DUKE UNIVERSITY LAW LIBRARY ARGUMENT OE HON. JOHN M. READ, IN FAVOR OF THE CONSTITUTIONALITY OF THE SUBSCRIPTION BY THE CITY OF PHILADELPHIA, TO THE CAPITAL STOCK OF THE HEMPFIELD, AND PHILADELPHIA, EASTON, AND WATER GAP RAILROAD COMPANIES, DELIVERED BEFORE THE SUPREME COURT OF PENNSYLVANIA, ON MONDAY, 25th JULY, 1853. IN THE CASE OF SHARPLESS AND OTHERS v. THE MAYOR, ALDERMEN, AND CITIZENS OF PHILADELPHIA. C. SHERMAN, PRINTER, 19 St. James Street. Digitized by the Internet Archive in 2019 with funding from Duke University Libraries https://archive.org/details/argumentofhonjoh1853read ARGUMENT OF HON. JOHN M. HEAD, IN FAVOR OF THE CONSTITUTIONALITY OF THE SUBSCRIPTION BY THE CITY OF PHILADELPHIA, TO TEE CAPITAL STOCK OF THE HEMPFIELD, AND PHILADELPHIA, EASTON, AND WATER GAP RAILROAD COMPANIES, DELIVERED BEFORE THE SUPREME COURT OE PENNSYLVANIA, ON MONDAY, THE 25th JULY, 1853. IN THE CASE OF SHARPLESS AND OTHERS v. THE MAYOR, ALDERMEN AND CITIZENS OF PHILADELPHIA. PHILADELPHIA: C. SHERMAN, PRINTER. 1853 . STATEMENT A bill was filed in May, 1853, by William P. Sbarpless, and others, against the Mayor, Aldermen, and Citizens of Philadelphia, and Charles Gilpin, Mayor of the City of Phila¬ delphia, in the Supreme Court of Pennsylvania, praying for an injunction to restrain them from subscribing on behalf of the City of Philadelphia to any shares of stock of the Phila¬ delphia, Easton, and Water Gap Railroad Company, and the Hempfield Railroad Company. To this bill, an answer was put in by the defendants. A motion was made by the plain¬ tiffs for a special injunction; the argument of which was heard by a full Court at Philadelphia, on Monday, 25th July, 1853, Mr. B. H. Brewster and Mr. G. Mallery for the plaintiffs, and Mr. J. M. Read and Mr. G. hi. Dallas (with whom were Mr. E. Olmsted (City Solicitor), Mr. J. P. Brock, and Mr. St. Geo. T. Campbell) for the defendants; and on Tuesday, the 6th September, 1853, the Court at Pittsburg, denied the motion for an injunction. C. J. Black and Justices Wood¬ ward and Knox agreed in refusing the injunction, and sus¬ taining the constitutionality of the subscriptions, and Justices Lewis and Lowrie dissenting. This decision has finally settled this question in Pennsylvania. The following is the argument of Mr. Read. ARGUMENT. This is a question of deep interest to the people, not only of this State, but of at least twenty-three states of the Union, numbering upwards of twenty millions of souls, who have adopted the policy of making their public works by the aid of municipal subscriptions. Twenty-three states have seen no constitutional obstacle to such subscriptions; and, wherever the question has been pre¬ sented for judicial decision, it has been decided in favor of the legislative power. In eleven states, tribunals, generally of the last resort, have directly decided the constitutionality of such laws, and they have thus passed the ordeal of between forty and fifty of the most eminent lawyers in the United States, occupying the highest judicial stations in their respective commonwealths; It has been the policy of Italy, France, England, Canada, and the United States, beginning in Europe centuries ago, and it is, therefore, no new question which is presented to the consi¬ deration of the Court, but one which has been long ago settled in all countries, by time, by precedent, by legislative and judi¬ cial authority, and by the common sense of the people, the true sovereigns in a free government. It is no new doctrine, and it therefore lies upon our learned opponents to convince the Court that all that has heretofore been done is in violation of the written constitution of this State. The laboring oar is with them. It is their duty to show clearly that laws having all the forms of the constitution, and sanctioned by the uniform practice of the goyernment, are null and void, because they contravene some written provision of our fundamental law. What has been done at all times, in all countries, and under all forms of government with general approbation, cannot be 6 being printed from authentic reports furnished either by the Reporters, or distinguished members of the bar in those States. Upon a careful examination of all these authorities, I think it is clear that the Courts in their decisions all proceed upon the principle of benefit to the subscribing corporation, and not upon the narrow and absurd idea that the improvement itself must always commence inside of the corporate territorial boundaries. The illustration in the earliest case, of Goddin vs. Crump, in Virginia, in 1837, of the removal of the bar at Warwick, negatives this at once, and shows the Court pro¬ ceeded upon a broad and general view of the whole subject, which is the spirit of all the decisions collected in the Ap¬ pendix. This erroneous view of the authorities upon the part of our learned opponents, leads to a curious concession—that if either the Ilempfield or Water Gap. Railroads began inside the city of Philadelphia, then these subscriptions might be constitu¬ tional, but that if they begin one inch beyond the limits of the city, then they are clearly unconstitutional and void. The same principle applied to the Pennsylvania Railroad, would make the Allegheny county subscription of one million consti¬ tutional, and the city of Philadelphia, Spring Garden, and Northern Liberties subscriptions of five millions, being one-half of the whole capital stock, unconstitutional. Is it possible to suppose that any Court could adopt so absurd a construction ? We know that the Supreme Courts of Ohio and Louisiana would not do this, for they have cited with entire approbation, the case of The Commonwealth v. M’Williams, 1 Jones, 61, which sanctioned all these municipal subscriptions. Having thus disposed of these preliminary matters, I shall now proceed to the argument of the only question really before the Court, the constitutionality of the two subscriptions by the city of Philadelphia to the Hempfield, and The Philadelphia, Easton, and Water Gap Railroads. The individual States of the Union possess all the rights of sovereignty which were not exclusively delegated to the general government by the Constitution of the United 7 States, with an independent and uncontrollable authority to raise their own revenues for the supply of their own wants. Each State government exercises all such rights of sovereignty in the manner pointed out in its Constitution, subject only to the prohibitions and limitations contained in that instrument. In each State government there are three departments, the legislative, the executive, and the judicial; the last two, how¬ ever, are employed in executing and administering the laws of the land, and in performing such duties as are imposed upon them by the Constitution. The legislative power is usually vested in an elective body, composed of two branches, and their means of executing this power is by making laws. Laws thus made are the supreme law of the land, for a law by the mean¬ ing of the term includes supremacy. It is a rule of civil conduct, prescribed by the supreme power in a State, for legislature is the greatest act of superiority that can be exercised by one being over another. Sovereignty