The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1898-01-17
Offers Suggestions to
Nc. kleberq.
u q -
The STATES AND Union
should Work In Har-
m"ny Toward Resu-
intion OF Trsfac.

Austln, ToSas, January 16.--The follow
ing is the text OF letter recently written
by Judge Reagan to Congressman Kleberg.
on the subject of railroad legislation:
ZION. 4. j Klcberg. Washington. d. G.
Dear Sir. Judge Storey has shown ma
your letters of December IL and January
2, and the copy Of your bill TO amend the
Act to regulate commerce. to which he
mas suggested some amendments. He has
also suggested that write TO YOU on this
subject
l will not attempt an analysis Of or offer
cri.lcisnls on your bill, but will offer some
general observations on the subject. which
has occupied my attention for more than
twenty years.
The protection OF the people against
undue exaciions and unjust discrimina.
tons by the railroad companies has DC.
cupied much of public attention for a
good many years, and many plans have
been suggested by which it was hoped this
might be accomplished.
First OF all we have to recognize the
fact that congress alone can regulate
commerce between the States. And the
Jurisdiction of the States is limited to tna
control of transportation which begins and
ends in the State. Congress has attempted
to meet this necessity by defining by law
what the railroad companies should do
and what they should not do and by pre-
scribing penalties for the violations Of
these provisions. but provided for no de-
tailed regulations for making freight rates
a III /,
portation, etc.
While most of the States have attempted
by legislation to regulate transportation
and lis charges within their borders, there
has been no uniformity between them in
the method OF doing this and the public
mind has rot adopted any system OF rcgu-
lation which meets general approval.
Will only call attention to the theory
propounded by the Legislation of Texas
on this subject as a basis for some OBJ
servations as to what would seem to me
TO be appropriate in the action of congress
on this question
The provisions of our State constitution
and legislative enactments have as ono
purpose to make the stock and bonds of
the railroads thereafter issued the real
representatives of their money value, and
thereby to prevent the issuance of ficti.
tious and fraudulent railroad securities.
orally operated under State charters, the
States alone may have to employ this
means of protection for the public To
carry out this policy practically the legis-
lature provided by law that the railroad
commission should ascertain and fix tho
present value OF the railroads of this State
Under this law the commission has de-
termined the present value OF each OF
the railroads Of Texas. except lew miDor
and unimportant roads, and the roads I'M
der construction. This enables the com
mission to fix such rates of freight and
passenger fares as will protect the in
terests of the people, and as will secure
10 the railroads the revenue necessary to
pay for the management and repair OF the
roads and provide for a Just rate OF In
terest on tho value of their property.
There are three methods of dealing with
the railroad problem;
!. To leave the RAILROADS uncontrolled by
law. TO fix their rates and charges under
a supposed law of competition.
2. Government ownership Of railroads.
3. Regulation Of their business and rates
and charges by law.
These three methods will be considered
in the above order:
m. -. ~ n.,,.oaa oo,,n,,,os ~
~. ,,s,na.s 80 .so,n ra,as .nd
'.a.a ,,rao,,s.,,aa -, ,am mo,,ia ~
80 ~ annmero. :, ~ country n
~ pace 'n' - -" -.
the power OF men soserheu W 'e'hsn
interests, and would Undoubtedly be the
means Of sacrificing the public welfare en-
tie altar of greed and avarice. and all
who have studied this subject know that
supposed competition between the railroads
is no protection to the public. because
by combination competition Is prevented.
We may therefore, dismiss this plan as out
of the question.
.. AS to government ownership, ithd
railroads of the United States, as shown
:, no ,,,.r,,o,a co,,,,srca
by ihe iePot' ., 'ne 'n.e 80 .op'psi,'
commission for the year 1885 were capital
lied in stock and bonds at sio.56s, ss5.Ti;
,,a tbe,r current liabilities we're at that
anu 'as aoa aoo as-.a.,nn s,1 ,Te ss5
time S6l3'ooo.ooo' assresatihs fii,''''''o'
III. Under our constitutional government
he tight 10 these railroads can only he
.,,-oo,,o,t ond m,rcbase Let