The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1881-03-03
R, R. LEGISLATION.
vRIanrT woods ON A sUBJRCT OI
VITAL INTEREST
To EysTy Commonwealth In the Union-
Another Notable Document on the
Much MoOted Matter-Right and
E1pedIeuey Of AbFidgInE
RallroRd Privileges.

addressed q letter TO William II, Wander
bilt, Hugh ]. Jewett, Jay Gould, John w.
Garrett and George B. Roberts to the
effect that they are looked upon by the
public as practically controlling the rail-
road policy Of the United States, and are,
Of course, we'll aware that there ia, in the
West particularly, an increasing feeling
on the part Of agricultural communities,
and to some extent the mercantile and
manufacturing Iinterests, against railroad
corporations and mauagew, aud that this
hostility 10 being exhibited very strongly
at the present time In many OF the State
Legislatures. The letter continues: The
advocates OF legislation against railroads
claim:
First-That you are opposed to all legis!
tation on railroad matters, and deny the
authority or right OF State or National
Governments 10 regulate railroad manage
ment.
second-That there Is great danger 10
the political liberties Of thI people In the
growing power Of the railroNd interest.
Third-That the consolidation OF rail.
road lines that has been so rapidly going
on, and seems likely 10 continue, threatens
on increase In transportation rates by re.
moving competition.
Fourlh-ThAt the pooling arrangements
among the railroad companies are against
the public interest, as also destructive Of
competition, and are attended by unreason.
able rates for transportation.
EIIkk THAT fha .OdllnH fpainri1n nj
railroad stock or increase Of the capital
stock, consequent on the increase in its
actual value is In no case justiaabley
while 1t 10 proper In other enterprises)
but is In effect robbery OF the public.
slxth-That passenger and freight rates
by rail are unreasonably high, and that
q reduced maximum OF rates ought to be
fixed by law.
seventh-In short, that the people are
suffering, and In danger Of suffering still
more from railroad exaCtions dlsCrimina.
tions and combinations, and that the rail.
roads must be treated as public enemies
and punished and repressed by the most
stringent legislation.
Mr.. Jeweit, President Of the Erie Rail.
road, has written long and exhaustive
answer 10 this letter. He begins by say
ing that The public attach too much i'm.
portAnce 10 the position, influence and
power OF the gentlemen named In your
letter. Instead oi practically controlling
the railroad interests Of the United States.
They are Obliged, In order to manage sue.
cesBiully the properties under their imme.
dlste.charge, Ito consult with and accom-:
modate their own views to the views and
Bsntipents Of those representing much
larger aggregate Of interests, and to subOr-
dinate their judgments TO the judgment
and interests OF the public.
In replying to the first statement Mr..
Jeyett says: 81 am not opposed 10 all leg.
Iialation on railroad matters, but | deny
the authority Of the National Government
to legislate on the subject matter Of rail.
road management, or IN any way to regu.
late such management, or that .ot any
Eother State corporation or institution. To
O certain extent do not doubt the right OF
q State to regulate railroGd management.
"A State, however, has no right ID impair
the value of the franchise ol railroads, or
OF their property, unless there 10 such o
public necessity 90 would Justify a com.
pensation therefor" Passing on 10 the
third statement, the writer does not appre.
bend any great danger 10 the political lib.
critics oil the people Ia tho growing railroad
interest.
Third-There ought TO be no Consolida.
tion OF parallel or competing lines OF rail.
road, Such consolidation ought by law
10 be prohibited. The effect Of such con-
solidation Is no doubt TO suppress the
healthy and proper competition, and
might tend TO increase transportation
rates, but the consolidation Of continuous
. lines could not well have that effect.
Railroads TO be successful must earn
enough to pay their expenses, 10 keep
their property 10 perfect working order
and 10 discharge all their obligations,
whethet to the holders Of their securities
| or 10 their stockholders. AS these ex.
penses can be reduced, the company iS
enabled to decrease rather than increase
its charges ior transportation. Asa long
. line Of road can be operated at compare.
, lively less rate OF expense than short
line, the consolidation Of the continuous
line does not seem therefore TO be OBJ.
. eCtionable.
0 Frurth.-Ws have 30 little experience In
J, this country with the pooling arrange.
ment, that II Is very difficult 10 tell
: whist the effect would be. 10 far as expert.
ence and observance extend however,
r they have not been destructive Of Comps.
q tltion nor have they been attended by un.
, reasonable or even by an advance OF rates
for transportation. | don't favor what iB
called watering" stock or any increase
} Of capital stock beyond the reasonable
Q cost Of the railroad property 1t is intended
, 10 represent. l think, however, that there
, 10 considerable confusion In the pub,
lie mind relative 10 the term watering
/ stock The capital stock Of railroad
. ought not 10 be Increased either for specu-
lAtive purposes or TO REPRESENT ltg sup
' posed future earning capacity, or because
9 Of Ito present earnings being In excess oil
. the amount required for its maintenance,
a discharge Of alf ils fixed liabilities aud q
dividend on lis stock, hut u large
majority OF The cases In which the capital
sock Of railroads has been increased can
+ see no objection.
/. gixth--f cannot understand how any
fair minded man can regard the existing
! passenger and freight rates As utireason.
9 ably high Ii proportion " the capital In
. vested, 10 service performed aud 10 risks
incurred, There ID no mode VI ttanepof'
tation In this country or any other within
my knowledge In which rates for carrying
pGesenEerB Or freight are 30 low As thost
Q Of the railroads Of this country.
a SevenLh-That pBople are suffering O.
|, In danger Of iSuttefiug still more from rail
= road exAolions or dlsOtlminAtlons s,.
u think, an entite Misrepresentation Of thI
/, case a. II 10, or can hereafter be. .
WOp9an's National HOapltNL
J! HARrroRD. CT., Matph 2.--The corpo
Ii - a. ~ ----.-t- Aa.Li-..I Nd...iL.