and legislature are indeed convertible terms : one cannot subsist without the ether. In America, if the law enacted by the State Legislature does not contravene the Constitution of the United States, we have only to look to the State Constitution to see if it violates any provision of that instrument; if it does not it is constitutional, however inexpedient it may be, and it must be carried into effect by the judicial and executive departments of the govern¬ ment. We know of no provision of the Constitution of the United States which conflicts with the laws which are the present sub¬ ject of discussion, and it is, therefore, only necessary to inquire whether they infringe any provision of the Constitution of the State of Pennsylvania. By the 9th article (the declaration of rights), “ everything in this article is excepted out of the general powers of govern¬ ment, and shall for ever remain inviolate.” By a careful examination of this article, and of all the other articles of the Constitution, we can find no limitation upon the legislative power of borrowing and raising money, and 1 of laying and col¬ lecting taxes to any amount, and for any purpose. The people 8 of Pennsylvania have placed no limit upon either of these por¬ tions of the legislative power, because they trusted to the wis¬ dom and patriotism of their representatives for a judicious exercise of them. The remedy is in the hands of the people, by a change of their public agents, or by a change of the Con¬ stitution. This power has, however, sometimes been alleged (but always unsuccessfully), to be controlled by the last clause of the 10th section of the 9th article, which is in these words : “ Nor shall any man’s property be taken or applied to public use, without the consent of his representatives, and without just compensa¬ tion being made.” A similar provision is to be found in the Constitution of the United States, and in almost every State Constitution, and is but an enunciation of a right recognised by the law of nations, and which is called sovereign or transcendental property, or the right of eminent domain. This right or power was origi¬ nally exercised in time of war, as where a town was to be forti¬ fied, and the gardens, lands, or houses of private citizens were taken where ramparts or ditches were to be raised, or mate¬ rials laid by, by private men for their own use, were taken and made use of in public fortifications. So in times of general scarcity, where the storehouses and granaries of private indi¬ viduals are set open, or in the extremities of the State, where moneys intrusted with the Government are seized. This right of eminent domain in modern times, has been principally applied to the taking of land for public works, either by the State or its delegated agents, upon just compen¬ sation being made, and is well described in Erskine’s Principles of the Law of Scotland, page 108. “ Every State or Sovereign has a power over private property, called by some lawyers dominium eminens , in virtue of which the proprietor may be compelled to sell his property for an adequate price, where an evident utility on the part of the public demands it.” The existence of this right in the several States, uncontrolled by the Constitution of the United States, is fully recognised by the Supreme Court of the United States, in the case 9 of the West River Bridge Company v. Dix, 6 Howard, 507. “The instances of the exertion of this power,” says Judge Daniel, “ in some mode or other from the very founda¬ tion of civil government, have been so numerous and familiar, that it seems somewhat strange at this day to raise a doubt or question concerning it. In fact the whole policy of the coun¬ try relative to roads, mills, bridges, and canals, rests upon this single power, under which lands have been always condemned ; and without the exertion of this power not one of the improve¬ ments just mentioned could be constructed.” Id. 583. It is clear then, that this right of eminent domain is not to be confounded with taxation, which is the daily business of go¬ vernment ; or with the power of borrowing money, which has become almost equally familiar. The same rules are applicable to it as to the loss of merchandise thrown overboard to save the vessel. The property taken is not the contribution of its owner to the public, as his share of the public burthen, but is that which he is forced to sell them for an adequate special compen¬ sation, a just price. The exercise of the right of eminent do¬ main operates upon an individual, and without reference to the amount or value exacted from any other individual, or class of individuals. The right of eminent domain is an extraordinary power, ex¬ ercised only in case of necessity or manifest public utility, whilst taxing and borrowing are the ordinary and usual modes of supporting all branches of the government. This construction, which is most ably portrayed in the People v. Mayor, &c., of Brooklyn, 4 Comstock, 419 (Appen¬ dix of Cases, p. 15), is supported by another clause which was introduced into the Constitution by the Convention of 1838. The State or its agents, whether corporate bodies or indivi¬ duals, had always taken lands for public use under the 10th sec¬ tion of the 9th Article, but it sometimes happened that after the property was taken the corporations became insolvent, and the compensation was never paid. To remedy this evil the Convention added the 4th section of the 7th article, in these words: “The Legislature shall not invest any corporate body 10 or individual with the privilege of taking private property for public use without requiring such corporation or individual to make compensation to the owners of said property, or give adequate security therefor, before such property shall be taken.” ' Now, this clearly has no relation to the taxing power, nor is it a limitation of it; and for the same reason the 10th section of the 9th article has no relation whatever to the power of tax¬ ation, which is a part of the legislative power, and which, by the Constitution of Pennsylvania, is entirely unrestricted by any provision limiting either the power itself, the power of ap¬ portioning it, or the power of assigning to each individual his share of the burthen. The taxing power is, therefore, vested exclusively in the Legislature, to be exercised in such way as they may deem proper. We have seen that the legislative power is supreme and un¬ controlled, where it is not restricted by the provisions of the national or state constitutions, and, of course, any branch or portion of this legislative power is equally supreme. “ It is a settled principle of American Jurisprudence,” says Judge Baldwin, “ that the transcendent powers of parliament devolved on the people of the several states by the revolution, 4 Wheat. 651; 8 Wheat. 584; 2 Pet. 656 ; it necessarily fol¬ lows that the only restraint on their legislative power is that imposed by their own, or the Constitution of the United States. 