National Republican. (Washington City (D.C.)) 1872-1888, 1874-06-16
RAILWAY CONTROL.

HOUSE OOmmltte6 on railways anu OdnhIsb
has replied to the recent open letter from
Mr.. Adams, of Massachusetts,, upon the
subject of national control or supervision
of the railways. Mr.. McCrary is the author
of the House bill providing for the control
and supervision of interstate railways,
now before the Senate, and which Mr..
Adams expressed the hope would not pass
the Senate because, In his opinion, it could
not be 30 executed as to obtain the desired
result. He did not think that the nine
commissioners provided for could possibly
revise all the freight tariffs. He recon-
mended calm reasoning with the boards
of directors, and the bringing to bear upon
them an irresistible public opinion, as they
have done in New England, and which he
thinks has proven measurabiy successful.
Mr.. McCrary discusses the question in q
broader and perhaps more intelligent view
than Mr.. Adams was able to take by using
the Massachusetts, system. simply, for his
illustration. Upon the evils to be RENE
died, however, both gentlemen are agreed.
as follows: 81 Extortion, or the charging
"of unreasonably high rates for transporta-
''tion. and 2. Unjust and oppressive dis
elimination in favor Of or against particu-
"lar persons or places"
Mr.. McCrsry proceeds to show that the
immense monopolies extending from New
York to Omaha by several different lines,
welding hundreds of millions, not only
care very little for public opinion in those
wayside localities where they practice
these extortions, but they are able to
vitiate or direct and control that public
opinion in great measure at the CONNER
cisl centres through which they pass.
They can, therefore, only be reached by
act Of Congress, enforced through courts
and juries. He also makes 1t plain that by
means Of his law he could prevent the
thirty to fifty per cent additional extortion
practiced by these giant monopolies as soon
as the water lines are closed by ice. Hav-
ing ascertained the fair rate during the sea-
son of navigation from the schedules, the
commissioners could easily determine the
proper additional allowance necessary to
compensate for the distractions by snow
and ice. In short Mr.. McCrary claims for
his bill all the good features advocated by
Mr.. Adams, with the. additional one of
power to enforce their views when not
peacefully accepted.
1t appears to US that it will be necessary
to go deeper than either Of the propositions
under discussion to find the efectual, per-
manent remedy sought. 1t will be nsces-
sary to close the construction accounts of
roads when they are completed. For years
past these accounts have been kept open, and
largely increased by repairs and equipments
and all sorts of expenditures, which should
rightfully either never have been made or,
if so. have been paid out of the earnings of
the current year, instead of being added to
the capital account each year to enhance
the sum upon which dividends must be
earned. 1t is in this manner that our rail
ways have been made to cost 80 much that
they find it impossible to divide upon their
stock. Many of the Oldest among them,
which were completed years ago and were
doing prosperous business and paying
regular dividends, have recently, through
consultations, extensions and double and
auadruple tracks or other means, added to
their capital account, some fifty. some an
hundred and some two hundred per cent,
without any correspondingly enlarged earn
ing capacity. This condition of affairs at
once turns the stock to fancy, when it is
used by managers and manipulators chiefly
for gambling purposes. The less known OF
the intrinsic value of stock the better it Is
suited for gambling. Roads making steady
earnings and regular dividends do not fluc-
tuate enough to be of any sort Of use to
stock spectators. It is rare indeed, there
fore, to see the shares of well-managed
road quoted largely on the stock board.
When complaints of high tariffs are made
by the producers Of the West the immense
cost of construction and operation are given
as imperative reasons for the exorbitant
charges. The truth is that the managers Of
the great trunk lines do not operate them
50 much for dividends ss for the purpose oil
influencing the price Of the stock. When
by combination they run the shares away
above par, they declare stock dividend,
get the control of it ALL and sell out allow.
ing the outsiders who purchase to be caught
by the fall that is sure to ensue. And then
the managers viii be ready to re.purchase
at the decline, realizing more out Of such {
revolution Of their own creation than, they
would make legitimately from dividends in
dozen years. This is called operating
on the street, but it is downright whole
sale swindling.
We should not lose sight of the fact tina
economically constructed and prudentl]
managed roads are great blessing to tn