pital whatever
that has gone into the road. It is probable that not to exceed ten cents
on the dollar upon an average was originally paid for these stocks, and
the $80,000,000 distributed annually as dividends upon them does not
vary much from fifteen to twenty-five per cent. upon the amount actually
invested in them.

CHAPTER VII.

COMBINATIONS.

It is the favorite argument of railroad men, and the writer must confess
that he himself formerly believed, that if all legal restraints were
removed from railroad business, the laws of trade would regulate it more
successfully and more satisfactorily, both to the railroad companies and
their patrons, than the wisest statutes could ever regulate it. To give
force to their argument, they cite the old Democratic maxim that that
State is governed best which is ruled the least. They also assert that
it is the province of the State to guarantee to each of its citizens
industrial freedom; to permit him to transact any legitimate business
according to his best judgment; to buy and to sell where and at what
price he pleases; in short, to earn without restriction the reward of
his intelligence and his industry. They further contend that under a
free government the law of supply and demand should be allowed free
sway, and that he who buys or sells transportation should not be
hampered in his transactions any more than the grocer and his customer.

The reply to this is that, while the grocer is a natural person, the
railroad company is an artificial person, and that, while the business
of the former is purely private, that of the latter is quasi-public. The
grocer must rely solely upon his personal rights and private resources,
but the railroad company accepts from the State the franchises which
enable it to do business. And yet, if the public had any assurance that
the laws of trade would regulate both kinds of business alike, it is
not likely that the State would distinguish between the two. They claim
that their business is like other private business, and therefore they
should be let alone; that competition can be relied upon to correct
abuses; and where competition does actually exist they forget, and then
claim that their business is not like other private business, and they
should be allowed to make pools and combinations, because in their
business competition is ruinous. Experience has certainly demonstrated
that competition is only possible where combination is impos