of public works to the national council for an expression of opinion. The printed evidence sent to the council alone covers about 500 folio pages. The problem submitted by the minister to the national council was this: Giving due consideration to the financial condition and the financial interests of the State, is it conducive to the general economic interests of the country (1) to introduce special reduced rates for all kinds of manures and fertilizers, irrespective of their nature, and, if so, what rates? (2) to introduce special reductions, and to what extent, for the transportation of (a) potassium salts-without discrimination or only raw salts"-and phosphate; and (b) lime, in pieces or powdered, used for fertilization?

This was submitted in October, 1893. During March of that year the Herrenhaus had passed a resolution requesting the Government to introduce reduced special rates for fertilizers, a number of which were specified in the resolution. As stated in support of the resolution, the necessity for it lay in a cheapening of elementary utilities in order to maintain and promote agriculture and to increase the receipts of the railway from the traffic with the interior. The same resolution had previously been adopted by the budget commission of the Landtag.

In response to this resolution the minister of public works sought information from the minister of agriculture, domains, and forests, and all the different agricultural experiment stations as to the occurrence and production of natural and artificial manures in different parts of the country, their price and value in use, and the nature of their application. Various commissions reported on the prices at which different fertilizers could be profitably used on different soils. The agricultural authorities showed where and to what extent these soils existed, and elaborate statistics of the railways and manufacturers told how much had actually been consumed. In this lay the vital issue-the capacity of the land to absorb profitably artificial manures, and the adaptability of the farmer to secure them. The national council said that a simple expression of its appreciation of the great economic significance of the use of both natural and artificial manures was not sufficient, but that an exact and conscientious examination of the effect of existing rates on the widest and most effective use of these was necessary. The deliberations of the committee of shippers, the tariff commission, the general conference, and the evidence submitted through the minister of public work were all thoroughly sifted by the standing committee of the national council before the case went before the full council for its final verdict.

Marbles, slates, and pencils even have been the object of the most serious deliberations of bodies so large and so dignified as the general conference and the national council. A memorial was addressed to one of the railway directories by the marbles, slate, and pencil industry of Thuringia, praying for a detariffization of these articles. The memorial gives a detailed account of the manufacture of marbles, slates, and pencils in Thuringia, and points out the places where it meets competition. It gives the cost of production, output, markets, prices, and the rates of transportation. The conditions of the laboring population are described, and the probable effect of a change in rates on their welfare is analyzed. (One may be pardoned for turning aside to state that the laborers there engaged in the manufacture of slates, although exposed to the danger of completely undermining their health, receive often no more than 12 cents for a day's work of 18 hours.) The railway directory to which the memorial was sent addressed a letter of inquiry to the manufacturer of slates and pencils in Westphalia, whose business would be affected by the competition of Thuringia, calling for information on various points relating to this industry. This reply, together with the memorial and supplementary material, was submitted, through the minister of public works, to the national council.

One can not read these documents without being impressed with the sincere desire of the railway authorities to do justice to all competitors and at the same time to make such changes as will better the conditions of people like these laborers in Thuringia. Whether or not the benefits arising from a change in rates would really accrue to these people was most carefully considered. The material submitted for consideration in deciding this question, as in case of the preceding questions, furnished evidence on every point which was raised. The moderation with which the petitions are drafted, the high plane upon which the debates are carried on, the thorough conscientious and judicial mindedness with which the arguments are balanced in reaching a decision, all manifest a tone not unlike that of the decisions of our best courts of justice.

