But the final test of their success is yet to come. They have laid down a few principles as to the cases when competition justifies through rates lower than those at intermediate points. But the application of these principles is as yet far from settled; and it is rendered doubly hard by the clause against pools, which does much to hamper the roads in any attempt to secure common action on the matter of through rates. Each ill-judged piece of State legislation, and each reckless attempt to attack railroad profits, increases the difficulty. There was a time when the powers of railroad managers were developed without corresponding responsibility. In many parts of the country we are now going to the other extreme--increasing the responsibility of railroad authorities toward shipper and employees, State law and national commission, and at the same time striving to restrict their powers to the utmost. Such a policy cannot be continued indefinitely without a disastrous effect upon railroad service, and, indirectly, upon the business of the country as a whole. FOOTNOTES: [28] In 1886 the capital stock and the indebtedness of the railroads of the United States amounted to about four thousand million dollars each. Most of the debt represents money actually paid in; but a very large fraction of the stock is a merely nominal liability on which no payments have been made. Some was issued as here described merely as a means of keeping control of the property; some, as the easiest method of balancing unequal values in reorganization; some, to represent increased value of the property, so as to be able to divide all the current earnings without calling public attention too prominently to the very profitable character of the business. On the other hand, some stock on which money was actually paid has been wiped out of existence; and something has been paid out of earnings for capital account without corresponding issue of securities. The net amount of "water," or excess of nominal liabilities over actual investments, in the capital account of the railroads of the country can only be made the subject of guesswork. Estimates of responsible authorities vary all the way from nothing to $4,000,000,000. [29] See following article on "The Prevention of Railway Strikes." [30] See "The Freight-car Service," page 287. THE PREVENTION OF RAILWAY STRIKES.[31] BY CHARLES FRANCIS ADAMS.