Year: 1873

evils to which have alluded would find q
remedy in the building Of new and compet-
ing lines Of Railroad. But in this we have
generally been disappointed. On the con-
trary, by consolidation or pooling OF earn
ings Of naturally competing roads bad


state of things has been made worse. If
new lines could be built and controlled by


the localities interested instead of foreign
capital the case would be different 1have


sometimes thought that it might be practi-


cal for communities, counties for instance,


to build and operate roads in their own in


terest. By adopting the plan OF building
and operating narrow gauge roads, which
can be built for about one-half the ordinary
gauge, and operated in the same ratio,


have no doubt much could be accomplished.
But l imagine that real, substantial


remedy lies in the right of legislative re-
striction, so far as our own State is con-
cerned, and Congressional so far as the


great through routes are concerned.


Many of our best and ablest Statesmen
take the ground that the Federal govern
ment has the right to construct and operate


Railroads in the interest of our internal
commerce. If double or even four track
Railroad could be built from the Atlantic
to the Valley of the Mississippi by the Gov
ernment, and operated in such way as to
hold all the present through roads In check
and force them to transport our products
at fair rates, the advantages to the country
would be almost incalculable. This Gov
ernment Road would serve as regulator
for all other through roads The great
objection to anything Of this kind is that
Government enterprises Of this character
are so liable to lead to corrupt practices,
used for political purposes, and to great
extent diverted from the ends which they
were intended to serve. If a great through
railroad could be built and operated as
have before indicated, and placed entirely
beyond the power or influence OF politics,
have faith to believe the experiment
would prove success, and l am inclined
to think that with the growing necessltles
for moving the products Of the country, the
experiment will have to be tried SO far
as the existence of the right of the Leglsla.
ture to fix by law the rates OF freight ana
passenger on the Railroads OF this State,
have never had doubt. Furthermore
have believed that this right ought to be
exercised, and when in the Legislature OF
1871, as member Of the Railroad Commit
tee, l reported bill that subsequently be-
came law, fixing rates on both freight
and passengers, and when our supreme
Court passed upon this law and rendered
its decision, declaring this right to exist
felt that great burden had been h1ted
from the people of the State, and that the


way was laid open for the enactment OF
such laws as would finally lead US out OF
our difficulties. had long felt the lmpor-
tance of having the relations existing be-
tween the Railroads and the people, Ju-
dicially determined. 1t has now been done,
and by our highest Court, and, as be-
lieve, in accordance with both law and
equity. This right of Legislative control
should never be abandoned. The idea that
corporations drawing their very existence
from the State, and upon which its citizens
are so dependent, with the most extraor-
dinary rights and powers granted them in
the way Of taking private property for their
own use whenever and wherever they
choose to do so. and in case Of most Of the
roads in the State, with land grants equal
in value to the cost of the roads themselves.
I say the idea that these corporations are
beyond the reach Of law, and that their pa.
irons can be subjected to extortions and
abuses without redress or remedy, cannot
be conceded. OF course the exercise of
this right should be wise and prudent. The
people of the State ask nothing from the


Railroads but what is just and fair; and
this they should demand, and they should


look to it we'll, that they hereafter send to
the Legislature men only such as are hon


est and intelligent, and who will faithfully


and fearlessly carry out their wishes. And
| there is another step to be taken, and that


is the passage of law forbidding consoli-
| dations of Roads or pooling of earnings, or
| the issue of watered stock so called. The
| fact is there is not Railroad in the State
| but what the stock and bonds represent
much larger amount than the actual cost OF


the Road. There is one road in the State
| whose bonded indebtedness alone is $65, 600
per mile, while the road with its equip
| ments would not cost to exceed $2O,OOO,


and yet the people are expected to pay in
| terest on the $66, 900, or more than three
times what they should pay. Through
construction rings and other rings the Sc
curities Of the road have been robbed to


this almost incredible amount, and the


patrons of the road are expected to walk
| up and foot the bills on this kind Of basis.
| The New York Central Railroad has had


its stock watered up, until it now stands


$11O,O0 per mile, and the people of the


West have to pay tribute to it on this basis.
All this kind of chicanery should be ab-


solutely prohibited by Legislation. The


stock Of road should be allowed to repre-


sent only its actual cost, and the dividends


on such stock limited to reasonable per


cent. Few Of any of the Roads of this


country pay more than 10 per cent. per an


mum in dividends.


! If this 10 per cent was only upon stock


representing actual values or expenditures,


the people Of the country would have less


cause Of complaint. This contest with the


railway companies is not to be determined


in day. They are powerful and unscru-
pulQus and must he met on the mart of the