The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1873-08-02

public to pay, in the way Of freight
charges and passage money, interest on
this bogus capital. Initiating their CAPT
tai in this manner, without any good foun-
dation for it, they may have acted
within the letter of the law or beyond
the reach Of existing law; but injustice has
been done, nevertheless, to the public. In
fact, with this pretence of chartered privileges
and protection Of the law, together with their
influence over courts and judges, the railroad
corporations have been guaranteed generally
in their stock-infating schemes, pretended
capital and overcharges They forget that
railroad charters have been granted ostensibly
for the public veal, and that when they set
up overstrained chartered rights and the in
terest of fictitious capital against that they
violate the principle upon which their char
tiers were conceded, though they may act
within the strict letter of the law. We have
no data at present To. show how much in the
aggregate the stock, bonds and capital of the
sixty-seven thousand miles of railroad in this
country have been augmented over the actual
cost or bona fde capital invested; but the
excess, probably, amounts to thirty or forty
per cent. The total cost of the railroads in
operation is set down at 50, 159, 423, O57, or
$55, 116 a mile The actual cost was
not probably, over $4,000, 900, 900 par
ticularly when we take into account
the vast amount of lands granted
and other aid afforded by the gov
eminent. The difference of interest on
these two sums, if deducted in earnings of the
railroads, would reduce the rates for freight
and passengers twenty-five per cent at least.
We refer, of course, to the railroads in the
aggregate, and not to particular ones. 1t
should be borne in mind, too, that railroad
property increases in value and in its earnings
with the growth of population and the progress
of the country, and, as a consequence. that
there ought to be corresponding reduction
of rates.
But where is a remedy to be found for the
evils Of which the farmers complain, and from
which every branch of industry, particularly
in the West suffersp The movement of the
oranges is the first step. The Legislatures
and Courts of some of the Western States have
been compelled already to take action for the
protection of the public against the railroad
power and monopoly. As an evidence of the
influence of this movement we notice that a
new schedule of railroad rates has been made
in Illinois, reducing the rate of freights about
five per cent 1t will be better, perhaps, if
within themsslves-that is, if sufficient pres
sure can be brought to bear upon the Lsgisla-
lures, tho Executives and the Courts to over
rule the mighty money power Of railroad cor
porations. It is better to avoid going to the
federal government for remedy, if possible,
for there has been of late, and is, too great
tendency to concentrate power in it at the
cost Of State rights and personal liberty.
Still, in view Of the almost irresistible
of railroad capital and managers
over State authorities and legislators, we fear
there is no sufficient remedy to be found out
side OF the federal government. Congress has
the power, undoubtedly, to regulate the bust.
ness Of the railroads. The constitution says it
shall regulate commerce among the several
States, and no one can deny that the railroads
are the great arteries Of commerce among the
States, as much as are the rivers and seaboard,
and more than were the high roads in former
times. Should the State Legislatures fail to
do their duty to the people in this matter it
will devolve upon Congress to ignore and for
bid fictitious railroad capital, to prevent the
public being charged to pay interest on that
and to bring rates of freight and passage
down to reasonable interest on bona fde in
vestments. If we mistake not the movement of
the farmers oranges, backed up by our New
York merchants, will have that result. But
it should be independent of existing political
parties, and nothing should be done unjustly
to capitalists or invested rights or that might
tend to check railroad enterprise; for, with all
the evils of monopoly, creation of bogus
capital, corruption and dangerous power COM
planned OF, the railroads are great boon to
the country-yes, to the farmers as well as to
every other class of citizens. There is cor
relation Of interests, if the farmers and rail-
road corporations can be made to understand
that. To make these harmonize and to do JUS
tice to all would be the solution of the difficulty
Troubles Among the Politicians.
The democrats in Indiana seem to have cot
into hot water among themselves, and the
trouble promises to end in the establishment
of another democratic organ in the place of
the Indianapolis Sentinel, which does not APP
pear to give satisfaction to Governor Hendricks
and his friends. At the same time grumbling
has broken out among the republican ranks in
Maine, and the malecontents are meeting in
county conven tons and openly expressing
their dissatisfaction with the way things are
going. Our readers are familiar with the
hubbub that prevails among the democrats in
Ohio, and with the determination expressed
by their new party men and the liberal