12
THE OMAHA DAILY REE: SATURDAY. MARCT1 11, 1905.
ROOSEVELT' POLICY UPIIELD
Ix-QoTernct Larrabw Strongly Endorse!
tffectiTe Eailway Eegulation.
STATISTICS BEARING ON THE SUBJECT
hlnera at lh Mercy at Rat Manly
alaors-Abases Complained of
Wlthaat Avail W Cea
catlea Involved.
Hun. William Larrabee, former governor
ef Iowa, writes to the Boston Transcript
tronaly Indorsing President Roosevelt's de
mand for railway rate regulation by the
national aovernment Mr. Larrabees paper
Is a convincing contribution to the discus
sion, and Is as follows:
The experience of the people of the United
States In connection with the transporta
tlon business has not been widely different
from that of other nations even from the
remotest periods of which we have any
knowledge. The abuses of which we now
complain are not new, but are practically
like those that have had to be contended
with In all ages of the past.
The necessity for uniform system of
commercial regulations between the states
was one of the most potent factors that
led to the formation and adoption of our
federal constitution. The founders well
understood thst Industrial and commercial
liberty were as essential as political lib
erty, and they saw clearly the necessity for
regulating commerce among the several
states, and so lodged this exc.uslve power
In the supreme legislative authority of the
United Btates.
Sources of the Granarer Uiri.
During the early years of the govern
ment's existence it was hardly necessary
to Interfere with the ondi-ct of common
carriers engaged In Interstate transporta
tion, but In vm the first act .gulat;ng
railroad traffic between ths states was
passed. Great activity In. railroad con
struction commenced about that time, and
many combinations also were effected.
Abuses kept pace with the growth of the
combinations, and in the west led to the
granger movement, the principal object of
which was to do away with discriminating
tariffs which so unjustly affected local
points.
,The grange laws were denounced se
verely by railroad managers as crude, In
tensely radical and socialistic, claiming
that their business was private business,
that the stats had no right to prescribe
rates, and they refused to be obedient to
these laws. They became more arrogant
than ever, and practised their discrimina
tion defiantly. They attacked the laws
savagely In the United States courts, and
attempted to have them stamped with the
brand of anarchy, but In this effort they
entirely failed. The cases were ably pre
sented, and this highest legal tribunal of
the United Btates sustained the granger
laws, holding that rate making was a
. legislative function and not Judicial, and
that It was within the province of the state
legislature to prescribe rates for transpor
tation! and that for protection against
abuses by legislatures, resort must be had
to toe polls and not to the courts. The de
cision was eminently sound, as the court
was composed at that time of lawyers who
I had been selected entirely on account of
their great ability and Integrity, and with
out any reference to their opinions on these
, Questions. This point blank Judicial deci
sion, declaring boldly that railroads are
highways, and as such are subject to legis
- latlve control, was a great achievement for
the people, and demonstrated their ability
to correct great public abuses. Since that
decision, railroad manipulators have made
great efforts to secure the appointment of
, Judges of ths United States courts, who
hold opinions more In harmony with their
own. There Is really no more reason for
permitting the courts to Interfere with
legislative rates for transportation than
there Is for their interfering with leglsla-
tlve rate of Interests on money. Neither
Is ever likely to be abused.
r No legislature would ever fix rates un
reasonably low, as the necessity for good
', service is thoroughly appreciated by the
, people and by legislators, and they can be
safely trusted In this as well aa in other
matters. It is hard to understand why a
few men called Judges are more to be
j trusted than the same number called com-
i tnlssloners or than a greater number called
legislator.
' . .
. . How Pooling; Arose.
. When the granger contest was going on
at that time In the west a new evil devel
oped In the east. Railroad managers
. learned the art or rather the conspiracy of
r- pooling by which they could maintain high
rateu at competitive points. It proved so
efficient that It soon extended its dominion
over the entire country.
Under this arrangement the Incomes of
the railroads Increased at a rapid rate.
