National Republican. (Washington City (D.C.)) 1872-1888, 1880-01-21
INTERSTATE COMMERCE.
A Strong Argument Against the
Reagan Bill.
An Experiment that has been Tried and
Faiied-Its Injurious Effect Upon tho
Railroads--Tho Wondrous Devel-
opmcnt of tho West Through
Their Agency--Low Rates
for Long Bauls.
Some New ,eas on RnIIroad Carriage.

bill, before the Committee on Commerce OF
the House of Representatives, January 90. 1880:
ME. CHATRMAN: win now proceed to submit
few observations relative TO the fourth section Of
the bill. This section has knife IN II. lts 0de
is sharp and long. II cuts clear through the rail-
road corporations and reaches the people, especially
those remote rom the great market centres IL IS
hurtful both TO tho railroad companies and their
patrons. II is mpractcable unphilosOphtcal, op-
posed TO the best Interests OF the country aud
strikes the West fearnIlly discriminating blow,
| IL Is obstructive TO sound principles Of railroad
management Still, as an abstract proposition II
has certain attractivencss about twell calculated
TO mislead many minds. 1t was once popular in
the State in which reside. The people of Iowa
were charmed with the principle embedded in this
| section They put IL into a law. The railroad com.
panies put 1t into practice. II produced evil aud
only evil, to the greater portion of the state. IL
needed but TO be tried TO cause n general demand
for Its repeal. IL was repealed, aud the commits
sioner system enacted in It's stead. Here we have
fact. one fact is of greater practical vaiuo than
thousand opposing theories. The lesson taught
by this iact is that you can't bring good result
out of bad principle BY legislative enactment.
| Principles have way OF asserting themselves
through inevitable results In spite of the statutes OF
Congress. No matter what the legislative inten;
ton may be, q bad principle will produce u bad
law, and nothing can prevent 1t.
Another has well said that the unit OF profit in
railroad management is n car wheel in motion,
aud that the unit of loss is car-wheel al rest.
Each represents proportlonate amount of fixed
capital. The fixed capital is the total cost OF the
road. The wheel in motion is u worker, earning
| money to pay interest and meet expenses. The
wheel at rest earns nothing, and consequently, in
| crenSCS the burden that the worker carries. Here
we have the cntire philosophy of successful rail
road management both as regards the corporations
themselves and the people and sections Of country
| freight 1000 miles has more steady employment
than the one that raverses ten miles Therefore II
can afford 10 work for lower rate of wages. This
means u low rate for n long haul and higher mtc
| for Il short haul. This is the whole story. II dis
closes the principle that develops regions remote
from market. ana converts waste places Into gar
dgns,
The principle of the low rate for the long haul is
the true one. II is the only one through which the
advantages OF ruilroad transportation can be equit
ably distributed. The equitable distribution has
made the West what 1t is, in spite OF frequent vio
lation of tho principle involved. IL has oncOur
aged emigration, opened farms built towns, created
cities, developed States equalized the values Of
property, made business tor the roads, opened
markets for manufacture and brought prosperity to
the people. 1t Is this that makes the Eastern Iowa
farm substantially equal to that OF the Central and
| Western Illinois farm, aud enables the Western
Iowa farmer TO count the returns from his crops
almost equal to those of the one in the eastern
ton of the Stale, and still gives him but little ad
vantage over the cultvators of Nebraska fields. 1t
tends TO equali2e the values of real estate through
out the state. enhances the price OF all products
sent EaAt to market, and reduces the cost Of all
articles carried West for use and consumption. 1t
assures good prices for all Western produ, Is, and
consequently enhances the prices Of the farms
from which they are derived. Whatever advantage
the West gels from railroad transportation COMES
| through the low rate for the long haul.
