The morning call., 1893-06-29
THE CONTROL OF RAILROADS.


At general meeting of the commercial
ana financial congresses in Chicago. an ad-
dress was given by Judge W. G. Veazey
OF the Interstate Commerce Commission,
on public rights and interests In railways.
The Judge remarked that common car
rlers. by their public function, assume the
obligation of refraining from extorlion and
unjust discrimination. Yes, but in their
private function, which is the one really
operative and dominating, they set that
obligation on one side as if it did not exist.
The railroad companies are not governed
by theories of law, but by opportunities of
a practical character. and these oppor-
tunities are only in the public favor when
there is good vigorous competition. as in
storekeeping or any other line of business.
In addition it must be borne in mind that
railroad companies take a good hand in
making and administering law themselves.
Their presence is felt in the Legislatures,
in Congress and on the bench. In Cali
fOrnia at least there is much experience of
what a railroad can do besides control
ling transportation.
Judge Veazey also observed: "The
railway problem of to-day is: How can
the business of transportation be so con-
Quoted and regulated that reasonable and
relatively equal charges and facilities
shall as rule be assured to every shipper
and passenger at the time the service is
rendered, and at the same time the just
rights of carriers be preserved" He did
not favor uniform rate per mile, but held
that an order directing carriers not to
charge more than prescribed maximum
is not liking rate. 1t would confine rate
making to reasonable limit. The prob
lem above stated is susceptible of many
answers more or less plausible and eff
Gent IN the minds of lawyers, but there is
one short and decisive answer for the
trader natural and unrestricted competi-
ton. Ii com petition is vigorous and real,
each company doing the best it can for
itself, the public have no occasion to com
plain of discrimination or overcharges.
The service is then the best that can be
devised. There is no cutlery. for instance,
about monopoly of shipping in the
Atlantic trade or il the Australian trade.
So many firms and companies are in the
business that natural regulations could
not be improved upon by all the lawyers
in the world.
In California the true situation begins
to dawn. The Southern Pacific would
like TO keep California, bag and baggage.
forever as property. San Francisco as a
port is danger to its monopoly, and 1t
would like to fill the harbor up and end it.
LII is overbonded by many millions hope
less as to dividends, but still a rich mine
to Its proprietors on account lof the In
terest coupons. Interest must be earned
TO meet the bonds, says the company, but
the public are under no necessity to fleece
themselves to pay these charges or to
made up for hundreds of miles of unproft-
able road across mountain and desert.
Why should this State be ground down to
support railroad on a bad and vicious
commercial basis. from which it is hope
less to expect fair play? Mr.. Leeds of the
Traffic Association in the interview pub
lished in yesterdays CALL gives the true
solution of the railroad problem in Cali
fornia. 1t is simply this: Leave the
Southern Pacific alone; keep the port of
San Francisco open; build forthwith
road from Stockton to Bakersfield without
one dollar of expenditure more than Is
necessary; work the road for revenue
from traffic only; have no speculation.
The rates will be reasonable. the road
will get control at once of the traffic in
your own State. The Sacramento Valley
will follow with similar road and an in
dependent overland road will follow that.
Virtually it is a road from San Franz cisco
to Bakersfield because water competition
keeps rates down to Stockton.
1t is all sound advice. All the preach
ing of law in the United States does not
weigh as nutshell to this practical
counsel from cear-sighted business man.
The only caution that may be added is not
to let the Southern Pacific throw dust in
the eyes with any success. The San
Joaquin Valley Railroad is the one project
started in ali these years they absolutely
fear. 1t will rend the monopoly from END
to end of its system. The improvement Of
the waterways is an important step in the
system of TRANSFORMATION. Now that the
right to mine by the hydraulic process is
practically in the hands of Government
engineers the sum already appropriated
for the improvement of the rivers might
be expended without further delay.