The ribute levied on the commerce of
the country became so burdensoms that
the patience 'of the people became ex
hausted, and after several years of agita
tion their demand led to the appointment
Of a select committee by the United States
senate known as the Cullora committee,
to investigate and report upon the subject
of the regulation of transportation between
the several states by railroad.
The committee made a thorough and ex
haustive examination and submitted its
report to the senate in January, 188. Con
cerning the abuses of railroad transporta
tion It differed but little from the report
Of the Windom, committee which went
ever the same grounds a few years before.
The report contained an extensive enum
eration of the evils and closed with the
statement that the management of the
railroad business was extravagant and
wasteful, and that a needless tax was Im
posed upon the public
Comaaeroo Commission Formed,
The report was accompanied by a bill
representing the substantially unanimous
Judgment of the committee as to the regu
lations which were believed to be expedient
and necessary. The bill was before con
gress for more than a year, receiving sev
eral Important amendments, when it was
passed and approved by the president Feb
ruary t, 1837 It was amended in March,
138s, but its principal provisions were not
materially affected.
Dire predictions were mads by railroad
i manager and manipulators as to what
would follow aa the result of this enact-
t aaetit, and the editorial columns of their
newspaper organs were for months filled
' with doleful prognostications of the dlsas-
tars which would come to railroad property,
the Injustice to Its owners and misfortunes
that would come to the people at large,
and especially did they bewail the losses
that would fall upon the widows and or
phans who had confidingly invested all of
their hard earnings in this property. It
la Interesting and amusing now to go back
and read their dismal forecast of the calam
ities with which the people were soon to
be overwhelmed en account of this ill
advised and socialistic) action of congress.
It Is unnecessary to add that their
lugubrious stories had no more weight with
Intelligent people then than their thread
bare arguments, urged against the proposi
tion to Increase the powers cf the Inter
state Commerce commission do now, and
that none Of their predictions ever proved
true.
Rate-riilus Power Destroyed.
Tb reasonable and conscientious railroad
managers welcomed this law and gave It
their support, and for several years the
. most beneficial effects resulted. It could
aet be expected that any law, however
wise, could In the space of a few years cor
rect all of the abuses which half a century
of unbridled license had developed. But
many abuses were corrected by the com
mission. Reasonable rates had been es
tablished In place of unreasonable rates,
and potential service was rendered by re
straining injustice and enforcing reasonable
charges and equal treatment to patrons.
It was thoroughly understood that It was
the intention of the lawmakers to give
the commission power, after a full hearing,
and if the facts Justified, to declare a rate
wrong and decide what rate would be right.
It was so understood by the commission
and It exercised this power for about ten
years without being questioned in over 400
cases heard during that time, and until the
supreme court decided In 1897 that such
power had not been conferred In the act.
It should be noticed that the court did not
decide that congress could not confer such
power upon the commission, but only that
It had not done so In the- act The su
preme court has frequently decided that
such power could be conferred on a commis
sion. Before that decision of the supreme court
the commission had frequently reported
to congress proposed amendments to the
law, to make It more efficient, and after
this decision It notified congress at once
that It was powerless to accomplish the
purposes for which the commission was es
tablished. Notwithstanding this had been
repeated from year to year in their annual
reports, congress failed to respond to the
request Meanwhile the situation became
Intolerable, and the old evils developed
again with marvelous rapidity. Railroad
manipulators and stock Jobbers saw rich
harvests In store for them and they were
In high glee to find that there was no
tribunal or power In existence to restrain
them from practically charging any rate
that they saw fit to charge whether It was
reasonable or unreasonable.
Frelarnt Rates Increased.
The carriers commenced very soon to
make substantial and In many cases very
large Increases In their scale of charges
and adnrcs of rates were made on hun
dreds of articles, many of which were
necessaries and In general use. These ad
vances were made without opportunities
for shippers, dealers or consumers to be
heard. The Incomes of the roads Increased
rapidly from year to year not only on ac
count of Increased business, but on account
of this increase of rates.
The first year in which the Interstate
commerce law was In force, ending June 80,
18S8. the mileage of the United States as
shown by Poor's Manual was 154,276 miles,
and the gross earnings were $960,266,270.
