Public ledger. [volume] (Memphis, Tenn.) 1865-1893, 1883-06-07
RAILROAD COMMISSION.
Colonel Savage Reads the Law on
the Railroad Subject.
How He Interprets and Con.
strues the Railroad Law.
Nashville Banner. 6.

Nashville Banner. 6.
The railroad commission were not il
regular session to-day on account 0
the absence Of Captain Turley. Gen
Gordon and Colonel Savage, however
we're in the Office, General GordoI
answering correspondence, while Col
Savage was busily engaged In reading
reports Of other State railroad com
missiouers, and also law authoritiel
bearing upon railroad questions. Ii
answering a question as to what b,
found upon the subject which woulC
be OF interest to the public, be turned
to Judge Bakers decision, Fedora
Reports, volume IL, page 3, and reaC
the following extract which he sale
he deemed pertinent to the question
now pending between the railroads anC
the people. Judge Baxter says in his
decision in the case of Mccoy VS. Q. 1
q st. l.. Railroad Company:
Railroad corporations are quasi
public corporations, dedicated to the
public use. In accepting their char
tiers they necessarily accept them with
all the duties and liabilities imposed
upon them by law. Thus quasi pub.
lie trust is created which clothes the
public with an interest in the use Of
railroads, which can be controlled BY
the public to the extent of the intent
conferred therein.
Colonel Savage said the railroad
commission will never, and has SO In
formed some of the railroad authori-
ties, ask from them any relief for the
public at large which any Individual
might not obtain for bimself by filing
a bill In a court of chancery. In sup
port OF this he read from Judge Bax-
ter In the above cases as follows:
I'm the absence of some statute pro-
viding another and different remedy,
courts of equity have Jurisdiction to
enforce this quasi public trust and
compel the railroad corporations to
discharge the duties imposed upon
them by law, and persons injured by
the action or non action of such cor
pOrations may seek redress by in>
junction, and are not bound to resort
to proceedings in mandamus or to an
action OF law for damages"
This case, said the Colonel, "also
besides that railroads cannot discrims
mate against a person or locality, so
as to iDjure either" He then read
from the same authority, as follows:
1T permitted, they can so regulate
their freight charges as to exact from
each locality dependent upon them the
utmost iarthing, which the circums
stances of eacn particular case and
the absence of wholesome competi.
ton will enable them to impose. Fer
instance, where competition is sharp.
they can carry passengers and freight
over their entire lines for less than
the charge for short, intermediate
distances, simply because in the one
case they are controlled by compete
ton and in the other in the absence
Of such competition they have it in
their power to extort the utmost
iarthing which such intermediate
business is capable Of bearing. Those
who have them in charge can organize
side or collateral business enterprises
and so manipulate their roads as to
seriously cripple their competitors
and add to their own profits"
The Colonel then read from the
same Judge in the case of Hays VS..
the Pennsylvania Company, where in
speaking Of railroads he says:
Every body constituting part of
the public, for whose benefit it was
authorized, is entitled to an equal and
participation in the use of
the facilities it is capable of Offering
Its ownership by the corporation is
in trust, as well for the public as for
the share holders, but its first and
primary obligation is to the public"
Colonel Savage then said, Now,
what has been read, according to my
mind, covers the case, but now nv
idea Of the question is that the high
est duty Of the railroads is to the peo-
pie; the people created it for a public
purpose; the creature cannot rise
higher than its creator; it must serve
the people first and fulfill the purposes
Of its creation. Its second duty is to
the stockholders. Many railroad Off
Gals in the past, both in the coustruc.
ton and management Of railroads,
seem to have forgotten both people
and stockholders, in their efforts to
amass great fortunes for themselves. at
the expense of both stockholders and
people"