The record-union., 1894-05-05
CONSTITUTIONAL CHECKS.


the Constitution to furnish that protec-
ton.
Certain common rights it provides shall
not be infringed by Congress or Legis-
iature-as for instance, the Fifth Amend
ment, mo person shall be deprived of
life. liberty or property without due
process of law" Such provisions are
termed limitations upon the power of
Congress. The Fourteenth Amendment
IS another limitation: Nor shall any
State deprive any person OF life, liberty
nor deny TO any person within its juris-
diction the equal protection of the laws"
CHANGED ATTITUDE OF THE STATE TO-
WARD THE RAILROADS.
This radical change in the attitude of
the State toward the railroads effects a
most important change in The status of
the companies. For protection against
wrongs inflicted by the Legislature, or its
agent, a commission, in fixing rates. they
are no longer told that they must resort
so the polls or that the Legislature must
be appealed to for the change but they
are now allowed an appeal to the impair
tial judgment of the courts.
A certain class of politicians, and the
press, who aim by misrepresentation
and attacks upon capital and corpora
tions to extend their influences among
the masses, or who try, by threats, to sell
their silence or their services, are now de-
prived of their chief power to harm.
Their tavors being no longer required for
security, no fear need be apprehended
from their threats.
"The business of railroad transporta-
ton being legitimate. there is required
for its full prosperity only justice. This
1t can now demand. The railroads, no
longer forced into politics for protection,
will find their true security in keeping
out. the honest and reasonable conduct OF
their own business being their best de-
tense. Under the protection now of the
Constitution and the courts, the railroads
having the recognized right to remunera-
tive rates, legislative action will be
limited to securing rates which are rea-
sonable. This is, in fact, the natural
limit to its power.
1.-THE authority for regulation by the
State, as has been clearly defined by the
Supreme Court in the Mum case, rests
upon the police power inherent in all
sovereignty. This power is for the equal
protection of life, liberty and property.
1t is rightly exercised only in securing
these, and, to that end, in preventing the
use by one, or any number, of their lib
critics or property, TO the Infringement OF
the equal freedom or property rights Of
others. The authority, and thus the linn
its, of this power of regulation is the Sc
curing of Justice"
THE OPERATION OF NATURAL FORCES.
So. the Legislature now instead of de-
Vising tariffs and classification to be set
aside by courts, will mostly confine itself
to prevent unjust discrimination.
But we are told that the railroad is a
monopoly, not subject to ordinary in
huenceS of competition, and its rates will,
Low he n o2 hv
selfish interest. But inquiry into causes
controlling rates and review of results
under such causes, demonstrate that COM
petition applies as in all trade.
Largely railroad rates naturally must
be discriminative, and the same condi-
tiOns also produce reductions daily.
These conditions are natural forces
which operate to reduce rates. like prices
of commodities, to minimum. They are:
/. Competition with other carriers.
2. deductions required TO carry to mar
ket products of new places OF production,
and to extend industrial trade to new
and distant markets.
3. The effort to increase traffic by lower
rates on things largely consumed, so as
to secure larger net profits.
4. Competition OF capital, which pre-
vents a railroad, the conditions of risk
being equal, from earning larger profit
other forms of property.
THE FORCES OF COMPETITION.
Free competition in commercial com
modltles is sufficient to bring prices to
their lowest without aid of law. By this
standard it is found that the forces OF
competition affecting railroads have
caused greater reduction in rates than
has been effected by the commonly recog-
nized competition in the prices of any
classes OF commodities.
ILLUSTRATIONS OF REDUCTIONS IN PRICES
AND RATES.
Commodity prices in the last twenty
years greatly declined; silver suffered
similar decline; hence, say the silver
men, silver and commodities have not
declined, but gold, by which prices are
compared, has risen.
The facts do not support this theory.
Take the twenty years from 1873 to 1892,
and compare reduction of railroad rates
with prices of commodities. The data
taken is the report to the Senate, by its
Finance Committee. March, 1893, on
Wholesale Prices, Wages and Trans
portation." 1t is the most comprehen-
sive and satisfactory body of statistics
ever gathered on the subject.
The report gives relative prices an
nually from 1910 to 1891. Returns from
all railroads are not available for the
whole period. the earliest year since
which these have been consecutiyely
compiled is 1882.
A typical group of lines has been Sc
lected for the entire period since 1873,
comprising ten principal railroad .sys-
TENS east of the Missouri and Mississippi,
and operating, in 1892, 19,463 miles of road.
COMPARING SYSTEMS RATES.
Taking the Southern Pacific system for
comparison with these is a severe test,
because of the mountain divisions on its
three trunk lines, the large extent OF
desert country traversed, and the absence
in such of local competition. 1t is an ex-
treme case, yet it is a fact that natural
forces have caused greater reductions in
rates in that case in twenty years than
occurred on the Eastern group of lines.
MIR. Lansing here introduces two elab-
crate tables of comparisons, showing
first relative prices, compared with 1878,
of commodities and wages, in gold; Sec
ond, railway freight and passenger rates,
and value Of silver in gold.
What these tables prove IS thus
summed up:
PROFOUNDLY INTERESTING FACTS.
"In 1873 the intrinsic or market value of
silver in silver dollar was almost ex-
actly the same as the value of the gold in
a gold dollar. From this year the value
OF silver declined from year to year, till
in 1892 it reached GA cents. or 33 per cent.
in the twenty years.
"The nine principal agricultural pro-
ducts show an average reduction of 7.2
per cent. These include meats, corn,
wheat, cotton. oats, tobacco, barley, rye
aud hemp. The value of the product of
each is in the order named, the total ex-
ceeding 81, 900, 600. The average rate
is found by considering the importance
of the production of each as well as the
relative price. The percentage OF decrease
thus represents the actual value of the
reduction compared with the total value
of the nine products.
"But some of the products have in
creased in price while others have de-
creased much more than the rates shown
for tho r4hnla Tho avara cra raSlllt wn1ld