This income afforded ample remuneration
for the capital Invested and for the expense
of maintaining and .operating the roads.
Mr. Poor, who has long been considered
high authority and always partial to rail
roads, estimated, that the average cost of
ths railroads was $30,000 per mile, and he
stated that with the water, which was more
than 50 per cent of the amount, taken out
of their- securities, no better paying invest
ment could be found In this country.
It Is Important to notice with care the
movements of the business from that time
tinder the interstate commerce law, up to
the decision of the supreme court in 1897,
and from that date to 1904:
Flarures that Talk.
The mileage was in 1888 154,278 mites
In 1897 184,428 miles
In 1904 209,002 miles
An Increase In nine years from
1888 tp 1897 of 30,152 miles
In sevn years from 1S97 to 1904 24,574 miles
The gross earnings in 1888 were..! 9ij0.25ti.270
In 1897 1.122,089,773
In 1904 .' l,9ti),633.821
The net earnings in 1888 were.... 801.631.051
In 1S97 369.585,009
In 1904 634,250,873
The Increase In mileage In nine years
from 1888 to 1897 was 19.5 per cent, and for
seven years from 1897 to 1904 was 13.2 per
cent The Increase In gross earnings in
nine years from 1888 to 1897 wss 118 per
cent, and In seven years from 1S97 to 1904
was 75.3 per cent. The increase In net
earnings In 1897 over 1888 was 22.5 per
cent and in 1904 over 1897 71.6 per cent The
Increase in gross earnings in 1904 over 1888
was 114.8 per cent, the Increase of net
earnings in 1904 over 1888 was 110.2 per
cent, and the increase of mileage in 1904
over 1888 was only S5.4 per cent. This
makes the remarkable showing that from
1888 to 1897 the mileage had Increased 19.6
per cent gross earnings 16.8 per cent and
net earnings 22.6 per cent In nine years,'
while after the decision of the supreme
court In 1897, the increase was in seven
years to 1904 in mileage only 13.2 per cent
but gross earnings 7S.2 per cent and net
earnings 71.6 per cent.
Comparisons of the business of a few
of the companies of the year 1897 with 1904,
will Illustrate well the marvelous Increase
in railroad ernlngs:
St Paul 1897. 1904.
Gross earnings $30,486,769 $48,330,335
Net earning 11.909,228 16,463,746
North western
Gross earnings 80,977,243 58,131,863
Net earnings 11,038,422 17,644,5u6
Illinois Central
Gross earnings 22,110,937 46,831,136
Net earnings 6,376.062 12,095,464
Pennsylvania
GrossearnlngS 64.223.113 122,626.419
Net earnings 20,147,778 85,922,330
Baltimore tc Ohio
Gross earnings 26.682,122 65,071,081
Net earnings 6,670,028 20,136,707
Southern Railway
Gross earnings 19.079,490 45.109,777
Net earnings 6.846.343 11.994.310
Southern Pacific
Gross earnings 48.871.909 92,933.231
Net earning 17,195,969 9.9&0,645
Atchison
Grose earnings 30,621,230 68,171,r0()
Net earnings 7.764.041 24,033,031
A Rebattal Plea Attacked.
The ratio of Increase of lncomt was
greatly in. excess of the increase of mile
age. During this period large sums were
expended from their earnings in Improve
ments. For example, the Chicago, Milwau
kee & St. Paul expended $12,500,000 In this
way and reduced Its fixed charges by over
$1,500,000 per annum. These figures tell the
story of the effect of the Interstate Com
merce commission's being shorn of Its pow
ers more forcefully than language could
otherwise express.
Evidence of this kind could be multiplied
Indefinitely, all showing the enormous in
crease of this tax during recent years.
Railroad managers attempt to destroy the
force of this showing by calling attention to
the fact that there has been but a trifling
Increase In ths per ton per mile charge,
claiming that the increased Income is from
Increased tonnage and not from Increased
rates, but the fact Is that there Is great de
lusion and deception In this per ton per
mile average. Since 1897 there has been an
extraordinary Increase In low class freight
like cement, castings, coke, coal, brick,
lumber, iron, steel, ores, grain for export,
the product of the rolling mill and the like.
