Evening star. [volume] (Washington, D.C.) 1854-1972, 1869-01-07
THE RAILROAD QUESTION.
IMPORTANT SPEECH By SENATOR
SHER MAN ~


space as possible TO the points OF Senator Sher-
msn's mastery speech yesterday upon the cur.
rent railroad question; the bill proposing TO
charter railroads respectively from Washing
ton 20 New York, PitJsburg, and Cincinnati
Mr. Sherman said that in opening the arru.
r1ent he would content himself with stating
the genera! reasons which induce him to sup
port TINS Dill, leavtng to other members of the
select Jmmittee the duty of stating their own
views and replying 10 ANY objections OF a leg al
or constitutional character that may be urged
IN opposition to II. f.r-...
The questions involved are
l. The necessity for new modes OF railroad
TRANSIT 10 and from Washington.
>. Tie extent of the power Of Congress over
existing railroads aud its authority 10 construct
new roads.
trst As TO the necessity for ne " modes of
raiirOa transit 10 and from Washington.
II Is d remarkable fact that the only &C csss
from the North, Etst or West 10 W ISnin goa
Is by one railroad. and that a feeder or bran IN
OF the Baltimore and OHIO railroad.
Ther- are row IN the United States over
forty thousand miles of railway, and nearly
every city or town OF impOrtanc. has TIE al
vantage of competing lines, and not Que APP
pEoaehiAg The population OF Washington but
bias several OF these great avenues of trtyri
aud transportation. This marked isJia ion a..
Wash nCton becomes more striking when We
consider il as the political capital Of a country
OF thIrty-sIx million souls, thousands OF whom
are compelled by pubic business AMI duties ID
yI-it Il, and most OF whom naturally desire -
vIsi' II a. the seat OF all the great Departments
OF The tIOy rnment. Cur S'ItutntS, Wu-rS-
ever they reside, expect that their CtrItal
should De accessible TO all by the best m ptes of
transit enjoyed by other cities, aud that this
transit should be as direct. cheap, and con-
yenjeut as possible. The demand for such
means of transit comes 10 us with most force
from those who reside in the District OF Column
bia. They are mainly the workmen or
agents Of the Government or those who fur
nIsh them supplies. They must depend en-
ureiy upon Congress tor the facilities OF travel
and trans pOrtation.
Congress has exclusive Iuri saiction over all
matters i'll this District, ana this authority In
wolves the duly to secure them modes of tran
sit equal to those enjoyed by other cities within
the jurisdiction of a State. Has this duty been
performed, Is the access to Washington such
as Is commeDs urate w It'll the importance Of this
city as the home of one hundred thousand per-
sons, or as the political capital of the United
States, Is the branch of the Baltimore and
Ohio railroad n reasonably sufficient agency TO
transport all those whose business or pleasure
calls them here and the supplies necessary for
their maintenance! The Baltimore and Oaio
railroad is corporation created by tn. State
of Mary land, over which the people of This Dis
trict have control. Its main line and
branches are 513 miles long. lad 1t leases and
controls other railroads probably of equal
length. Its operations extend to and through
operations Is for 1-o5. BY this report il tn IN
employed - locomotives ard Gl3 cars. Its
gross earnings In that year We're SIl,77t,s.6.
IL may be properly classed as one of
II has been managed with ability, ana its IN
nuence IL ielt no. only In Maryland but in
connecting lines with Cincinnati, Chicago. and
ST. LOUIS. IL cOmreteS win rival lines for tn,
business Cf nearly Cne-fOuTth the population
of the nIted States, and IT has the subs tantial
monopoly Of thar Of the District OF ColunbIa
Lake other corporations Its chief oil We is self.
interest. Its great object is, first, the profit of
Its owners; second, the commerce cal Interests of
the city OF Baltimore; and third, tn convent
ence of the people of Maryland. 1t has no
local a..
