Evening star. [volume] (Washington, D.C.) 1854-1972, 1869-01-07


loss they infiict on the individual. Railroads
are vast agencies of commerce vitality neces-
safy 70 modern civilization, and it is as wrong
BY law 70 limit the n lumber Of them as 70 limit
% law the number of steamboats,, cotton. mills
or blacksmith shops. 81
free competition in railroads Is necessary in
smother view. The tendency OF the age is to
tne combination of raiiroads-the union Of
com Getting aud competing lines with view
70 prevent the red uction Of fares. This pro-
cess has within a few years, by leases, b,
divisions of profits and by running arrange
ments, united in a single interest, under a COM
mon control, over one thousand miles OF rail-
road, reaching through many States. The only
way to avoid injury from this combinstron OF
capital is 70 In vIfe new competing lines The
liberty 10 build these Is the only check upon
mcnopoiiee. But for this, existing railroads
would form combinations precisely as they
would BE- formed by mere hants and mauuf,c-
turers IL the freedom of new competition did
not compel them 10 gain their business aud
profit by the chea pness of their commodIties
ara the excellence OF their productions, rather
than by special privileges, A greater danger
presents itself than mere combinations 20 regu.
late freight II is the omoinstion of great
corporations to control Congress. very
marked example of this is presented BY tie
effort OF great corporations TO oppose this bill.
Senator Sherman here caused 70 be read the
circular letter recently issued by the eight rat
road presidents. and said that If thy make
com biLailons OF capital 10 prevent com pe,itIOl,
they must expect new competitors. They con-
tEoi powerful corporations, but these corp )ra-
tons are subject TO law. They have no exclu-
sive powers and he would say to them, IL all
kindness, that this effort OF theirs is Ill adv sed
AND II perseyered IN Will result IN political
combinations. both in the State and in Dn-rpss,
that VIII override AT once their efforts TO pre-
vent new railroads, new Combinations, and I'M
proved facilities.
Experience has shown that frae competition
is not only beneficial to the public but j. not
injurious TO the railroads. new railroad de-
NelopS rs own business; the reduction OF prices
caused bv compeution increases the amount of
business. and often increases the net earnings
OF road Competition promotes economy ia
railroad management. 1t destroys corruption.
which Is usually an instrument of monopoly.
In every aspect, and 10 every interest. free
competition in railroads Is beneficial; it d..
velcps local resources. il mere ises subordinate
industries, i, cheapens the cost of living; while
monopoly IN railroads has the opposite ten
dency, and creates feeling or dissatisfaction
which IN the end, without regard to LEGAL
eaactments. viii overthrow il.
Marked examples of this policy may be seen
In different parts of the United States. ONO
commands every avenue of approach from the
East to the West Lake Erie bends into her
northern boundary, while the hills of Kentucky
obstruct railroads through her territory. By
taxes or monopolles Ohio might have greatly
obstructed free communication among the sew
eral States. She might have pr elected her grain
markets from the competition of the Vest She
might have arranged her taxes SO as to have
levied them on the neighboring States She
adopted, however, the policy of free competi.
ton. Railroad charters were granted when never
desired, and finally a general railroad law al
lowed any association 10 build railroads auy.
where upon regulations applicable to all alike
The result is the building Of three thou sand
and four hundred miles Of road, most OF which
Is producing an actual profit to the stock
holders, and every mile OF which is of rraatar
local benefit Than the cost. New roads are
being constructed, new competition created
until now cities OF the smaller class build rail.
roads merely 10 secure local competition. All
the great lines from the Atlantic to the West
are now competing IL the different parts of Ohio
tor local business. They have extended their
connecting arms in every direction. The Bal
timore and OHIO railroad also avails itself of
this policy and OF the laws of WestV irginia and
Penns ylYania TO improve and extend its con-
necuons. Ii now reaches with Its connections
To Cleveland. Chicago, ST. Louis, and Cincin-
natl and the Southwest. IL wisely and ab'y
competes with all the great lines from Phila.
delphia. New York. and Boston. This compe-
utlon is i'll the Interest of the people, and If
lett untrammeled by State monopohes will
secure cheap transportation. Yet while this
road extends Its operations into the natural
nelds OF other corporations 1t carefully guards
us monopoly here Its rivals are not allowed
by the State OF Maryland 10 compete here
Washington is excluded from the benefits of
this healthy competition. The passenger from
the West ard North west may reach any city of
the sea-coast from POrtlsnd to Baltimore by
his own choice of competing lines, bat he can
not approach Washington except through or
near Bai more, and then only by a branch OF
one OF the great competing lines, which IN Its
public advertisements declares as an induce
ment for travelling over its main line to the
West that 1t will not allow the usual fccilities
other lines in that direction. Such a policy
naturally produces resentment, which, if IL
can find no remedy in the power OF Congress
VIII find it in the removal Of the seat of Gov
eTnment.
He had IL US tar considered the question = 3
local one. affecting alone the citizens OF Was
lHStop, or those coming 10 or going from Wash
Ington. There Is another view far more i'm
portant. The right OF a State to Obstruct CON.
merCe and communication between the States
py imposing taxes on commerce, or by granting
sDPIlgI ha- oft.
been denied In Congress and by the courts. and
presents question OF infinitely greater pro.
tons than the dwarfing of Washington or the
cost and inconvenience Of persons travelling 10
Washington. 1t is the same question which
mainly led TO the adoption OF the Cons titution,
10 the formation OF the Zollverein of Germany.
and 10 The formation OF the present empires OF
France and Great Britain. 1t is the struggle
between local restrictions and the liberty of
commerce. The effort To harmonic these was
attempted by the Constitution OF the United
States. Local government for local purposes
Is the primary object of cities, counties. and
States: general government for general OBJECTS
affecting the people of the nation was the OBJ
Ject OF the national Government.
The precise boundary between these must
always be the subject OF dispute; and chs must
especially occur where specific power is
given 10 both the States and the United States.
The power over commerce is Of this character:
Congress has power sto regulate commerce
with foreign nations and among the several
states and with the Indian tribes" Here the
power Of Congress is only limited by the ma
ture OF the commerce. The power over local
comm. cree between the citizens of a state is left
exclusively to the States, but commerce among
the States Is to be regulated by Congress. Rail
roads are The agents both OF local commerce
and commerce among the several States This
creates the difficulty of defining the limits of
the power Of Congress and the States. Navlga.
BILE streams, even If within the limits of State,
have been repeatedly held to be subject to the
regulations OF Congress. States create rail-
roads for local commerce. May not Congress
create railroads for commerce among the States.
States prescribe fare and freghts for local com.
merce. May not Congress do the same Tor
commerce among he States. This brings US
10 the general constitutional question in involved
IN this and all the bills referred to the select
committee: does the Constitution confer upon
Congress the power by general regu lations or
by new Corporations to control and build rail.
roads,
The general design of the Constitution was
to secure TO Congress all legislative power at
fecting the interests Of more than one State and
essential to the general welfare. The powers
reserved 10 the States, or not delegated TO Con-
gress, are such as affect solely the domestic
interests and happiness OF the people within
the States. All questions OF education, the do.
mestc relations, OF contracts, nearly all ques-
tons Of municipal law, are reserved to the
States, because they affect only the people Of
the State, and depend upon locality, wealth,
density OF population, the employment Of the
people, and a m multitude of considerations prop
eriy TO be judged OF by the vicinage or State.
but where the questions involved affect the
people Of other States the Constitution with
holds their decision from local authority and