National Republican., 1877-09-05
GOVERNMENT CONTROL or RAIL
ROADS

The proposal that the Government shall
take charge Of all interstate railroads has
been very thoroughly discussed, and is very
generally approved by the progr. .Sivr jour
mails Of the country. The pioIr,' WIS cx-
pressly approved by the Secret Ily OF the
Treasury In his speech opening the Ohio
campaign The Secretary vi War. while a
member of the House, was welt known
throughout the country as the champion Of
the doctrine that the National Government
should control the Interstate railroad sys-
TEN Of the nation. There can, therefore, he
no doubt but that this proposition will be
one Of the leading measures which will en-
gage the attention Of the next Congress, with
the virtual sanction of the Administration.
II Is very important, therefore, that some
definite plan should be agreed upon as to
the manner In which the proposed control
should be exercised. II is sometimes as
sumed that the proposition implies that the
Government must become the owner Of the
interstate railroads In order to exercise
supervision Of them, as the plan proposes,
This Is q very great mistake. All the ends
which the advocates Of this measure desire
10 reach could he accomplished by incor
lprating all Interstate railways under
general act Of Congress 70 be passed iot that
purpose.
proposed legislation are now owned by cor
iorations organized under the laws, In some
instances, Of four or five States. The cor
porations to be organized under the laws Of
the United States would he composed Of the
Kame persons, substantially, as those who
now form the companies which own the
several divisions Of the interstate lines rs
Incorporated under the laws Of the several
States. There would probably be but little
difficulty In making arrangements for the
new, consolidated corporations to purchase
the property Of the old companies which
now form the several divisions Of the inter-
State lines. In most instances II would be
mere formal transfer Of property owned In
one way into another form Of ownership.
II istrue that there might possibly in some
teTfere with the transfer Of portions Of
Me present State lines to the new Govern
nent corporations No such obstacle, how
rver, could prevent the completion Of the
line of such an interstate railroad in the
hands Of the Government corporations, be-
cause II Il could not acquire the control Of
any Of the links as at present organized, 1t
would have the power TO complete 1t by
building new road upon that portion
Of the line. There Is, therefore, no doubt
but that all the railroads which are now
known as interstate, through lines would
very soon be reorganized under the provi-
sions Of the proposed national general ac,
Of incorporation.
II Is very important that Il should be un-
deZstood that the proposed law for authoriz-
Ing the incorporation Of national railroads
would be no monopoly. No special charters
would be gn,uied, but general law passed
under which any persons desiring to build
. railroad extending into two or more
States could organize themselves into a
company, and either BY building new rail-
road OF by buying railroads already In ex-
fstcnce could thereby become the owners Of
an interstate railroad
Such law would be clearly within the
scope Of that section of the Constitution
which provides that Congress shall have
power TO regulate commerce among the
severai States II would place the railroad
commerce Of the nation upon the same foot
Ing with that transacted upon the rivers
and lakes, and would thereby free IL from
many Of the distractions which now inter.
lere with that free internal commerce which
II was one a. the chief objects Of the Consti-
tuition Of the United States to establish.
Another good result which would follow
the establishment Of such q uniform law
for the incorporation and regulation Of na-
tional railroads would be that the rights Of
stockholders in such corporations would be
secure. Under the legislation Of the sew
eral States upon this subject railroad stocks
have become, in most instances, OF but little
value. 1t Is well known that, under the
shield of the special legislation Of the sew
eral States, the stockholders have been
plundered by inside rings, organized as
transportation, express or similar com
panies. Under general law Of the Unitet
States all such abuses could be prohibited
md prevented. Furthermore, the affairs o
such corporations, being regulated by
uniform and explicit law, provision coul'
be made whereby their affairs could be care
fully supervised by being made subject :
frequent rigid examinations by officers 9
the Government, similar to those to whicl
the national hanks are now subjected.
the books Of railroad corporations were sui
ject to frequent examinations, the result
be published for the information Of th
stockholders and the public, II would b
very difficult for the officers to mismanae
The affairs OF railway companies withou
having their misdeeds discovered.