IngIon. except as the business done here IN
Grasses Its revenues. livery regulation OF the
company makes Baltimore the chief terminal
pOlnt TO OF near which every person travelling
and every article carried over their road must
20. All freight TO Washington pays the charges
TO Baltimore superadded 10 those from Balti.
more to Washington, and the delay at Balli-
more rs constantly complained of. Though
Washington Is one great source OF its business,
il giyes Ia return but htie TO the local taxes or
interests OF Washington.
To the people Of The District OF Columbia 1t
is SIMPLY a monopoly imposing its own terms,
including a tax on each person and on all
property transported to Washington, but paid
TO the State of Maryland. 1t is a monopoly in
that il prevents all rival lines, and indeed
every means Of railroad transit from thu resi-
dence OF three f9grtns OF the people Of the
road. Capitalists and rival interests would
have built other railroads TO Washington Ion 2
since, and the only obstruction is .his railroad,
which has thus far defeated all competltion.
and has monopolZed on its own terms the rail.
road transit to Washington.
power like this in single corporation,
however wisely exercised, would In time cause
serious dissatisfaction. 1t Is inconsistent with
the general coed of the States and the people,
which opposes monopoly and invites free com.
petition. Liberty TO devise and EMPLOY new
agencies Of commerce, to build new roads and
improve existing roads, is necessary TO secure
the Just exercise of corporate rights. Ii IL.
therefore. natural that dissatisfaction should
occur with the present exclusive transit, even
II AZ yielded only a fair profit on the capital
employed, and furnished direct. convenient
ana cheap communication.
But we fnd-I. That the profit of the wash
ingtOn branch is grossly out of proportion to
the cost Of the branch. 2. That 1t Is not direct
route except 20 Baltimore. That it is not a
convenient route, but denies the usual facilities
OF travel except TO Baltimore. That u Is not
a cheap route, but, though very profitable, i
more expensive than any similar short line.
and Is used to levy for the State of Maryland
an unconstitutional tax.
The Washington branch is thirty miles long,
extending from Washington to Relay House,
Maryland, where it meets the nam line. The
gross earnings for 1865 were S9i6,2e7, or over
s3O.OO0 mile. The expenses OF operating it
Were 1856 ,2.l, and the net profits Were S55O9.2,
or equivalent 70 ten per cent. on a capital stock
of S5,50O,0UU.
He had not a statement OF the cost Of this
branch, but from the comparatively easy
grades, road-bed, and curvature, estimated
that S5U,UtO mile, or Si,5UO,UOO would replace
the road At the present high prices. The route
presents no engineering diffc ulties, and with
the exception Of the bridge near the main stem
IL requires no expensive bridges. The capital
stock o. this branch Is stated al Sl,6I5,lU,, and
II has NO debt. II thus appears that the gross
earnings OF this branch will nearly refund the
stock in twenty months; that It's net earnings
will refund the stock In three years, and that
the net earnings upon the stock in 1865 were
fhirfy-three per cent ON its capital stock, and
upon its estimated cost al present prices would
exceed thirty -four per cent
This enormous profit was divided between
the stockholders and the State Of MARYLAND
Sl65,OCO or ten per cent being paid to the stock
holders, $234,l57 TO the Stale OF Maryland, and
the very large surplus revenue then accumu.
lated, OF lob, which was deposited with or
loaned To the Baltimore and Ohio railroad.
monopoly so productive to all the parties con-
burdensome IL may be to the people Of the Uni
ted States, and especially to so many OF them
as reside in this District
The general direction of the branch is to the
northeast, and therefore furnishes a reasonably
direct Route TO Baltimore, and thence to the
northeast Atlantic border. To no other por-
ton Of the United States does il furnish direct
route. Passengers TO the North, to Harris burg,
and the body of the States of New York and
Pennsylvania are required to go to Baltimore
and pursue their journey as hereinafter men.
toned. The main stem of the Baltimore and
OHIO railroad is from east TO west The direct
route TO those States crosses the Baltimore and
Ohio railroad at right angles, and to the people
Of The West and North west the route Is stllI
more indirect BY feasible and direct route
to Pittsburg, the centre OF existing system
OF railroads, the distance would BE- about three