Reference is often made to the experience of the United States
in regard to the supervision of railways as if it should be a
guide to us. There each State may legislate with reference to the
construction and regulation of its own railways. At first everything
was done to facilitate their construction. They were proceeded with
in advance of, or concurrently with, immigration and settlement.
Many States have made large grants of land to railway companies.
In some States a few individuals, from five upwards, may form
themselves into a railway company, and under general laws construct
railways between any two places, regardless of the wishes of others
and the considerations which here form the subject of Parliamentary
inquiry. No scale of maximum rates, as a rule, governs the charges
for conveyance; and great variations in them are in fact made. Only,
however, in recent times, when railways have become numerous and
their extension is not so urgently needed, have State Legislatures
interfered with their management.[93]
[93] The rates for “interstate” traffic in the United States are
not at present subject to any Government control, but are made at
the discretion of the companies to meet the requirements of trade,
competition by rail and water, and of cities. Two Bills for the
regulation of the interstate traffic of railways have recently been
before Congress; one, the “Reagan” Bill, which proposes to fix the
charges, to prohibit any discrimination, and to make it illegal for
railway companies “to combine or to pool” their receipts without
stringent provisions and penalties. The other Bill, entitled the
“Cullom” Bill, proposed the appointment of an Interstate Commission
consisting of five members, but did not provide for any specific or
maximum rates for the transportation of passengers or merchandise,
except that they should be reasonable and that there should be no
unfair discrimination; while laying down the principle that the
rates should be in proportion to the distance carried, it proposed
to give to the Commissioners power, in their discretion, to allow
lower rates to be charged for long, as compared with short distance
traffic. The former Bill passed the House of Representatives and was
rejected by the Senate; the “Cullom” Bill passed the Senate, and was
rejected by the House of Representatives.
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