Many of these articles have been carried at
scarcely mere than half of the average, for
the total tonnage of the United States. The
result is that the rate per ton per mile may
show a decrease, and yet every rate in the
schedule may in fact have been advanced.
No one should be misled by this artful
sophistry. The fact Is that largely Increased
rates have been charged on leading neces
saries of life and generally .on articles of
high-class freight.
It Is claimed that the Increase of wages
and the cost cf material makes It necessary
In Increase the cost cf transportation, but
the facts are well known that the Improve
ments In machinery and Improved economic
methods, have greatly more than offset the
Inorease In wages and cost of material, and
that as the volume .of business Increases
the ratio of expense decreases.
A Real Bardea.
If there are good reasons for this constant
Inorease In the capitalisation of the rail
roads, and this constant Increase of rates
for transportation, congress should not in
terfere.. But Is It reasonable that this tax,
as It was correctly called in the Cullora
committee report In 1886, should be in
creased from year to year without giving
those who have to pay It any hearing or
voice In determining what It should be?
Banks are restricted as to rates of Interest
they may charge. Postal rates for carrying
mall and merchandise are fixed by law.
Rates of tail are fixed by law for ferries,
bridges, turnpikes, grain elevators, street
cars, cabs, water, gas and other publlo
utilities and all agree that It Is necessary.
When It is considered that this tax Is
levied upon nearly every article that is pro
duced or consumed, and more exacting and
far-reaching than any war tax ever had In
this country, and levied not by the au
thority of the government, but levied at the
command and under the direction of per
haps lees than a score of Irresponsible per
sons, who are self appointed for terms
without any limit as to time, and are not
under bonds and not even under oath to ob
serve the laws of the state or nation, and
that this tax amounted last year to $1,966,
633.321, or more than seven and a half times
the amount collected by the United States
government from customs, or nearly three
times as much as the total revenue received
by the United States government from all
sources for the same period of time, and
when we consider how thoroughly other
public charges are hedged sbout by care
ful restrictions and limitations, and with
what deliberation the amount to be col
lected is fixed-after thorough public discus
sion by sgents of the people, selected by
them to serve only for short periods, and
that they are under oath, and those who
collect and disburse the funds are under
oath and bonds for the faithful perform
ance of their duties. Is It not astonishing
that the congress of the United States
should permit this condition of things to
exist?
Tax laws of the United States are not
changed even in a slight degree without
Investigation and months of discussion by
congress and after consulting with those
whose Interests are likely to be affected by
the change. It Is safe to say that were
all of the speeches printed In full that have
been made in congress in the discussion of
a single tariff bill, where the amount of
taxes Involved was not one-seventh part
of the amount of this tax, they would fill
from twenty to thirty volumes the size of
an unabridged dictionary. But this enor
mous tax can be and Is Increased ad lib
itum by this handful of men between two
days, and It Is continually done without
any consultation whatever with those who
are compelled to pay it, or without any con
sideration for their interests; but having
only In view their own Interests, without
any responsibility to the government, or to
anybody in any way, and without any
means of redress, however unjust or op
pressive the tax may be. It Is taxation
without representation.
Consolidations and combinations are go
ing on steadily and competition Is more
and more eliminated from the equation.
There Is no law or means to prevent the
total mileage of the country from falling
into the hands of one management. In
fact, Indications point to such results In
the near future.
Abases Complained of Wlthoat Avail.
Congressional committees and commis
sions have again and again reported sub
stantially the same list of abuses. Th4) In
terstate Commerce commission has every
year reported to congress the necessity for
having this law amended. Hundreds of peti
tions and memorials from state legislatures.
Industrial, commercial and manufacturing
organizations, granges, patrons of hus
bandry and others have been presented to
congress, asking to have restrictions put
upon this unlimited power of railroad man
agement Many attempts have been made to get
this matter acted upon. Bills have been In
troduced at various times and have been re
ferred to the committee of the two houses
of congress.
