Monopolies -- United States; Railroads and state -- United States
The influence of corporations is also powerful in the administration of
state governments. While no such gigantic monopolies as the Pacific
railroad have been organized in any state yet, either by special
charters granted by state legislatures, or under general incorporation
laws, railroad corporations in large numbers have been organized, and by
combining their influence, have obtained control of most of the state
governments; they have been granted special and exclusive privileges,
and by the use of money and patronage have been able to control state
conventions, state legislatures, and state courts. As a logical result,
the people are taxed, while railroad companies are practically free from
taxation; subsidies to corporations are authorized and declared to be
constitutional, and the people are obliged to submit to rates of charges
for transportation of freight that amount to a confiscation of the farm
products of the country. We need not enter into a history of state
grants to railroad companies, for it is familiar to all; the same
corrupt practices incident to national, attend state, legislation. In
many instances, corporations have organized under state statutes, or
obtained special charters from state legislatures, located their roads,
procured local aid, and then obtained from congress land grants for
their roads, and have thus become powerful in the states where they are
located, while other companies have built their roads exclusively with
the means afforded by local aid voted under state laws, and loans of
money or sale of bonds; but in every instance so planning and contriving
that the entire road shall pass into the exclusive control of a select
few, leaving to those who furnished the local aid no rights or
privileges in connection with the company, or the road, save that of
paying extortionate freights and burdensome taxes.
CHAPTER XI.
THE SOLE PURPOSES OF TAXATION.
Public-domain text, read in full here on John Shaqi.
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