Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1880-02-09
INTERSTATE COMMERCE.
A STRONG ARGUMENT AGAINST THE
REAGAN BILL.
An Experiment. That Has Been Tried and
Failed-Its Injurious Eject Upon
the Railroads Some
New Ideas.

new IDEAS.
The following interesting extracts are
taken from an argument delivered by Hon.
James I. Wilson, on the Reagan Inter
state Commerce bill, before the Committee
on Commerce of the House OF Representa-.
tives, January 90, 1880:
Mr.. Chairman l will now proceed to
submit few observations relative to the
fourth section of the bill. This section
has knife in it. It's blade is sharp and
long. 1t cuts clear through the railroad,
especially those remote from the great mar
ket centers 1t is hurtful both to the rail-
road companies and their patrons. 1t is
impracticable, unphilosophical, opposed to
the best interests Of the country and strikes
the West fearfully discriminating blow.
1t is obstructive to sound principles OF
railroad management Still, as an abstract
proposition, it has a certain attractiveness
about it well calculated to mislead many
minds. 1t was once popular in the State
in which l reside. The people of Iowa
were charmed with the principle embodied
in this section. They put it into law.
tice. 1t produced evil, and only evil, to
the greater portion of the State. 1t needed
| but to be tried to cause general demand
for its repeal. 1t was repealed, and the
Commissioner system enacted in its stead.
Here we have fact. One fact is of greater
practical value than
A THOUSAND OPPOSING THEORIES.
The lesson taught by this fact is that
you cannot bring good result out of a bad
principle by legislative enactment. Princi-
pies have way of asserting themselves
through inevitable results in spite of the
statutes of Congress. No matter what the
legislative intention may be, bad princi-
pie will produce a bad law, and nothing
can prevent it, Another has we'll said that
the unit of profit in railroad management
is car-wheel in motion, and that the unit
of loss is a car-wheel at rest. Each repre-
sents a proportionate amount of fixed CAPT.
tai. The fixed capital is the total cost of
the road The wheel in motion is worker,
earning money to pay interest and meet ex-
penses. The wheel at rest earns nothing,
and, consequently, increases the burden
that the worker carries. Here we have
the entire philosophy of successful railroad
management, both as regards the corpora
tons themselves and the people and Sec
tions of country which they serve. The
wheel which carries freight l, 200 miles has
more steady employment than the one that
traverses ten miles. Therefore it can afford
to work for a lower rate of wages. This
means a low rate for a long haul and
higher rate for short haul. This is the
whole story. 1t discloses the principle
that develops regions remote from market,
and converts waste places into gardens.
THE PRINCIPLE OF THE Low RATE FOR THE
LONG HAUL
Is the true one. It the only one through
which the advantages of railroad trans
portation can be equltably distributed.
The equitable distribution has made the
West what it is, in spite of frequent viola
ton of the principle involved. 1t has en-
couraged emigration, opened farms, built
towns, created cities, developed States,
euualiZed the values of property, made
manufactures and brought prosperity to
the people 1t is this that makes the East
ern Iowa farm substantially equal to that
of the Central and Western Illinois farm,
and enables the Western Iowa farmer to
count the returns from his crops almost
equal to those of the one in the eastern
section of the State, and still gives him but
little advantage over the cultivators of Ne
braska fields. 1t tends to equalze the
values of real estate throughout the State,
enhances the prices OF all products sent
East to market, and reduces the
cost of all articles carried West for
use ana consumption. 1t assures good
prices for all Western products, and
consequently enhances the prices of the
farms from which they are derived. What
ever advantage the West gets from railroad
transportation comes through the low rate
for the long haul. 1t was stated before
the committee the other day that flour is
carried from St. Paul, Mimi, to New York
for 81 Is per barrel, and that in the re-
cent past it cost 81 20 per barrel to trans
port it from Buffalo to the same destina-
ton This is the low rate for the long
haul What has it done for Minnesota
| Or rather what has it not done? See how
] that State has grown into one of the great
est wheat-producing sections of the Union
! Her merchant mills are equal to any in the
worlo, and are the pride of her people.
The flour which they manufacture places
| the best of bread upon the tables of Eu-
rope and South America. The State has
/ been covered with farms, beautified with
towns and cities, and filled with popula-
ton. As it is in that State, so it is in all
! the West. Let me here state
ANOTHER IMPORTANT APPLICATION
/ BY the railroad companies of the principle
of the low rate for long haul, which
must disappear under the operation of the
fourth section should it become law.
Large bodies of the lands in the Western
| States are possessed by railroad companies
through grants made by Congress to aid in
| the construction of their lines. The inter-
| ests of the companies are promoted by
rapid Disposal of the lands to actual set
tiers. This develops the country and
makes business for the roads. In their eff
forts to dispose of these lands, and to
place settlers upon them, the companies
| have done more than the States and Ma
| ton combined to reach the desired result.
Their system of advertising is vast and
complete Their agents are to be found in
every section of this country, and traverse
every country in Europe. In every legiti-
mate way they seek to place settlers oil
the lands and thus promote the develop.
ment of the Western States, and promote
their interests. One of the means to
which they have resort in this re-
gard is to grant almost nominal
rates to purchasers of these lands
for the transportation of themselves, their
families, their goods, and even their houses
from Chicago and other points to their sew
eral places of destination. Under this
system of encouragement an emigrant is
saved large part OF the usual expense at
tending removal to new home. An emf
grant destined for Nebraska, under this
arrangement can carry with him from Chi
cago, not only his family and his goods,
but also the materials for his house, or If
he so desires, house ready to be set up on
his newly. purchased land. This must
cease under the operation of this bill for
it not only grants the low rate for the long
haul in violation of Section 4, but it also
.contravenes the Notwithstanding clause
of the first section OF the bill nor can a
remedy be made in the way of draw
back, for that is also prohibited by the
bill. Mr.. Chairman, before legislation OF
this character is enacted wait until the
census of 1880 tells its wondrous story.
THE ANNALS OF MANKIND
VIII furnish no parallel Population,
wealth and power will walk hand in hand
in a procession that will astonish the