BAIL WAY MALADJUSTMENTS. 375 



couragement to persons who construct railroads without regard 

 to public wants for speculation merely, and then so manipulate 

 them as to compel old companies to purchase and operate the new 

 lines in order to save losses on the old, which can not be done 

 without additional cost to the people. 



If we would restore harmonious relations between the rail- 

 roads, we must repeal the laws which are more favorable to those 

 who build than to those who operate them ; and by such repeal 

 the construction of railroads for purposes of blackmail and specu- 

 lation will be made impossible, and the occupation of dishonest 

 construction companies will be gone. 



Is it not evident that to prevent ruinous competition and ad- 

 verse legislation of which the railroads complain, and to avoid the 

 discrimination, pools, and combines of which the public complain, 

 we must close the throttle- valve and apply the brakes, and, by 

 repealing, arrest the operation of those laws which have led to 

 undue and premature railway construction ; and, as population in- 

 creases, existing railway systems will be more fully employed, and 

 new systems will be extended only on their merits ? Under such 

 conditions disturbances will become less and less marked, pulsa- 

 tions less and less severe, and a stable equilibrium will be speedily 

 restored. 



An analysis of the testimony presented to the United States 

 Senate Committee on Interstate Commerce, which entered upon 

 its investigation after the above article was in type, fully con- 

 firms the position assumed. Mr. Fink stated to the committee 

 that there were too many roads, and that, if the Grand Trunk and 

 a half-dozen other lines did not exist, the public would be as well 

 served as now. It was generally acknowledged that the law was 

 not fully observed, and Mr. Depew did not hesitate to state that 

 it never would be unless pools were legalized. 



With few exceptions the railroad managers asked for the abro- 

 gation or modification of the anti-pooling and long and short haul 

 clauses, which led Mr. Herrick, of the New York Produce Ex- 

 change, to remark, that " it seemed as if the railroads wanted to 

 abrogate just what the public demanded should be enforced." 

 Mr. Depew admitted that the law has prevented the building of 

 useless roads, and that the condition of the railroads had im- 

 proved, but not so much as would have been the case had they 

 been permitted to pool. He said, " The law has proved beneficent 

 to the public at the expense of the railroads " ; but with legalized 

 pools the converse might be stated, for they would improve the 

 position of the railroads at the expense of the public. 



Mr. John D. Kenna, ex-railroad commissioner and attorney 

 for the Produce Exchange, insisted that the Interstate Commerce 



