Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1889-06-27

against undue foreign competition. the railroad
/ uoustry-one OF the foremost of the country
railroad capital, railroad investment and all
railroad interests have not only been ignored
| but put, as it were. under BAN and made the
victim OF system which the railroad them
selves have been so often accused of pursuing,
| TO wit:
UNJUST DISSEMINATION.
| Such discrimination consists IN this: That
while all other industries are encouraged and
protected against foreign competition railroad
enterprises are hampered by unwise and pre-
| JUDGED legislation, too often inStigated BY a
false and i'll advised public elamor Hence we
ind our great system of trsnscontinental rail-
ways forced into an unequal competition with
foreign system. And forced by what? Not by
the natural advantages of our rival but by
arbitrary and oppressive legislation by our own
people-legislation which could not have been
more effective TO this end if actually conceived
and executed in behalf of our Canadian com
petltor This competitor meanwhile is not
only necessarily free and in reality untram-
meled OF Governmental supervision and
action, but is foStered, subsidized aided and
financially Endorsed by its Government in all its
efforts to wrest away American commerce The
American transportation companies competing
with 1t are under governmental control and Sc
we're regulation, which seriously impair their
ability to resist the foreign aggression This gov
ernmental control is not only exercised by the
Federal Government, but it is claimed and pur-
sued by the states OF our Union, by the counties
OF the states and the municipalities within the
counties, thus subIecting the railway corpora-
ton to tour separate and distinct powers of reg
ulatlon. such injurious regulation not only
affects the invested capital but reacts on the
people at large by needIessiy interfering vyith
the puonc usefulness OF such corporations.
THE INTERSTATE COMMERCE Law.
Mr.. Towne then gives the history of Con-
gressional legislation upon the interstate
question, and shows why the long and
| short-haul clause" of the interstate COM
merce law should be repealed. In this
| connection he says:
It cannot be disputed that uniformity of re gu
laton without corresponding uniformity of
SoLluitI9h, VIII necessarily be failure, because
ROUNDED on q fallacy, since ali lust regulation
must nave re erence to the condition which
makes II necessary or advisable. Completely or
| even approximately analogous condition cannot
exist over the wide area of our country which
| although under the same government, presents
contrasting and sometimes perplexing physical
cndraeterlsucS, with resources and products as
varied as might be found in the combined area
OF many empires. Governmental regulation to
| be efficient, must therefore be so readily adant
aole that the reason Claimed calling forth
the regulation shall have complete Justification
addressed. ID
Inc fourth section of the law does violence to
the very basis, fiscal and commercial, tf the
| railway system of the country, seeking to dis
place by an arbitrary theory the results of prac.
tlcai experience, which have so well met the
needs OF the widely diversified growth of onr
| great republic. We're the maintenance of this
section accompanied by any tangible advantages
to the business world, TO compensate for its dis
turplng and net dlessly restrictive functions
could watch with less miseiying what deyel-
opponents might come. On the contrary how
eyer, feel bound to say that its theory is mis-
chlevous, the expression of its intent obscure
| and Its practical tendency is to impede Ameri.
can railroads in their efforts 10 retain American
tra1hc as against their Canadian rivals
r. imam TINS, 1t checks railway enterprise
| IN reaching out Tor new markets i'll the interest
| OF commerce, check in itself huItful as much
| to the public as to the railroads.
Mr.. Towne also believes that the law
should authorize railroad cooperation.
| There is much ignorance as to the mean
ing OF the term pool" The pool is in
| tended only to regulate competition. The
| very basis according TO which the earnings
| of the pooled roads are apportioned should
indicate that the pool is not intended to
stop competition. He holds that railroad
war " is not railroad competition, and, fur
| Their, that railroad cooperation is conducive
| 10 the maintenance of normal commercial
| conditions. He says:
With strife rampant tariff becomes merely a
maximum to- cut from, d foundation for i'm.
proper discrimination, schedule of charges TO
be levied on the innocent and unwary but
likely TO be evaded in its application TO the
shreWd or large and influential shipper Under
the pooling system, on the contrary it ceases to
be all-lmportant that the business be taken from
the rival road even at the cost of cutting rates
ITO the bottom; > it ceases to be important that
| the merchant spend his days in shopping" for
low rate and urging the competing roads to
further reductions, each below the other in the
| hope OF scoring victory by securing the coy
eted tonnage. 1t IS, instead, all important that
| as business has to be secured under open and
stable rates, each road shall be operated with
an eye to rendering the most efficient service in
furtherance OF its own interests and it is of ever
increasing Importance that the tariff rates under
| which the business is sought shall be so CON
structed as to stimulate the movement of traffic
| that the roads may enjoy that steadily incress-
| ing revenue for which they can only reasonably
| nope through healthy commercial conditions
| when they shall receive and render value for
value, in just recOmpeDse for services per-
formed. Thus properly stimulated to advance
| their own interests by careful consideration of
their patrons needs, they are in another direc-
ton, properly restrained by the most powerful
| influences which can be brought to bear on rail-
| road managers, namely. the ineffaceable com
| petition OF water ways-which however it may
| be checked, can never be broken down-aud
the mighty voice OF public opinion.