Exhaustive hearings upon some of these
bills were had during a former session and
as a result a substitute measure known as
the Elkins bill was promptly reported by
the committees of the house and of the
senate. Members fairly tumbled over each
other to vote for this measure, and it
passed almost unanimously. This bill In
creased the Income of the railroads from
$30,000,000 to $50,000,000 annually.
. No Compromise Ifeasore,
The Interstate commerce committees of
both the senate and the house have for
years been made up with a view of pre
venting such legislation as Is now pro
posed, and It can hardly be expected that
they will now frame a proper measure for
amending this law In accordance with the
recommendations of the president They
are more likely to rush through at the
present session a compromise measure. It
will be a great mistake and misfortune for
congress to do this. There will be no end
to the agitation of this subject until it Is
settled right The people ask nothing un
reasonable. This talk about confiscation
and injury to railroad property Is all non
sense and none but the Ignorant and un
sophisticated will believe a word of it. The
claim that there is an undue and unrea
sonable prejudice against railroad corpora
tions is without foundation. The prejudices
are entirely due to their disregard of the
rights and interests of the people. The
greatest danger to the Interest of the honest
Investor in railroad stocks comes from the
railroad manipulator and stock Jobber. They
rob the stockholder at one end of the line
and the patrons at the other. It is for
their Interests to have the road so man
aged as to cause great fluctuations In the
prices of their stocks to suit their con
venience. The Income of the railroads is secure,
staple and regular, and their stocks should
be as staple In value as the stocks of na
tional and other banks, and almost as the
bonds of states and of the United States.
They should be owned by the people gen
erally In all parts of the country and not
by a few persons, aa is now the case. With
proper management they would be a safe
and proper Investment and fill a much
needed want of the peopie, but now they
are unsafe and hazardous and much better
adapted to the use of stock gamblers than
for conservative Investors.
Evils of Fluctuating; Stocks.
The billions of dollars of railroad stocks
and of Industrial companies also are con
stantly fluctuating in price, and they af
ford to the masters of frenzied finance.
who largely control them, opportunities to
largely absord the Increasing wealth of the
natlpn. Never before in the history of the
country was the value of such enormous
aggregation or securities subject to the con
trol of so few persons.
The fluctuations In the price of these
stocks are well illustrated by the changes
ghren, by a few of them during the years
1694 and 1898:
In 1894, J89S.
PC P C
A., T. Santa Fe fluctuated 89 ' m
Baltimore ft Ohio 44 .4
Chicago Gret Western 10s 157
c m. ft st. Paul .!.;.!.;;,; 2 S
Chicago ft Northwestern s m
Illinois Central . ? X
Iowa central i
Ioulsvllle ft Nashville " 47 gj
28 88
25 42
91 174
64 59
M 97
296
N. T.. C. ft H. R...
Pennsylvania
Rock Island
Union Pad flo
Wa hash
United States Steel
Similar fluctuations oedUr In nearly In
of their slocks every year and oftentimes
greater. It will be readily seen that the
interests of the great stockholders are not
best served by a proper and conservative
management of the property. The tempta
tion to take advantage of these fluctuations
Is too great to be refused by the average
manager.
When one considers the great opportuni
ties that these men have for amassing
huge fortunes, the boldness with which
they Improve them, he no longer wonders
why they hover about congress, and fill
the ears of the members with stories of the
delicate and intricate nature of the raU
road business, and the necessity for great
caution and conservative action, and also
of the woe and disaster that will follow
if the impracticable and socialistic recom
mendations of the president are carried
out. Neither Is It strange that the average
congressman, who Is anxious to hold his
place and is familiar with the means which
these nen continually use to control mu
nicipal, state and national elections, dislike
to Incur their displeasure by antagonizing
their Interests. It Js much. easier to let
things remain In statu quo, to accept their
tips sugar ooated by the name of cour
tesies, than to take the chences of In
citing their opposition. Congressmen find
themselves in something of a dilemma.
