Mexico weekly ledger., 1905-10-12

Al it Appeared in North American
Rssisw Friday Morning, septem.
Der 2sth-Relsastd for Pnb-
hcatica in Morning Kews-
papers Of That Date.

ply OF the conservative wing OF the
Democratic party TO w. J. Bryan's re-
CEN open letter TO the president on
railroad rate legislation, is contained
IN an article by Richard olney, In the
October number OF the North Ameri-
caa Review, published tomorrow. In
what is practically bis first public ut
tersnce In two years, C~leveland's for
mel Secretary Of State presents his
flnai Judgment against the proposed
legislation, in the form Of a brief, COW
ering not only the law but the public
policy involved in the agitation.
In discussing the effects Of govern
ment Regulation upon the railroads,
Mr.. Olney says;
THE situation TO be anticipated.
then, is that railroads-private prop
critics and representing private in
vestments aggregating billions OF dol
laFs-will find themselves controlled
In the vital matter OF their charges,
not by their private owners, but by
two public boards-one representative
OF local interests and the other OF nat
ional interests, and both antagonistic
to the interests OF the private owner
concerned. The two boards will aim
at the lowest possible rates each In be-
half of the particular business under
its charge, and will therefore be in
constant rivalry with each other in
the endeavor to extort from the car
rier the best service at the smallest
cost. Under these conditions any
thing like skillful, just, reasonable or
stable rate-making becomes impossi-
bic. A situation is created intolera-
Bile alike TO the carriers and to the
public, and the sure outcome-unless
the whole scheme OF government rate.
making be abandoned-is government
ownership.
"Governmsnt ownership OF all rail.
roads is obviously the goal toward
which some OF the government rate.
maders are striving, while Others, II
not welcoming il and not working fol-
it, profess not to fear 1t, and claim
that it would at all events, be an
improvement upon the present status.
Both point to existing instances Of
government ownership Of railroads.
the q claiming that the results &c
the public Rre distinctly favorable,
the other that they are at least not sc
detrimental as is sometimes declared
But whenl government ownership Of
railroads Of the country is seriously
consipered, our dual political system
is at once e to present problems OF
the grayest character. The few and
comparatively unimportant railroads
that Il wholly intra-state my be
properly ignored. Every railroad OF
consequence is engaged in both kinds
of transportation-in transportation
that begins and ends in a single state,
and in transportation that passes be-
yond Estate lines. Hence, II govern
ment ownership OF railroads be regard
ed as the inevitable sequence OF gov
eminent rate-makIng-the first Ques-
tion is, which government is IL that is
TO own the railroads, the state or the
United States?
1.-THE significance and Importance OF
the inquiry" continues MI. Olney, lis
apparent II we remember that the
railroad is only n species OF high
way, and that what is true OF railroads
must be true OF ordinary highways.
The Jurisdiction of-the national gov
eminent must be the same in both
cases. II 1t is competent for the nat
ional government under the commerce
clause 70 " and operate all the
great railroads OF the country, 1t must
be also competent for IT to own or
control and operate all the great
highways OF the country.
lis it by any possibility true that
the national government has been
granted any such powers-that as res
poets every road or street in the coun-
try which is a link In interstate COM
m~unication the national government
may at its option take complete pos
session and control, may direct the
mode OF its construction, its grades,
the sort Of vehicles by which 1t may
be used, may, in short, assume Its en-
tire management and operation in all
the most minute detailss Nothing
could be more revolutionary in prae-
tice-nothing more contradictory o
the views customarily held. II is
necessary to consider most carefully,
therefore, wheter the powers 10 ques-
tion are actually conferred on the
national governments being con-
coded, as it must be, that the power
can be deduced, IL at ALL only from
the commerce clause OF the Constitu-
tion
In pointing OUT the conflict Of juris-
diction under a system Of govern
ment control of railroad properties,
Mr.. Olney has this TO say: i"The
~power-the power to de-
termine the charges for. transporta-
tion-is the very essence Of the own.
srshlp Of the transportation business.
Upon the exercise Of this power de-
pend the profits TO get which the bust
1ess is undertaken and expect for
which it would not be undertaken at
III. In this respect the transporta-
lion hnsiness Is like any nfher and