New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1874-06-18
TJyE Pd(IPO4D Question:

III the reply OF MI. MCCIdiy w lhC i0o'oi VI
Mr. Charles Francis Adams, jr., on the subject
of the regulation of railroads, (prnted in
Yesterdays TRIBUNE3 has not sensibly adj
vanced the settlement of the great question
of extOrtiOn and discrimination, 1T has done
good by making little more clear the null
hilarious difficulties with which the problem is
surrounded. We are far from believing that
the solution has been reached; we are not
satisfied that it has even been indicated;
and meanwhile discussion can hardly fail to
be of service, even if it result merely in
pointing ont objections without suggesting
any remedies. Mr.. McCrary assumes that be-
cause extortiOn and unjust discrimination are
great evils therefore they ought to be pro-
hibited by Act of Congress, and the only
question is whether tho proposed Act is the
best that can be devised. There is fallacy
in this fundamental proposition. If Acts of
Congress cannot prevent or materially reduce
the railway abuses, or if they will abolish one
wrong only to create greater one, then it is
better for us not to try the remedy of
direct legislation. A useless law Is always a
| nuisance.
| Mr.. Adams objected to the McCrary bill that
it would place the Commissioners in can i'm
possible condition." and force them, in fixinss
" reasonable rates. Tor tnc roads under their
control, to be "either arbitrary or absurd"
Mr.. McCrary will not admit this He believes
that it is "qute possible to inquire and ascer-
" tain the cost of the construction, mainte-
"nance, and operation of railroad" and
hence to determine what income would
give reasonable profit to it's owners
Mr.. McCraIy is mistaken. No human
| being could ascertain the cost, for ex-
ample, of the Union Pacific or any other
road built by an inside Ring of its own stock
holders. Nobody knows the real cost of the
Erie Railway, or can ever find out and there
are scores of great roads whose accounts have
been so bedeviled for series of years with
complicated transactions and questionable
charges that the task of determining how much
of their nominal capital represents bona fide
investment has become altogether hopeless.
No schedule of rates adopted by the Commits
sioners can be reasonable unless it allows the
capitalist fair remuneration for the use and
risk of his money, as well as secures the farmer
just price for his pork and grain; and it is
utterly impossible to decide between the
claims of these two opposing parties without
resort to an arbitrary rule, which in some
cases will prove an absurd rule too.
The truth is, we have involved ourselves in
this trouble by reckless and often corrupt
legislation for the benefit of railway corpora
tons. To encourage the building of roads
and the development of the country we
granted charters which ought not to have been
granted; we gave many of the companies per-
mission to charge what they pleased; we
allowed them to initiate their stock; we re-
lieved them from the supervision and restraint
which the Legislature ought to retain over all
such organizations. Tempted by these induce
ments capitalists subscribed their money and
built railroads in the wilderness. 1t
was sort of lottery in which
there were both prizes and blanks.
Many of the original incOrporators lost all
they subscribed. Many were moderately sue
cessful. Others made fortunes. Now we find
the privileges we offered burdensome, and we
6r6p6se to take them back. That is not such
simple operation as some Western legis-
lators seem to suppose. There are questions
of law and questions of equity which must
first be settled, and the settlement will de-
pend a great deal upon the circumstances and
the history of each separate road.