The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1889-10-01
RAILROAD SITUATION
Discussed by the Commissioner
in His Report.
THE NECESSARY LEGISLATION
To Better Protect the Goyegnment's
IutsFest-The Land Grant Trouble
in the west-The Interstate
Law Wisely Conservative,

WASHINGTON, Sept. Sd-Horaee 4
Taylor, the Commissioner Of Railroad
has filed with the Secretary Of the Ir
terror the annual report Of the opers
tons Of his bureau for the fiscal yea
ended June S0,lsS9. The Commissions
discusses the railroad situation in tn
west and northwest, and makes som
suggestions as to existing evils and thei
remedies, as well as some recommends
tions as to necessary legislation in orde
to better protect the interests Of thl
Government, and render the operation
Of his bureau Of more practical impor
lance, The Commissioner says;
Several Of the railroad companies
who have received grants ofpublic lands
to aid In the construction Of their roads
decline to report to this office, for the
reason that such grants were made by
the respective States In which the roads
are located, and not payable to the
United States, and assert that, therefore,
they do not come within the Language ol
the act Of Congress creating this bureau,
and defining It's powers, Thepoint made
is that q grant 10 o State for q railroad ia
not q grant to q railroad company. The
position taken by these companies would
seem 10 be technical and eyasive,"
The Commissioner says there hes been
no inspection and no examination oi the
books and accounts Of the railroads sub.
ject TO the supervision Of his bureau,
made for the current year covered by
this report, previous to his appointment
as Commissioner (July II, 1882 He is
therefore, unable to make the report as
full and complete as 1t otherwise might
have been.
Since his appointment, however, an
examination OF the several railroads In
which the Government has a pecuntary
interest has been made.
The Commission then reviews the re.
suit Of his examinations, but nothing
startling was discovered.
The Commissioner then discusses the
railroad situation In the west and says:
Repeated and ruinous rate wars, de.
struCtiye alike to the interests Of the rail-
roads and the shipping public, have pre-.
vailed 10 an alarming extent throughout
the west In recent years, With the open
ing OF nearly every through line, new
complications have arisen and competi.
ton has been stimulated to the point OF
annihilating profits and often producing
ruinous losses. That unwise or perverse
management subvcrts Legitimate and
healthiul competition into unreasoning
and destructive warfare, is not infre.
quently plainly apparent, but the knowl-
edge oil this fact brings no relief to the
lessening revenues OF the warning com.
panies. These rate wars are many,
Il not in most cases, devoid equalization
or excuse, inaugurated without RESPONSE.
bic cause and vindictively prosecuted
with an utter disregard OF their disas.
trous effects upon the interests Of the
companies engaged and the business
public. They destroy or imperil the
value OF securities.
~ do not agree with the claim 80 per-
sistently made by railroad magnates,
their organs and satellites, that the re.
cent losses sustained In, the railroad bus.
iness are mainly due TO the restrictive
laws which have Of late been enacted by
Congress and In many OF the western
States. In some States, notably In Iowa,
Il Is undoubtedly true that laws have
been enacted and enforced and which
ara uniust Inward the railroads and in.
furious TO the public interests, and
which ought 10 be speedily modified or
repealed. ,,.
ton OF railway traffic within the States
has been wisely conservative, and was
az surely demanded for the protection Of
the public against unjust charges and
determinations in local trade as was the
Interstate Commerce law 10 protect
commerce between the States. The
theory that the recognized laws Of trade
would ultimately 30 far prevail as to sui:
ficiently regulate the management Of
railroads In the interest oil the public
has not proven TO be correct. Events
had demonstrated that these Jaws have
become practically imperative, and that
4 Ia necessary TO invoke legisla.
ton To supplement the operations
Of natural laws 10 establishing
the legitimate rights and curbing
the unwarranted pretentionS oi transpor-
tation companies. The exceedingly un.
fortunate situation which has Of late pre-.
vailed in the west and northwest, pre-
sents a vivid illustration, and gives an
expensive, though an apparently un-
needed lesson, as TO the effect Of unreg-
ulated competition. Unless conditions
are changed through the voluntary &C.
tions OF The railroad companies, or by
Legislative interference, commercial re:
iations will be seriously disturbed and
lasting injuries inflicted upon the rail:
roads and upon every department oil
trade. l.
II believe that In many sections Of
tho west, conBplcuously In the states 81
Iowa and Kansas, the mileage oi rail-
roadeis greatly In excess oi the legiu'
mate needs Of The carrying trade, :,
The people have encouraged railroad
constrnotion wherever II could be Sc
cured regardless Of existing necessities
or future complications, and the railroad
companies have been unduly eager 70
control the trade by building new lines
and feeders for established ones where
me volume Of traffic was not sufficient
Ia support them. This condition OF
ihings presents a problem difficult OF So
linton. II is safe 10 say that the
.s,s..,i,, jnns tnnk lia In thn laVVifp OF