1867.] OF THE HOUSE OF DELEGATES. 147

by the 29th section it was, among other things, provided
that, "if, at the end of two years after either of said roads
shall be completed, from the beginning to the end thereof, it
shall appear, from the average profits of the said two years,
that the said clear income and profits will not bear a dividend
of ten per centum per annum on the capital stock of the said
Company so expended, then it shall, and may be lawful to,
and for the said President, Managers and Company, to in-
crease the tolls hereinbefore allowed, so much upon each and
every allowance thereof, as will raise the dividend up to
ten per centum per annum."

By the 30th section the Legislature reserved the right to
buy out the Company by paying the post of the road and
such interest as, with the tolls received, would give the stock-
holders ten per cent, on their investment; and provided that
after such purchase " the tolls shall be subject to the regula-
tion of the Legislature"

These sections show very clearly, First, That the right to
receive ten per centum on their investment was by the char-
ter expressly given to the stockholders, and was held out
as an inducement to them to take stock in an enterprise
of doubtful success; and, next, that the power to increase
the tolls was conferred as the neqessary means to secure to the
stockholders the receipt of dividends to the amount stipulated.
In point of fact, the profits of the first two years after the
completion of the road not only did not reach, but did not
even approximate to ten per cent, on the capital expended;
and the Company thenceforward had the right to raise its
tolls. It, however, retrained from, and postponed, the exer-
cise of this right, as well because it hoped for an increase of
travel on the road, as because it was reluctant to do an act
which, however just, was sure to draw upon the Company
the disapprobation and censure of the traveling public; and
it has therefore struggled on, making dividends which
have not given to the stockholders six per cent., or anything
near it, on their capital. For a period of thirty years past
its usual dividends have been only from one and a half to two
per cent, per annum, and within the last two years the
increased price of the labor and materials, necessarily
employed in the management and repair of the road, made it
manifest that the road could not be kept in repair, and even
a small dividend declared, without a material increase of the
rates of toll.

The President and Managers beg leave to assure your Hon-
orable Body that the rate of tolls which has, under these cir-
cumstances, been adopted, cannot with any propriety be
characterized as "excessive." Instead of yielding to the
stockholders ten per cent., as stipulated by the charter, it
will not, and has not, up to this time, enabled the Company