The New York herald., 1874-08-17
previous years.
IN RAILWAY CIRCLES

IN RAILWAY CIRCLES
and In the stock market much interest was felt in
reference to the case now before the Court III Wis
consn. There ia an Increasing spirit of resistance
on the part Of the railroads to the sort of legisa-
uon possible and there is talk Of the growth OF
powerful party In this State. grangers too who
shall De placed by selfish interests in antagonism
to their Western brethren by demanding reduction
on the rates for local trao, If 1t Is necessary
to make the roads pay that through rates be In.
creased. They claim that the railroads now pay
their dividends out Of their local freight earnings,
not their through trafic, and they want this cor
rected and the burden shared. The railway mag
mates representing the great trunk lines were
IN session in this city during the week, arranging,
1t Is supposed the details OF new freight schedule
agreed upon at Sara tOga. In this connection the
snbjoned protest against hostile legislation, which
we extract from the annual report OF the directors
OF the Central Pacific Railroad Company, Is inter-
esting as containing the points OF the case OF the
railways against the grangers. We quOte:-
1t is clear that If railroads are to be built BY
other organizations than the government they
must be lett as ree to make profits, under the law
as 1t exists at the time OF their organization, as
others making investments In any species OF prop
erty 1t Is Just, and has its foundation in the
soundest political economy The TACT that the
State exercises its right OF eminent domain TO Sc
cure the right OF way lor the construction OF rail-
roads Is, In itself, evidence OF their great public
utility and 1t is only this that justlfes it in the
exercise of its right Of eminent domain to procure
the g ad o way or s ne nns Of ehe Duo
and not iOr that Of the corporation which must
pay the ull value OF oil 1t takes Tor right OF way,
and WINCH from that time, holds 1t and controls 1t
as private property. Can 1t be wise to discourage
investments that are SO unquahhedy stamped by
there is reserved power to the state to regulate
the tariffs OF railroads other than the limitation OF
the general Corporation law, Is mooted question.
Whatever the po wer Is, 1t Is equally applicable to
every corporation formed under II, whatever It's
tSs of e. it b vst S a
regulated by justice and by SOUND and correct
principles.
The question is now being largely discussed
throughout United States, and # the principle
Is correct we may rest with confidence that the
good faith and intelligence OF the people Will
recognize 1t, and upon this good iaith and lntel-
gence must the railroads OF the present and future
rely. DECISIONS by the Courts, unfolding law that
is repugnant to the will OF the people, Will avail
nothing; nut the majority Will protect individuals
In the right. The railroad companies are made
up oil individuals, and wrong TO one or these Is
wrong to the whole people. And the question at
last resolves itself into this that either individuals
must be protected in their investments III rail-
roads, and allowed to make such profits as their
enterprise commands or the state must own and
construct railroads, or railroading must cease:
There is no such thing as separating control ana
ownership Co9taoa 9ta9 asa Is r. tae GM
partial or complete control OF any species OF prop.
erty, good faith Will compel 1t to provide compen-
sation accordingly, as 1t does when 10 exercises
the right OF eminent domain, and takes private
property for public use.
THE QUESTION
whether or not we have more railroads and rail.
road building on hand than is justi1abe or sound
Ia our existing financial condition is attracting
considerable attention at present. The Rai1,oav
Monitor in an editorial commemorative rather than
didactic, hints at an explanation OF this sudden
reaction in railway enterprise which appears to
have in 1t a most intelligent explanation, viz
that the sudden increase OF the supply Of gold
caused by the discovery OF the precious metal In
California and Australia stimulated enterprise
throughout the world to perhaps an abnormal de-
gree, at all events to a somewhat undue extent
Subsequently the war, with Its worse concomitant
! of paper money, found US In An incnoate condi-
tion with respect 10 our railroad building and the
! demoralizing influence OF q '1ampblack and rags"
! currency brought ruin to engagements con-
ceived in coin, and which only coin payments
! could safely eventuate. There Is much In this
view of the question deserving OF attention, and
we quote the thought as answering largely much
! OF the bear argument so persistently put forth
| from day TO day by the gnoDle leader OF that
party.
! THE MONETARY SITUATION
! is unchanged. We have had numerous announce
ments OF the arrival at the seaboard OF '.nrst
bales' OF cotton, and the probabilities are that
within the four weeks this crop, well the
grain crop, will commence to move forward. Call
loans remain unchanged at and 3 per
cent; time loans per cent for 80 days
and and per cent for the balance o
the year. Discounts rule quiet to per cent fol
prime business paper beng the lowest rate, with
! little onering. In gold paper there have been
some transactions at Ia per cent for prime sixty
days Havana and other West india acceptances
Domestic gold paper passes at 8 per cent fol
| sixty days, and a per cent ior ninety days and
four months. Gold loans have been made fat tc
1-le for the OF gold for sixty days, and y pei
cent for the use OF it for ninety days. The foreign
exchanges have been duh and on the decline.
nnn nccaainnad The Rank of Enc