LOCOMOTION BY RIVER AND RAILWAY. 



Within the last few years the tendency in this country has been 

 to general rather than to special legislation. The great States 

 (New York leading the way) have many of them enacted general 

 laws authorising the construction and providing for the manage- 

 ment of railways, as well as other corporations and great insti- 

 tutions. General railroad laws now exist in New York, Illinois, 

 Ohio, Indiana, and Wisconsin, in all which States special charters 

 conferring special powers are prohibited. The same principle of 

 legislation will doubtless be adopted in other States. There are 

 many advantages to the public in general laws, particularly as 

 they concern railways ; for monopolies are thereby rendered impos- 

 sible, and the principle of laisser faire is adopted and carried out 

 with the least possible interference with private rights. Under 

 their operation, associations of men have the same right to 

 construct railroads as to build factories or ships, and it is found by 

 experience that each community is fully competent to regulate its 

 own affairs. 



" 3. The stock and bonds of railroads are regarded as personal 

 property, and, as such, within specific limitations, subject to tax- 

 ation. No tax ever can be laid upon the bed of a road, its iron, 

 cars, &c. ; but where valuable real estate is owned for depots, 

 taxes may be levied. But shares and bonds can only be taxed to 

 the holder thereof; and, of course, cannot be taxed when held 

 abroad. In this respect, European holders of American shares and 

 stocks have an advantage over ourselves. 



"4. Companies organised under general laws cannot be dis- 

 solved without special authority from the legislature of a State ; 

 and, if the time comes that any American railway company asks 

 for a dissolution, then, and then only, will the property of the 

 company be distributed pro rata among the stockholders. I do 

 not know of a single onerous condition or obligation laid upon an 

 American railroad company by any State, while I am not aware 

 that any railroad corporation has been formed in England of which 

 the same can be said. 



" 5. No railroad can exist in the United States that has any 

 right to declare dividends until it has discharged all its obligations 

 due at the time ; and all its bonds and debts of every description 

 take precedence, and can be prosecuted and collected before the 

 original stockholders can either receive a dividend or profit from it 

 in any shape whatever. If there be a failure to pay its bonds or 

 mortgages, the bondholders or mortgagees can, by a short and 

 simple legal process, become vested with entire control over 

 the property, and manage it on their own account. In other 

 words, the right to apply the well-known principles of law to the 

 relation of mortgagees and mortgagors obtain in all our railroads, 

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