1t was stated before this committee the other
day that -four Is carried from st. Paul, Minn to
New York for sl.15 per barrel, and that In the
recent past II cost Sl.20 per barrel TO transport 1t
from Buffalo TO the same destination. This is the
| low rate for the long haul. what has u done for
| Minnesota? Or rather what has 1t not dOne2 See
how that State has grown into one of the greatest
| wheat-p producing sections of the Union. Her mer-
chant mils are equa! TO any IN tho world ana are
| the pride OF her people. The Hour which they
manufacture places the best of bread upon the
| tables of Europe and South America. Ihe state
has been coyele ed with farms beautifed with towns
and cities, amt filed with population. As II 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 lute for long maui, which must disappear
under the operation OF this fourth section should
| II 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 Interests Of The
companies arc promoted by rani disposal OF The
lands TO HCtuGl settlers. This develops The country
and makes business for the roads, In their efforts
to dispose OF these lands, ana to place settlers
upon Them, the companies have done more than
the States aud Nation combined to reach the de-
sired result. Their system of advertising is vast
und complete. Their agents are to be found in
every section OF this country and traverse every
country in Europe. In every legitimate way they
seek ~ place settlers on the lands aud thus pro-
mote the development Of the Western States, and
promote their Interests one OF tho means TO
which they have resort IN this regard is u grant
almost nominal rates 10 purchasers Of these unds
for tho transportation of themselves, their iami-
lies, their goods ana eyeu their houses from
Chicago and other points 10 their several places OF
destination. Under this system Of encouragement
an emiggant is saved large part OF the usual cX-
pense attending removal 10 new home. An emf
grant destined for Nebraska under this arrange.
ment can carry with him from Chicago, not only
his flmiy and his goods but also the materials tor
his house, or ii lac So desires, house ready ~ be
set up on his newly-purchesed land his must
cease under tho operation OF this bill Tor 1t not
only grants the low rate for the long hau! IN viola
ton of section four, but IL also UOntraYGues the
non:d!scrlminallng clause OF the first section of
| the bill; nor can remedy be had in the way OF
draw buck, for that Is also prohibited by the bll.
Mr.. Chairman; Before legislation Of this char.
acer is enacted wait until the census Of 1850 tells
| its WondrOuS story. The annals Ol mankind Will
| furnish no parallel Population, wealth ana
power will wax hand in hand IN procession
that W III asIOnish the world The West wants no
obstacle put III tie way OF that procession ~ OBJ.
sruct It's progress. Aud OF all that may be threat
ened don't put in It's way The one which the fourth
| section ofthis bill presents, II legislation for the
let II not DO of such character NB to deprive rail
road management OF tile power to encourage It's
enlargement facilitate its movements ana promote
its interests In gp attempt to correct ALLEGED
abuses In such management, do not establish one
by Legislative enactment greater than all others.
| Who has been wrunged by Me application OF the
low rate TO the long huul2 Has harm come to the
East by III Why, the millions Of people OF the
Western states who depend the practice Of this
rule to get their vast products to the worlds mar
kGts, are most generous contributors u The pros
perity Of the East They are liberal consumer, OF
everything which the East manufactures The
low rate lOr Il long haul OF the manufactured RIu-
cles Of the East promotes consumption in the West
Inns klle eastern hlilltllea IN mOOn ana
consume the cotton ot the South. Ii Keeps tho
looms in action, and they the wool OF ull scu
lions Of the country. 1t iil!s tue furnaces and
| forges and rullingmiils with orders, 1t deepeus
| ana extends the mines, and creates market for
the product. iEnls manufacturing localities with
dense populations, Hud thus secures to the Eastern
agriCuttiTglist home market and good prices tor
] al Of the products OF his farm. In every way il
] benefits the East Does IL harm the country at
lATge2 Look al the balance Of trade against Europe
IN our favor, What would II have been but ur The
enormous crops OF the West and the low rate Tor
| the long haul which carried them 10 mGrket2
This 1t was that brought the cattle. sheep, hogs
wheat Hour corn, and other products from the re-
mote West aud sent them abroad TO feed the people
| OF the Old World This IL was that largely made
up our balance OF trade, aud brought home your
! bonds and gave us tue coin OF Europe No such
results would have been realized but for the won.
| drous development OF the West and that de-
| yeOpmeut could not have occurred under the
| fourth section VI this bin
These considerations show that we are dealing
! with u subject which G0uuut Ge confined within
| the narrow limits Of the question put during the
discussion which occurred here last Friday Is II
! just TO make ono man pay more thau another for
/ like seryCeE We Rro on o broader field than
| that-one that Is He'd with problems of public
policy bHgtllug with questions for this pl.itCUl
economist and leading ON % the mountain ranges
ON which statesmen tread. The market OF EWups,
which for two years nave Welcomed cur products
| In such vast quantities were thrown Opeu by uls-
fortune IN large degree The seasons were un-
favorable, and the crops failed, should these Gun-
diuOus be changed-as they may be this very