Grant County herald. [volume] (Lancaster, Wis.) 1850-1968, 1880-12-16

cost; the railroad law of most of the
States was based upon the theory
that the capital invested in these
steam roads was entitled to fair re.
turn-and the public was entitled to
all the rest of the advantages. 1t
was something like the principle of
our patent-law, which insures to the
public the benefit of all inventions
after they have yielded certain re.
turns to the inventor. In one sense,
it was a partnership-the State, which
is the natural owner of all highways,
contributing the franchises, while
the associations of individuals in
corporate capacity constructed the
roads. In the State of New York,
it was stipulated that after their
charges for transportation yielded
more than ten per cent, net, upon
the capital actually contributed for
the construction of these roads, then
the Legislature might reduce the
charge for transportation to a point
which would not yield more than
this; or, in other words, that after
capital had been thus compensated,
the public should come in for its
share of the profits of the partner
ship, In the shape of reduced charges
for transportation. Thus it was
made primary principle that charg-
es should be based upon cost Of SER
vice.
How this principle has been evad-
ed by stock watering, by construc
tion-companies and other devices, Is
well known, but until recently it was
not SO we'll known that railroad man.
ayers had formulated new principle
upon which to base charges, viz
",ohat the traffic aoiu bear" and that
in the application of this principle
some of the most important evils in
our transportation system have de-
veloped.
The following, from the Graphic,
illustrates the working of the new
principle on the Pacific coast.
"1nstead of having rates for fre ght, they
want to make special contracts according to
mans profits. For instance, a man in Ari-
IONA has mine and gets out a quantity of
ore, but has no facilities for fuxing and
smelling it, and must send it to San Francis
co. He says to the railroad:
i want to send my ore up to San Fran
CISCO What will you charge me a ton p
"'How much does it assay?'
" That is none of your business
Yes, it is We want to know how much
1t assays in order to know what to charge
you
Thirty dollars a ton.'
Well, we will charge you ten dollars q
ton, and that will leave you twenty dollars
Another man has a mine and he puts the
question:
"'What will you take my ore to San Fran
cisco tor =
How much does it assay?
"'That is none of your business
"He, too, must tell, and he says:
"'Well, it yields three hundred dollars
tom
!" Then we will charge you one hundred
dollars ton to take the ore to San Francis
co. That leaves you twosthirds
"The man has no alternative, and pays the
money to sell his ore, but he becomes a dis
couraged miner. Thus the railroad company
is forcing the question as to what are the re-
strlctions on common carrier, and whether
the mere carrier can be despotic with the
people, arbitrary in its raies, and virtually an
owner in every interest on the line."
Again, on page SO OF the Hepburn
Committees report, we find:
"Now, as to the necessity for some regula.
ton to protect the public, see testimony of
Mr. Rutter, pages 1884, where he testifies
that he serves the stockholders only, and
only regards the public interest to make il
tributary to the interest of the stockholders
Mr.. Villas Testimony, page 4l5 testifies
to the same controlling motives Mr.. Blanch-
ard, after describing railway officer as sub
ject to three practical trbunals,-firs the
president of the road second, the law as laid
down affecting transportation and third, the
unwrtten law OF commerce,--says: 1T has
been our policy in this matter, while keeping
within the statute law as far as | knew it, or
had occasion to know it, that wherever this
public unwritten law came into contact with
vor OF tHe sndietbnd5r I kuew of no claim
that the non .shareholding interests had mon
me as railroad officer so long as was with
in the written law, to concede its views in
the matter of rates, and in the management
Of our traffic. The marked Importance which
is here attached to keeping within the law.
emphasizes the necessity for law for govs
ernmental control"
"What the traffic will bear" is, to
some extent, legitimate considera-
ton in fixing charges, but, left to the
uncontrolled discretion of railroad
managers, the public interest is not
sufficiently considered, and out of the
power to make special rates, which
railroad companies have conferred
upon their freigh. agents, favoritism.
both as between individuals and
communities has resulted. This has
prevailed, ard still exists in a greater
or less degree, throughout the Unit.
ed States. To what extent in the
State OF New York is indicated by
the report # the Hepburn Commit.
tee; the report says (page 49,:
"The charge that the railroads of this State
disseminate against the citizens of this State.
and in favor Of western and foreign produ.
GERS, is fully poyen by the evidence taken.
The charge thai they discriminate against |
certain localitie in the State, as compared |
with Others, is ally proven. The charge that |
they discriminate in ia vor of certain individ. |
uals, as compaed with others in the same |
locality, is fullyproven."
1t is remarkable fact that not
only did the lailroads oppose this in
vestigation, Int the presidents of the
New York Central and Erie roads.
in a joint lettir to the committee pre-
vious to the investigation, generally
and specifically denied the existence
OF the alleged abuses which were af-
terward proven to exist The Hep
burn Committee accompanied their
report WITH a series of seven bills de-
signed to remedy, in the State of
New York. the existing abuses. OIL
these, fourof minor importance were
not opposed by the railroads, and