Savannah morning news. [volume] (Savannah) 1868-1887, 1881-01-28
Is REPLY 10 sumE Btlcg
President leland stanford Oh the
Relations OF Railroads aud the
Government.

Leland Stanford, President Of The Cen
trail Pacific Railroad, publishes in the
San Francisco papers a three column
letter to the Special Committee on Fares
and Freights of the New York Board of
Trade, answering questions propounded
by them and criticizing Judge Blacks
recent opinion. President Stanford
begins: The general scope Of the CUES
ton goes TO the greater or less control of
property which stockholders believe to
be Of right their own. Here call at
tentiOn to the principles upon which
our government is founded, and
laid down in the Declaration OF
Independence. Tariffs and the
supervision of commerce and
trade originated in a barbsrous age, and
were the direct offspring Of robbery and
rapine, enforced by the hand Of might.
If the question of the control of railroads
were to be threatened purely from legal
standpoint, | should have nothing to say,
because it is stare duets The essence Of
ownership is in control. The value of
property consists in its use or the rents
and profits to be derived" President
Stanford then discusses the Granger
cases and adds: But proceed to treat
the subject in its political economic
aspects In your first interrogatory you
seem to beg the whole question and as
sumo that railroads are public highways
and common carriers, and derive their
franchise and existence from the public,
| do not think the assumption is proper.
Corporations are formed, | believe,
throughout all the States of our Union
under general incorporation laws, and
they are formed by the individual incor-
porators The property of the corporation
is contributed by the stockholders, and
the State no more ere ties the corporation
or its property than it creates
joint partnership between individu-
ais or the partnership property. The
corporation obtains nothing which can
not be had by any set of individuals who
choose to associate themselves together
as a corporation for the same purpose.
Your second question is: Railroad man
ayers justify the practice of giving low
rates to some shippers and refusing them
to others on the ground of development
of business IN certain localities; is it con
sistent with the public welfare and the
rights of citizens to allow railroad man
ayers to decide what persons and places
shall be thus developed? To deny the
companies the privilege of working for
small profit would be like saying to an
al - i IL
small earnings when larger cannot
be had 1t is the policy of the Central
Pacific. and l believe. of railroad com
panies of the United States generally, TO
accept small profit where larger can
not be obtained, as it is also its policy to
encourage the development of the re-
soarces of the country. In doing so it
practices no unjust discrimination
Under this rule the country OBJ
tains a Development homes for
the people are possible at re-
mote distances from markets, and every
industry finds encouragement. Under
the substantially unlimited control of
their own affairs which railroad COnp3.
MES have enjoyed, rates OF ,ransporta
ton have ST adily been reduced, until, at
present. their general rates are far below
what even your question indicates. Mr.
conclusion is inevitable that railroad
property should be left to the manage
ment of its owners. The business is
legitimate. Any interference by those
who do not own it is a burden upon the
property, and one which must eventual
" be borne by the people. If the people
want to exercise a control over the road
they must do as they have said to the
corporation it must do when the State
exercises the right of eminent domain
that is, to pay to the individual owners
the full value of whatever is taken for
public use, and TO this it must come at
last if the control is to be taken from the
stockholders without cOnflScation.
I'm conclusion, gentlemen, allow me
to say that maximum rates determine
the possibility Of minimum rates; that
maximum rates have enabled railroads
to develop to the extent that they have
the vast resources of the country; that
the railroads in opening up new c0un-
tries. adding new industries, comforting
additional facilities for the interchange of
commodities and bringing the buyer and
seller close together, have furnished and
do furnish labor for the common vel
fare far beyond other agencies. The re-
duction of rates under the plea of regu
lation is a great blow to the lsboring
man who produces and the laboring
man who consumes. In my opinion any
reduction scarcely goes to the benefit of
the many, but to that of the compare
lively few and comparatively wealthy
who occupy the positions Of middlemen
between the producer and the consumer.
This question of transportation is of an
importance that prevents its being set
tied excepting upon just and correct
principles.