580 



NEW JERSEY. 



with the Lehigh & Susquehanna Eailroad. 

 The latter road, which was leased last year by 

 the Central Railroad, is 105 miles in length, 

 extending from Fhillipsburg through the Le- 

 high Valley, across the mountains, into the 

 great Wyoming Valley coal-region. The road, 

 with its branches, consists of 252 miles of 

 track. The Central Railroad is of about equal 

 length, counting its Flemington and Newark 

 branches. 



The two companies have agreed to unite 

 upon equal terms. The capital stock of each 

 being the same, $20,000,000, each shares alike 

 in the profits. By carrying through-passen- 

 gers over one line, instead of two, by avoiding, 

 as far as possible, the delays incident to pass- 

 ing the Bergen Tunnel, and by uniformity of 

 tariffs, the companies hoped to save millions 

 per annum, and to add in so much to the wealth 

 of the concerns. The roads were to be under 

 the direction, as before, of their presidents, 

 while a joint board, to be composed of these 

 gentlemen, with five directors from each com- 

 pany, would control the general policy of the 

 companies. 



Subsequently, the Central road declined to 

 perfect the union, and the Lackawanna sought 

 to enforce it in court. The union is still in 

 abeyance. 



A suit, involving large interests and impor- 

 tant questions of law, was pending during the 

 year between two powerful railroad corpora- 

 tions. The defendant was the National Rail- 

 way Company, which had been incorporated 

 by the State of Pennsylvania, and had for its 

 object the construction of a railroad connect- 

 ing New York and Philadelphia. It claimed 

 to be invested with power, by virtue of its 

 charter, to construct a railroad from Philadel- 

 phia to the middle of the Delaware River, and 

 to be entitled to extend its line through New 

 Jersey, by contracts with corporations of that 

 State. To effect this purpose, a contract was 

 made on the 1st of July, 1872, between the 

 National Railway Company and the Stanhope 

 Railway Company, by which the latter and 

 other New Jersey corporations were made 

 part of the through -line between Philadelphia 

 and New York. The Stanhope Company had 

 been incorporated by an act of the New Jersey 

 Legislature, approved March 13, 1872, for the 

 construction of a railroad from Walkill Moun- 

 tain to Stanhope. The eighth section of the 

 act, among other things, contained this re- 

 markable provision: 



And it shall be lawful for tlie said corporation, at 

 any time during the continuance of its charter, from 

 time to time, to unite and consolidate, as well as 

 merge its stock, property, franchises, and road, with 

 those of any other corporation or corporations here- 

 tofore or hereafter incorporated within or without 

 this State ; and such other corporation and corpora- 

 tions are hereby authorized to unite, consolidate, and 

 merge their stock, property, franchises, road and 

 roads with this corporation, and, after such merger 

 into this corporation, this corporation may from time 

 to time lease its roads, franchises, and property, or 

 any part thereof, to any other corporation or corpo- 



rations within or without this State, and such other 

 corporation and corporations are hereby authorized 

 to take such lease or leases ; and this and the other 

 corporation or corporations may use and operate this 

 road or their own roads, or all or any of them, ac- 

 cording to the provisions and restrictions contained 

 in the charter of this corporation, or in th'e charter 

 of such other corporation or corporations, or both ; 

 and this and the other corporations may make con- 

 tracts and engagements with any other corporation 

 or corporations, or with individuals, for operating 

 this road or said other roads, or parts of either or 

 both, as well as for transporting passengers, freight, 

 and trains over this road and said other roads, or 

 any part thereof, or over any road, and demand and 

 receive, for the transportation of passengers, freight, 

 and trains over their roads and the roads of such 

 other corporations as are above mentioned, and over 

 any other roads, the same rates of fare, freight, and 

 toll as are authorized to be charged by this corpora- 

 tion for like services over this road; and this corpo- 

 ration may be known by such new name as its di- 

 rectors shall, by certificate filed in the Secretary of 

 State's office, declare to be its name ; and to build 

 this road and the road of any other corporation which 

 may lease the same, it and its lessees may make the 

 bonds and mortgages hereinafter authorized ; and it 

 and its lessees, successors, and assigns, may exercise 

 and possess all the railroads^ franchises, and prop- 

 erty, so as aforesaid merged into it, without restric- 

 tion as to the gauge of tracks, in the same manner 

 and with like effect as if it had been specially ere- 

 ated by act of the .Legislature of this State, to exer- 

 cise the same; and the Legislature shall have power 

 to alter, revoke, or annul this charter whenever the 

 courts shall have decided it to be injurious to the 

 citizens of this State, by reason of a misuse of the 

 powers herein granted, and not otherwise. 



After the passage of this act, the Millstone 

 & Trenton Railroad Company, the .Penpack 

 & Plainfield, the Elizabeth & New Provi- 

 dence, the New Jersey Trust Company, and 

 the Narrow Gauge Railway Company, all of 

 which were New Jersey corporations, were 

 consolidated into the Stanhope Company, to- 

 gether with all their charters and franchises; 

 and on the 1st of July, 1872, the contract 

 above mentioned was entered into between 

 the Stanhope Company and the National Rail- 

 way Company, by which the latter became en- 

 titled to use all the privileges granted to the 

 above-named corporations. These connections 

 were to form the through-line between Now 

 York and Philadelphia. But no sooner was 

 this consolidation effected, than the United 

 New Jersey Railroad and Canal Company 

 and the Pennsylvania Railroad Company 

 moved in the Chancery Court of New .)< 

 for an injunction to restrain the fulfilment of 

 its purposes, and thus prevent the compl- 

 of the new competing through-line. Among 

 other things, it was charged that the pa- 

 of the Stanhope charter by the Legislature had 

 been procured by the National Railway Com- 

 pany through bribery and corruption; and 

 further, that the eighth section of that act, 

 above quoted in part, had been fraudulently 

 interpolated into the bill after its passage l>y 

 the Legislature. Whether this charge 

 founded in truth or not, it seems to have led 

 the Governor to recommend the additional 

 safeguards against the possibility of corrupt 



