The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1874-01-17
CHEAP TRANSPORTATION.
Congress without Constitutional Power
to Constracs and Manage Railways
Run DAscuastOn OF tho question.

=
to Construct and Manage Railways
Run DAscuasiOn OF tho question.
WASHINGTON, JAM 10, 1874
! The Railroad Committee this morning reported
In favor Of federal legislation. restricting railroad
freights, and In many respects controlling their
management; also recommending national mar
row gauge railroad between the West and Eastern
seaports, be built at the expense OF the United
States government.
Judge L. COCHRAN OF Georgia, presented MI
norty report declaring that Congress has no power
to regulate freight charges on existing raiiroads'
The right to regulate commerce does not mean TO
build railroads to carry on commerce. The power
to regulate is one thing Dut the power to create is
another Charters created by States are legislative
contracts which neither States nor Congress can
touch without violating the fundamental law.
Other are gwen sns % n re-
the Convention then took. up the reports on
water routes. Colonel Darlington spoke In iavor
favor or Of the minority report The latter
said the West was in favor Of the Atlantic
absolutely necessary to the West, and thar IT would
be built at early day. The trade OF the South
intend to let It ianguish. The West would have
that outlet The speech was received with ap-
A resolution was passed rendering the thanks OF
the Convention to Colonel Frobel Of Georgia, for
his able speech, delivered yesterday, and ordering
Evening Proceedings.
During the further discussion this evening Mr..
MOORE, Of Chicago expressed his belief that 1t was
the duty OF the government to build such artificial
highways for commerce as wer0 practicable and
which the country required. Such lines should De
built for ffetght over which all citizens should
have right as common carriers paying for the
accommodation in just and equitable proportions.
Nj. GRosvENoR, OF st. Louis, said that they all
wheat and other products to tide water cost SO
much that less than heretofore now found trans,
rates rat s''S were less on grain than on heavy
freghts and yet nine out OF Often ten railroads
interest on their bonds and six per cent on the
cost OF the roads. We have too much railroad
competition ALREADY. we puiid three or ionr OF
The only cheap means Tor the transportation OF the
excess OF agricultural supplies from the Western
the Improvement Of the natural water routes.
FICTITIOUS RAILWAY VALUES
the reason why some Of the roads did not pay
dividend was that interest was required to be
paid on fictitious values instead OF on the actual
cost OF the roads. Stock was watered four or five
| times its real value
Mr.. GRosvESoH inquired whether the gentleman
believed every road watered its stock.
Mr. SAEDLEY replied-No doubt some are hon.
| estly managed, but he did not know one Of the
Western roads the stock OF which was not watereu.
| Mr. GRosvENoR said that the Baltimore and Ohio
Railroad stock was not watered. 1t was among the
| most solvent and profitable roads In the country.
| 1t was managed with stinginess rather than with
| economy.
| n,
sixty-two miles west OF the Mississippi River his
fellow citizens have to pay FOR every 6ushei OF
wheat twen:yone and sometimes mes twentys seven
| they obtained Immediate relief they would have to
| ABANDON RAISING GRAIN;
but II they obtain relief, even to the extent OF ten
cents per bushei they could double the present
yield. In conclusion he argued that law and pre-
reasred 9ee snd svor oi the
projects now under consideration BY members OF
/ REPLIED
! venor, showing how railroad STOCK ID Watered IN
New York and elsewhere, ana the dishonesty Isl N
| giving New York examples.
| There was further discussion, when the Conven.
ton, at halrpast ten O'Clock, adjourned until TO-
No definite action was taken on any features of
| will determine upon the plans to be suggested to
Congress and the legislatures Of the several
WATER TRAFFIC BETWEEN STATES.
The majority report on water routes as the
IN ae
resolves that some system OF internal transporta.
bring se g as
maDded to revive our foreign commerce and
increase and develop s our domestic srads
government should improve the great rivers
and lakes which form the natural channels Of
trade, and connect these by such system OF canals
| as viii open free and uninterrupted outlets from
the interior to the sea ana the means OF inter-
| communication between the States themselves.
The construction of these works is the present OBJ
feet IN view, and matters OF detail may be safely
| left to the wisdom Of Congress.
The minority report on the same subject suR-
| gests that the Convention propose to Congress
| such enlargement of the Erie Canal and lake route
as may be practicable, and the enlargement and
| extension Of the Illinois and Michigan Canal
| to the Mississippi River at Rock Is
land, together with the completion OF the
| work on the Illinois River, which win furnish
| additional and cheaper transportation from the
| great grain producing region OF the Northwest to
the seaboard, and also be the means OF enectually
cheapening rates for freight upon all the railroads
| running to the Mississippi River from the mouth
| OF the Ohio to our Northern limits and such
Improvement Of the Mississippi River at its mouth
| and elsewhere as may be needed to furnish good
navigation to the Gulf; and third route from the
| Mississippi River to the seaboard BY the Tennessee
River route, called the Atlantic and Great Western.
Messrs. Joseph Barron, John r Henry and
aelegation IN the Cheap transportation Con.
vention, called on the President and had q
| conversation Of some length matters per-
| tanning TO the Convention The President assured
| his visitors ne took great interest in the sub.
| ject of cheap transportation and in the proceed
ings Of the Convention now in session. and had no
| doubt Congress would give full atten ton to the
| suggestions and reports submitted tlerefrOm for