They must either serve the Interests of the
railroad manipulators or the Interests of
their constituents.
Government Ownership !to Bnabear.
Congress must provide for efficient gov-J
ernment restrictions, or government owner
ship is Inevitable. Government ownership
is not the bugbear to intelligent people that
It was a few years ago. Those. who have
made a thorough and impartial examina
tion of the subject are surprised to find
that the objections to It are far less than
are generally supposed. Nearly all foreign
governments have adopted government
ownership of railroads to a greater or less
extent and their experience of many years
has proved It to be entirely practicable,
and upon the whole shows much better re
sults than private management
The service Is superior to that of private
management and is equal to the publlo de
mand. The state road Is kept in better
condition, the publlo safety, convenience
and general advantage being paramount
considerations. Rates are stable and uni
form, and all persons and places are as
equal before the railroad tax collector as
before any other law. Passenger fares are
lower, many of them are the lowest In the
world, and freight rates are lower than on
roads managed by prlvats companies. The
state expends from 20 to 30 per cent more
for maintenance of the road, and the rank
and file of employes fare on an average
better under government management than
they do under private management, and
yet the financial reports show much better
results from the government roads.
This will be denied by thoeewho are di
rectly of Indirectly Interested In the pres
ent system here, and by thoBe who have
but little knowledge of the subject but
no unbiased person can travel on the state
managed roads and have full knowledge
concerning them without coming to this
conclusion. In many countries the govern
ment roads do a large amount of gratuit
ous service for the state. Malls are car
ried free, troops and government stores
are transported and other service rendered
at nominal rates. Many millions of dollars
are annually saved to the state in this way
and in many cases large revenues are de
rived from them for the state. Rates are
based more on the cost of service than
upon what the traffic will bear, and the
ultimate object of the state's policy is not
high profits, but to give the best service
possible for the least money, while the aim
of the private company Is to get the largest
revenue possible. Railroad men have been
industrious and their organs have made
It a special feature to deny this, but it Is
entirely safe to say that if our government
would purchase the railroads at their orig
inal cost to the stockholders, or at a fair
valuation, they could be maintained and
operated by the government with a more
efficient service than we now have, at less
than one-half of their present income. Hun
dreds of millions of dollars would be an
nual., saved to the public by dispensing
with a horde of high-priced officials, by
abolishing the traffic organizations, local
officers, political henchmen, the pass bribe,
commissions and by the use of union de
pots, and by the use of shortest routes.
Objections to the Scheme Answered.
The aim of the government would be to
secure c honest capable and conscientious
employes, at reasonable salaries, whose ob
ject would always be to give the best pos
sible service. Officials would no longer be
selected at extravagant salaries, on account
of their ability to contrive ways and means
to Increase their receipts by violating and
evading the law, and by enforcing the pi
ratical rule of collecting what the trafiio
will bear.
It Is not to be denied that there are some
valid objections to government ownership.
Our early training and our prejudices are
all naturally against it, but upon the whole,
with a proper civil service In operatlor,
there Is no question but the advantages to
be gained by the publlo would by far out
weigh the disadvantages. Our people have
shown their ability to solve, in a reasonable
manner, every political and financial ques
tion yet presented to them, and it is likely
that they would be able to solve this prob
lem. Many object to this change on account of
financial reasons, but this is one of the
strongest arguments In Its favor. It would
be a fortunate thing if the railroad securi
ties could be exchanged for 3 per cent gov
ernment bonds, as it would furnish a much
needed Investment for people of small
means, for trust funds, savings banks and
a countless number of persons who desire
a safe investment even at a low rats of In
terest. Government ownership of the railroads
would be far preferable to railroad owner,
ship of the government It is the prevail
ing opinion among Intelligent right think
ing persons, west, east, north and south,
and agreed to by nearly all, except corpor
ation men and their servitors, that corpor
ation influence has become intolerable and
dangerously great. That .great abuses and
evils exist is admitted by all, except by the
privileged class that profits by them.
Stand by the President.
