Savannah morning news. [volume] (Savannah) 1868-1887, 1885-01-09
Railroad Supervision.

1t seems that in New York the law reg
Iating railroad supervision is not wholly
satisfactory. Gov. Hill, in his inaugural
message. directed the attention of the
Legislature to it. and recommended such
changes as would give the Railroad CON-
missioners power to prevent too low
rates. They already have the power to
prevent too high rates. AS all legisla-
ton heretofore looking to the regulation
of transportation and passenger rates
not only in New York but in other States,
has been to prevent excessive and dis
terminating rates it seems rather curious
to find the Governor of the greatest State
Of the Union recommending legislation to
prevent the railroads from doing them
selves an injury.
Whether the Governor was urged to
make the recommendation, or whether
the adyisability of making il was sug-
gested by his observation and his knowl-
edge Of the results OF ruinOus cOmpeti-
ton, it is certain that it is not wholly
without reason.
When railroads engage in competition
that causes their receipts to fail below
their expenses they expect to MAKE good
their losses in some way when the COM
petition ceases. If, however, there is a
law which prevents them from charging
rates that yield more than a fair profit, it
is evident that they cannot recover what
they have lost, and what the public has
gained.
The Governor says that railroad super
vision constantly presents new and per-
picking problems. All who have had
anything to do with railroads, either as
managers, railroad commissioners or leg
islatOrs, will admit the truth of the Gov
ernOr's statement. Most people think, of
course, that railroad supervision ought
not to present any difficult problems.
They would think differently, perhaps, if
they had occasion to study the matter.
Railroad supervision had its origin in
the complaints of the public relative to
exorbitant charges and unjust discrimina-
tons. The complaints were not always
well founded. Inquiry whether the roads
which gave cause for complaint were not
often forced by the condition of their own
affairs to appear to act unjustly in their
| dealings with the public, was seldom or
never made. The side of the public was
the popular side. and railroad supervision
was inaugurated to satisfy the public.
The New York Governor thinks that
there is a railroad side TO the matter. 1t
is a fact that can't be set aside nor over
looked that very few railroads Of the
country are now doing anything more
than paying expenses and fixed charges.
IL IN 10 At
or two have not only not received any in
come from their investments in many in
stances, but have seen their holdings
shrink to more than halt their original
market value. Many millions of railroad
stocks are held in trust and there is
sort of unwritten law that there
shall be no legislation that will
damage trust property. The innocent
holders of millions of railroad property
are entitled to some consideration
as well as the public which complains of
exorbitant rates and determinations.
There is another matter connected with
this subject that does not appear to have
received all the consideration to which it
is entitled. 1t is that if railroads fail to
make a reasonable profit they cannot and
will not keep their lines in such repair as
will insure safety, rapid transit and CON-
fort. The character Of the employees will
deteriorate and delays and accidents will
become frequent. All of these things,
being steps backward, will operate
against the communities tributary to the
deteri0rating roads.
of course, it will be admitted that no
State supervision, through a commission,
can be as intelligent and as satisfactory
as that of the management which the
the road provides, because it is utterly
impossible for the commissioners to ac-
quaint themselves fully, or even mOder-
ateIy well, with the circumstances and
conditions surrounding each road. SUI
pervision, however, Is a fact, and if the
State undertakes to protect the public
against the roads, there is reason in the
New York Governors position that the
State ought to protect the roads against
themselves. If the roads are not allowed
to raise their rates beyond certain point,
they ought not to be allowed to lower
them beyond a certain point.