Monopolies -- United States; Railroads and state -- United States
The question of taxation for the benefit of private corporations has
agitated the public mind since the construction of railroads became one
of the admitted necessities of the country. For the purpose of
justifying and legalizing governmental aid to railroad corporations, in
the various forms in which such aid has been afforded, the doctrine has
obtained among the advocates of the measure that railroads are public
highways, as well as a public necessity; and such being the fact, that
aid in the shape of grants, taxes, and subsidies, are legal, legitimate,
and proper. They draw an argument in favor of this doctrine, from the
fact that legislatures, state and national, have provided by law for the
condemnation of private property, for the use of the companies,
respectively, upon paying the assessed value thereof; and that thus the
right of eminent domain is vested in these corporations; that the right
of _eminent domain_ is an attribute of sovereignty, and that the
granting of this attribute to corporations imparts to them the character
of public highways. They reason that because they are public highways,
and the companies owning them are common carriers, taxes may be legally
levied and collected for the exclusive use of these companies. They
claim that because the United States, states, counties, cities, towns,
and townships, have authority to construct, or to aid in constructing,
common highways, they have the same right to construct, or aid in
constructing, railroads.
If it were not that precedent has tended to sustain this "false
doctrine," we would not think it profitable to combat it. The only point
in the argument in favor of this doctrine that has any real foundation,
is, that railroad companies are allowed to locate their roads where they
please, upon payment of the damages assessed in the manner prescribed by
statute. The answer to this is, that railroads could not be built,
unless the companies had permission to pass over the lands of private
citizens. If the title from each land owner could be procured only by
negotiation and purchase, no railroad could be constructed, for the
reason that a direct or continuous line for a road could rarely be
secured. Railroads are constructed to aid in the transportation of
freight and passengers from one part of the country to another; to
promote commerce throughout the whole country; to supply the wants of a
people, just as a mill or factory supplies the wants of a particular
locality. The miller constructs his dam across a stream, and, under the
statutes of most of the states, he can procure the condemnation of the
land of his neighbor overflowed by his dam, to his own use, upon payment
of the damages assessed. It is not a condemnation for the use of the
public, but for the use and benefit of the owner of the mill. The mill
itself, while it is owned by a private individual, and can be sold and
transferred by him at any time, is also a public benefit. Can it be said
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