The morning call., 1893-01-05
RAILROADS AND THE PUBLIC.

In the report on the railroad problem of
this State. which has just been approved by
the Traffic Association, q significant passage
occurs which deserves the attention of the
Legislature. II there be remedy for the
evil indicated it should be found and ar
piled. The passage alluded to is as follows:
The unrestricted license given by our statutes
to consolidate two or more railroad companies
into one has facilitated vast aggregations OF
corporate capital and unity OF management 10
such an extent that all the principal avenues OF
communication In this Stale were brought under
the control OF a single set OF men, who having
thus the actual monopoly on all the transporta-
lion in the State arr enabled 10 constitute them
selves Intrusive partners In every business en-
teIprise and without contributing capital or
sharing risks to appropriate TO themselves such
portion OF ,he gross receipts as they see fit
Now it would have been wise thing
under our system OF Government to have
reserved TO the Legislature of q State, and
in some instances to Congress, the right of
refusing or permitting amalgamatious of
railroads. At present the railroad CON-
panies everywhere are practically free to
make their own bargains. They do not
even require an act OF the Legislature or of
Congress TO incorporate. They are as free
10 Incorporate and push ahead with their
designs as three or four grocers in a part
nership. Yet their privilege to exercise the
right OF eminent domain is given for public
purposes. and in no sense should railroad
be regarded as private undertaking. The
public are now severe sufferers from having
neglected this control Of railroads. They
have become the masters OF the people.
They control Legislatures, Boards of SUI
perYisors, the bench and even Congress
itself. There are Gould lines, Vanderbilt
lines and Huntington lines, but nowhere is
there line really kept in check. They
amalgamate, they dissolve. they sell cut,
and they buy up, and do with rates aud
freights almost as they please. That this
abuse CT power should be- remedied there
can be no question.
1t may be said unhesitatingly that it is a
public wrong to permit two or more rail
roads to amalgamate without strict inquiry
into the expedieney Of permitting amalga-
nation. The public ought to have the
right TO be consulted and where the inter-
ests of the community are being sacrificed
permission should be refused. Again and
again in England Parliament has declined
10 sanction amalgamations. on the ground
that they were inimical to the public inter-
est. No amalgsmation of companies can
take place without the sanction of Parlia-
ment, and every interest affected is entitled
to be heard in public before a committee of
the Commons and another of Lords. Some
amalgamations have been permitted. but
only after careful inquiry into the facts
An English railroad cannot even launch
into new expenditure without obtaining the
permission of Parliament, and both the
amounts and objects are specified. Such
trickery work as is jobbed by the Pacific
Improvement Company would not be per-
mitted an instant. How to regulate the
railroads Of the United States is one of the
tasks which the people and their representa-
ives must work out. Errors of the past
must be corrected even If we have State and
Federal ownership.