Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1874-05-06
REGULATING RAILROADS..

REGULATING RAILROADS.
The report of Senator Window,
Chairman of the "Select Committee
on Transportation Routes to the Sea-
board" submitted to the United States
Senate few days ago, exposes very eff
fectually the folly of attempting to
regulate freight and passenger rates on
railroads. While claiming for Congress
the power to regulate interstate COM
merce, when carried on by railroads
constituting continuous lines between
two or more States, Mr. Window
sees very clearly the difficulties
in the way of Congress
assuming to exercise this authority.
Great Britain, with fifteen thousand
miles of railway, has found it ''practic-
a.. ally insuperable' to fix transportation
rates by relation to cost and profit on
capital, and this being so, Mr.. Window
very naturally inquiries what shall be
said OF the United with their severity
thousand miles," And he answers this
question by showing the folly of at
tempting to do what Great Britain
could not do, as follows:
I'm order to establish intelligently
rule of charges based upon cost and
profit, we must investigate thoroughly
the circumstances and conditions Of
every one Of the thirteen hundred roads
We must know all about each indivld-
ual road; its original cost, how much
Of its capital is real and how much tc-
titious; how much was actually paid
on its stock, and what proportion Of
the profits charged to capital account
should have been charged IN expenses.
Having completed this detailed investi-
cation, which would necessarily involve
an examination and readjustment of
the accounts of the company from its
organization, we next turn our atten-
ton to its profits. In order to adjust
charges to profits by a general rule OF
law, wemust know hiatt the actual profits
are now, and what they VIII be IN the
future. This requires a knowledge of
Its grades and curvatUres; and the cost
of fuel, supplies, and other items of
working expenses; the amount Of bust
ness 1t now does, and what it viii con-
tinue to do: the economy or extrava-
gahce with which it VIII be managed;
the condition and character Of It's con-
struction and equipment; how long its
iron, ties and rolling stock will last, and
what it viii cost to replace them; the
storms of winter and the foods of sum
mer it viii probably encounter; and
finally, the losses which viii result from
accidents Of allkinds. This completed,
we must study carefully the nature of
its traffic so as to know what relation
the various classes of goods bear to
each other IN cost Of trans
portation; what charge each class
will bear without injury to the bust
ness interests Of the country, and how
much the expense Of carrying a ton Of
silk goods twenty-five miles per hour
exceeds that Of carrying a ton of corn
ten miles per hour. When we have
thus informed ourselves with reasona-
bic accuracy IN regard to all these de-
tails, and many more that might
be named, we Will be
prepared to commence the investiga-
ton OF the next road on the list, and so
on through the 800. By the time we
have completed the investigation, the
changed condition and circumstances
of the roads, and the rapid changes in
the business Of the country, will rem
der q re-examination imperatiycly nee
essary."
This is complete exposure Of the
folly of attempting to fix maximum
charges for freight and passage SO as
to have them uniform in their opera
lions and effects upon all railroad CON-
panies, if any regard is to be shown fol-
the rights of such companies. The
theory both here and ia England, as
Mr.. Window says, has always been that
the transportation business, ike other
commercial affairs, would regulate itself
upon the principle of competition On
this theory our railroad system has at
tanned It's present gigantic proportions
If there were more railroad lines III
States where the greatest complaints
are made to the high rates nov
charged, competition would soon settle
the question in favor of the people
The effort of State Legislatures to
regulate railroads within the borders OF
Il C+o+oS ,,ust inevitably fail. since
it is clearly an interference with vested
rights. 1t is upon this point unques,
tionably that the Wisconsin roads now
resisting the attempt to regulate them
viii win. If the Legislature can tz
the charges for transporting passengers
and freight on railroads already con
strueted, it can fix the charges which
anv other corporation shall make fol
services rendered.