A. L. Bishop — The State Worlxs of Pennsylvania. 187 



of February 25th made no reference to the building or even to the 

 surveying of lateral lines. The title of the act (p. 185) shows that 

 it was to provide for a canal to be called ''The Pennsylvania Canal" ; 

 and further evidence is furnished by its preamble that public opin- 

 ion called for the construction of a single work to connect the 

 eastern and western waters. In a word, the whole movement for 

 improvements in transportation facilities from the very beginning 

 until legislation was secured authorizing the commencement of 

 construction had been for a direct avenue of commerce to the 

 "West. That it should be pushed through at once with all consistent 

 speed was the programme agitated; for in no other way might 

 Philadelphia have a fair chance with New York and Baltimore in 

 the struggle for the western trade. Lateral lines were mentioned 

 as being necessary as feeders to the main canal; but all references 

 to them indicated that the intention was to postpone their construc- 

 tion at least until the main line should be built. 



In conclusion, a word is necessary as to why the state itself 

 undertook to build the work rather than entrust its construction to 

 a private company. It does not appear that the adoption of that 

 policy was due to any fear of corporate power. On the contrary, 

 the incorporation of companies to construct and operate works 

 of public utility in many cases was considered necessary.* The 

 creation in the past of numerous turnpike, bridge and navigation 



* "Tlie incorporation of companies to carry on works of great public utility, 

 such as canals and turnpike roads, which necessarily require large associa- 

 tions to furnish the capital, which the finances of the state may not be in 

 a situation to meet, have ever been found useful and efficient means of 

 accomplishing these important public ends; and banking and insurance com- 

 panies have also been classed with these objects which render corporate 

 power necessary to conduct their operation with advantage to the public. 

 But the incorporation of associations to carry on a business within the reach 

 of individual capital, by conferring on them extraordinary privileges and 

 exempting them from the ordinary personal liabilities, is not only incon- 

 sistent with the dictates of sound political economy, but at open war with 

 the principles of a free government. This sound distinction in the incoi*- 

 porating of companies to accomplish works of great public utility, and those 

 for the mere purpose of promoting objects within the sphere of individual 

 enterprise, has happily been adopted and pursued by the legislature of this 

 state with few exceptions, and the instances of departure from this whole- 

 some discrimination, furnish the strongest evidence in favor of the wisdom 

 of the general course of policy." — Report of Committee of the Senate of 

 Pennsylvania, regarding corporations, read February 4th, 1825. 



