Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1886-12-29
Interstate Commerce.

New York Tribune, December Odd.
Recent proof of the opinion of investors
regarding the interstate commerce bill
ought to have fair consideration in Con-
gress. Law-makiDg bodies cannot afford
to frame statutes upon which the prosperity
of great nation must depend in entire dis
regard of the convictions of those who are
Immediately affected. and whose action
will be governed, not by the theories of
politicians, but by their own convictions.
If investors think this measure fatal to
their interest, they will make haste to sell.
If they believe that the measure is likely
to bankrupt some railroads, though no one
can vet tell which, investors will take the
precaution to tighten their holdings. Sell
ing of securities by alargenumber of invest
ors will have an effect upon prices, upon
the ability of companies to dispose of
bonds. and hence upon railroad building
and other industrial undertakings, upon
the demand for iron and many other prod
ucts, upon the course of gold and of for
eign exchanges, and thus at last upon the
prosperity of the whole country in all its
interests. Congressman may believe that
investors are foolish. That makes no diff
ference. The sales OF exceedingly foolish
men affect the money market and the gen.
eral prosperity as much as the purchases of
The point which influences investors
most is the prohibition OF higher charges
for short than long hauIs Many Congress
men do not seem to understand that there
is a necessary difference in cost between
the two kinds of services. If the railroads
charge according to actual cost in every
case, they must charge higher rates for the
local than for the through traffic. If they
do not they must tax the through traffic
unreasonably, and the producers and cor
sumers who are affected by it, in order to
carry the local freight at less than cost
Canadian roads will not do this. Water
routes will not. Consequently such a
requirement would drive a large part of
the through freight to the Canadian roads
or the water routes, and would be disas-
trous to some American lines. The fact
that to other competing lines it would be
less disastrous is but another objection to
the measure; it discriminates unfairly in
favor of some and against other railroads
a through freight train runs without
stops at local stations. Every such stop
page wears rails, wheels, brakes, and all
rolling stock, wastes fuel and steam, and
loses time. The local freight must 90 by
local trains, which incur all this added
cost. The through train starts with full cars
and ends with full cars. There is neither
delay nor cost for shifting. The local
train, if it starts with all cars full. cannot
take on additional freight that may be
waiting at the first or any other station
If it starts with 200 tons, delivering freight
at different stations, it may take ON an
equal amount, or much less, or none.
Hence it cannot run with full cars; that is
part of the quantity of freight which its
engine can draw has to pay all the cost,
and that cost is far higher than the cost of
running through train over the same dis
lance. Investors know these facts Legis-
lation which disregards them is apt to ap.
pear to investors not only foolish, but wan
tonly unjust, and in effect a confscation of
property.