hand. He can not call things into existence, nor indeed, can he greatly hasten their growth. If he is to succeed, he must have the conditions necessary to success. So far as the railroad system of this country is concerned, in its relations to the government, everything is as yet clearly in the formative condition. Nothing is ripe. That system is now, with far greater force and activity than ever before, itself shaping all the social, political, and economical conditions which surround it. The final result is probably yet quite remote, and will be reached only by degrees. When it comes, also, it will assuredly work itself out; probably in a very commonplace way."

But while we may question the utility of government ownership or control, we can not doubt the value of governmental supervision, wisely and honestly exercised. No harm can accompany it;

it may correct many misapprehensions, may greatly allay public irritation, may prove a wise counselor. Wherever a demagogical spirit prevails, it may in this way be silenced, or rendered innocuous; where ignorance prevails, it may thus be enlightened. The responsibility of the office and the gravity of the situation will superinduce calmness and impartiality upon the part of those who fill it. In this simple. and practical way a government will secure every good that could possibly flow from active interference, while the fatal evils that attend intermeddling with commercial affairs may be happily avoided.

CHAPTER XI.

GOVERNMENT SUPERVISION AND CONTROL: ITS LIMITHE VALUE OF PRIVATE OWNERSHIP

TATIONS

- FURTHER REFERENCE TO RATES: PRINCIPLES UNDERLYING THEM.

Nations commercially great delegate to their governments only such functions of a business nature as individual citizens can not be induced to take up. It has been the same in every age. Witness the practices of Great Britain in our time.* This, the greatest nation that ever existed, not only accords individuals the preference in every case, but carefully abstains from any interference with them likely to dampen their ardor or restrict their achievements. Its policy, moreover, is applied fairly and unreservedly to all; to railroads as well as to producers of corn and iron. It respects the property rights of the rich, as well as the rights of the poor. In some respects, the people of the United States fall far short of England.

We are much given to loose talk about those who are rich; about those who own railroads, banks, and other great interests. It is a species of hysteria.

*"The people of England, proud of their commercial ability and jealous of their commercial liberties, spurn the idea of governmental ownership or management of the railroads."-Joseph Nimmo, Jr.

We do not always stop to inquire whether the purposes of the rich are beneficent or not.

We love to hold up to public scorn particular instances of wrong-doing.

We are much inclined to self-righteousness.

Many of our laws discriminate unjustly and oppressively against corporate industries.

We are more than half disposed to put the owners of such properties in the hands of the police and turn over their affairs to the government.

In reference to railroads, that form of government supervision that will best serve to quiet the apprehensions of the people, and will least interfere with the skill and purposes of owners and managers, is the best. It is not a material subject, but a sentimental one. There is really no need of any supervision whatever. But, because of public suspicion and misapprehension, it is both necessary and beneficial.

Public opinion and association of interest of carrier and patron will ever be sufficient to insure efficiency and prevent injustice. Of course, individual acts of wrong-doing will occur. But wherever one of these is prevented by government supervision, a dozen will creep in under cover of such interference. Government commissioners will be useful, so far as their talent, experience, and integrity enable them to throw new light on the subject. But they must be just and impartial. Otherwise they will be a curse to a nation.

Government interference, whether local or general, like all extraneous influences, must be such as

to invite the confidence of those it concerns; in the case of railways, of those who own them. It must be wisely exercised. If it is not, capital will abandon interests thus afflicted. Undue interference in the affairs of railroads, however necessary, is harmful, because it lessens private interest by dividing the responsibility. It chills the ardor of those to whom we must look in matters of this kind. Its effect is to retard improvements, to prevent new enterprises, to lessen the interest of owner and manager in the comforts and conveniences of the people. Government interference, unless exercised with great moderation, blasts every interest it espouses, every industry it attempts to supervise.

Arbitrary action in business matters must always be circumscribed by the interests of surrounding industries. Those who own and manage railroads have little or no discretion, except in facilitating public wants and in adjusting tariffs to meet the ever varying needs of commerce. They must act, whether they will or no. Any attempt upon their part to evade the just responsibilities and duties of their office, is met with loss of business and merciless criticism. They must respond to every need, quickly and effectively. Business can not be carried on otherwise. A railway operated on any other basis would be so cumbersome, so illy adapted to the needs of trade, that business would quickly forsake its lines. It is no disparagement to government officials, no reflection on their intelligence or interest, to say that they cannot thus respond to the needs of commerce. In everything