Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1881-01-22
RAILROAD REGULATION
IooNrlNuEp PROM r1Rsr rAGE.l

45G VI " Alh 4OltI
lcoNTINgED FROM FIRST PAGE.
cause OF the disregard of the principles upon
which our Government is founded, and the dsre-
gard OF the rights of individuals and of property
and the assumption of principle in the admins
tration of governmental affairs that had its origin
in robbery and the idea of the divine right OF kings
Railroad Property should be left to the
Management of Hts owners.
From the foregoing, my conclusion is inevitable
that railroad property should be left to the man
agement of its owners. The business is legitimate.
ANY interference by those who do not own it is
burden upon the property and one which must
eventually be borne by the people. If the people
want to exercise control over the road they must
do as they have said to the corporation it must do
when the State exercises the right of eminent do
main that is to pay to the individual owners the
full value Of whatever is taken for public use. And
to this it must come at last if the control is to be
taken from the stockholders without confscation.
There is only one honest way to acquire control of
property.
The Constitutional Power 20 Regulate.
Perhaps since the wide circulation given to Judge
Blacks communication in answer to your questions,
NAV be pardoned il l refer to some of his state
ments He finds authority to regulate charges upon
railroads in that clause of the Constitution of the
United States giving to Congress the authority to
regulate commerce among the several States. Under
this reading the power of regulation is power to
regulate the carrier, whether that carrier be
lott IF raiI
roads upon this ground is entirely foreign to that
which has heretofore engaged our attention, and
the difficulties Of regulation upon this theory are
practically insurmountabe, substantially Tor the
same reasons with the added difficulty that barriers
would be erected to the commerce between individ-
uaJs living in different States that would
not exist between individuals living in the same
State. New York, perhaps, might so regulate the
price between Buffalo and New York City that 1t
would be below that established by Congress for
interstate commerce passing through Pennsylvania
and New jersey for instance, to the injury OF the
Erie road. And yet the road from Buffllo to New
York, following the great natural routes of the Mo-
hawk valley and the Hudson river, would find this
low rate better compensation than the higher rate
established for interstate commerce passing through
new JSioeyJ MAI ieiuu Vi bOiohoAS'
Concerning tina Aid Given by Government
to the Pacific Railroads.
AS you have furnished me with Judge Black 8
opinion and as he has deemed it of consequence to
refer to the Pacific railroads. briefly answer his
illusions to the aid given by the Government. The
Judge has fallen into great error and one which,
| am sure, when he comes to he aware Of
the facts, he will very much regret So far
from the aid of the Government being sufficient to
build the Central Pacific Railroad can say because
know whereof speak, that every dollar derived
FROM the loan OF the Government credit went into
the construction OF the railroad, together with a
much larger amount derived from the other re-
sources of the company, and had the company de-
veloped and created no more business than existed
when the roads were commenced we would never
have heard of such wild statements as
those of Judge Black, because the roads would
long since have passed into the hands OF their
creditors. 1t is susceptible of easy demonstration
that the work of grading the first $50 miles of the
Central Pacific Railroad from Sacramento eastward
vas more than would suffice to grade the road for
single track from the Rocky Mountains to the Hud
son river.
The Pacific Roads and Their Obligations
to the Government.
These Pacific roads have, in their construction and
in their operation, redeemed every promise and
every hope that the public entertained. Never have
they failed in single obligation to the Government
and they have done their business at rates far be.
low those which at their Inauguration were thought
possible. They have largely opened up to settlement
and development the greater portion of the territory
OF the United States. They have created vast prop
erty interests for Others and in doing they have
found their own benefit. They prosperous roads,
and their stockholders in possession Of valu-
able property which has been created by their con-
struction, and which had no prior existence.
In con fusion, gentlemen, allow me to say that
maximum rates determine the possibilities Of mini
mum rates; that maximum rates have enabled
railroads to develop to the extent that they
have resources OF the country that the
railroads, in opening up countries, adding new
industries, comforting additional facilities for the in
terchange OF commodities, and bringing the buyer
and seller close together, have furnished and do
furnish labor for the common welfare far beyond
other agencies. The reduction OF rates under the
plea of regulation is great blow to the laboring
man who produces, and to the laboring man who
CONSUMES III my oplilioi auy rSuuctieH scdIceIy
goes to the benefit of the many, but to that of The
comparatively few and comparatively wealthy, who
occupy the positions of middlemen between tie
producer and the consumer This question of trans
portation is of an Importance that prevents its be-
ing settled excepting upon just and correct prine,
pies. Now that the question is before Congress,
doubt it will be thoroughly discussed, and, in the
end, wisely settled Respectfully, etc.
LELAND STANFORD.