The national era. [volume] (Washington [D.C.]) 1847-1860, 1853-10-13
PACIFIC RAILROAD.

Our readers are aware that company In
New York has been chartered by the Legisla-
ture of that State, with a capital stock of
$IOO,OOO,OOO, for the purpose of constructing
railroad to the Pacific ocean. Already we
learn, subscriptions have been made to the
amount of thirty or forty millions. The Hon.
Presley Ewing, of Kentucky, in letter to Rob-
ert J. Walker, stating his reasons for prefer
ring the construction of the road by private
enterprise, thus sketches the general features
of the company:
"lf | understand the proposition of the New
York company, they offer to build the road SIM
ply as other great works of similar character
have been effected, by private enterprise and
to be owned as private property asking OF the
Federal Government no charter-no grant of
peculiar powers or privileges-no partnership
or Notwithstanding save fair cOmpeHsa-
ton for such uses of the road as may be de-
manded by the necessities of the Government,
that compensation to be made either by loan
of Government credit or otherwise, and in such
an amount as may be deemed reasonable for
the advantages enjoyed and either before or
after the completion of the road. If before the
completion of the road, then in such install
ments, and upon such securities, by lien upon
80 much of the road as may be completed, or
otherwise, as may insure the Government
against loss. And may add that one of their
most important and a very reasonable demand
is that before they enter upon SO stupendous
an undertaking, the Government may be sim
ply committed not to become competitor"
Mr. Ewing argues in favor of this plan of
a. khat Ind
all controversy concerning the power of the
General Government on the subject of internal
improvements; that it would not raise the ques-
ton concerning its power to create corpora
ton that it excludes all conflict of interests in
relation to the terminus of the route; and that
it is calculated to secure the completion Of the
work, moro economically, more rapidly, and
more durably, and with less opportunities for
fraud and corruption than if the enterprise
were undertaken by the Government.
As a general rule, private enterprise is bet
ter adapted to the construction of internal i'm
proyements than Government enterprise, to say
nothing of the question Of constitutional power.
But the public, in ordinary cases, is secured
against imposition by competition. When two
or three companies, with separate interests, can
supply the people with certain facilities or con-
yeniences, competition will generally prevent
oppression or extortion. The People will have
to pay no more than reasonable charges. In
instances where one corporation has q monop-
oily, as the railroad company in New Jersey for
example, public convenience is liable to be sac
rificed to serve private interests, and there il
no redress.
IL we understand the matter, this New York
company demands from the Federal Govern
ment a pledge that it shall never become a
competitor-in other words, no matter what
abuses may arise, that it shall never construct
rival road to the Pacific. Its next demand
will be, in negotiating with the States in regard
to the right of way, security against oil future
competition In word, this New York COM
pany seeks to have under its sole and exclusive
control the only highway between the Allan
tic and Paoifo-the one great connection be-
tween the Atlantic and Pacific States-to &C.
cure to itself absolute power to lay what taxes,
10 impose Wnatever conulsiOns III may please,
upon the incalculable Trade and Travel that
must pass over this National highway. And
this company will be corporation of unlimt-
ed pecuniary means, and utterly Irresponsible
to the People Of the United States We sub
NIT that the construction Of a railaoad to the
Pacific is an exceptional work, not to be meas
ured by the same rules that apply to other
works of internal improvement; for this reason,
specially, that the ownership Of such a road by
q private company would prove dangerous to
the public Understanding, first to the i'm
mense money power of the monopoly, and next,
to the absence of all competition, the usual
check upon the cupidity Of corporations and
individuals
Mr. Ewing presents in his letter but one side
of the question we have glanced at the other
We do not commit ourselves positively for OF
against the plan of the New Workers., but We
distrust it: it may be that some guarantees
could be devised which would secure the pub
lie interest against danger but we doubt it.
As to the power Of the Federal Government
TO construct or to take the lead in construct