Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1881-01-22
Control of the Property of 0thers-P0ol-
inS-The Interests OF the Patron and
Carrier Common.

ShFEaSE SDHiuHUu.
AS to the idea suggested by question five, that
Court, whether under the name OF Railroad Commits
sioners otherwise, be established to determine,
upon full inquiry, the questions OF justice between
the carrier and its patron, that is matter but
so far as the establishment OF Board of Commits
sioners to exercise control over the property OF
others is concerned, that is another matter and
which, after what have said of the principles of
government, cannot be expected to approve.
As to question six, am not informed that com
petition is mainly supplanted by pooling arrange
ments. believe that this pooling reaches only to
the through business of few roads But if the
Government is to equitably regulate railroads, the
earnings Of all will have TO be pooled or the roads
consolidated.
Question seven have answered already, wherein
stated the principles which may influence
charges for railroad services. am not aware that
railroad companies have announced the theory Of
charging " al the traffic viii bear" 1t certainly is
not one upon which the Central Pacific Railroad
acts, although if such were the theory it would be
only that which you, gentlemen as individuals, pos
sibly apply to the management of your own bust
ness railroad company, however, cannot con-
sistently adopt such theory. Its interests
SO intimately connected with the general prosperity
OF its patrons that it is compelled to study the inter
ests Of the latter aud there people earn
est in their efforts to fix rate so low to
age the general industries of the country railroad
managers themselves. 1t is in pursuance OF this
wisely y-drected policy and not in the exercise of
the theory which you indicate, that in the most
mote corners OF the civilized world exchanges are
possible for almost every commodity
Question eight is local in its application, and
therefore pass it by
The Question Of the Limitation OF Rail-
road Earnings by Law.
Your ninth question is "The railroad laws of
some Of the States limit railroad earnings ten per
cent upon the actual cost of the construction. Do
you think this just provision and if so should not
means be taken to prevent evasions OF this
law by erecting fictitious basis of cost, through
construction companies and other forms Of stock
wateringY' This question involves principle, and
might answer it by asking question in return.
Do you think it right to discourage the exercise of
wise sagacty thrift industry and economic enter.
prise BY DENYING to them their just reward? And
if you are to limit the possible profits in the prose-
cution Of business, you not attacking all the
economies of life that ought to be encouraged, CT at
least permitted full exercise? Perhaps, as an en-
couragement to doubtful enterprises it might be
WELL if you apply limit of certain percentage to
be earned, that you should guarantee the amount
which you seem to think proper to be obtained by
the investor.
The Evidence of Title and Its Relation TO
the Public, and TO Earning Capacity.
Questions ten and eleven embrace subjects that,
am aware have engaged some general attention,
and for which reason only suppose they are asked
by such intelligent gentlemen as yourselves / do
not suppose that you for moment think that the
certificates OF stock issued by the company, which
are but the mere titlepapers representing an und-
vided ownership in property, have anything to do
with the rates actually charged obtanable for the
service performed. As to issuing an increased mum.
Der Of shares OF stock in corporation, that is a
matter, suppose, that affects only the individual
owners. The value of the property or its earning
capacity is not affected How the public, or any
doing business with the corporation, can be in