The question Is now, what is the remedy?
President Roosevelt answered this ques
tion in his usual clear and concise manner
In his annual message to congress last De
cember. He said; "In my Judgment the
most Important legislative act now needed
as regards the regulation of corporations
is that act to confer on the Interstate Com
merce commission the power to revise rates
and regulations, the revised rate to at once
go Into effect, and to stay In effect unless
and until the court of review reverses It."
Many bills have been Introduced to cover
the recommendations of the president Sev
eral of them. If enacted Into law, would
make the situation much worse than It la
under the present law.
The contest Is on, with the president
and the people on one side, and the rail
road managers and their camp followers
on the other. The greatest danger Is now,
not that no legislation upon this subject
will be enacted, but that an inefficient
half-way compromise measure will be
adopted. Such a result would be very un
fortunate for the country. The question
must be settled and it will not rest until
It Is settled right.
Sooner or later the government must
exercise full and complete control of the
railroads, and the sooner a beginning is
made in earnest to accomplish this the
better. It should clearly provide for the
management of this property In a way to
best serve public Interests snd not pri
vate purposes. It would be as reasonable
to permit postmasters and other publlo
officers to fix their own charges and fees
as to permit railroad managers to fix rates
of transportation. This Is the office of
the government and this power should
never bo delegated to private parties with
out careful restrictions and limitations.
The government should take early steps
to place a fair valuation on railroad prop
erty and fix a schedule of maximum rates.
In some countries provisions have been
made for railroads to become the property
of the state, after the expiration of a fixed
'period of time, verylng In length up to
100 yiara. Eventually it will be necessary
for our government to extinguish that
part of the capitalization of railroads
that now covers the value of the fran
chises, right-of-way and roadbeds. It Is
a mlsjudgment to suppose that the publlo
will be content to pay private persona for
these privileges for all time to come. Power
to levy unrestricted tribute on the com
merce of the country, to extend favors
to persons and monopolies, to give tips
to public officers, to make contributions
to campaign funds, to manipulate elections
and to practise kindred abuses must be
taken out of the hands of the privileged
class that now exercise it without restraint
The Constltatioaal Phase.
The right of congress to delegate Its leg
islative function to a commission to make
rates is not questioned. There Is no neces
sity for a court to revise the action of
the commission, and It is not required by
the constitution. Great stress Is placed
by corporation men upon a provision found
In an amendment to the constitution: "Nor
shall any person be deprived of life, lib
erty or property without due process of
law." A wrong meaning has been given
to this phase and a wrong application of
Its provisions have been made. In conse
quence of the great corporation Influence
In this country. A precise and satisfactory
definition of this phrase has not yet been
given by the highest tribunal of the United
States. An equivalent phrase, according to
a distinguished authority, is "law of the
land," and meaning the ancient and cus
tomary laws of the English people, protect
ing them against oppression by the crown,
and not protection against enactments of
Parliament
The fact should not be overlooked that
other provisions of ths constitution are
fully as Important and entitled to ruling
force, such as "And provide for the 00 m
mon defense and general welfare of the
United States," "To regulate commerce
among the several states." "To make all
laws which shall be necessary add proper
for carrying Into execution the foregoing
powers, and all other powers vestc.l by
this constitution In ths government of the
United States," "No state shall pass any
laws impairing the obligation of contract;"
yet congress has Itself passed laws Impair
ing the obligation of contracts without
their being ' considered conflscatorlal
or unconstitutional A noted case,
the making of greenbacks a legal tender.
Many others might be mentioned.
No Confiscation Involved.
Fixing a rats' to be charged for trans
portation, even If it was too low to se
cure the best service, would not be de
priving a person of property, any more
than the limiting of the rate of Interest
might in some cases deprive banks of
earning reasonable dividends, and this was
the Interpretation given in the original
opinion of the United States supreme court
in the celebrated Granger cases. The court
said: "We know that this is a power which
may, be abused, but this Is no argument
against its existence. For . protection ' of
abuses against legislatures, the people must
resort to the polls." To take away the
title to property, or In other words to
confiscate property, would be without due
process of law. The rule that the court
must be authorized to pass on the reason
ableness of every rate will lead to Inex
tricable confusion In the future. The rule
will be far safer to go back, and adhere
to the original decision of the court In the
Granger casks.
