Among the states of the Middle West, Illinois began early. In 18491 the legislature of that state passed "An act to provide for a general system of railroad incorporations." This law prescribes the formation of railway corporations and the powers, duties, and liabilities of officers. The board of directors is given full power over rates, but these are limited to three cents per mile for passengers, unless otherwise provided for by special act of the legislature. The legislature is empowered to reduce rates without the consent of the company, but no such reduction shall cause the net profits to fall below fifteen per cent per annum. The probable use of the proposed railway must first be ascertained, and the interested parties must be given an opportunity to be heard. Annual reports are demanded, and the act is to apply to all existing corporations, so far as the same is not in conflict with special charters granted. The legislature of Massachusetts, in 1855, adopted a comprehensive general law, including provisions on legislative control of rates, junctions, taxing capital stock one per cent per annum, providing for reasonably good service, consolidation, and so on. However, in this, as in so many other states, during succeeding years charters were granted by the legislature which are as long and involved as if no general laws had been in existence. Iowa 2 passed an incorporation law, providing for the incorporation of railroads, at the first session of its general assembly, and in most 1 Laws, 1849, p. 15. 2 Dixon, “State Railroad Control in Iowa,” p. 20. of the earlier legislation of that state interference with railway management is foreshadowed. A law of 18561 contains the significant provision that "railroad companies accepting the provisions of this act shall at all times be subject to such rules and regulations as may from time to time be enacted." In 1860, maximum rates were prescribed, and two years later railways were required to maintain offices within the state and to submit annual reports. Another law provided for the periodical publication of rates and certain provisions relating to safety. The active regulation of rates was attempted in 1866, but most of the restrictive laws enacted up to this time were rarely enforced. Kansas, 2 after most prolific crops of private charters, passed an elaborate general law in 1857, but within three days after this law had been passed a special charter was granted without reference to the act in question, although covering in its provisions matters which the general law treated very elaborately. The contents of this rather elaborate law are essentially like those of the Illinois law. Taking North Carolina and Alabama as representatives of another section of the country, it may be said that their general laws, while fairly comprehensive, are not as complete as the best laws of states farther north. The North Carolina law of 1871 embraces seventy sections, in one of which a maximum rate of five cents for passengers is pre1 Dixon, p. 21. * Laws, 1857, p. 7. s Laws, 1871-72, ch. 138. scribed; another calls for an annual report of one hundred and five items, and another prohibits consolidation with parallel or competing lines. The Alabama1 law of 1850 reserves to the legislature the right to alter or repeal any certificate of incorporation; it places a limit upon the indebtedness which the company may assume, and contains furthermore the very novel provision that no railroad shall be constructed through an orchard without the owner's consent. In 1853 all railway companies were made subordinate to general laws. California was one of the few states which began to legislate on railway matters in general rather than special acts, beginning with 1850. In 18532 a law was passed which enabled any twentyfive persons to form a railway company. The life of the franchise was limited to fifty years. While section 2 of the law specified that the capital stock of the company shall exactly equal the actual cost of the road, section 16 empowered the company to increase its capital stock "to any amount which may be deemed sufficient and proper for the purpose of the corporation." This law was amended in 1853, 1856, and 1857, but in 1861 3 the whole of it was repealed and another law, supplementary to the original general act of 1850, was adopted. An important provision of this last law is found in section 1, which specifies that at least $1,000 per mile shall be subscribed, and ten per cent actually 2 Laws, 1853, ch. 72. 1 Laws, 1848-50, p. 54. paid in before the articles of incorporation can be filed. The form of the articles of the association is prescribed, and the period of its existence limited to fifty years. A sinking fund for the redemption of bonds is provided for, and the unusual liberty of laying out its road, "not exceeding nine rods wide," is given to the company. There are elaborate sections on eminent domain, arbitration, tolls, and so on. By a vote of three-fourths of the constituents of the companies, consolidated railway corporations may be organized. Maximum rates of ten cents per passenger-mile and fifteen cents per ton-mile are prescribed, although the company cannot be compelled to undertake the transportation of a small quantity of freight for less than twenty-five cents. The maximum rates of the California law are in part exceeded by those prescribed in a Washington charter granted in 1862,1 which are ten cents per passenger-mile and forty cents per ton-mile. It is also a significant fact that the first general law enacted by the legislature of Washington, in 1873,2 relates to "extortion and unjust discrimination in the rates charged for the transportation of passengers and freight on railroads in this territory." Montana, Colorado, Arizona,5 and Idaho are other states which, like California, began with general laws. 6 1 Laws, 1862, p. 119, § 10. 2 Laws, 1873, P. 455. 8 Laws, 1873, p. 93. 4 Laws, 1862, p. 44. 5 Acts of Territorial Assembly, 1877, p. 24. 6 Laws, 1864, On Corporations. CHAPTER III CONSTITUTIONAL PROVISIONS General Considerations. Constitutional provisions probably represent the more fundamental and permanent features of railway legislation. It may be assumed that the provision incorporated in the constitutions of the various states of the Union were thought to represent those matters respecting railways which the people of the different states, represented in their respective legislatures, considered most important and least likely to require changes in the future. The history of American constitutions does not reveal great readiness on the part of the people to change or modify their organic laws; and in view of this slowness in bringing about constitutional changes an element of fixity and rigidity is infused into the legislative control of railways. The constitutions of the older states, as a class, contain fewer and less comprehensive provisions relating to railways; and two of them, Massachusetts and New Hampshire, embody no direct provisions of this kind, while Rhode Island is saved from being classified with these two states by a brief and rather unimportant constitutional pro |