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
The company's charter also reserved for the State the right to acquire
the Camden and Amboy road under certain conditions upon the payment of a
reasonable compensation. In 1844, through Mr. Stockton's engineering,
the constitution of New Jersey was so amended as to practically deprive
the State of the power to acquire the company's property.
During the first few years of the existence of the Camden and Amboy
Transportation Company its business was managed in the interest of its
owners, but soon a few of its leading stockholders managed to turn its
enormous profits into their own pockets. The Stevens and Stockton
families, together with two other directors of the Camden and Amboy
Company, had come into possession of a line of steamers that plied on
the Raritan, between New Brunswick and New York. The enterprise, in
spite of its largely watered capital, had been made to pay dividends
ranging from 30 to 40 per cent. Its owners saw an opportunity for a
larger field of usefulness and larger dividends. In 1834 a majority of
the board of directors of the Camden and Amboy Company proposed that the
company rid itself of the responsibility connected with the
transportation business and lease its railroad and canal. Mr. Stevens,
as representative of the Camden and Amboy Company, then negotiated with
Mr. Stevens, the representative of the Napoleon Steamer Company, and the
negotiations soon resulted in an agreement between the two companies by
which the latter leased the railroad and canal lines of the former and
agreed to pay it a fixed toll of $7.64 per ton upon all freights carried
by rail, and one-quarter of all its revenues derived from the canal.
Soon afterward the Napoleon Company entered into a similar contract with
the Camden Ferry Company and now had a complete monopoly of the
transportation business between New York and Philadelphia. It at once
commenced to develop a system of organized plunder. Instead of the
maximum charter tariff of 8 cents per ton per mile, it charged 10, 12,
and even 15 cents. The through rates charged were several times as high
as those fixed by the charter. Canal rates were raised to such an extent
as to make them prohibitory and to compel the public to ship by rail. It
is difficult even to estimate the total annual profits of the
directorial syndicate. Their accounts, if any were kept, were not
accessible, and surmises can only be based upon such data as
occasionally found their way to the public. In 1845 the share of the
canal tolls paid to the company's stockholders was $359,000. The
directors' share under the terms of their lease is thus found not to
have been less than $1,077,000. Another item of $170,000, tolls
collected for the transportation of 27,000 tons of freight, was so
divided that the Camden Ferry Company, or its other self, the
directorial syndicate, received $32,000 for one mile, while the Camden
and Amboy Railroad Company received $63,000, or less than twice as much,
for ninety-two miles.
Public-domain text, read in full here on John Shaqi.
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