Summary and remarks.—Prussia began with a general law. In this respect her history is the direct opposite of that of our States. Treating this general law as a nucleus, legislation, royal and ministerial orders and rescripts, and custom have developed two distinct groups of railway administrative organs, each representing distinct sets of interests, yet both working cooperatively. On the one hand

we have a group of organs which represents railway interests in particular and which takes the railway point of view. The minister of public works, the railway directories, the general conference and tariff commission, and the Society of German Railways fall into this group, although the two latter stand in a measure on the border line, and of them are none confined exclusively to railway interests. Legal responsibility is fixed in the first two. On the other hand, we have the national and circuit councils with their standing committees and the committee of shippers. These primarily take the social and economic point of view. They are not legally responsible for the conduct of the railways, but act as advisory bodies. They represent all the different interests of the nation, and through them every citizen has not only an opportunity but a right to make his wants known. The marble and slate industry of Thuringen is relatively insignificant, yet of vital importance to the inhabitants of that section of the country. We have seen how complete an examination the petition of these people received at the hands of the highest authorities of the land. A fair and prompt hearing can be denied to no man, rich or poor. The railways are made real servants. All the administrative, legal, and advisory bodies are organically connected with one another and with the Parliament. The lines may be drawn taut from above aš well as from below. The elaborate system of local offices makes the system democratic, and the cabinet office and the directories give it the necessary centralization. The system presents that unity which a great business requires, on the one hand; and, on the other, that ramification and elasticity which the diverse and manifold interests of a great nation need for their growth and expansion.

In the formation of the councils the elective and the appointive elements are so well proportioned that it is impossible to "pack" any one of them. In this respect each body is a check on the other. It is easy to reproach the system with bureaucracy," but to give adequate support to such a stigma would be an impossible task. We need only recall the analysis of the membership of one of the councils. Farmers, dairymen, fishermen, foresters, traders, miners, manufacturers—the long array of human professions have here their representatives. One representative may shape his views according to some particular philosophy of the State. Another will at once restore the balance by presenting the opposite. One member may make extreme statements about some branch of trade or industry. Another will furnish exact information for its refutation. I doubt whether we can find anywhere in the world deliberative or administrative bodies in which the tone and the many sidedness of the proceedings, the amount and variety of special knowledge displayed, and the logic of the debates present more points of excellence than in these councils and other bodies.

If from the point of view of the railways nothing should come of these proceedings-a most violent assumption-the information brought together would alone make them invaluable. No investigating committee of Congress or legislature ever had a better array of talent in every field at its disposal and under its control as is found in one of these councils or commissions.

It is not my purpose here to present new schemes, or to suggest ways and means by which existing institutions of our own country might be modified to perform similar functions. But let me ask whether, if our coal and iron industry, or fruit and cattle raising, or any other industry, were to receive an examination like that given to the Rhenish coal and coke industry, many things might not be different from what they now are? Imagine a well-organized assembly whose members could speak for the railways, for wheat and cattle, for fruit and steel, for forests and for mines, and is it not probable that the effects anticipated in the circular letter of 1875 would make themselves felt also in the United States? Both our railways and the public have repeatedly gone to extremes because neither understood the other. A system like the Prussian reveals the railways to the public and the public to the railways. It tends to remove blind prejudice and violent measures on both sides. By reflecting accurately the existing conditions, these conferences lead to tolerance, forbearance, and mutual concessions. The conclusions reached often have as salutary an effect on industrial situations as suspended judgments of our courts on defendants. It would be difficult to find in Prussia to-day, among the representatives of any class or interest, objections to the entire railway system which are not relatively insignificant. Both the public and the railways have gained more and more as the system has developed.

It will doubtless have been noticed that in the discussion of the council proceedings the decisions and their effect were not stated. It was my purpose simply to show the nature of the councils, and either a negative or an affirmative vote would throw no additional light on the problem. Without a full presentation of local details it could mean little to state that the council voted to place sweepings into the special tariff with fertilizers.

PART VII.-VIEWS AND OPINIONS OF RAILWAY MEN.

Among the questions contained in letters sent out to railway presidents and other officers were the following:

What, in your judgment, are the elements of strength and of weakness in American railway charters?

What provisions should a model railway charter of the future contain?" In most instances these letters were answered by the officers addressed. In a number of cases they were referred for reply to counsellors or other officers.

