The weekly Oskaloosa herald. [volume] (Oskaloosa, Iowa) 1855-1885, 1874-04-30
THE NEW RAILROAD LAW.

West, after taking counsel of such
legal talent ss O'Conor, Evarts,
Judge Hoar, Judge Curtis, and 9th.
ers, declare their intention of fight.
ing the Iowa railroad law, to the bit.
ter end. They say that this law en-,
forced, virtually legislates the rail.
roads of this State out of existence !;
that the rates under the law do not
leave enough for running expenses,
much less a dividend to the men
who have their money in the road.
Under these circumstances, the
Boards instructed the officers to run
the roads on business principles, at
paying rates and the attorneys were
confident that the U. s. Supreme
Court would declare the law uncon-
stitutional. One provision of the
law Furnishes the agent by fine or
Imprisonment, and the Board propo.
ses to retaliate in such cases by shut.
ting up the stations, and running by
without stopping. In speaking Of
this matter, the Chicago Rail,cay
Reviesc, one of the ablest journals in
the land says: II --
1.-THE average reduction for an average
Of 80 miles Is az per cent. On merchsn-
disc A corn, 81 lumber So cattle 80.
These are the great staples that make up
the bulk of business. The effect of the
law is seen at q glance in the statement
that about forty per cent. of the gross ear
nings is the total of net earnings with
which the companies pay interest on bonds
and dividends. if any, on stock. A
law is assuredly a "besom of destruction"
which at one stroke wipes this all out and
reduces the commercial value OF the roads
of state to zero. In thus sweeping away
the whole volume ofnet earnings on which
the roads rely to meet their bonded obi.
cations, not only does the law strike d.
rect and fatal blow at the credit OF the
companies as regards the roads themselves,
but its effects would be no less disastrous,
compelling the most niggardly economy in
the maintenance and operation oftheir ex-
isting lines, and putting stop to the con-
struction Of extensions and branches sorely
needed by outlying towns and districts
rapidly developing. The effect OF the law
would be, in the estimation Of men the
most competent to judge, to put back the
development of the State five years"
We have always contended that
Congress was the proper power to
regulate transportation rates, as thus
they could be made uniform through
out the land. Heretofore the troub-
le has not been in the rates of our
own roads, but through lines of 9th.
er States, which dictate to our less.
er lines to q great extent and these
roads the State Law does not reach.
We may by State laws legislate our
own roads out of existence, tall back
on wagon transportation as of old
and then pay these great eastern
lines the exorbitant rates as of yore.
Of course the railroad law Is emily an
experiment. If it proves disas-
trous to our local roads, it proves
disastrous to ourselves, and no just
man would wish to see 1t enforced.
If however, railroads can be run for
that much reduction, and still fair
interest paid on capital employed,
then will it be to the public interest
to have the law enforced but as
many of our local roads were unable
TO pay the interest on their bonds
under fsrmer rates, it is highly prob.
able that the reduction would be
confscatiou. .-.....
The Chicago Inter Ocean, one OF
the fairest papers in the land, and
one that has always worked for the
interest of the whole people, says
"The INTER OCEAN has been hitherto
and will be henceforth, the answering
champion of transportation reform, but II
will neither demand or sanction whole
sale confscation. While insisting that
railroad corporations shall respect the
rights of the people, 1t will oppose any un.
Just encroachments upon the rights OF the
companies. 1t is the duty Of the railways
to avoid any unjust discrimination as be-
tween persons and places, and charge
rates which will yield, after paying opera.
ting expenses, q fair profit on the capital
represented by the property employed in
their business. The companies should
demand nothing more than this-the peo.
pie nothing less. Such profit "does jus
tice alike to the railroad and the people.
The managers of the Wisconsin and lows
railways say that over seventy per cent. O
their gross earnings for the past year have
been consumed by operating expenses
and that the railway laws in those States
| TO take effect in few weeks, will reduce
| their income from the same volume O
business over thirty per cent. II thes,
statements are true, these laws make rail
way operations with profit in those State
impossible The operating expenses up
| on the same volume Of business will no
be reduced, snd reduction sfincome owe
thirty per cent. will leave nothing for tn,
payment of either dividends or interest
| No motive can prompt the maintenance
and operation OF railways in complianc
with the requirements of enactments pro
ducing such results No railway would
long remain in condition consistent will
its safe operation.
The sooner it is understood that tn,
| problem Of transportation cannot be set
tied without being comprehended, the bet
ter for both carrier and people. 1t ha
been the uniform conviction of thos
who have examined the su bject dispassion
ately and carefully, that infexible rates
applicable to all railways in given terri
tory, under all circumstances. cannot
made practicable. 1t is practicable I
provide more efficient remedies for the er
forcement Of the common law duties of th
common carriers. The common law ORC
hibits unjust discrimination and extortion
As to what constitutes such discrlmins
tion and extortion must be determined uI
on the facts Of each case, developed by ev
dence presented by all the parties interes
ted. This will secure justice to all as neal
ly as justice cas be obtained by legislativ
enactment and judicial decision"
TO STOP BY SIGNAL.