all losses and injuries, except in cases of the act of God, as lightning, storm, etc., and public enemies, as in time of war. Railroads are not expected to carry dangerous freight. They are not obliged to carry freight unless the charges are prepaid; and if the agreement is made to take payment at the end of the route, the goods may be held until the freight is paid. The right to have persons and property transported is equal to all (201), and no undue discrimination can lawfully be made in charges and facilities inside the State (197).

State has Right to Regulate.-Certain decisions of the Supreme Court of the United States have established the right of each State to restrict and regulate the business operations of railroad corporations within the limits of that particular State. It is also true that the State has the right to regulate the rates at which passengers and freight shall be carried by railroads; because such roads are public highways (195), controlled by corporations created by law, and therefore subject to the lawmaking power whenever it may choose to intervene (206).

Extreme Limitation not Probable.—Railroad corporations are useful in so many ways that any general decrease in the facilities for forming them is improbable; but special restrictions and taxes will increase. The usefulness of a railroad depends upon its public service:—its ability to conserve the convenience, safety, and economy of its passengers and shippers, as well as the prosperity of its employees and shareholders. The power of taking public property and franchises, now misused to a great extent, will be restricted and controlled. Through great railroad corporations, it is at present possible for one man to exercise power of a wholly irresponsible nature. A great corporation, skillfully managed, becomes dangerous to the rights of individual men. The old principle of the monarchy, banished from the field of government in our republic, asserts its strength in the important contests of industry and finance. There is nothing unreasonable in the desire of the people to regulate these immense corporations and trusts, and to restrict the range of their action.

Interstate Commerce Commission. The Constitution of the United States gives Congress the right to regulate commerce between the States; and this covers the right to regulate and control the railroads in all matters pertaining to interstate commerce, even to fixing rates at which passengers and freights shall be carried. The Interstate Commerce Commission has succeeded in regulating railroad transportation and charges in many material respects. Congress has no authority to deal with a railroad lying wholly within the limits of one State; but all lines which lie in more than one State, and lines in different States which by connecting are worked together as one line, come directly under its legislation. The railroads themselves are benefited by the establishment of the Commission, for all discrimination, secret rebates, and special privileges are forbidden.

Powers of Common Carriers Limited.—No incorporated company doing business as a common carrier can lawfully engage in mining or manufacturing articles for transportation over its lines (199). But any mining or manufacturing company may carry its products on its railroad or canal not exceeding fifty miles in length. Nor can the president, other officers, or the employees of any transportation company be interested in the furnishing of materials and supplies to the company (200).

No Consolidation of Competing Lines.—The consolidation of parallel or competing lines is forbidden by the State constitution, and the officers of one company are restricted from serving as such in another. Juries decide whether companies are really managing competing lines (198).

Granting of Passes Limited.—The granting of free passes, or passes at a discount, to any persons except officers and employees of the company is forbidden. The strict enforcement of this regulation has put an end to an abuse which had assumed immense proportions (202).

A Great Railroad State.—Pennsylvania is, without doubt, the greatest railroad State, having 11,983 miles of railroad · within its limits and a total mileage of 29,857 operated by

its railroad corporations. The Pennsylvania Railroad is beyond doubt the greatest railroad system in the world. Its headquarters are in Philadelphia, and its lines reach almost all parts of the State and far beyond to the eastward and westward, with an enormous freight and passenger traffic. Within the State alone it controls 3,452 miles of railroad. It is a prodigy of labor, wealth, and skill, and is in actual control of 23,977 miles of track. The States through which the Pennsylvania lines run contain 44,936,522 people; that is to say, the road touches directly the social and industrial life of half the population of the United States. It has over 134,000 employees on the lines east of Pittsburg. Next in importance is the Reading Railroad, which controls extensive mileage in the eastern part of the State. This railroad lies in the anthracite coal fields and ships large quantities of coal. The Lehigh Valley, the Delaware and Hudson, the Central Railroad of New Jersey, and the Delaware, Lackawanna, and Western are also great railroads and owe their importance largely to the coal interests of that region. The Baltimore and Ohio Railroad comes up to Philadelphia in the east, and passes through Pittsburg on its way westward. The Bessemer Railroad is an important line, engaged largely in the transportation of iron ores. Other railroads having large interests within the State are: the Erie, the Lake Shore and

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