2 Peters, 410, 414.” Bonaparte v. Camden and Amboy Rail¬ road Company, Baldwin’s Reports, 220. The Legislature of Pennsylvania have, therefore, the power to borrow money, and the power to tax, and they have always exercised the right to devolve portions of these powers upon counties, townships, boroughs, cities, and other bodies corpo¬ rate having certain territorial limits, such as “ The Guardians for the relief and employment of the poor, of the city of Philadelphia, the District of Southwark, and the townships of the Northern Liberties and Penn.” No one has ever ques¬ tioned the right of the City of Philadelphia to borrow money, to incur debts, and to levy and collect taxes, and yet this is only supported by the simple grant of legislative power to the 11 General Assembly, "who have passed the laws granting this authority to a municipal corporation. The whole emanates from the Legislature, and is but a creature of the legislative will. The Legislature have exercised the power to borrow money on the credit of the Commonwealth and to lay taxes, and to appropriate the proceeds of both to objects of a general, as well as to those of a strictly local character, in which no other part of the State was interested except the one immediately and exclusively benefited. They have invested $1,632,996 62 in various Canal, Railroad, Steam Tow Boat, and Turnpike Companies, having subscribed to the stock and paid the public money for works generally of a merely local, and not of a State character No one has disputed this exercise of their power. So the Legislature, by the exercise of the borrowing power, have incurred a debt of upwards of $40,000,000, and expended it in the construction of works useful only to por¬ tions of the State, and some of which were entirely useless to everybody, and yet the constitutionality of this exercise of power has been solemnly declared by the Supreme Court. Shitz v. Berks County, 6 Barr, 80. The Legislature have therefore laid taxes, borrowed money, incurred debts, made Canals and Railroads, and subscribed to the stocks of various local public works, and they have autho¬ rized on various occasions, similar acts to be done by various municipal corporations. All these acts depend upon the same clause in the Constitution which vests the legislative power of the Commonwealth in a General Assembly, and which power s necessarily transcendent and supreme. The Legislature, therefore, can empower the city of Phila- lelphia: 1, to levy and collect taxes, 2, to borrow money, 3, to ;rade and pave streets, or make a Railroad or Canal, or 4, to ubscribe to a corporation intended for such objects, the only oubt suggested being as to whether such subscription should e expended on works within her corporate limits. The general authority therefore under laws of a special haracter to perform all these acts is not questioned, but only 12 to •what extent they can be carried beyond the territorial boundaries of the corporation. This resolves itself at last into whether they are particularly beneficial to the municipal body, which is clearly a subject of legislative and not judicial discretion, particularly when taken in connexion with the independent action of the corporation itself. Money may he expended 40 miles off to bring water to a city, or at any necessary distance to introduce gas. This has actually been done on a larger or smaller scale at Boston, New York, and Philadelphia. This settles the general question; and when, therefore, a municipal corporation is authorized to lay out money or loan its credit to any work connected with its prosperity, the sole remaining question can only be, Does it come within the general rule ; will it materially and certainly benefit its inhabitants ? and this is, after all, a matter addressed to the discretion of the legislative body and of the municipal authorities. The approaches to a large city are of vital importance to its citizens. “ Good roads, canals, and navigable rivers,” says Smith, in his Wealth of Nations, vol. 1, p. 151, “by diminish¬ ing the expense of carriage, put the remote parts of the country more nearly upon a level with those in the neighbor¬ hood of the town. They are upon that account the greatest of all improvements. They encourage the cultivation of the remote, which must always be the most extensive circle of the country. They are advantageous to the town, by breaking down the monopoly of the country in its neighborhood. Thej are advantageous even to that part of the country. Thougl they introduce some rival commodities into the old market they open many new markets to its produce.” “ There are, however,” says McCulloch (2 Commercial Die tionary, p. 414), “ considerable clogs upon the continued in crease of cities. The food and fuel made use of by the in habitants, and the raw products on which their industry is t be exerted, must all be brought from the country; and accord ing as the size of the city increases, the distance from whic its supplies must be brought become so much the greater, tha 13 ultimately the cost of their conveyance may be so great as to balance or more the peculiar advantages resulting from a resi¬ dence in town. Hence the impossibility of a large or even a considerable city existing anywhere without possessing exten¬ sive means of communication, either with the surrounding country or with other countries: and hence, too, the explana¬ tion of the apparently singular fact of almost all large cities having been founded on or near the sea, or a navigable river. Had London been an inland town, 50 miles from the shore, it is abundantly certain that she could not have attained to one- third her present size, but the facilities afforded by her ad¬ mirable situation on the Thames, for the importation of all sorts of produce from abroad, as well as from other parts of England, will enable her, should her commerce continue to prosper, to add to her colossal magnitude for centuries to come. “ But all towns cannot be founded on the sea-coast, or the banks of navigable rivers : and the growth of those in inland situations, must in all cases depend on their means of commu¬ nication with the surrounding country. Without our improved roads, the great inland manufacturing towns with which Eng¬ land is studded, such as Manchester, Leeds, Birmingham, Sheffield, Bolton, Preston, &c., could not exist. They enable the inhabitants to obtain the rude ’products of the soil, and the mines, almost as cheap as if they lived in country vil¬ lages.” “ The influence that the growth of a large town has upon agriculture is great and striking. ‘I believe it is true,’ says Dr. Paley, ‘ that agriculture never arrives at any considerable, nuch less at its highest perfection, when it is not connected vith trade ; that is when the demand for the produce is not ncreased by the consumption of trading cities,’ (Moral Phi- osophy, Book VI. c. 11.) But the fact of their being mainly '.onducive to the growth of cities, is not the only advantage vhich improved roads confer upon agriculture.” “ Increased speed of conveyance is one of the principal ad- 14 vantages, that have resulted from the formation of good roads the invention of steampackets, &c.” In speaking of the advantages of canals, Mr. Phillips, in his general History of Inland Navigation says, “ Were we to make the supposition of two states, the one having all its cities, towns, and villages upon navigable rivers and canals, that have an