Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1874-05-07
lailv Aennrbrt sournal
AUGU > II A.
THURSDAY MORNING. May 2, 1874
WISCONSIN RAILROADS.

The contest in Wisconsin between the
railroads and the State government Will
be observed with interest in all parts OF
the country. In it are involved questions
of deep Importance touching the power OF
States over railroads. Last March the
Wisconsin legislature passed laws liking
certain tariffs for freight and passengers
to be charged by all railroads within the
State. Under the law the roads were di-
yided into three classes, for each of which
the limit of the rate of fare per passenger
was fixed, one at three cents per mlie'
one at three and half, and one at iour
cents. The rates for freight are also es-
tablished.
Against these regulations the ralIroaus
have combined refusing to obey them
alleging that they are unconstitutional
and declaring that if driven to extremity
they will take off their trains and tight 1t
out on the policy of mastery inactivity
In this condition of things the governor
has issued proclamation calling upon the
railroads to observe the laws. Thus stands
the battle, the issue is fairly made, the par
ties on both sides preparing to fight it out
to a decisive conclusion. 1t is to be re-
GREETED that amicable relations have been
broken between the railroads and COM
munities, but since disagreement has arts
en- it will be necessary to define and es-
tablish the rights, duties, and powers of
each in the courts, and their decision will
be respected. A reporter for New York
paper reports an interview Monday, with
Mr.. NJ. l.. Sykes, the Vice President OF
Chicago and Northwestern railroad as fol-
lows:
Mr.. Sykes said that his company would not
obey the law, as they are advised by Judge
Hoar, William M. Evarts, and other eminent
LAWYERS that the law in question was uncon-
stitutional. They we're advised that even if
they accepted the law under protest it might
be taken a. q surrender of their charter, and
they therefore were not complying with the
law, nor had they any intention of doing SO,
until the matter was finally acted upon by the
Supreme Court of the United States. He had
not vet seen the full text of the Governors
proclamation, and was not informed what
course the State Government would pursue
toward the railroad in consequence of their
non compliance with the provisions OF the
Law, which went into force on the lst inst.
He complained of the injustice and arbitrary
classification of the railroads without any ref.
erence to the amount of their respective earn
ings. and pointed out how the rates fixed for
freights would work a serious injustice where
the goods were carried by more than one COM
rka Gee hE
greater portion of the tariff, while the second,
though perhaps performing an equal service,
would receive comparatively little. The re-
porter also saw Mr.. Russell Sage, President
of the Milwaukee and st Paul Railroad, and
he also said that his company had no inten-
tion of complying with the law.
THE sANBORN CONTRACTS
The report Of the committee of ways and
means on the Sanborn contracts, closes as
follows:
While the committee, therefore, are unable
to determine where the responsibility rests,
they cannot, in justice to themselves, ignore
the fact that these three persons deserve Sc
we're condemnation for the manner in which
they have permitted this law to be admins
tered While the committee thus severely
criticise these officials of the Treasury Depart
ment directly charged with the administration
of this law, they find nothing impeaching the
integrity of Secretary BoutwelPs or Richard
cons action; and the testimony does not
prove that the Secretaries or any of their as
sociates were influenced by corrupt motives.
1t 10 due to the Treasury officials to say that,
~ far back as the administration of the Treas
ury Department by Secretary Guthrie, such
contracts were made for the collection of
moneys due the United States in extraordna-
ond sbas,
up 10 the time Mr.. Boutwell, became Secreta-
ry of the Treasury. When he came into Of
fee he found number Of contracts in exist
ence, and his Solicitor testifes that, after a
thorough and exhaustive examination, he
found no authority in law permitting them to
be made, and the Secretary Of the Treasury
at once annulled thesi, and that nothing of
any consequence was ever collected from this
class of contracts. Under the act of 1870 a
number of contracts were made by Secretary
Boutwell,, and although it was represented to
the Secretary that large sums were due the
Government, and the parties making the con-
tracts protessed to be able to collect what
was due, the amount collected was very small.
With the light of the experience of the Treas
ury Department in the contract business here
referred to, the officers, we are told, conclu-
ded that the parties proposing to take con-
tracts under the law of May s, 1872 would
fail to make collections in any considerable
amount, and this fact may account for the APP
parent neglect of this department to carefully
and strictly enforce the law.
And it is further due TO the present Treas.
ury officials to say that not only was this law
enacted while the predecessor of the present
Secretary was in Office, but that the first con-
tracts we're made by him, and the general pol,
icy of administration Subsequently pursued
determined upon lille Mr. EQUIV ell was Sec.