The true northerner. [volume] (Paw Paw, Mich.) 1855-1920, 1886-04-29
INTERSTATE COMMERCE.
Governmental Regulation Of Railroads
Discussed by Senator Palmer,
Of Michigan.
Speech Delivered in the United States
Senate on Wednesday, April
IA, 1885.


half century under various conditions
and under every civilized form of govern
ment has not been sufficient TO remove the
regulation of railways from the field of ex-
pertinent is shown by the various methods
of to-day on trial in Europe and America.
In Belgium the Government has either built
or purchased the main trunk lines of the
kingdom. Branch lines are allowed to be
built and operated by private capital, the
Government guaranteeing per cent. inter
est upon the investment and retaining the
practical supervision of the management.
The competition of the canals and of the
Government lines, together with the obliga-
tons of the governmental guarantee, would
seem to provide system of checks and
balances most desirable. 1t is reported that
the roads are managed satisfactorily 10 the
people, that the rates are fixed and stable;
but an early absorption by the Government
under provisions in the charters of the pri-
vate lines is predicted, which would indi-
cate dissatisfaction on the part of private
capitalists.
In France the main trunk lines were
originally assigned district or field sup
posed TO be profitable without competition
on condition that they should build branch
lines into the less productive districts. This
proved impracticable, and the Government
was obliged TO lend its aid for the develop
ment of the territory. The charters provide
that mt the expiration of ninety years all
railways should revert TO the state the state
purchasing the rolling stock mt an actual
valuation. Already the Government has adj
vanced COG. 000, 900 francs to the railways,
and its policy looks toward an earlier APP
preparation than that nominated in the
charters.
Already perpetual committee superyises
the management, arranges the tariff of
charges, and settles disputes betwee COM
petng lines and between the public and
the railways. Rates and time cards are re-
quired to be published, and no change
against the interests of forwarders of pas
sengers can be made without thirty DAYS
notice and the consent of the commission.
No private arrangements with individuals
or corporations are permitted.
In North Germany all concessions are
made by the Minister of Commerce, unless
there lis to be largess or guarantee of in
terest, when an act is required. In Prussia,
Mt the commencement of its railway system,
each railway chartered was given n field
without competition, the state reserving the
right of purchase of the road afte the lapse
of thirty years. In 1882 there were $500
iulltS VI Htttc llLtS, ,o-O illltS VI DllNutt
lines under state management, and 2,400
miles of private lines. The control of the
Government may be considered practically
absolute, and is given over to a special
board, mt the head of which is the Minister
of Public Works. Special tariffs are pro-
hibited correspondence i'll time cards in
railways insisted upon, persons and mer-
chandise conveyed in the order in which
the application is made. No variation In
rates or time table can be had without the
consent of the board.
Austria followed the course of France in
allowing concessions for tn, period of
ninety years, and in addition the Govern
ment built several trunk lines, which it re-
tains. 1t also maintains supervision over
passenger and freight traffic. Switzerland
has no state lines, but an effectual system
of supervising the tariff charges and
perpetual commission TO regulate the rela-
tions of the corporations to the stockhold-
ers and the public, and provide for the
constant publicity Of railway transactions.
Italy owns portion of its railways and is
in negotiation for the remainder. The
policy of the Government is ownership bv
the state.
In the history of English legislation on
railroads and its results we find the closest
resemblance to our own. In 1886 England
had, next to Holland, the most complete
canal system and service in the world, and
its restrictive endeayors We're guided not by
proper conception of the problem before
it, but by its experience in dealing with op-
pressive methods in canal management.
The popular belief in the power of compe-
tition to cheaper rates and control COM
merce in the public interest was accepted,
and i'll spite of the warning of the astute
Morrison and the terse automatic statement
of George Stephenson, that where COM
bination is possible competition as impossi-
bic" their early legislation was bent to in
crease competition between capitalists.
The natural consequences of combina-
ton, discrimination, secret-rate making,
preferences, the building up of seaports,
and the oppression of non competing points
followed in spite of the most stringent
legislation, until, in 1872, after over $500
acts had been passed and the expenditure
of about ESQ, Zoo imposed upon the
companies, n Joint select committee recon-
mended and Parliament provided for rail-
way commission, which has since become
permanent and been increased in executive
and judicial power. The salaries of the
commissioners are $4,000 each, and some
progress has been made in the regulation of
the interests of the general public.
According to the statement of III. Il. Ho-
bart, editor of the Railaray Age, made be-
fore the Senate Committee, the railway
mileage of the United States and Territories
at the commencement of 1885 was about
1885, 800 miles. This is the aggregate of
distances between points OH railroads, with
out taking cognizance of double or side
tracks. The capital stock and bonded in
debtedness show value of S7,795, 200, 900,
or more than four times the national debt,
and 20 per cent. of the estimated wealth of
the entire country. They employ about
1000 persons, and thus support directly
more than 5000, 900 of men, women, and
children; and indirectly they aid in sup
porting many millions more concerned in
the manufacturing, mercantile. and other
interests of which the railways are very
large patrons.
These figures appear magnified when the
short period of their growth is considered.
In 1923 there were 3 miles of railroad; in
1880, IL miles; in 1910, 1900 miles; in 1850,
$500 miles; in 1860, 29. 200 miles; in 1870,
$4,000 miles; in 1880, 1861 miles. These
are the modern highways for commerce,
and should differ only in extent and facili-
ties from their predecessors back to the days
3 L..