The New York herald., 1868-06-20

The Committee on Roads and Canals, In their re-
port on the regulation and control OF railroads. say
that II is impossible to state the value Of the CON-
merce among the States at the time of the adoption
OF the constitution. 1t was, however, limited to
few millions OF dollars. In the year ending March
81 1857 the value of freight transported across the
State OF Illinois by railroad from East to West, was
SAIL ooo The value of freight transported
the same State In the year. from West to East,
was $235, ,00O, 900.
Through freight westward for the year 1892
Pennsylvania Railroad. 146,2o5 s125, s44,s45
Erie Railroad. ............. 149, S96 lbs, 8lO394
New York Central Railroad. 161,O13 140, 0,544600
These few statistics, selected because readily ac-
cessble are given to show the immense value OF
Interstate commerce, which s without any ade-
quate protection unless it is within the power Of
Congress to protect it-a commerce which is being
extended and developed with wonderful rapidty as
the vast Territories OF the United States west OF the
Mississippi being settled and their resources de-
veloped. 1t seems impossible that the almost I'M
thn o Se Continent to- the Atapac or from
ocean to ocean, and which In the near future may
embrace the commerce between Asia and our own
Atlantic coast should be subject to the diverse and
conflicting rules, regulations and limitations to he
prescribed by each State - over whose terri.
power to say that such commerce shall be
limited to single route or single track
that change of cars should be made when any local
interest would be benefited thereby; that cOmpet
ton should be prevented and power given to each
State corporation 10 impose such charges upon the
transportation Of freight and passengers from State
to state as should be oppressive and burdensOme,
and which would be impossible If competition were
permitted; and yet all these things are not only pos
sible but nearly certain to occur, II this vast
merce is to be regulated only by State laws. 1t has
appeared In evidence before the Committee by the
statement Of the Postmaster General that he has not
been able to make contract for the carrying Of the
mails between Washington and New York upOh the
conditions prescribed by law and that the PROPOSE
na
tinuous line between said cities might re-
fuse to carry the mails OF the United States, has
been frequently stated by the officers Of said roads,
and the committee no reason why it is not in the
power OF the corporation to cut of all railway postal
communication between washington and New York.
The report is as f0llOws:-
The committee are of opinion that Congress has
not the constitutional power to legisate in relation
to railroads which do not form parts OF continuous
lines extending from one State TO another. 1t has
long been settled that Congress has power to pre-
vent the obstruction OF any navigabe stream which
is a means of commerce between any two or more
States-(Gibbons VS.. Ogden. 9th Wheaton, p. l9l;
Corteld VS.. Coryee, 4th Washington. z. G. r., p.
37S; Gilman VS.. Philadelphia, Sd Wallace, p.
724)-but it is held otherwise in relation to
q stream that ia wholly within any one
waters of another State. (veazee vs. Moore I4th
Howard, page 46s; Wilson vs. Backbrd Creek Marsh
Conpany, "a Peters, page 25i.l The Committee are
instructed If, in their opinion, Congress has the
power, under the constitution, to provide by law
for the regulation and control OF railroads extending
from State to State to report bill which will secure
First, the safety OF passengers; second, uniform
and equitable rates Of fare; third, uniform and
equitable charge, for freight. or transportation;
fourth, proper connections with each other as to
transportation OF passengers and freight The Com
mlttee respey ytfuIly report that they have not the
bili for want o. the -neces s'ry Information
upon which to act. They are not now
Kind OF MATERIAL usea m e
ton, what mode of lighting and warming the
cars, will best secure the safety of passengers
what specific charges should be made to secure
proper system OF regularity and uniformity In their
connections Of the various roads; that In the opin-
ion Of the Committee such bill should only be pre-
pared after full and careful investigation of the
whole subject, and the examination Of persons OF
competent skill and experience to give reliable in
formation upon the subject. In the British Paria-
ment the information essential to proper legislation
in relation to the management of railways ana the
committees to make The necessary investi.
The reports Of these committees Of Parliament have
been the basis Of the legislation upon the subject and
have been the means OF securing much greater de-
gree OF safety for passengers dnd pr0mptness and
efficiency in the transmission OF merchandise.
The minority Of the committee, Messrs. Kerr and
Barnum, conclude their report as foows:-
II Congress possesses omnipotent authority to i'm
pair and disregard the obligation Of contracts, then
what is the value OF this prohibition What safety
exists for the supposed sanctity of the contracts and
intercourse between man and man In society," II
Congress may impair or disregard the obligation OF
contracts between State and her citizens whenever
in Its judgment IL becomes expedient for the regula
Is the power Of Congress over ali such interests to
be resrainedP The power OF the States over
the most important and sacred interests Of their
citizens, for their regulation and protection, must
then be exercised, subject to the pleasure OF Con-
gress. The right OF the States to regulate their own
domestic policy I'm their own way and to protect
their own citizens In their domestic, personal and
reside rights, interests and contracts which s the
most exalted and Invaluable Office OF civil govern
ment, becomes myth. II cannot be that Congress
possesses any right to impair the obligation OF
contracts than the States. We therefore, conclude
be consttutlonally enacted by Congress, and ought
not to be entertained and that If the power existed
its exercise would be inexpedient
Report on the Alleged Fraudulent Sale of
IrOn-Clads.
The joint select Committee on Retrenchment who
were by q resolution of the House of Representatives
instructed to inquire into the alleged fraudulent sale
by the Navy Department Of the iron-cads oneota
and Catawba to Alexander Swift & Co. today re-
ported all the facts and circumstances connected
with the transaction. IL appears that the contract
price for each vessel was $460 900, In addition to
which the Navy Department allowed for extra work
and matters not included In the original con.
tract sl61,424 "a, making the total cost to
the government OF each OF these vessels
$62l, ,421 54. The committee, after explanations
at some length, say that as Swift a Co.
obtained their grant from the Navy Department to
buy these iron-cads they proceeded at to look
out ior customer and In the summer OF 1867 made
a contract with Marquee, representing himself to be
an agent OF the Peruvian government II subse-
quenty appeared that he had authority act for
that government so one OF the firm proceeded to
Peru and there made contract with the Minister OF
Marine for the sale OF these two vessels at the prloe
of million OF dollars each. The report states that
at the time the contract made with the Peruvian
government Swift & Co. had right or title to the
vessels which still the property OF this govern.
ment. Swift &,Co. chimed 10 have had an under.
standing with the Navy Department that they
should be allowed to take the vessels on
paying million and q quarter OF dollars
for the two. About this time joint resolution was
drawn up and passed by Congress authorizing the
Navy Department to contract for the sale of any
iron-cod for a price not less than the appraised
value, 20 be fixed by board OF Hve naval officers
The Secretary Of the Navy advertised for proposals
and the board In the IA eantime proceeded 10 New