easy communication with each other; the other possessing the common conveyance of land-carriage; and supposing at the same time both states to be equal as to soil, climate, and industry; commodities and manufactures in the former state might be exported thirty per cent, cheaper than in the latter ; or in other words, the first state would be a third richer and more affluent than the second.” It is hardly necessary to say that in rapid communication with the interior of the country, all these modes of conveyance are surpassed, and in fact superseded, by Railroads. What therefore is said, as to improved Roads and Canals, may be said with tenfold truth in regard to Railroads. Railroad communication is essential to a large city, and ab¬ solutely and imperatively necessary for Philadelphia, met as she is on the north and south by the Railroad competition of Baltimore, New York, and Boston. Without Railroads, trade must leave Philadelphia, and they are therefore essential to her prosperity, and to the comfort and wealth of her inhabitants. The effect of The Philadelphia, Easton, and Water Gap Railroad, is to bring back to Philadelphia, the trade of the Lehigh and adjacent country, which is fast leaving us for New York, with which there is now a continuous Railroad from Easton. It connects besides not only with the whole down¬ ward trade of the Lehigh, but also with the Northeastern Coun¬ ties of Pennsylvania, and finally with Western New York. The Hempfield Railroad is but the left hand of the Pennsyl vania Railroad, in which Philadelphia has already invested foul millions of dollars, and upon which the tolls of the present yea) on an uncompleted road will be three millions of dollars. Th< Hempfield terminates at Wheeling where it connects with th< 15 Ohio Roads, and by them and their continuations, with St. Louis, on the direct route to the Pacific Ocean. At Wheeling we cut off a large part of the trade which, but for this road, must go to Baltimore by its great road, and we thus secure to Philadelphia a compensation for whatever trade may be diverted to Baltimore from Pittsburg, instead of passing through the centre of Pennsylvania. The Hempfield is but a continuation of the Pennsylvania Railroad, and if the subscription to that was prudent, this is absolutely necessary to secure the profits of that great invest¬ ment. We therefore assume that these two roads are essential to the prosperity of Philadelphia, as much as her Water and Gas works, although in a distinct way. With a new road from Harrisburg to tide-water at Philadel¬ phia, with four tracks for coal, freight and passengers, which must and will be made, the passage from here to Wheeling, would be made in eight hours ; that is, Wheeling and its citi¬ zens would be brought within one-third of a day of Philadel¬ phia. Similar effects must be produced by the Philadelphia, Easton, and Water Gap Road. The Roman Roads under the Empire were made and sus¬ tained at the public expense. In England, the parish where the highway is, ought to repair of common right, and one parish may be bound by prescription to repair a way within another parish, and the inhabitants of a township may be obliged by immemorial usage to repair all the roads within it. Bridges are usually built and repaired by the county. There are also Turnpike Roads which are maintained by tolls and placed under the management of Trustees, or Commissioners for a limited period of time. Navigable Rivers, are also public highways, which have sometimes been placed under the care of municipal corpora¬ tions, or they have been charged with improving them for the public benefit. The City of London covers about 600 acres, and in 1841 had 16 a population of 129,251; and the Mayor and Corporation have for a very long period held and exercised the office of conservators of the River Thames, which gives them a jurisdic¬ tion of ninety miles of river navigation, from the Bridge of Staines to Yantley Creek, for the protection of the banks of the river, its navigation and fisheries, and they have a right to tolls and tonnage dues for this object, which twelve years ago, amounted to <£30,000, or $150,000. They have also granted licenses to different parties to em¬ bank parts of the strand or soil of the river ; but these are dis¬ puted by the crown. In connexion with this control over the largest river in the Kingdom, the corporation exercises large powers over articles of the first necessity imported into the Port of London. The duties on Coals collected by the city are Is. Id. per ton, whether brought by land or water, for coals cannot be sent from Lancashire by Railroad to London without paying these duties to city collectors. The gross amount of coal duties for 1841 was £152,887 9s. 5d., and the net £132,661 5s. lid. sterling, or $663,306. If coals were to be taxed it is obvious the tax should be like the excise duties, general and not local. The dearness of fuel in London as compared with its price at Manchester is a natural disadvantage to the manufacturing in- terests of the metropolis, and it is not the interest of the citizens to increase this disadvantage by duties from which every other town in England is exempt. It was shown by the Hand Loom Commissioners, that it has been chiefly the price of coals which has changed the original seat of many staple manufactures, and driven them one after the other to the northern districts. Another cause of the high price of coals is the defective wharfage, and bad harbor regulations of the Port of London, which oblige the colliers to discharge their cargo into barges, and to wait their turn to do this, and which then subjects them to the charges of the publicans and coal-whippers and the barge-owners or lightermen of the Watermen’s Company. Thus it happens that while the duty on coals is but Is. Id. per ton, it costs more than this sum to deliver a ton of coals into 17 a barge at the ship’s side in the port, and freight by the barge and delivery at some place above the bridge have still to be paid for. A witness before the Coal Committee of 1836, es¬ timated the loss thus incurred at 4s. or $1, per ton. The Watermen’s Company, which is dependent upon the corporation, has a monopoly of labor, embracing the whole river navigation from Staines to Yantley Creek. No person can ply for hire on the river, except in certain flat-bottomed ferry boats and barges above Kingston who is not a member of the Watermen’s Company. The city has the exclusive right of holding markets within a circuit of seven miles, and levies dues in the river upon ship¬ ping, and upon coals, corn, wine, oils, potatoes, fruit, &c., and it maintains by the agency of various classes of licensed laborers, a monopoly of all labor connected with the measure¬ ment, transhipment, and discharge of all goods landed from the river. There are fruit meters, corn meters, oyster meters, salt me¬ ters, corn porters, porters of general merchandise and shifters, all belonging to the fellowship of Billingsgate Porters, which is under the government of the alderman of that ward. The city dues and other charges upon corn in the Port of London amount to £50,000 or $250,000 per annum. A me- tage duty of Is. per ton is levied upon