DELAWARE. 



300 



of the decision had a more direct bearing. The 

 power of the railroad company to charge for 

 passengers and freight waa adjudged to be one 

 of the essentials to the enjoyment of the fran- 

 und a part of the consideration of the 

 contract ; " and," proceeded the Chancellor, 

 "the power to adjust its tariffs of charges by 

 its own officers, according to their views of 

 the necessities of business and of justice to the 

 public, without any reservation in the charter 

 of such legislative control or supervision over 

 them, being a part of the franchise as it was 

 granted, an act of the Legislature which as- 

 sumes for the State the right to regulate what 

 under the charter was granted as an absolute 

 discretion of the corporation, viz., the right to 

 adjust its tariff of charges for the carriage of 

 passengers and freight, undoubtedly impairs 

 the obligations of the contract in the sense of 

 the constitutional prohibition, and is inopera- 

 tive and void." 



These views were enforced by a letter from 

 U. S. Senator Bayard, then at Washington, of 

 which the following is an extract : 



I regret the introduction of the bill, because I do 

 not see how the rights and powers ana duties of the 

 companies under their charters can be modified or re- 

 strained by legislation now. I am disposed to doubt 

 the power of the Legislature to make the inquisition 

 into the business of the companies, and examine their 

 books and papers. I think that it would be resisted, 

 and then not only would angry contest be engendered, 

 but large expenses, which in the end would come out 

 of the people of the State. As we now stand, wo re- 

 ceive a full and regular revenue, paid without trouble 

 or expense into our Treasury by the companies, which 

 saves us from laying other taxes on our people. A 

 system of commissipnership, which might be needed 

 and be very useful in a largo, extensive, and compli- 

 cated system of railroads in the construction and own- 

 ership of which the State was interested, such as in 

 Massachusetts, New York, and other large States, 

 would not apply so well to our little State. We have 

 no men who, for $500 per annum, would be competent 

 to give such counsel to the State as would be safe to 

 rolv upon. 



There is an unavoidable monopoly in the transporta- 

 tion by every important railroad, and competition is 

 the only sure euro for this, unless in incorporating the 

 companies the State shall reserve power to regulate 

 fares, etc. ; and Delaware has omitted to do this. 



The reply of the advocates for the Board 

 of Commissioners to this letter consisted in the 

 publication of an extract from the speech of 

 Senator Bayard in the Senate, April 6, 1878, 

 " on the act compelling the Pacific Railroads to 

 pay an amount in opposition to the decision of 

 the Supreme Court, and also enacting a con- 

 ditional revocation of all the rights, privileges, 

 grants, and franchises derived or obtained by 

 said railroads from the United States." This 

 was accompanied with opinions of other re- 

 spectable authorities. The bill, however, failed 

 to pass. 



A bill was passed making Wilmington the 

 county-seat of New Castle County. 



An unsuccessful effort was made to pas? a 

 bill for the enrollment of a State militia. Its 

 passage was urged upon the grounds that it 

 was the duty of the State to protect its citi- 



zens against violence by its own ntrong arm, 

 and not to depend upon the dangerous influ- 

 ence of the National Government. Pennsyl- 

 vania had failed of its duty, and now a bill 

 was pending to take from the State Treasury 

 over $4,000,000 to pay for the ravages of the 

 mob in Philadelphia and Pittsburgh. 



A bill to grant " local option " to towns for 

 the sale of liquors was reported by a com- 

 mittee of the House, but failed to pass. An 

 unsuccessful effort was also made to establish 

 a State Board of Health. 



The estimate of the receipts of the year end- 

 ing January 14, 1880, was $147,211, and the 

 expenditures $118,920. The receipts from 

 licenses are estimated at $52,000, and from 

 railroad taxes $40,000. The sum of $81,000 is 

 due to the State on arrears of taxes and in- 

 terest. The expenses of the executive gov- 

 ernment are estimated at $9,500. The total 

 expenses of the government during the year 

 1878 were only $25,781.90. This includes the 

 State expenses only, and not any amount ex- 

 pended in payment of interest and redemption 

 of bonds. The largest item of expenses was 

 for judicial salaries, $12,000. The Executive 

 Department cost $9,776, which includes sala- 

 ries of Secretary of State, State Treasurer, 

 Auditor, Attorney-General, and School Super- 

 intendent. An examination of the sources of 

 revenue shows that there was raised by tax- 

 ation for State purposes $106,687.39. This 

 does not include revenue from investments, or 

 from box-tax paid by the county treasurers, 

 but only the taxes current during the year and 

 the amounts of fines from the counties, which 

 are for State purposes. Of this amount of 

 taxation, New Castle County paid about $90,- 

 000, Kent about $10,500, and Sussex $6,000. 

 The State revenues are obtained from certain 

 investments, from interest on the Junction and 

 Breakwater and Breakwater and Frankford 

 Railroad bonds, from indirect taxation in the 

 shape of fees and license-tax, and from tax on 

 the railroads and banks. None of the railroads 

 in the two lower counties, except the Mary- 

 land and Delaware road, are taxed, nor is the 

 Delaware road. The assessments in New Castle 

 County amount to $40,682,878, and the per 

 cent, of tax paid to the State upon this assess- 

 ment is 0.002. The assessment of property in 

 Kent is $12,639,255, and the per cent, of taxes 



gaid 0.0008. The assessment of property in 

 ussex is $8,576,215, and the per cent, of State 

 tax is 0.0007. Although there appear in the 

 State Treasurer's account receipts for State 

 tax from counties amounting to $31,099.19, 

 there is in fact not now any direct tax levied 

 in the counties for State purposes. The coun- 

 ties had not, when the old 18 per cent, real 

 estate law was repealed, paid up their assess- 

 ments, and are now doing so. New Castle has 

 paid all of her arrears of taxes, but both Kent 

 and Sussex still owe the State Treasury, the 

 former $12,000 and the latter $13,000. In 

 addition to the revenue from the sources men- 



