The Railroad Question: A historical and practical treatise on railroads, and remedies for their abusesLarrabee, William
History
The Railroad Question: A historical and practical treatise on railroads, and remedies for their abuses
Larrabee, William
Railroads; Railroads -- United States; Railroads and state -- United States
It was from the beginning Mr. Stockton's object to share with the
railroad company the advantages which their line promised to give them.
The enlargement of his company's franchise placed him in a position to
dictate terms to the Camden and Amboy Transportation Company. The latter
was given the choice, to prepare for competition with a rival railroad
line, or to consolidate with the Delaware and Raritan Canal Company. It
chose the latter alternative, and on the 15th day of February, 1831, the
two companies became one. The consolidation still required the sanction
of the legislature. This was obtained in consideration of the transfer
of 2,000 shares of the capital stock of the company to the State. It was
further stipulated that the new company should pay to the State a tax of
10 cents for each passenger and of 15 cents for each ton of freight
carried over its line through the State, as well as an annual tax of
$30,000, and that the State in return should protect the company against
any and all competition in the direct passenger and freight traffic
between the cities of New York and Philadelphia. Serious doubts were at
the time entertained by many, whether the State of New Jersey under the
Federal Constitution possessed the right to thus create a monopoly in
transportation facilities, and to regulate arbitrarily the commerce
between sister States.
Five days after it had granted this charter to the Camden and Amboy
Company, the legislature granted another charter authorizing the
construction of a railroad from Jersey City to New Brunswick on the
Raritan River. On the 23d of February of the same year a charter had
been granted by the legislature of the State of Pennsylvania to a
company which had been formed for the purpose of constructing a railroad
from Philadelphia to Trenton. This company had likewise been authorized
by its charter to buy the right of way for a railroad from Trenton to
New York, which it proceeded at once to do. It was evident that as soon
as the two new roads would meet at New Brunswick, an understanding would
be reached between them, by which another through line would be created
between New York and Philadelphia, which would have the advantage over
the Camden and Amboy road that it touched the capital of New Jersey and
could thus make itself serviceable to members of the legislature,
officers of State and influential politicians.
Public-domain text, read in full here on John Shaqi.
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