salt, another necessary of life, of which 4d. is paid to the city. The case of Thompson v. Daniel (22 Law J. Reports, Ch. 507, July, 1853), decided by Y. C. Turner on the 8th January last, shows the power of the oyster meters, and states also the general powers of the city in these terms: “ The right of measuring all merchandise and wares and other things brought into the port of London, is vested in the corporation of London, exercisable by the Lord Mayor for the time being.” The Corporation has also estates in Ireland, which are ma- laged by a committee of six aldermen and nineteen common :ouncilmen, called the Irish Society. These estates, which at >ne time embraced the whole county of Londonderry and Cole- aine, were divided by James between the city and the chief 2 18 trading companies, in consideration of a fine of <£40,000, paid to the crown. The city having besides their own share a con¬ trolling power over the shares of the trading companies, as trustees for the public interest, and not only this, but the civil government of the whole district. The exclusive estates of the Irish Society are the undivided lands in Ulster, namely: the City of Derry, with 15,000 acres, the town of Coleraine, with 9000 acres, the fisheries and other lands incapable of equal division or proportions; and every by-law made in the towns of Lon¬ donderry and Coleraine must he sent to London for approval, by this committee of the Common Council. It is not necessary to enumerate the vast real and trust es¬ tates held by the corporation, but these duties, and tolls col¬ lected on the river and in the port of London, were estimated some years ago, to amount to at least £200,000, or $1,000,000. As far back as 1424, in the 3d year of Henry VI., commis¬ sions were authorized to be awarded to certain persons to re¬ form the river Ley (one of the great rivers), running from Ware to Thames, and in 1430, in the 9th year of the same reign, an act of Parliament was passed empowering the Chancellor of England to grant his commission to certain persons to scour and amend the river Ley, in the counties of Essex, Hertford, and Middlesex, with power to take tolls. This act expired by its own limitation, and in 1570, in the 13th year of Queen Elizabeth, an act was passed for bringing the river of Lee to the north side of the city of London (2 Ruffhead, £>98). By this act the Lord Mayor, commonalty, and citizens of London and their successors, were authorized to make a new channel or cut for the said river to pass through from the town of Ware, and for this purpose, to acquire upon just compensation the land necessarily taken for it in fee simple, and they were, within ten years, to cut and finish the same. The corporation were obliged to pay for the destruction or decay of mills, and the new cut as well as the old river, was to be free to all the Queen’s subjects; but the jurisdiction, conservice, rule, and government, as well of the said new cut, river, and ground of each side, as also the royalty of the fish and fishery of the same, and profits 19 of the said ground, soil, and water, were granted to the corpo¬ ration. An act was passed in 1585, in the 27th year of the same reign, granting similar powers to the Mayor and commonalty of the town of Plymouth, in the county of Devon, in relation to a cut from the river of Mew (2 Ruffhead, 651). In 1605, in the third year of James I., an act was passed for the bringing in of -a fresh stream of running water to the north part of the city of London, and was amended by an act of the next year (3 Ruffhead, 60, 72). By these acts, which are nearly copies of the 13 Elizabeth, Ch. 2, it was to be done by and at the expense of the Corporation of the city of London. In 1603, the University of Oxford obtained the right of returning members to Parliament (3 Merewether and Stephen’s History of Boroughs, 1577), and in 1623, in the 21st year of James I., an act was passed for making the river of Thames navigable for barges, boats, and lighters, from the village of Bercot, in the county of Oxon, unto the University and city of Oxon (3 Ruffhead, 119). After reciting the mutual conve¬ nience that this will be to the city of London, and to the Uni¬ versity and city of Oxford, and particularly to the latter in the cheaper conveyance of coals and other necessaries, and in the preservation of the highways leading to and from the said University and city, and in forming a navigable commu¬ nication between the Thames, above and below Oxford, the Lord Chancellor was authorized to appoint eight commission¬ ers, four chosen by the Chancellor of the University, and four by the corporation of the city of Oxford, to render navigable this portion of the Thames, to make any cuts that may be necessary for that purpose, and to erect wharfs, &c, in or near said river or passage. The price of land taken is to be settled either by agreement, )r in the mode pointed out in the act, and the agreement or >rder in each case is to be registered in the Lieger book of the aid University, and to be enrolled in the Court of the said city »f Oxford. The 3d section is in these words, “ and for that he said passage cannot be effected and maintained without great 20 charge, and the principal benefit thereof will redound imme¬ diately to the University and city of Oxford aforesaid. Be it therefore enacted by the authority aforesaid, That the said commissioners, or the more part of them, shall have full power and authority to tax and assess the inhabitants within the said University and city of Oxon, or within either of them, and suburbs thereof, and bodies politic and corporate within the same, at such reasonable sums and payments for the purposes aforesaid, as they in their discretion shall think meet, the said sums and every of them to be disposed and employed for and towards the bearing of the charge of making and maintaining of the said passage.” “ Sec. 4. And whereas, the said University and said city are the procurers of the said passage, he it further enacted by the authority aforesaid, That the commissioners aforesaid, or the more part of them, by virtue of this act, shall have power and authority from time to time with the consent of the Vice-Chan¬ cellor of the said University of Oxford, and the Mayor of the said city of Oxford, for the time being, to ordain and make orders and constitutions, for the good and orderly usage of the said passage, and for all locks, wears, or turnpikes thereof, to be made and maintained at the charge of the University and city of Oxon aforesaid.” The 5th Section empowers the commissioners to appoint col¬ lectors of the taxes, who may proceed by distress and sale of the goods of any person refusing to pay the tax or assessment imposed upon him. This act is recognised in the 7th section of an act of 6 Wil¬ liam III. Ch. 16 (3 Ruffhead, 584). By an act passed in 1700,11 & 12 W. III., c. 23. (4 Ruff¬ head, 60), the corporation of the city of Bristol are appointed conservators of the River Avon between certain points; and by the next act, c. 24 (id. 61), entitled an act to enable the Mayor and citizens of the city of Chester to recover and preserve the navigation of the River Dee, duties are to be paid, for twenty-one