The extracts given below are representative of the replies received. As a class the railways represented belong to the important systems of the continent. It is probable that nothing of vital importance touched upon in any letter received is not reflected in the expressions quoted below.

“In a general way, I should say that an important point would be gained if all railroad charters were issued under general laws instead of specific legislation for each charter, and uniformity between laws of the States be brought out as far as practicable. This would avoid the creeping in of many faults which get out under special legislation."

W. G. RAOUL,

President The Mexican Nat. R. R. Co.

"In my judgment, there should be some provision in each State that would make it impossible for speculative roads to be built. By speculative I mean that class of roads that are organized for the purpose of crippling an already existing road in the hope of so annoying the property already in the field that in self-defense they pay a good round price in order to get rid of a competitor when the original line is serving the public well and a paralel line would probably wreck the stronger line. I think it is the history of railroads that the weaker can pull down the stronger." W. J. CARPENTER,

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President Chicago and Eastern Illinois Railroad Company.

"Personally, I believe that the time has come when future railroads should be built under the supervision and control of some State board, and that the laws should be such that they could not be overcapitalized and no roads should be built to parallel another road already in existence, unless it could be proven that the business in the territory through which the new road was to run was sufficient to justify and make a paying investment on a legitimate amount of capital invested." R. S. KAYLOR, Commissioner of Railroads and Telegraphs, Ohio.

"The general incorporation laws of this State seem to be fairly well adapted to our condition and situation, and, while affording ample protection to the interests of the State, they are sufficiently liberal to encourage the organization and successful operation of railway companies.

"Under the constitutions of this State railway companies are subject to legislative control."

THOMAS BURKE, Counsellor, Seattle, Wash.

"All railroads in the State are operated and controlled under the provisions of a general railroad law. No special charters have been granted railroad companies

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since 1865, the constitution of the State prohibiting special legislation of any character. There are 2 or 3 charters granted prior to 1865, and which are still in existence, but the companies comply with the provisions of general law. The operation and control of railroads of this State are satisfactory, and there seems to be no good reason for changing the present status regarding these matters.”

If it be intended to effect an improvement in the incorporation acts of the individual States, I can think of no greater improvement than a uniformity of such laws in all the States, so that a corporation would not come under different laws at the crossing of every State line."

"I am frank to say, however, that I believe the best thing possible for owners of railway enterprises—and hence for their property—as well as the best for the people at large will never have been done until all the great lines doing a through business shall have come under the control substantially of a single organization, for until then there will always be bickerings, jealousies, rate cuttings, rebates, and drawbacks of all kinds and unjust discriminations in favor of particular patrons, and a host of other evils too numerous to mention. Under one organization, which would mean one broad general policy, the charging of greater rates for a short than for a long haul would not be, as it were, a necessity of the situation, excepting perhaps where the road came into direct competition with water lines; everybody would be charged the same price for the same transportation, and the saving in the expense of management would be enormous. I believe that $100,000,000 would hardly pay the additional expense entailed by the expenditures made in New York for railroad offices, employees, etc., which are made necessary under the present system in order to solicit and compete for business for the different railroads, involving an enormous aggregate for rebates, and an enormous loss on account of rate cutting, which does not help the public at large, but is wasted in incipient and constant warfare. As it is to-day, a man who has 10 carloads of freight to ship will be sought by probably 20 men on the average from different railroad offices, who in their scramble for the business are almost sur to cut the rate to the disadvantage and detriment of the vast body of shippers— especially the smaller ones-who should by right have precisely the same privileges and opportunities that fall to the lot of some favored man who has large enough shipments to make and to attract the cupidity of the various carriers." C. P. HUNTINGTON, President Southern Pacific Railway Company.

