The weekly democratic statesman. [volume] (Austin, Tex.) 1871-1883, 1881-08-25
RAILROAD REGULATIONS AS PRAC-
TICED IN GEORGIA

REGULATION AS PRAC-
TICED IN GEORGIA
BTddStreef, which says no foolish
thing when financial and business
matters are under discussion, calls
attention to the healthy condition of
railroads in Georgia, while a most
senseless game of slick jackets" is
going on among trunk lines under
the sole management of railroad
magnates in the mon progressive
parts of the country" Again Brad
street thinks the Georgia plan of
management is in advance even of
the Massachusetts system, being so
"remaIka for the breadth and
minuteness of its regulation, that no
mere interesting or practiced sub
ject may at present be engaged in
The favorable impression of this dis
tinguished commercial organ leads |
us to look into the Georgia question
more closely, especially since the
question of railroad management is |
just now a chronic political topic |
in Texas. 1t was held that the legis- |
lature of Georgia acted unconstitu-
tionally when it created a railway
commission, with power to regulate
railways, but this question has been
tried and settled, and the Georgia
railway commission is living pow
erful reality. The law went into
force nearly two years since. The
three commissioners, after the sys-
tenn of one expiration every two
years is in operation, serve six years
one is to be "of experience in the
law" and one "of experience in rail-
way business )" they are prohibited
from owning any railroad stock or
bonds, or having any interest in
"any" railroad, this prohibition not
being confined to Georgia roads.
Their powers are to ascertain and
make just and reasonable passenger
ana freight rates, and for every form
of railroad service to make rules
for preventing unjust discrimina-
tions, and to make all arrangements
needful for carrying out these pow
! ers and duties. All contracts and
agreements of the roads between
themselves about carrying rates, or
division of earnings, must also be
approved by the commissioners.
They proceed to ascertain, as best
they can, the actual cost of each road
one method being to require sworn
returns about that; then they pro-
pose to allow rates which will yield
what they assume fair returns, and
they claim to be as much impressed
with the duty of avoiding too low as
too high charges. They divide the
road, as to passengers, into three
classes, which may charge respect.
lively 3, and cents per mile; when
the fare does not end in or in O,
the nearest sum so ending is to be
the fare, % cents to stand for 81, and
80 for %. AS to freights, there is a
list of exceptions, thus; the North
western may add 10 per cent. to
the standard; the Central may add
10 to cotton and 20 to fertilizers, but
must 60 by the schedule otherwise.
The schedule, alphabetically arrang-
ed, is classified as usual in freight
schedules, and apparently differs
} from others only in the great minute
ness of specification, almost every
conceivable case being provided for ;
articles in many forms of packing,
} by various quantities, at owners
risk, or carriers risk, ETC., have their
rates attached. Suit was begun by
one of the roads to test the constitu-
, tionality of the law. In making the
complaint the road held that the
: commissioners had fixed its value at
$4,OOO,OOO and its expenses at $3.50,
900, and allowed per cent. earnings
on its capital, while the road con-
tended for $4,7OO,O0O value. 100000,
expenses and 10 per cent. profit. The
case was decided by Judge Woods, of
the United States Supreme Court, for
the commission, its powers being
fully sustained. 1t was held, just as
they stated here last winter, by the
railway managers, that the law
would injure their business and
break down their roads, but even un-
der the strictest enforcement of the
commissions rules the condition of
the roads is growing better, and their
revenues and stocks are all the time
improving. The stock of the Cen
trail and of the Georgia roads, sc and
80 shortly before the law was pass
J ed, are 12O and $50 now. The CON-
: missioners pointedly say that some
body must decide rates, and that
"the ultimate decision must be made
| ny Inc ulSlulChSStCu, dhU AOI W OhS
: interested" Again, they say that q
summary decision is necessary, or all
= business would be interrupted by
, uncertainty about rates, and "the in
f experience of the commission has
been commented upon; how much
: will the experience of jury for halt
: a day mend the matter~ AS to the
: danger of trusting such great pow
4 ers to three men, they reply that the
lives and property of all citizens are
now subject to the three men who
q constitute the states highest court
r and that eve can not have better
Y -four than can be made of wheat
y The condition of the Georgia roads
e with the absence of all disputes be
tween the companies and the people
t and the lack of these nice little cpl
e sodes in railroad war, in which the
i bulls and the bears practice at thu
S games of destruction and gain, arr
c creditable to such law, and bespeal
It for it consideration in Texas an(
IT elsewhere.
To MAKE long opinions simple i
Il l. -. AAok 40 ~