years, to the corporation to make the river navigable, who are to contract for the new works, and the river is tc 21 be made navigable from the sea to Chester, and the channel, turned. Sand, and ground enclosed, are vested in the citizens for ever, who may improve the same, and take the profits for maintaining and repairing the works. An act was passed in the 32d year of George II., entitled an act for improving the navigation of the river Clyde to the city of Glasgow, and for building a bridge across the said river, from the said city to the village of Gorbells, authorizing and empowering the magistrates of the City Council of Glas¬ gow, to clean, scour, straighten, enlarge, and improve the said river Clyde from Dumbuckford to the Bridge of Glasgow, (10 Ruffhead, 458, where it is recited). An act was passed, 27 Geo. III. (1787), ch. 55, for enabling the magistrates and town council of Paisley, to improve the navigation of the river Cart, and to make a navigable cut or canal across the turnpike road from Glasgow to Greenock. In other countries, the same policy has been pursued under different forms of Government. In the year 1201 the City of Padua made a canal of 11 miles long, called Bassanello, and others at subsequent periods. In France, the great Canal of Languedoc, was made at the joint expense of the King, and the province of Languedoc, and in 1753, the cost of the canal between Aire and St. Omer was valued at two millions. The King charged himself with one half, and the rest was imposed upon the provinces of Artois, Flanders, and Hainault. The railway system has been introduced to any extent in France, only within the last few years. The City of Havre guaranteed an interest of five per cent., on a certain portion of the stock of the Havre and Paris Railway, and most of the French cities have contributed in the same way to various 'ailways, either by guaranteeing a minimum income from a :ertain proportion of the shares, or by giving a direct bonus o the Company. In this they have acted in all cases under pecial laws. The departments have several times given a tonus to such enterprises the product of an additional centime elded to the tax. 22 A similar state of circumstances has produced a similar policy on this side of the Atlantic, which is peculiarly striking in the instance of Canada, whose laws and customs are both French and English. The debt of this province, principally incurred for public works, is about $22,000,000, and it will be increased by the law authorizing the payment of $12,000 per mile, for Railroads. Public works in Canada, from necessity, are chiefly undertaken by the government or municipal cor¬ porations, and are to a very limited extent the result of pri¬ vate enterprise. The consequence is that there is a large amount of local indebtedness, which may probably be estimated at two or three millions of dollars, the interest of which must be provided for by local taxation. The Great Western Railroad of Canada, is 227 miles long, and is met by a branch road leading from Buffalo, called the Buffalo and Brantford Railroad. The Central Railroads of New York, subscribed for the stock of the Great Western, to the amount of $493,500, and municipal subscriptions were made in Canada, to the amount of $550,000, whilst the City of Buffalo subscribed $150,000, to the stock of the Buffalo and Brantford Railroad, the whole of whose works are in a British Province. In turning to the United States, we find the same policy pursued, and by adverting to the Appendix of Cases, and to the Appendix of Laws, the Court will see that twenty-three States at least have passed laws of the same identical cha¬ racter, and that in ten (now eleven) of these states, decisions have been pronounced in favor of their constitutionality. It is too late, therefore, upon any abstract ground, depend¬ ing upon the mere theory of our form of government, or what is sometimes termed the genius of our institutions, to deny these powers to the Legislature of an independent sovereign State of this great confederacy. Our institutions are the pro¬ duct of centuries of civilization, and what has been done at all times, in all countries, and under all forms of government, can¬ not now be stigmatized as violating the inalienable rights of man, or the first principles of natural justice. 23 The General Government took the lead, in 1828, in this kind of legislation, and although the power of Congress to subscribe to works of internal improvement has since been denied by very high authority, yet the right to enlarge the powers of municipal corporations in the manner provided in the act of that year, has never been questioned, and under the recom¬ mendation of General Jackson in his annual message of December, 1835, that such relief or remedies should be provided as are consistent with the power of Congress, in relation to the pecuniary concerns of the District of Columbia, the Act of 20 May, 1836, which assumed these specific debts on behalf of the United States, was passed and met the approval of that dis¬ tinguished statesman. Railroads, like all other great public works requiring large capital, can only be built by combined or corporate wealth. They may be made either by, 1. Private enterprise taking the form of Railroad corporations ; 2. By the State; 3. By muni¬ cipal bodies; or, 4. By a mixture of either or both of the lat¬ ter with the first, by State or municipal subscriptions, or loans, or guarantees, to railroad companies. In a new country where wealth has not been accumulated by a succession of centuries of industry, public works, whether of a general or local character, have been sometimes undertaken by the State, and except in the instance of New York, and per¬ haps Ohio, with very indifferent success; the commonwealth being generally left with unproductive improvements, a heavy debt, and onerous taxation. In some States, the credit and resources of the Government have been exhausted upon canals, and no means are left at their disposal to make railroads, how¬ ever essential they may be to the general prosperity of the community. There is not sufficient accumulated private wealth in the United States to make the 360 railroads which are completed, or are in progress within her limits, and if the States cannot furnish the necessary aid, it is clear that they must stop, unless the municipal divisions of States, which are benefited by them, are permitted to contribute their cash, or their credit to their 24 erection. The whole improvement of the country depends upon these municipal subscriptions or contributions, which are not now required in England, because there, private capital is in great abundance, and can be commanded at a moderate in¬ terest for any enterprise which promises any increased profit. Whilst State improvements have been often unprofitable, it has been found that the results of private enterprise aided by municipal wealth, but not controlled by it, have been extiemely fortunate, and it is only necessary to point to one of our own works : the Pennsylvania Railroad, in which Alleghany and Philadelphia have six millions of dollars of corporate subscrip¬ tions, as a most brilliant example. In Georgia, the most flourishing State