CONTENTS. The legal duty of the Commission to re- Much confused information on the subject The subject discussed under four heads- 1. The grounds of the right of regulation a The Constitution of the State b. Law-Common, Civil and Statutory. The law of Corporations-of Common The argument highly cumulative · All the ordinary grounds in one. The argument intensified on each . The strongest case for regulation by law. Duty of the State as to public roads. If transferred to corporattons, need of Regulated monopolies-Ferry illustration. Immense growth of business-Its special- Entire revolution effected by railroads. Railroads compared with rivers, the ocean, Legislation at first improvident – Reasons. In Georgia nearly all production in order to exchange, aud so for transporta- Methods of unscrupulous managers Power concentrated and excessive. OFFICE OF THE RAILROAD COMMISSION, ATLANTA, GA., May 1, 1881. To His Excellency Alfred H. Colquitt, Governor: The act of 1879, organizing a Railroad Commission, makes it their duty "from time to time to recommend such legislation as they may deem expedient under the provisions of this act." The provision was a thoughtful one: doubtless suggested by the experience of the General Assembly which passed the act, in regard to the magnitude of the interests to be considered, and their special character of complexity and intricacy. To get to the bottom of the subject, much thought and study are necessary-it is, indeed, a profession. Each General Assembly is, of course, inexperienced, and must rely mainly upon committee-work, and the committees themselves are likewise largely inexperienced. The solution in Georgia, right or wrong, was a very thoughtful and long-considered one. In other States, large volumes have been published, embracing the decisions of the courts and the discussion of special questions. In the United States, volumes of testimony have been taken before any action in the premises. In Great Britain, there are large folios of information before Parliament. Several volumes of the United States decisions bear chiefly on the "transportation problem." A whole literature of confused information exists, and is constantly extending; and well it may be, since nearly the whole business of the country and all its interests are included in it; the difficulties of the problem, indeed, being not inferior to its importance. We propose, once for all, to sketch the whole outline of thought, and present the argument on the merits; to which we may hereafter refer, and expand any particular portion needed for a special purpose. While much has been done to aid their solution, during forty years of experience throughout the civilized world, the present General Assembly, addressing itself to the study, will find the problem to grow upon it with reflection; and if, at the first, it may seem easy and obvious, self-confidence will gradually give way to self-distrust. This, at all events, is the usual history of students of the railroad question, and it has certainly been so with ourselves. Eighteen months of careful study has satisfied us that the guidance of experience is essential, notwithstanding all the light to be derived from the study of first principles. Indeed, in this, as in many other studies, experience has gone ahead of political economy, and corrected its errors. Under the provisions of the law requiring such recommendations from us, we propose to give to the General Assembly the best views suggested by our reflections and experience, with modesty and candor. By reason of the importance of the subject, we shall discuss— First-The grounds of the right of the State to regulate railroads by law. Second-The limits of that right. These topics will not be discussed in perfectly formal order, but are so closely related as necessarily to be much intermixed in the treatment. To begin with the right of the General Assembly to regulate railroads by law. Upon this, as a legal right, all students of law are now agreed. It might suffice simply to refer to which provides as follows, article 4, section 2, paragraph 1: "The power and authority of regulating railroad freight and passenger tariffs, preventing unjust discriminations, and requiring reasonable and just rates of freight and passenger tariffs, are hereby conferred upon the General Assembly, whose duty it shall be to pass laws, from time to time, to regulate freight and passenger tariffs, to prohibit unjust discriminations on the various railroads of the State, and to prohibit said roads from charging other than just and reasonable rates, and enforce the same by adequate penalties." |