The San Francisco call., 1901-11-27
TROUBLE FOR THE COMBINE.


against the Western railway combine. He an
nounces that if there is at present enough Min
nesota law to keep the Northern Pacific and Great
Northern cut of the combine he will at once invoke
it, and # there is not enough he will call the Legsla-
ure in special session to make some more.N 1t is an
interesting evidence OF the uncertainty the law
felt by the engineers of the combination that their
stocks fell off largely this came from
St Paul If the Governor proceed may expect a
period of expensive litigation the legal ISSUE for
what Minnesota may do other States may and TIE
granger agitation of thirty years ago may have
acute revival.
The growth OF American railways has been on
ward not the line of least resistance but always
that of the greatest Beginning in 1928, when the
pioneer road, the Baltimore and Ohio, was started
the first difficulty encountered incident to
ing right OF way. The present method of condemna-
ton by of the right of eminent domain was then
unthought Of The projectors of railway could not
run their random lines country selecting grade
and way and terminal points, and condemnng all
right of way for which they could not bargain. If
they to the line of a stubborn landowner who
would not sell their project must be abandoned or
changed. Had there been no alternative to the plan
of private purchase for right of way is safe to say
that the system of American roads would have
been created One needs to go back to the political
and legal literature of the country from 1928 to 1851 to
learn that the octopus is not monster in
American politics and law. When it was proposed to
the right of eminent domain and condemn right
of way the excitement general and many good
people were convinced that liberty was at an end In
New Hampshire and other States parties dis
ruped by it. but everywhere few enterprising citi
firmly stood by progress, and the condemnation
laws were passed by State after State and firmly
embedded in American law by the decisions of the
courts.
From the beginning of construction in 1928 by 1885
there in operation 1908 miles Two years later
New York harbor and Philadelphia were connected
by rail. Ir 184I Boston and Albany were put in rail
communication and the next year Albany and Buff
ralo were connected, and Philadelphia reached the
coal fields by construction of the Reading line. The
panic of 1887 and lack of money for such investments
were seriously felt, and by IS45 there Stacking
off In Ie4S to 1851 the settlement of the right of way
problem removed one great difficulty and in I848
Boston ard New York were connected. In 1851 the
Hudson River line was built between New York and
Albany ard that year total rail mileage oo2I
In 1860 it 36625; in 1870, 52e22; in 1885, $780,
in 1890, I66653 and by 1900 it had reached the grand
total of 1oI,3Io miles, nearly equal the combined
rail mileage of all the rest of the world.
AS the mileage increased rates of transportation
fell During the seventeen years ending 1893 the re-
ductons in freight saved to the shippers on the
tonnage hauled the of So, ,8o2 100000 or one
third the value of all the stocks and bonds of the
roads. The rate reductions in one year, 18o7-o8,
amounted to saving to the public of $44, ,267 S74
In the same period passenger rates fell Fl per
cent. From 1882 to I8o8 inclusive, railway mileage
increased o2 per cent and passenger travel only 50
per cent In that period the reduction in rates to the
number of passengers hauled amounted to $645 ,624
TIL So in the seventeenyear period the savings to
the people on passengers and freight by reductions in
rates aggregated $4,447,624,777 During that period
the highest interest paid the railway bonded debt
of the country TIT per cent and the highest dvi
dend on railway stocks 2.oI per cent.
We have not at hand the mileage of the roads in the
Western combine, nor their gross and net earnings
per mile, but they have been participants in the re-
ductions of the seventeen period to the extent
of their operation during that time. Now they are to
pass through period of violent antagonism before
they will be permitted to show that by virtue of the
economy of combination they can increase dividends
without raising rates. The people will never know
the virtue the vice of the combination until oppor-
tunity is furnished for this demonstration.