of the South, both in finances and resources, its internal communications by railroad which are of the very best kind, owe their origin to the municipal enterprise of Savannah and Macon, which cities, as far back as 1833, became, with their associates, the Central Railroad and Canal Company of Georgia. The city of Savannah in 1840, had but 11,214 inhabitants, and in 1850, 27,841, an in¬ crease of 16,627 souls, owing undoubtedly to its railroad con¬ nexions with the interior. In Maine, the City of Portland, with a population in 1850 of 26,819, gave its credit to the amount of $2,000,000 to the Atlantic and St. Lawrence Railroad, which begins at Portland and ends at Montreal, passing through three States and a Bri¬ tish Province. This railroad, which is now completed, and was opened on Tuesday, the 19th of July, 1853, is to be connected with Montreal by a bridge over the St. Lawrence, which will cost $7,000,000, and there connect with Canadian railways which are to be carried to Lake Huron. So much has been done at the extremities of the Union by two small cities, towards their own prosperity, the one making itself the great southern depot on the Atlantic, and the other, pouring into its harbor the large and growing trade of the Canadas, which must make it the shipping port of the East. In Maryland, the whole railroad system has depended en- 25 tirely upon the city of Baltimore, which has extended and is extending its subscriptions, its guarantees, and its loans to the railroads of its own and its sister States of Virginia and Penn¬ sylvania. In Virginia, the system of subscriptions by counties, cities and boroughs to railroads, has been carried to its utmost ex¬ tent by general and special laws, and in South Carolina the city of Charleston has based its subscriptions upon a large clause in its charter. In Rhode Island, the city of Providence has subscribed to the PiovidQnce, Hartford, and Fishkill Road, which passes thiough two States, and into a third State. In Louisiana, Alabama, Tennessee, Mississippi, and Kentucky, the same system is established, and is rapidly progressing. The same may be said of Illinois, Wisconsin, Iowa, and Mis¬ souri. In Connecticut, the question was settled ten years ago, and in New York, it has not been mooted since 1840. In this last State they are using municipal subscriptions to a very large extent, to secure to themselves the trade of the Lakes, of the Susquehanna, of Canada, and of the West; and it admits of no doubt that if a Pennsylvania Tribunal were to declare such subscriptions unconstitutional, it would surrender up to New York and Baltimore, all that internal commerce, which by a judicious Railroad system would find its way through our in- teiioi to the waters of the Delaware, and to the metropolis of the State. The Ohio Railroads have been built by its counties, towns, and cities, and such is also the case with Indiana, and these two States having as they think incurred a sufficient amount of state and municipal debt, have by their late constitutions pro¬ hibited all increase of either, for the purposes of internal im¬ provement. In some of the states, the power to incur debts is limited or restrained by their constitutions. But the history and decisions of all, so far as we know them, prove that (if not limited by express provisions in their consti- 26 tutions) the legislative power to borrow money, and to tax, is unlimited, and its exercise depends upon the discretion of the Legislative body, and that portions of the same power may be intrusted to municipal corporations, limited only by the same discretion, neither of which can be the subject of judicial re¬ vision. The province of Pennsylvania was settled by William Penn, a philosopher and statesman, intimately acquainted with the institutions and history of his native country. Our local municipal divisions were accordingly modelled after those of England—we had counties and townships, with a few towns corporate, such as the city of Philadelphia, and the boroughs of Chester, Bristol, and Lancaster. The roads were made and repaired by the supervisors, at the expense of the townships, and bridges were either built by them, or by the county, where it required more expense than it was reasonable that one township or two adjoining townships, should bear. On the 25th October, 1701, William Penn grant¬ ed his charter to the city of Philadelphia, which occupied a little more than double the area of the city of London, and he in¬ serted in it two remarkable provisions, copied undoubtedly from the charter of the metropolis of England. The first was “ That the Sheriff of the said City and County, for the time being, shall be the water-bailiff, who shall and may execute and perform all things belonging to the office of water-bailiff upon Delaware River, and all other navigable rivers and creeks within this province.” The second is in these words, “ And I do, for me, my heirs and assigns, by virtue of the King’s letters patent, make, and erect and constitute the said city of Philadelphia, to be a port or harbor for discharging and unloading of goods and merchan¬ dises of ships, boats, and other vessels; and for lading and shipping them in or upon such, and so many places, keys, and wharves there, as by the Mayor, Aldermen, and Common Council of the said City, shall from time to time be thought most expedient, for the accommodation and service of the officers of the customs in the management of the King’s affairs, 27 and preservation of his duties as "well as for conveniency of trade.” “And I do ordain and declare that the said port or harbor shall he called the port of Philadelphia, and shall extend and be accounted to extend, unto all such creeks, rivers, and places within this province, and shall have so many wharves, keys, landing-places, and members belonging thereto, for land¬ ing and shipping of goods, as the said Mayor, Aldermen, and Common Council for the time being, with the approbation of the chief officer or officers of the King’s customs shall, from time to time, think fit to appoint.” The conservancy of the river Thames, which resides in the Mayor and Corporation of London, is the example for vesting a portion of a similar power over the rivers and creeks of Pennsylvania, in the principal officer of a single county, and another portion of it in the Corporation of the City of Phila¬ delphia, thus extending their jurisdiction and authority far beyond the defined boundaries of the county or city. Acts were passed in 1761 and 1771, for improving the navi¬ gation of the rivers Schuylkill, Delaware, Lehigh, and Susque- hannah, and commissioners were appointed to collect subscrip¬ tions, and to apply the moneys received to such improvements. Some sums were collected and expended on the Delaware, but these and all other works were interrupted by the Revolu¬ tion. Examinations of the State and its rivers having been made by commissioners appointed for the purpose, the Legislature, on the 13th of April, 1791 (4 Bioren, 46), passed “An act to provide for the opening and improving sundry navigable waters and roads within this Commonwealth,” by which the Governor was authorized to contract with individuals, or with companies, to improve