those of corporations. A commission may err, but its errors are
not likely to prove as detrimental to the railroad companies as the
extortionate and discriminating rates imposed by railroad managers have
proved to the interests of the public. Railroad managers acknowledge no
obligation except that of earning dividends for their companies, while
the members of a railroad commission, on the contrary, are responsible
for their acts to the people, with us the source of all government and
all power. To question the justice and sincerity of the people, or to
deny the efficacy of such a control, is to deny the wisdom of popular
government.
Railroads might be permitted to reduce their rates below the official
tariff, but they should be required to give at least thirty days' notice
of such a change, to enable shippers to prepare for it. The companies
should not be permitted, however, to raise rates again without obtaining
the commissioners' consent and giving at least two months' notice of the
proposed advance. Sudden fluctuations in rates are a fruitful source of
disaster in those branches of business in which the cost of
transportation forms an important factor in the price of commodities,
and are as unjust and unwarrantable as would be fluctuations in import
duties. As long as they are tolerated there can be no reliable basis for
business calculations or contracts. There is little doubt that, were
such regulations enforced, railroad wars, so demoralizing to the
business of the country, would soon belong to the things of the past,
and a far-reaching assurance of future welfare would be given to the
commercial, manufacturing and all other legitimate interests of the
country. It should always be kept in view by the rate-making power that
the railroad company, like the gas company, the water company and the
street car company, is acting in the capacity of a public agent, and the
rate of compensation should be fixed by public authority.
CHAPTER XIV.
REMEDIES.
The railroad in America is still in its infancy, both as regards extent
of mileage and methods of operation. In 1860 the United States had in
round numbers 30,000 miles of road; in 1870 this number had increased to
53,000; in 1880 to 93,000, and in 1890 to 167,000. It will thus be seen
that the average increase during each of those three decades was nearly
80 per cent. Should this rate of increase continue during the next three
decades there would be in the pr
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