Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1881-01-22
DAILY RECORD-UNfeN sgsIEg,
VOLUME All -NDMBER I3g.


jured by the manner in which title to property is
evidenced, whether by one share OF stock or one
thousand, cannot perceive. And it the railroad
companies sholld pay dividends on stock issued 10
represent surplus earnings disilemls, that lso
IS a matter, | conceive, pertaining purely to ;he
stockholders themselves, and does not AFFECT
the aggregate amount to 6e divided sap-
pose that stockholders have good
right 10 enjoy the profits o. thlir butless
and to reinyest IN the same business, as thc laan
who loanl his money at interest has to enjoy that
interest aud TO loan it again as the merchant
other business person who makes profit has H. ht
to enjoy that profit and to extend aud increase
his business. ! might further Illustrate this point
by taking the cases OF two prominent newspapers
OF New York City-the Herald and the Trrbfsfie.
The former is owned almost wholly by one man, aud
the title may be said TO be represented by one
share of stock. The latter is owned by a corpora
ton. Would it make any difference III the earning
capacity valueof these properties whether owner.
ship were evidenced by one share of stock or ten
thousand Could they charge any more, or could
they be compelled to accept any less on account OF
any increase In the amount of stock Is IL any
body's business but their own whether they choose
to have their title represented by few shares or
many?
The Railroads In PoIIfIcs-The Power OF
an Owner over His Property.
As to question twelve, " What do you think of the
practice OF the railroad companies railroad mana
gers contributing large sums to control elections
to influence legislation or for political campaign
funds % l answer that think of that as 10 OF
individuals doing the same thing it is neither
better nor in the case than in the other.
know, however, that if the railroad compan.es 10
these things, it is invariably when they are
compelled to do 50 to resist aggression and often
times threatened coniscation OF their property
under the plea OF regulation.
You have furnished me with an extract from the
report of the United States Senate Committee N
transportation Routes, in which it speaks u, the
railroad companies exercising &c power that Con-
gress would not dare 10 exercise" The railroad
companies, in this case do not exercise greater
power over their property than is exercised by
individual owners OF property What analogy the
exercise OF power by Congress in the legitimate
discharge Of its functions bears TO that exercised
over his property by the individual cannot per
ceive The farmer determines the question whether
he viii plant corn potatoes in particular piece
of ground, or whether he will do neither ard that
is an exercise OF power in relation to that particular
piece of property which Congress would hardly
find within the scope of its power. The railroad
companies and the farmer exercise property rights
nothing more.
repeat, the corporation property is contributed
by individuals. The State contributes nothing. 1t
is this private property whether it be labor put into
the construction of the road, the material compOs
ing it, the rails, the ties the spikes the chairs, the
rolling stock, the sagacty and intelligence and hs
general Sc vices OF individuals in operating and
maintaining it, which it IS proposed to exercise
control
Regulation Communicates AntaE0n-
Ism OF Capital and labor.
Question thirteen reads: " Do you think the
controlled power of large railroad corporations and
their subsequent violations of public rights as de-
veloped in late railroad Investigations is response
BILE in any degree for the growing spirit of commuu-
ism and the antagoDsm Of capital and labor in this
country" Leave the railroad industry uncrippled.
Leave the control of railroad property as you eave
that of other property, and you will never have
casion to ask such question. IL seems TO that
communism does not come from the people who
seek to control only their own property, but rather
from those who wish not only to control and reeu-
late properties in the creation OF which they had
part ownership, but also the labor Of others be-
slowed in their management.
What you propose in regard to railroad property
is, to my mind, on a par with the principles con-
tended for by the communists; and the agiator,
Kearney, advocated no doctrine in regard TO prop
city more atrocious than the prDeiP,rs em5cdisd
in the =" Granger cases" ami the laws which .hey
sustain.
You seem to think it a matter Of right and an
easy thing to regulate the property Of Others and
it is only question in sour minds, as TO railroad
property, whether its regulation shall be arbitrarily
by the legislation OF the States or OF the
United States, and that the questions of difference
between railroad company and its patrons are not
judicial ma ters 10 be determined like differences
between other individuals but are to be settled
bitrarily by some Legislature, Let us see, how
ever how legislation would regulate tn Sc railroads.
and whether it is practical. In any scheme of Con-
gressional legislation the mileage would have be
taken INTO consideration in order to be just, allow
ing to one company the same rates as allowed an
other for the same service. 1t would take into
consideration the difficulties of operation the differ.
ent grades the various climatic influences the differ
ent cost prices OF labor and supplies the question of
the movement OF freight in different directions, the
volume of business local and through, and the dis
tance each moved, and so Under such system it
would be found that the advantages offered
FOR transportation by the different companies
would be unequal. The road h wing the least
number of miles, were mileage 'ate
adopted, would move freight5 between two given
points at less rate than the other roads and upon
this basis it would command the entire business.
Regulation illustrated.
If in distance the various roads were equal the one
having the easiest grades would have the adyan-
tage: and so on through all the various crcum-
stances that probably would be taken into consider
alton by legislative body in making up rates, 1t
would be found that things that are unequal in
themselves cannot be made equa BY any mere
declaration OF equality. The topography and the
geography of the country are controlling factors in
the regulation of rates, and they will remain I'M
changed. Business would seek the route offering
the cheapest and best service between two points.
20 give fair distribution Of business, so that the
different roads might live would require minimum
as vel as maximum price to be established.
ton that would nee ssarily deny the privilege of
competition and disregard all those economic prin
ciples which should govern and regulate business.
To further illustrate some Of the difficulties in the
way of arbitrary legislation, take Chicago as start
ing point and the place Of destination is the place Of
consumption. large portion of the freight that
moves from Chicago. Eastward, is moving to the
European market. There are various water routes
and railroad Of different lengths with unequal
grades with different rates for aborand supplies with
different volumes Of business, and with unequal
minal facilities. They in competition with each
other The shipper has offered to HIM these various
routes to the seaboard: The Lakes and the Erie
canal, the Lakes. and the welland canal, and the
St. Lawrence-mostly through foreign territory
the canals and Mississippi river TO the Gulf Of Mex
ico together with the rail routes If it posi-
bic by legislative enactment TO equaze these routes
so that each might have fair percentage Of bust
ness there would still be failure of complete regu.
ation because the shipper himself is not regulated
and he would make his choice, being governed by