The Iowa plain dealer. [volume] (New Oregon, Howard County, Iowa) 1867-1895, 1881-09-01
RAILROAD MONOPOLY.

An Interesting and Instructive Con.
versatlOn Between 4 "Citisen
anA $ Railroad Oflcial."
Railroad Official" Why should not a
railroad company be letalone to manage
its business in its own way, the same ~
= merchant manages his business DO
not commercial rules apply in both
casesl Is il not question Of supply
and demand, and competition; does not
the merchant sell large quantity
cheaper than he does small quantity,
and everybody get all they cans"
Citizen" There are the following ma
terial differences in the situation The
railroad corporation performs a public
function-that Of furnishing public high
ways; il exists and can only carry on its
business by the permission of the public
because it is for public use and benefit !;
it is allowed to take citizens property
ut an appraised valuation, without his
consent, something that no private per-
son or business can do, and, after the
capital invested in building railroad
receives fair compensation, the rest OF
the advantages Of steam roads belong to
the public, the natural owner Of all high
ways. In one sense, railroad charters are
in the nature Of partnership between
the State aud the corporations. The
corporations build and operate railroads
for the sale Of charging certain tolls. In
the State of New York, and believe in
most other States, it was expressly
stipulated that these shall be sreasona-
BILE, and based upon the cost Of the
service rendered the word reasonable
was defined rs follows: When the rates
charged yielded in excess Of 10 per cent.
net upon the actual cost Of construc-
ton, then rates might be lowered by
law and the public receive their benefit
in the partnership in the shape Of re-
duced rates for transportation. This
agreement has shamefully been evaded
by the railroads, and, through stock
watering and other methods, the public
have been obliged to pay far more than
they ought for steam transportation on
land. Regarding competition, it does
not work to the same extent in railroad
transportation Is it does in other lines
Of business Combinations take place:
railroad is \ natural monopoly rail-
roads cannot be multiplied indefinitely
every citizen cannot put his own car
upon the railroad track, the same as he
can put his ship upon the ocean or his
80 v,10 H. =
Is common carrier, but there the sim
ilar1ty to the ship or steamboat ends.
The public interest is not protected by
competition as it is on the ocean or in
private enterprises. hence the necessity
for restrictions upon railroad com .anies
which are not required in private bust.
ness"
r. o." But prices for railroad trans
portation have declined faster aud are
now proportionately lower than many
other commodities, and rates in this
country are lower than in most other
countries. It does not look as il the
public interest has suffered very much. !"
c." True, in many places rates have
largely declined, but not nearly SO much
a. they should have done. Reduced
rates for transportation have largely re
suited from mechanical improvements
which have been made, and also from
increase of business, the result Of in
creased population. For instance, steel
rails, lasting from three to six times as
long rs iron rails, now cost but little
more than iron; locomotives haul from
30 to 60 per cent. more than they did
ten years ago. Freight cars weighing
ten tons . few years ago only carried ten
tons, or ton Of paying freight for each
ton of dead weight in rolling stock.
Improvements in these cars have been
made until it is not uncommon for them
to now carry ton and q half, and some-
times two tons for each ton of rolling
stock. Clever inventions have made
the supply Of labor required in operat-
ing road to be greatly reduced, and in
many other ways improvements have
been effected which ought to inure to
the benefit of the public. Rates for
railroad transportation in this country
should be much less than in other coun-
tries because Of these improvements,
and the long hauls and cheaper con-
struction here; also the public aid in
land upward Of $4,000. 600 acres), and
subscriptions which have been given. !"
r. O.-"Why SO? / don't see that
the public has any right to these i'm
provements and advantages unless we
choose to give thela the benefit"
C.-"There is where we differ again !:
the theory Of our Patent law is that, after
the inventor has received fair COM
pensation for his trouble, expense and
genius, alt the rest Of the advantages
belong to the public and the theory OF
our Railroad law is that they are only
entitled to toll or charge which will
yield them fair return on the actual
investment, and this toll must be uni
form and impartial to all citizens"
T. O." Well, if that is the ground
you take, you won't find many men go
ing into the railroad business"
c.: Won't We? What is the first
incentive to the building Of a railroad !?
Is il not very largely the desire Of the
people of certain section to have bet
ter outlets to market, and the desire of
owners of real estate to make their prop
erty more valuable by connecting with
the larger lines of communication !?
Through these motives have not State.
county and municipal interests largely
aided in the construction Of these high
ways? Witness the millions Of dollars
which the peorle Of the State of New
York, rs well as other States. have con.
tributed for this purpose. Do you mean
to tell me that the Vanderbilts. Goulds
and other highway grabbers are entitled
to any consideration for the invention
and construction Of these improved high
ways? They have simply gone into the
business because they saw that the benz
efits OF steam 1nd electricity were so
enormous that they could steal most of
the advantages, and that the public
would be satisfied with the rest. They
saw that by consolidating and combin-
ing small and often competing links OF
railroad they could organize machinery
Tor taxing all production and commerce.
such Is the world has never seen, and it
i only after they have exercised this
power to al extent which has given them
fabulous wealth, and endeavored to per-
A