Answering your letter of July 11, we have to say that railroad companies are organized in this State under the general incorporation laws of the State. No special charters are permitted by the constitution of the State. By the terms of the constitution the legislature reserves the right to regulate railway transportation and to prescribe reasonable maximum rates which transportation companies should charge for freight and passengers. The constitution. also gives the legislature power to require by law that railway companies shall interchange cars and transport products in bulk from one point in the State to another point in the State. The legislature, however, has not passed any law to make this provision of the constitution effective. The only fiscal limitation on railway corporations in this State is that they should not issue bonds to more than twice their capital stock.

Foreign corporations have the same rights in this State as local corporations, upon complying with the law which requires a foreign corporation to file its articles and appoint an agent upon whom service of process can be made. * * We think that a defect which should be corrected in all railway law now existing is the want of uniformity. Modern railways are the means of carrying on interstate commerce, whether the physical property be located within one State or more than one. Any State legislation which assumes to affect transportation within the boundaries of a State necessarily has its effect upon interstate business. For this reason we do not think it would be any stretch of the spirit of the Constitution of the United States to place the whole transportation business of the country under a Federal law which would be uniform throughout the

country and would exclude local legislation by the several States. Such a uniform law providing for uniform regulation and control by a commission having judicial powers would in our judgment go far toward relieving transportation companies of many of their difficulties, and at the same time giving better service to the public. Under authority of such commission competition and pooling could be controlled, better service given to the public and at cheaper rates, while the stockholders would receive more regular dividends, and would be protected against wild-cat financiering." CROWLEY & GROSSCUP, Counselors, Tacoma, Wash.

"Under present conditions in the United States, the issuance of charters by each State is, it seems to me, pernicious in its results. The laws of the different States vary considerably, but in the most of them a charter can be secured for a small fee. This, in my judgment, has resulted in many blackmailing schemes, and has probably resulted in more railroad bankruptcies in this country than from all other causes combined.

"In my opinion charters should only be issued by the Federal Government, except for street railways and such enterprises as are known to be absolutely local in their sphere of operations. To accomplish this result will, no doubt, be very difficult while the doctrine of State rights is so firmly held by many people.

"This, it seems to me, ought not to stand in the way of a discussion of what ought to be accomplished. My view is that a commission, the members of which are appointed on the same basis as the members of the United States court, should constitute a body before which all applications for railway charters should be laid. This commission should be nonpolitical in its character, and composed of civil engineers, lawyers, and men of business qualifications, limited to say 5 in number, and charters for railroads should only be issued on the recommendation of this commission followed by legislative enactments.

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'Some new method for the issuance of charters is certainly very necessary, only in the interests of investors, but also in the interests of the people, as the present practice has resulted in the building of many cheap and unnecessary railways, which have much increased the expense of transportation over what it would have been had the railways constructed been built on strict requirements, necessary attention having been given to securing a line of the least expense in operation, which, in most cases, has been grossly disregarded. The result is that the people have to support these railways, improperly built, and therefore incur an enormous tax which might have been avoided under judicious governmental supervision.” A. A. ROBINSON, President Mexican Central Railway Company.

"I think the only addition I would make to what he (Mr. E. W. Meddaughsee next quotation) suggests is that the charter should provide somewhat in detail as to the character of the road that should be built; in other words, should specify the alignment, curvature, width of embankments, maximum gradients, character of masonry, bridges, number of ties per mile, weight of rail, and character of crossings over highways, whether level, overhead or subways, and the same as to intersections of other railway lines, all of which should be in accord with the specifications prescribed by the board of railroad commissioners for the State, or other board vested with such authority. This would prevent, more than any other provision that could be enacted, the building of superfluous and unnecessary lines not demanded by public necessity, but built for purposes of speculation and blackmail-something which has in the past prevailed to a great extent and which is responsible for the competition and unremunerative rates prevailing on many of the railways of the United States."

"The elements of weakness' in American railway charters are more numerous than the elements of strength.' Very few special charters have been granted within the last thirty years. Railway corporations which have come into being within that period have been organized under general incorporation acts, and are