The highways of commerce must be open
to all on equal terms.
Mr. Hansbroulh And are owned by the
saloon keepers of Minnesota. Of counts we
have no control over the morals of Minne
sota. While the senate was laughing at this
colloquy, Mr.- Nelson resumed: "I do not
dispute, that question, but the facts remain,
whether it Is the ssloons of Minnesota or
whether It is certain citizens of Fargo.
They have what they call Jng wagons'
going across the river, a little narrow
stream, into Fargo, where they load up
their 'Jag wagons.' It Is a kind cf a hack
with a cover over It.
"Then they take them across the river
Into Minnesota to fill up, getting the whisky
for a good price and the ride free. Now
mark. What I am afraid of Is If they force
absolute prohibition within the limits of the
Indian Territory, a small country with
states all around it where there is not pro
hibition, there will be an army of 'Jng
wagons' all along the border bringing liquor
over the border Into this Indian Territory,
and prohibition will become aa absolutt
farce, an absolute failure."
At thlspolnt Senator Be veridge asked: "Ag
I understand It from the senator from Min
nesota, as explained by the senator from
North Dakota, the Industry of the con
stituents of the senator from Minnesota
supplies the thirst of the constituents of
the senator from North Dakota. Is that
It?" '
To some extent, I believe," replied Mr.
Nelson, and Mr. Hansbrough Interjected,
"I will say to the senator that we have a
very large population In North Dakota that
came originally from Indiana."
There was more laughter at this sally,
and the "Jag" debate closed with this from
Mr. Beverldge: "Mr. President I have al
ways had a predilection for North Dakota
,ind I now find the reason. I find the rea
son Is, among others. It has sent such ad
mirable representatives to this body, and I
am thankful to the senator for calling my
attention to the great element of Its popu
lation." '
7r
saaaacBBMSsosaasMiBasssHMMnaUrUBassM
15
I
4 -
a 5i
NORTH DAKOTA JAGS SIZED UP
Senators Hsnibrongh and Nelson Tell
How They Are Ac
quired. How "Jags" are acquired In North Da
kota, a prohibition state, was explained In
the United States senate last Tuesday aft
ernoon by Senator Knute Nelson of Minne
sota.' His Information was Imparted to
his colleagues during the debate on the
statehood bill and received the close atten
tion of the dignified wearers of the toga.
In the midst of his speech Mr. Nelson
Aald:
"Suppose you had put In a provision mak
ing prohibition either for twenty-five years
or perpetual In the Indian Territory? What
Is the result? On the west side of that
line in what is called Oklahoma Territory
prohibition will not prevail. All around the
confines of this little territory that we call
the Indian Territory prohibition does not
prevail, and what will be the result? The
result will be, as a matter of fact in spite
of all legislation, there will be a line of
what we call out west 'blind pits,' scattered
all along the borders of the four sides of
this territory, where the Indians by a little
Journey can get all the liquor they want
"I see my friend from North Dakota (Mr.
Hansbrough) here, and he will pardon me
for calling attention to one fact In connec
tion with It which Illustrates It I do not
say It to criticise his own state. His own
state Is prohibition. Right on the Red
River of the North are two large towns,
especially Fargo, In North Dakota, beauti
ful towns, the metropolis of the population
and wealth of this fine and growing state.
Right across the river Is Moorhead, in the
state of Minnesota. Now, I have noticed
when I have been up In that country that
they have been running free busses from
Fargo, the prohibition side, over across
that little narrow Red river to Moorhead
to get their drinks. Is that not correotT"
Mr. Hansbrougfr-My Information is that
the ' carriages or 'busses frequently ars
termed "Jag wagons."
Mr. Nelson Jag wagons, that Is correct.
From the Carve Dastara f tb Mama atatrasalltaa
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