certain rivers and streams, and to open certain roads, and certain specific sums were appropriated out of the treasury of the State, for the several purposes specified. On the 21st of March, 1808, an act was passed for the im¬ provement of the State (4 Smith, 495), by which the Governor 28 ■was authorized to subscribe to the stock of certain turnpike companies, and on the 2d of April, 1811, two acts were passed, one to encourage the constructing of certain great leading roads within this Commonwealth, and the erection of bridges at Ilarrisburgh, Northumberland, Columbia, and McCall’s Ferry (5 Smith, 270), which appropriated the sum of $825,000 ; and the other making appropriations for certain internal improvements (5 Smith, 273), which were generally roads, and of a merely local character. On the 24th March, 1817, another act was passed, “ making appropriations for certain internal improvements” (6 Smith, 478), which included subscriptions to turnpike roads, State roads, roads, navigation companies, improvements of creeks, the erection of piers at Chester, and wharves or embankments at Kitanning ; and the County Commissioners of Armstrong county were “ authorized to subscribe and pay out of the County Treasury such sum of money as by them may be deemed expedient, to be applied in aiding the erection and completion of said wharves or embankments.” (Id. 483.) One of these subscriptions was to a turnpike compauy in the State of New York. (Id. 482.) On the 26th March, 1821, was passed “ An Act for the improvement of the State” (7 Smith, 393), which contained subscriptions to the Union Canal Company, to various turn¬ pike and bridge companies, appropriations to improving the Ohio from Pittsburg to Wheeling, the Susquehanna and its branches, the Delaware, the Beaver, the Youghiogeny, and Penn’s Creek, and to making and improving certain roads and State roads. There were other laws passed in succeeding years, making appropriations of a similar character, and also to railroads ; so that, on the 1st of January, 1842, the State owned, at par, Turnpike stock, ... $2,328,698 89 Bridge stock, - - - 514,350 00 Canal Navigation and Railroads, 1,182,316 47 $4,025,365 36 29 The year 1820, was one of great depression in Pennsyl¬ vania, but upon the gradual renewal of confidence, the State, in 1826, in imitation of New York, commenced her system of internal improvements, which, with previous expenditures, has fastened upon us a debt of $40,000,000. We borrowed money to make the works, and to pay the in¬ terest on our loans, and we laid no taxes to pay either princi¬ pal or interest. We made our canals upon a gradual expansion of the currency. New York had made hers upon a reduced circulating medium, when labor was cheap and wages low. We made ours at a vast expense through a mountainous region, and with an intermixture of canal and railroad, whilst theirs was only a continuous big ditch through a level country. A small tax was laid, but the recharter of the United States Bank repealed it, and gave a new impetus by its broad¬ cast subscriptions to wild and visionary railroads and canals. The ultimate consequence was, the destruction of the State credit, its inability to meet its interest, the depreciation of the State loans, the sale of its available stocks, and the offer to sell the public works. The combined effect of State debt and State taxation has been to render unavailable the State credit for the great rail¬ roads of the commonwealth, and to make their construction entirely dependent upon the municipal corporations benefited by them; for the same general causes, united with the losses sustained by our citizens in the United States and Girard Banks, and in the Banks of the Southwest, prevented that accumulation of private capital, which would be sufficient of itself to complete them. We have carefully collected the laws of Pennsylvania, autho¬ rizing municipal subscriptions, and the Court by inspecting them, will see that they are inseparably interw'oven with the interests of every section of the commonwealth, and have become a fixed and settled part of our financial system. When the State ceased to subscribe to turnpike and bridge companies, authority was given to the commissioners of coun¬ ties to subscribe to them, and similar powers were aftenvards m ■ I 30 extended to the supervisors of townships in regard to turn¬ pikes. The same policy was pursued in relation to Plank Road Companies. The State had a surfeit of canals and railroads, and the same may be said of the individual citizens of Philadelphia, who had invested their private capital in the Chesapeake and De¬ laware Canal, the Union Canal, the Schuylkill Navigation, the Lehigh Navigation, the Reading Railroad, the Philadelphia, Germantown and Norristown Railroad, the West Philadelphia Railroad, the Tide Water Canal, the Yalley Railroad, and the West Chester Railroad, all or nearly all of which works paid no dividends in 1846, when the first subscription was made to the Pennsylvania Railroad Company by the city of Philadel¬ phia. We can therefore say with entire truth, that these mu¬ nicipal subscriptions to railroads are absolutely necessary to develope the natural resources of the State, to maintain its trade, increase its wealth, and enrich its citizens, and that the greater portion of all these advantages must result to that city which is the eventual terminus of these lines, and into whose lap must be poured the produce of the great West. All municipal corporations, “ being mere organizations for public purposes, are liable to have their public powers, rights, and duties modified or abolished at any moment by the Legis¬ lature.” (10 Howard, 534.) But the Legislature, in passing these laws, have reposed a discretion in the city of Philadelphia to subscribe or not, as they may deem most expedient for their interests, and those of their citizens. What, then, have they done ? Exactly what the Common¬ wealth has formerly done itself, subscribe to two railroads, incorporated by Pennsylvania, and that in conformity with the settled policy of this State, which at one time permitted the cities of Lancaster and Pittsburg to make or repair portions of her own great lines of canal and railroad. In what possible point of view, then, can these acts be called unconstitutional ? If they are so, one hundred laws must be torn from our statute book, and at least 1500 similar subscrip¬ tions in the United States must be declared void. 31 If they are unconstitutional, the result must inevitably be, not simply the stoppage of the various railroads now in the course of construction, but that every act of taking stock, bor¬ rowing money, and issuing bonds, must he declared null and void. Pennsylvania has suffered enough for repudiation, unjustly imputed to her ; hut let it once be announced that her muni¬ cipal subscriptions, sanctioned, as they have been, by the legis¬ lative, executive, and judicial functionaries of the State are unconstitutional, and it will be the last time that a Pennsyl¬ vania loan, of any kind, will be negotiated in a foreign market. Sidney Smith, if he were alive, could wish us no worse fate. . Trials. L99146 DATE Vol. ISSUED TO _ MIL- 9-1 _ J»- # 1 °! \ XX:!