The Idaho recorder. [volume] (Salmon City, Idaho) 1886-1927, 1907-08-29

dose OF regulation, which cur con-
gress has imposed, has ruined credit
and is about to bring a panic upon
US, have been for years investing
money by the hundred million IN
Mexican roads under governmental
control so strict that all we have
done seems but play. II the strict
regulation OF railroads advanced pros
perity In Mexico, why should 1t de-
stroy prosperity in the United
States?
The Mexican government not only
controls the railroads OF that country,
but 1t has come to own most OF them.
The ownership is only OF recent date.
Up to within year or two our
American magnates were gohblinv
them up, combining them, forming
syndicates and parceling out the
country among themselves much as
they do at home. But they were not
giving rebates To the beef trust or to
Standard Oil, nor were they occu-
pied with corrupt politics. The rea-
son for their abstention from these
agreeable and profitable recreations
was simple. They did not dare to
take hand. Mr.. Charles Edward
Russell reminds US Ia the Cosmopoli
tan for July of some of the regula-
tions which have restrained them.
For one thing no railroad could have
been built or operated in Mexico
without concession from the federal
government These concessions were
limited to 80 years, and when they
expired all the railroad reverted to
the nation clear Of debt. The equip.
ment was to be paid for, but not the
franchise or real property. Each
company had to deposit with the gov
ernment fund amounting to some
three hundred dollars per mile OF
track, which was forfeited In case
1t was caught evading the law. All
grants and charters were subject to
amendment or repeal at any time,
and all the corporations could be dis
solved whenever good reason for 1t
appeared. Concessions could not he
transferred without consent OF the
government, and the road was for.
feited IL the service lapsed or became
badly defective.
In addition TO all this the govern
ment kept numerous inspectors In
the field to make sure that the COM
panies obeyed the laws. and the sal.
aries of the inspectors were paid by
the corporations, not Dy the public.
This policy differed radically from
our way with the beef trust. Gov
eminent inspection is the most valu-
able OF all advertisements for that
prosecuted martyr. 1t is worth mil
lions Of dollars year to the combina-
tion but the people pay for 1t. Thus
hampered and harrassed one would
naturally suppose that railroad con.
struction must have languished In
Mexico. Frightened capital must
have spread It's qui,ering pinions
and betaken itself to some more fav-
ored realm where the law would cease
from troubling ano the magnates
might weave their schemes in peace.
How could railroads flourish In a
land where rebates we're severely pen
allied, where the government fixed
rates at so much a mile without nit
igatiop or exception, where watered
stock was unknown They did -four
ish however, and II was American
capital, that being so timorous in
the presence OF the law, which fer
tilted and nourished them. During
three decades OF this tyrannical and
destructive populism the railroad
mileage OF Mexico was multiplied
twenty times over. The capital in
vested ran up to about million dol
lars. Mr.. Hartman, Mr.. Gould, Mr..
Rockefeller, Mr.. Morgan and most Of
our other prosecuted and terrified
magnates took hand Ia financing
them. They even concoted a neat
little plan to parcel out Mexico
among themselves. as they have the
United States, and plumber the pop
ulation indefinitely without discord,
as they do at home.
Then the government stepped in.
Mexico does not enjoy the blessing OF
system OF courts which can veto
the acts OF the other governmental
departments. The courts there can
neither enact nor nullify legislation.
The executive and legislative depart
ments can move freely for the public
welfare. Seeing what our beDeiceni
trust magnates we're ab"ut, President
Diaz, who is one OF the greatest met
OF this or any. other age, quietly or
dered his agents 10 buy up major
| ity OF the stock I'm the principa
Mexican roads for the public. Thel
did their work efectually without
arguments, injunctions or corruption
When the showdown came the people
OF Mexico bad control OF their rail
roads and our benevolent autocrati
/ had no recourse but to fold tbei
wings and quietly steal away. Blu
we need not mourn either for tb'
magnates or for ourselves Driver