The New York herald., 1879-11-30
DEFENCE OF THE RAILROADS.
ELOQUENT Counsel Harangue the LegiS-
latiVe Committee.
NEW YORK CENTRAL AND ERIE.
Ex-Judge Shipman Acknowledges the
Power of the State.

ing and listened the arguments for tho defence OF
the railroads. Mr.. Depew finished his address in
tho morning and the rest of the day was occupied
by ex-Judgs Shipmans argument on the part of the
Erie Railroad The investigation will be concluded
IN . few days.
At the opening OF the session Mr.. Depev continued
his defence Of the New York Ceutra Railroad taking
MP the question Of freight rates and the alleged dis
elimination against New York. 1t was said that the
Legislature should step In to alter the railroad
charges There was q time when New
York had monopoly OF the trafhc, but
Baltimore and Phiadelphia began to compete.
with the advantage of shorter haul and less mile
age. The connections OF Baltimore and Philadelphia
with the West became SO complete as to carry
n cheaply as the New York Central and the
Erie. Their disadvantages were made up for by the
low cost of coal over New York. The average cost
of freight per ton per mile from Baltimore became
the cheapest in the United States. These roads
had tho backing of the State while the New York
roads had none. They declined to yield their ad-
yantages, and the New York roads com.
pelled to force the issue. Then began the great
railroad war. Freights dropped from 81 to
6fty cents, to twenty-five, to thirteen. to ten.
There the New York roads stopped. Where the
others went nobody knew. The Baltimore and Ohio
and the Pennsylvania ceased to earn pay divi-
basis of agreement. each road securing certain
percentage of the business. entirely ignoring diff
ferences of distance. The terminated in
1877 by the pool. Under it New York gets seventy
nine per cent of the business and the other roads
twenty-one. Maize the only product in which
the business or New York had fallen of. If tho
Legislature acted on the strength of the diveroion
Of maize from New York. the result would be most
amazing. Naughter)
STATE SUPERVISION.
Mr.. Sterne had recommended for railroad ills .
State supervision by the authorities to whom the
railroads shall pay large salaries for interference
with their affairs and interruptions OF their business
Mr.. Sterne had recommended railroad commits
zion. Mr.. Depew did not see why the railroads
should pay an enormous sum OF money to get Mr..
Bterne q railroad on which there switch.
Such supervision might do for monarchies. but
would not do for republic. There was a commits
sion once in this State. but it only lasted year.
and there were no regrets ut its death. The
history OF such commissions was that they started
of with great promises and professions. They we're
ignorant Of railroad problems. but felt that some
thing must be done. The railroad manager always
subscribed to public opinion and never opposed the
government. When o commission cost four or five
millions to railway company and failed then the
oficer WIS removed and new politician was put in
his place under the same circumstances I've have
no objection to n normal school for commissions.
but we do not want them to practice on
us for their education" Mr.. Sterne had instanced
the English and the Massachusetts, commissions.
They drew thei- salaries like lusty citizens, but
analogy In the case OF the English Commission. as
there the governmen. reached ont all the King
dom. Hero tho authority Of such bodies stopped at
the boundary of the State The speaker recogn lied
the singular ability Of Mr.. Charles Francis Adams.
sion. From the day that 1t had been originated it
had been In continual of experiment. At last
tss and the cnsirmsn Of the Board re
signed. He had been chosen by the railroads to
act arbiter in the settlement OF their national diff
ferences. The commission found themselves power
less to deal with discrimination. their author
ity stopped with tho limits OF the State. II the rail-
roads wanted conceal their affairs the best thing
they could do would be to adopt the system Of rail-
road commissions, no Legislature would have life
enough in It for - any % committee to learn anything
The morning papers, expressing public opinion
from the standpoint of modified hostility or modi
their suggestions kick and their suggestions
hint to you. say Mr.. Depew talks like trained
Of this great question and admit the evils and sua
gest q remedy. It would be wiser for him and wiser
Tor the people he represents IL he would. claim
for the railways in this discussion immunity
from the ordinary frailties of human nature. have
simply said that when It charged that
acting to commit the gravest injustice. though
the acts might be proved the injustice could
not be proved. 1 have simply said that the
railway manager does what ne &c can 70 meet evils % as
When you say to us. Prepare legislation by which
the statute book shall run the railroad. we say
ly
encc in the practical management Of railways. but
ecannot frame that law. II the newspaper critic.
the justice of whose criticism in many respects I
admit. will provide the remedy and say what can
be done and where 1t be done, and that 1t will
not infct thousand ills for one benefit. let him
state 1t and tho railroad will adopt without the
necessity Of Legislative interference No talent is SO
easily cultivated as the talent to pull down.
"The New York Central, with electric telegraph
and ocean cable making the marts of the world one.
has done its best. Il is for the committee to say
whether it could do better The road had main
al for he n a IN nj
The business done. 1t fighting for the rights Of
the city and the State. return thanks to the COM
tiai justice with which the investigation has
been conducted. 1 think that 1t has been
be an error. wnatever the result the railroad does
not deny :he Of the State to act 1t only qucs
tions its right on principles of equity and Justice
Whatever the Legislature imposes we will do, but
We think control our road better than any
body else We deny the justice Of the state to in
terere unless the State show that such Interior
ence will benefit somebody and not harm everybody.
Whatever the State demands the railroad must do"
"ABovz THE CONTROL OF LEGrsLArIoN."
Ex-Judge Shipman then began the defence on the
part of the Erie The following is very brief sum-
mary Of his remarks:-
which shall submit will be to comment as briefly
a. possible ON the pertinent questions which the
committee will undertake seriously to consider. We
have been told that the Legislature. In which this
committee originated represented n feeling Of dis
sssisiseuSn Is,u throughout the State at the way
IN which the railroads managed their busi-
ness. But popular discomfort IL not
safe guide in matters of legislation. Isolated
instances OF hardship are equally fertile o
foundation OF legislation. Tho lawmaking power
can only deal with tho business of q community
under general heads. All the laws which regulate
the movement OF business are as much above the
control OF legislation the laws which reg uato tho
movement OF the solar system. The question is
whether tho evils complained OF by those who as
for this investigation curabc by any legislation
II 10 necessary inquire what these evils arc ana
what the leading charges. These were made by
the Chamber of Commerce and the New York Board
OF Trade and Transportation. They termed
by the chairman of the committee OF the
Chamber OF Commerce an Indictment The no.
ton that the railways are parallel to the Kings
highway that they are mere public highways
on W hich every can travel ut his own pleasu
and in his own way-is embodied at some length in
the Indictment Mr.. Charles Francis Adams says
that the railroads no more resemble the Kings
highway than the corporations who own them
semblo q common carrier. The American legsla-
ton has been inspired by the theory that the rail-
road corporation 10 nothing but an overgrown COM
mon carrier, who has, In some way. got tho monop-
oily OF a highway. The Chamber Of Commerce
stated that the this State have been capital
izcd on basis of q every Al paid down.