The Railroad War.

of exclusive federal jurisdiction, and only congress could legislate on the subject with any effect beyond state lines.

The power of congress over the whole subject can hardly be questioned. The supreme court of Illinois concedes it, and the decisions of the supreme court of the United States seem to render it indisputable.

In Hall vs. De Cuir (95 U. S. R., 488), Chief Justice Waite, in a full discussion of the subject, and citing many authorities, says:

"We think it may safely be said that the state legislation which seeks to impose a direct burden upon interstate commerce, or to interfere direct with its freedom, does encroach upon the exclusive power of congress." Judge Clifford, delivering a concurring opinion (p. 491), says: "Power to regulate commerce is by the constitution vested in congress; and it is well-settled law that the word "commerce," as used in 'the constitution, comprehends navigation, which extends to every species of commercial intercourse between the United States and foreign nations, and to all commerce with the general states, except such as is completely internal, and which does not extend to or affect the other states."

The universal use and absolute dependence of all inter-state commerce upon railroads give constant rise to new questions under new conditions, which only experience can properly solve. It would seem that true wisdom would hasten slowly in dealing with this great problom, seeking the fullest information as the only true basis for wise legislation. The solution must lie in the just application of the laws of trade and commerce, with such authoritative regulation by law as will hold abuses in check, and this power can be derived only from federal law of universal application. I have felt it to be my duty to call attention to this subject, although I have not thought it appropriate to discuss the question in detail.

Any law not based upon full information might work great injustice to the companies and be inadequate to the proper protection of the people. Exper. ience has shown that unreasonable laws cannot be enforced, and in many instances have worked such great embarrassment to transportation as to become inoperative by common consent. Many such laws hastily enacted have been quickly repealed.

I therefore respectfully recommend that a commission be appointed to take into consideration the whole question, and report to congress the facts necessary for intelligent and efficient action upon the subject.

THE RAILROAD WAR.

A war of rates among the roads doing business between Chicago and St. Paul raged for nearly four weeks with much fierceness and with excessive cutting of rates, and was ended by an amicable settlement between the presidents of the different roads

Examinations.

interested, December 14. The fact that Mr. Porter, President of the Chicago, St. Paul, Minneapolis & Omaha, insisted during the difficulty that a division of territory among the belligerants must be agreed upon, created much excitement in the public mind, and called forth well-deserved criticism from the press. Under the misapprehension that an arrangement was actually concluded to divide territory, and that one road shall in the future not encroach upon the territory assigned to its rivals, by the building of new lines into it, many newspapers in the state still continue their attack, not only on Mr. Porter but on all the railroads engaged in the war and affected by the agreement. The Commissioner understands that no assignment of territory was made, and no arrangement to assign, but that that question was purposely ommitted from the agreement. Mr. Porter, who perhaps more than any other person had urged on the war, for the reason, as he alleged, that the Chicago, Milwaukee & St. Paul had encroached upon his territory by the lines constructed to Eau Claire and Menomonie in this state and Stillwater in Minnesota, found no supporters in his position among the other companies. On the contrary, the Chicago, Milwaukee & St. Paul fought his position to the end, and the war was terminated not because anything was yielded to that theory, but because Mr. Porter found the occasion opportune to dispose of his interest in the Omaha to the owners of the Northwestern. The Railway Age of December 21, in an article on the subject of the settlement, says:

"No pool has been formed, there is to be no division of business, and there is no agreement about building into contiguous territory. Each party agrees to maintain rates for one year, and each means to get all the business it can and to keep it."

EXAMINATIONS.

In the performance of his duties, the commissioner has inspected personally a large proportion of the roads in the state. The companies are generally improving their properties and bringing them to a higher state of perfection, replacing iron with steel, wooden bridges with iron ones, filling up trestle works with solid earthen

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Examinations.

embankments, reducing grades and improving their depot buildings to meet the demands of an ever increasing traffic.

The Green Bay road was examined by my predecessor during the summer of 1881, with the aid of an expert, and reported "safe for careful present use." This road has not been very remunerative to the owners, and that high state of perfection of roadbed, rolling stock and commodious and comfortable depots found on the Chi., Mil. & St. P., Chi. & N. W. and Omaha lines, cannot reasonably be expected from it. In view of the report above referred to, as well as casual intimation as to the condition of the road, the commissioner concluded that public safety required another examination to be made, and for that purpose called to his aid Prof. Conover, of the civil engineering department of the State University. The company met us cordially and placed a special train at our disposal, giving us every facility for a thorough and independent investigation. The examination was made in the latter part of June, and Prof. Conover's report thereof is presented herewith. The road throughout showed evidence of progressive improvements in the repairs of bridges and general betterments of roadbed and track. The company contemplates an extension of its line from Merrillan to St. Paul, in which event we may hope for a better showing of its finances, which will naturally result in a better road throughout. While struggling along at its present rate, the officers are doing all in their power to improve its property and using all the revenue at their command for that purpose. No accidents to trains have occurred on the line since the Hemlock Creek disaster May 7, 1881. The road is in careful hands and the entire freedom from accident is good guaranty of its safety under the present management. I am informed by the officers of the company that the general improvements noticed by us were continued throughout the season; but that the company was unable to replace the Wolf river draw, mentioned in Mr. Conover's report, for want of proper material, something they were unable to procure during the summer season; promising that it shall be replaced before the opening of navigation in 1883.

Conclusion.

IN CONCLUSION.

It is but justice to the companies to say that they have promptly responded to the requests made by the commissioner, and furnished. the information called for. The Milwaukee and St. Paul report will be found to be remarkably complete. It was so returned in the first instance, and is beyond question the most perfect report ever made to this office. Almost the same remark might be made in regard to the report of the Chicago and Northwestern. While some of the other reports are less complete, it is perhaps owing more to a less accurate system of book-keeping than any hesitancy in making public the results of operations. Answers to particular questions have uniformily been made when the facts were in possession of the parties called on.

The commissioner has considered his position that of a mediator, and as disputes and misunderstandings will naturally arise in the details of a business so far-reaching and diversified as is that of railroads, he has acted in the spirit of arbitrator, whenever complaints have been lodged with him, deeming such a course the most beneficent to the community at large, as well as being the real spirit of the law establishing the office. In the matter of complaints he has given the law a liberal construction considering the substance of more importance than form. In no instance have the companies objected to their consideration for the reason that they were not in proper form.

The present commissioner retained as secretary Mr. J. H. Foster who has served in that capacity now seven years, and to whose valuable assistance he owes the compilation and perfection of the numerous comparative tables of statistical information submitted herewith, as well as information generally concerning the previous history of the office and the manner of procedure pursued by his predecessors. Respectfully submitted,

NILS P. HAUGEN,

Railroad Commissioner.