Year: 1874

become complete. 1t has been we'll said
by John Stuart Mill, that a government
which comedies unreservedly to a private
corporation the absolute right to fix at his
own pleasure rates for transportation.
does much the same thing as if it allow
ed an individual or an association to levy
any tax they chose for their own bene-
tit. You will see the force and the impor-
tance of this suggestion when it is re-
membered that the Northwestern States
already produce and annually
snip to an eastern market, over
400,000,O0O bushels of Grain.
! The cost OF its transportation on an aver
age is but little, if any, below fifty cents
per bushel, making grand aggregate of
about two hundred millions of dollars per
annum. If this is fair and just sum for
the producing classes to pay, they should
not complain, but if it is too much. if it is
unreasonable, then they have right to
complain and to demand remedy. And
in order to test the question as to the
reasonableness of these charges, it seems
to me that these corporations should be
compelled to open their books, to make
proper returns, to let the public know
what they are doing, and they ought to be
held amenable under suitable penalties and
liable in damages besides, for extortion
and unjust discrimination. l have only
time to state very few facts to show the
necessity for some such legislation. Dis
crlmlnatlon against non competing points
is great evil. 1t is carried to the extent
OF almost destroying the commerce of
these points, in order to build up and en-
rich the great centres where competition
is open. Mr.. Adams, one of the Massa-
chusetts Il. r. Commissioners, gives the
following as one case among thousands:


In the State of Massachusetts, since have
peen commissioner, a railroad superintendent
has frankly acknowledged to me that where
freight was shipped and paid for to the end of
the line, if that freight was switched off at nom
competing point but ten miles from where it
came on to his line, and hundred miles short of
It's paid destination, he always charged the cars
containing that freight twenty dollars extra.
twenty dollars for not hauling it one hundred
miles. And he justified his extortion.


A great source of eXtortion is to be
found in the almost universal practice of
these corporations know as watering
stock" Upon this subject Mr. Hubbard of
Boston, gentleman of integrity and
learning, in a recent memorial to Congress,
states some facts to which | wish to call
your attention He says:


The Syracuse and Utica section of the New
York Central railroad it is said cost $500 600 and
Is now represented in stock and debt by S6,S00,-
OOO The total capital of the New York Central
road is over SlOO.0OO,0O0. Its stock dividends in
two years were $450OO,0 900, nearly equal to the
entire cost of the road.


Who pays this interest and these divi-
dends upon this watered stock Z? These
profits must be made up by exorbitant
charges upon the people who patronize
the road


The annual dividend e per cent paid on this
lcutlous Stock is equal to nearly 15 per cent. of
the gross receipts; that is, the rates might be
one-seventh less than they are, if this stock
dividend had not been declared. The directors z
and stockholders of this corporation are not
guilty beyond others; they have only carried out
the principles upon which all roads are conduct
ed, and which the public has tolerated.
10 show the absurdity of any attempt
to settle this question by State law alone,
as proposed by our opponents, allow me to
call your attention to the proceedings of
| recent meeting of railroad agents in
New York. The New York Graphic
says of this meeting "The railroad mag
mates held meeting yesterday, and de-
cided to double the rates of freight on
taUe stock and increase the charges on 9TH
er classes Of merchandise" 1t is not usu-
al to raise freights in mid summer, but it
was done in this instance in retaliation,
because of the efforts of some of the
Western States to limit charges. What
they were compelled to take off of local
charges, they added on to through freights,
and this they will continue to do until we
get some national regulation.


| WHAT HAS CONGRESS DONE?
Your Republican Congress has under
taken the work in earnest of regulating
this vast commerce in the interests of JUS
tice and the rights of all-both railroad
and people. The House of Representa-
tives, at its last session, after a long de-
bate, passed bill which is intended sim
ply to enforce the common law. 1t pro-
hibits, under suitable penalties, extortion
and unjust discrimination on the part of
railroad companies engaged in interstate
commerce. 1t gives the citizens a remedy
in the Federal Courts, and requires the
| U. s. District Attorney to prosecute, at
the public expense for all violations of the
Act. To aid the people in securing JUS
tice, it provides for board of commission
ers whose duty it shall be to take testi-
mony and ascertain facts and collate and
| publish statistics as to the cost of con-
struction and operation of all such rail-
roads, and with the power to compel such
companies to make returns. This board
Is also to have power to prepare schedules
of what they deem to be fair and reason
able rates, and these schedules are to be
admissible in evidence on the trial of any
case of extortion or unjust discrimination
not as conclusive, but as prima tdcia
evidence that the rates therein received
are fair and reasonable. / do not claim
that this bill is perfect, but l do claim it
will furnish plain, speedy and adequate
remedy for many of the worst of the ex-
listing evils, to which 1 have directed your
attention. 1t was opposed by the opposi-
ton in the House, including Democrats
and Liberals, in an almost solid column
only six Democrats voting for it, while II
Democrats and Liberals voted against
it.


FELLOW CITIZENS | submit, with
great confidence, in view of the law as it
is laid down by the Supreme Court, in
view Of the facts to which have called
your attention, and in view of the record
of the two parties upon this question, that
your hope is in the Republican and not
the Democratic party. | submit with
great confidence that the party which de-
nies the power of Congress to afford you
relief from the extortions of those great
corporate monopoles which extend their
lines from the Missouri river to the At
lantic, and which WILL ere long, span the
whole Union from ocean to ocean-virtu-
ally abandons the struggle


SENATOR CONKLING.