The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1895-09-18
COURTS AND RAILROADS.

1t is reported from Omaha that the re-
ceivers of the Union Pacific intend to urge
the Government to compel the directors of
the Central Pacific to operate the Ogden
line in harmony with the Union Pacific
road, according to the original plan of
transcontinental route devised by the
Government at the time the roads were
chartered. This appeal, which implies
another step in the direction of the control
of railroads by the Government, will re-
call a statement made by an Eastern
Judge not long ago, that unless some new
conditions arise the United States would
soon be operating a consolidated system OF
railways without purchasing them and
without intending to undertake the work.
Judge Walkers prediction was based
upon the increasing number of roads and
length of mileage which have come prac-
tically under Government control by being
placed in the hands of receivers appointed
by the United States courts. The extent
of road already administered in this way
is large and every year adds to it. 1t will
not be long before these different sets of
receivers would be able to form a pool as
it were, and organize quite a comprehen-
they act would permit them. Nor per-
haps would such authority be withheld if
it should be shown that the combination
would be beneficial to the stockholders for
whom the receivers were appointed to act.
The plan which the Union Pacific re-
ceivers are reported to have in view goes
step farther. 1t asks Congress to compel
another road still in the hands of private
owners to act in such a manner as will
benefit the Union Pacific. The demand is
apparently founded upon justice and will
doubtless receive favorable consideration
at the hands of Congress. Thus there
will be brought about practically Gov
ernmental supervision of the entire route
of the Union and Central Pacific roads.
1t appears from this tendency that the
force of circumstances is carrying US by
safe and slow degrees toward solution OF
some of the greatest difficulties in the
problem of railway management. Much
of the evil of existing conditions arises not
from any intentional wrongdoing on the
part of railroad managers, but because in
the strife and rivalry of one road with
another, rates are unsettled, business dis
turbed and each side compelled in self-de-
tense to resort to every conceivable man
euver to gain the advantage over its
opponents, no matter how disastrous the
effects may be upon the general run of
shippers and the public welfare.
When road, after prolonged struggle
of this kind, has become bankrupt and
passes into the hands of the courts, the
aim of the receivers is to conduct it eco
nomically and pay the stockholders rea-
sonable dividend. The operations of such
roads have on the whole given a fair degree
of satisfaction. There is of course wide
spread and well-founded objection to Gov
eminent ownership of railways and it is
not likely that any plan of that kind will
ever become question of practical politics
in this country during this generation.
This fact renders the present tendency all
the more interesting. Without any desire
on the part of the Government, and
againstpublic sentiment, the drift of things
is toward a complete Governmental super
vision of railways, but fortunately the
course of this development puts the roads
in the hands of men appointed by the
courts and not in those of the politicians.