The herald. [microfilm reel] (Los Angeles [Calif.]) 1893-1900, 1895-01-11
EBILL EX-SENATOR MATHEWS

field Tor discussion. The transportation
question is second to mono in Importance
OF material character. The sums an
nually paid to railways by the American
people are enormous The high charges
arc serious check upon trade, and OK
hsustive Of tho, Nprofiss Of agriculture
and other industries. In those hard
times they are especially crushing. How
to obtain relief iss question that Is
under process of solution.
When railways were first constructed
in this country the idaa was that the
principles Of the common law would af-
lord adequate protection asainst exorbi-
tAnt charges. The ruis in that law IL
that tho common carrier 10 entitled to
just and rsasonable compensation to be
determined by the court and jury. That
rule could BE- practically applied when
transportation was BY the simple assn-
cies in use when il was stablished. II
was thon an easy matter to find out
how much capital was invested, what
were the expenses, and . reasonable
profit.
transportation on the land 10 now
almost wholly carried on by railroads.
The cost Of their construction aud opera
ton il large. and to determine accu-
rstely what il il requires al extensive
and prolonged investigation, and the
aid OF expert knowledge. The proof il
in the possession OF one side. The in
vestigstion would be 80 protraoted and
expensive that mono could afford to 60
to the courts TO determine how much
freight should be paid ON . single ship
mont. There have been no such cases
in c,urt for many years.
The inadsauacy Of this remedy has
long been Understood. It was apparent
at an early dsy OF the railway era In
this country. Az a restraint upon ex-
orbitsnt charges. legislatures of the
several states prescribed maximum rates
OF transportation by law. As such legis.
lation must DO applioabls alike to all
roads in . ststs, ii works injustice. be-
cause cost of construction and opera
ton and voluns OF traffic cannot be tho
same ~ to all roads, and they are the
elements to be considered in determiu-
ing what are just and reasonable
charges.
This also proving inadequate and nm
satisfactory nsnrly oil the states have
adopted the plan of railway commits
sions. These bodies are clothed with
different powers. In some states they
ere advisory and in othars they ara reg
ulative. In two staten only have COM
missions the power to prescribe rates,
and they are California and Texas. In
this state the DOM mission has done very
little in prescribing rates 10 the interest
Of the people. In Texas the commits.
eioners attempted to exercise this powe
for the public benefit. but they we're
epjoined in tho United States court in
cults by the railroads. State minis
sions can only regulate ~ to local oil
state traffic. In regard to intsrstate
traffic they are pewerless, and that
class of traffic ia vastly larger than
the local. All plans thus ial
have turned out to be in
sfficacious in producing the desired 70
suit. Hence the theories of government,
ownership and m snagsmant. and con-
solidation, wish regulation Of rates and
management By the government. have
been advanced and have advocates.
Complaints are not of the manner il
which railroads are operated as .tt
promptaess and dispatch, but OF high
charges. The reasons why charges are
high are to be discovered bsfoss an APP
propriate rsmsdy can be devised. With,
out going into history of the methods
EN- ployed in constructing railroads, it il
sufii cient to say that shsy were such 81
resulted in excessive bonding and stock
ing, and railway managers are seeking
to pay intereds upon the bonda and al
large dividends on the stock as possible
capitalization il certainly far beyond
the cos. of the roads in tho ag-
grega.e and beyond question il
now double the present cost OF repro.
duc.ion. Operating expenses are too
much, mors especially 10, tbs matter o
salaries paid to;the high officials. The
$40 railroad president nrs paid salaries
ranging from $4,000 to $50. 900. and on,
president. it is said. receives $4,000
General mAnagers. chief on ginesrs. at
torneys.- etc., are paid salar les far abov
those paid to government officials or t,
those in other civil employmsnts.
The salaries paid the officials rss
wholly in the discretion OF thu directory
OF roads, which Is composed usually o
wealthy msn. and who are liberal il
their ideas Of the worth of service
which produces them prinoely incomes
Fictitious and fraudulent bonds ane
stocks having passed into the hands O
innocent holdors. aud having bscoms I
part OF the nominal wealth of tina coun
try. there is difficulty in eliminating
them from the genuine. aud there sesm
to be no way 10 avoid taxing peopl
through excessive rates to pay incom
upon weat really shoold be tres,ed .
phantom capital. except through tn
adoption OF radical measures. Ii is RICH
that capital should DO respected Aad pro
tected. but is IL just that the peopl
should suffer to maintain a. capits
that which has no valid f,undation?
The i6ea OF keeping rates down TO
point that will yield but q ressonabl
inroma n MN aNvu . II vs.s~,art -,