St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1885-02-04
SOLONS OF THE STATE.
Continued from Fir.t Page.)

SO,UOU.
Section 10 provides that the commissioners
shall use their judgment in prosecuting suits
against any railroad corporation that
violates the provision of this act,
the said suits to be instituted in any county
In which the railroad runs; the fines TO be
paid into the treasury Of that county.
Section 20 contains the additional provi-
sion that these suits shall have precedence
in the courts over all other except criminal
business.
Section % provides that the remedies
given by the act shall be regarded as cumu-
lative to the remedies now given by law
against railroad corporations. II also provides
that the act shall not be construed rs repeal
ing any previous statute giving such rene
dies, nor as limiting the right to prosecute
suits for private damages, as now allowed by
law.
The bill read,
JUDGE CHANDLER
was the first to address the meeting. He
did not know as 1t would do any good
to argue the bill, the committee having al
ready, announced 1t was ilnality as far as
it was concerned. He then introduced
JOHN W. CARY,
general solicitor OF the Milwaukee e.
st. Paul road. Mr.. Cary said
it was important that there should be har-
mony between railroad mpanies and the
people. Without such harmony 1t would be
impossible for railroads to do
profitable business or to render
good service to the people. Rail-
road property was as much part of State
as it's realty. All knew the business was
hazardous, especially in a new country. 1t
was therefore proper they should
receive larger interest upon
their investments than business not subject
to such fluctuations. The past two years
have been particularly trying to railroads.
In that time the st. Paul company has
earned but little more than z
per cent, after paying interest on
its bonded debt. Enemies of the
road say it has not earned that. The
cond ition of the Northwestern is little differ
ent. The Omaha road has not earned div
idend. In making this statement Mr.. Cary
said he might be met with the assertion
the
STOCK WAS wATERED.
To that he asserted the road could not be
reproduced for its stock and bonds. The st.
Paul was capitalized at the rate of s21, 900 per
mile, which was a reasonable figure. On
this, as said, the earnings We're but
seven per cent, an amount he thought
reasonable and did not call upon the legisla-
ture to cut down. Continuing, he main
tanned that the business of road was its best
regulator. Twenty years ago the freight rates
of his road were AZ per cent. per ton
per mile. Now they were LIS per cent. per
ton per mile. And yet the road was making
more money than it did on the rates OF 1863
In that time there had been expended for
railroad development S160, 100000.
THE QUESTION WAS
are you to take from the companies the man
agement of their property2 Have they
done anything to warrant thisa He
would admit the people had
a right to demand that this property
should be managed honestly and with justice
to the people. But had they done anything
he asked to justify you in wrestling this prop
erty from its owners and place it in the hands
of these men selected for political effect.
The bill itself does not fix rates, but it
gives that power to the commission, and if
carried into operation would, he believed,
lower the prices of the stock on all the roads
He claimed also that the exercise of such
right, delegated by the Legislature to three
men, was
NOT CONSTITUTIONAL.
The legislature has d right to say what
law shall be, but it has not the right to dele
gate that power to commission. The
principle was carried tn the supreme court Of
New York twenty-five years ago and declared
uncons institutional. The legislature has the
right to fix rates, and if you do it the roads
will have to submit, but you cannot delegate
Put fh,.n mr. IN fy ratac IL hon
exercised by the state is destruc-
tive of the rights of roads.
Commissions exist in twenty-four
states. Four of the states absolutely fx rates
and four delegate that power to commissions.
The state of Illinois is the only state that en-
forces such law. The law was passed in
1868. There are fifty railroads in
the state, only ten of which
pay any dividends, and only four of
them are domestic institutions. Under the
effect of the law Judge Drummond has been
the railroad autocrat of the country. he hay
ing more roads under him, in the hands of
the receiver, than any man IN the country.
Mr.. Cary, continuing, said he had found
plenty of men who thought they knew all
about railroading, but his experience was
mortal man had not been born that
COULD MAKE RATE
for this western country that could stand six
months. 1t is an utter i'm possibility to make
fixed rates that would do justice either to the
roads or people. Railroad business was like
any other, il had to accom- modate itself to
the circumstances.
Referring to section 16 which prohibits a
greater charge for long than short haul.
He did not believe the people wanted such
provision. Rates to terminal points had
to be governed by the circumstances. Judge
Chandler reported since In St. Paul there had
been sent over the st. Paul road over 600, 900
barrels of SALT for which they charged some
times forty cents, thirty and ten cents. In
fact the road took just what they could get,
because they brought it in cars coming into
the state for wheat when otherwise they would
have had to return empty, making the
5000 the company got clear gain.
Under the bill a railroad company would be
absolutely prohibited from making any.
Referring to the provisions against discrim
ination, he said his road since constructed
had aided In building at least one thousand
school houses by
GIVING Low RATES
for material. Again, a new industry was
being built, which In operation would give
the company large amount of business, TO
aid which low rates were given when the
business was in its infancy. So with manu-
features. Under the law the hands of roads
would be absolutely tied in all such
cases. The companies did not want the
privilege of making extraordinary charges,
but he claimed that special low rates in such
cases as he indicated injured no one, but on
the contrary served to Guild up business and
the prosperity of the people.
Representative Myers, Of Stearns county,
then took the floor with a remark that it was
evident the railroad gentlemen were not