RAILROADS IN OHIO.
FAST FREIGHT LINES,
ETC.
ABUSES PRACTISED
AND
REMEDIES PROPOSED.
REPORT OF SPECIAL COMMITTEE OF THE OHIO LEGISLATURE.
BOSTON:
1867.








RAILROADS IN OHIO.
FAST FREIGHT LINES, ETC.-ABUSES PRACTISED
AND REMEDIES PROPOSED.
opart -of uigat i.ommitfz of Afi 41ibio gRiszltn,
Your Committee to whom were referred divers matters
connected with railroad, telegraph, and express companies,
to examine upon testimony and otherwise with direction to
report such legislation as they might deem necessary in the
premises, make the following report:
Your Committee met in Columbus on the 21st day of June
last, and after full consultation, agreed upon the course and
manner of their examination. They found the field so broad
and so varied that with the time and means allowed them,
their examination could embrace but few details. These
must be left to the more ample provisions of future legislation for an examination, that both public and private interests very urgently demand.  They have examined a large
number of witnesses in different parts of the State, upon
the branches of railroad management to which their attention had been called, and especially of abuses of which complaint had been made. The material parts of the evidence,
the greater part of which was taken under oath, are herewith submitted to the Senate. Your Committee likewise
collected the charters and copies of such proceedings as may
have been taken by the railroad companies, having special
charters adopting any general laws of the State; and also
the freight and passenger tariffs of nearly all the roads in
the State, and for the purpose of comparison, we obtained
the printed rates of roads outside the State.




4
The information your Committee in this form are able to
present to the Senate is indeed comparatively meagre, and
yet it is quite ample enough, in their opinion, to show the
urgent need of legislation to reform abuses, protect railroad
property, and to preserve and maintain the rights of the
public in its use.
As to the points specially referred to your Committee for
investigation, we shall report on the order of the subjects
rather than of the resolution:
1. As to freights, there has been constant and very wide
discrimination made in the rates charged. All roads have
their established tariffs, both for local and through business,
by which they have professed to be governed. That for the
through business is made in connection with the connecting
roads, and generally upon a more or less complete understanding with rival routes of transportation. Yet until about six
months ago, the tariff of through rates especially, was, at
best, a mere guide, habitually disregarded wherever the obtaining of business required it, and often a mere cheat as
against competing lines of transportation, and observed only
with the small, the liberal, and the uninitiated shipper. The
through rates, in fact, to a great extent, varied with each
shipment, their amount being determined by "dicker and
bargain" between the road agent and the shipper, and depending upon the vigor of competition and the shrewdness
and persistency of the merchant. This departure from the
established tariff is known among carriers as " cutting of
rates," and has been carried to such an extent, that in
through business, that upon which the charge is prorated
among connecting lines, the amount actually received for
carriage by each road, as stated by some of the witnesses,
scarcely paid in some cases the cost of unloading the freight.
The difference in charge upon local and upon through business for the same distance, is often startling and wholly without any just reason. Goods have been brought from New
York to Cincinnati, a distance of nearly 900 miles by the
more direct routes, for 25 cents per 100 pounds less than the
established local rate from Cincinnati to Columbus, about




5
one-seventh of the distance. This extent of discrimination
is not, perhaps, of very frequent occurrence, but it indicates
a limit within which the difference between local and through
rates has, with every degree of variation, been maintained.
The difference between the established tariffs for the two
classes of business, if maintained, would afford the local
shipper no considerable ground of complaint; but heretofore when the railroad officer has shown his printed Table
of Rates, he has afforded to you but a very imperfect notion
of the charges actually made upon through freights, and
consequently no adequate idea of the difference between the
actual charges upon through and local business.  Your
Committee believe that the published rates have been more
nearly observed during the past six months, than perhaps
ever before in the history of through railroad transportation
in this country.
The reason of this unsteadiness of through rates, upon
examination, becomes quite obvious. There are four trunk
lines leading, two from the headwaters of the Ohio on the
south, and two from the lower end of Lake Erie on the
north, eastward to the Atlantic seaboard, actively competing with each other for the through business from  the
West to the East, and the return trade westward from the
East. From the westward termini of these lines there are
several roads stretching westwardly, connecting with numerous other lines, and forming a network of railroads, covering all the States north of the Ohio River, and stretching
southward through Kentucky and Tennessee. All the roads
connecting the eastern rail transportation lines except one,
the Great Western through Canada, pass through this State.
The Canada lines lie north of the main natural lines of
trade between the East and West, and must compete at disadvantage with the lines through Ohio. Besides this line
crossing twice the boundaries between Canada and the
United States, trade may be subject to the embarrassment
arising from changing restrictions upon international trade.
South of the Ohio there is no rail route connecting the Mississippi Valley with the Atlantic coast, north of the Charles



6
ton & Memphis Railroad, running through North Alabama
and Georgia; Ohio thus becomes an isthmus through which
the immense volume of rail commerce between the East
and West naturally and most economically passes.  Notwithstanding the immensity of this commerce, we have in
Ohio now a more than adequate means of transportation
provided.
The local business of the different roads of the State is in
a great measure under their exclusive control, but is in a
majority of cases at reasonable rates, insufficient in amount
to maintain them. With these roads a determined competition for through business becomes a necessity. With other
roads having a large and perhaps sufficient local trade, a
through trade at reasonable rates becomes a desirable accession to their business.
To these motives of interest in obtaining through business by the several roads, is to be added the convenience and
ambition of railroad officers. The through trade with its
greater distance of carriage and larger bills, imposes less
labor, and its wider movement and heavier capital confers
greater distinction than the local trade. Out of these circumstances has sprung a competition that, regulated by no
law, and restrained by no direct private interest or personal
obligations, in spite of freight conventions, and agreed tariffs among the several roads, have carried rates down, at
times, to a point that would make the through trade productive of continual loss.
The roads of the State entered into this competition with
widely differing advantages.  Some led directly from  the
principal commercial depots of the State, connecting at both
ends with the leading lines of transportation on the East to
the seaboard, and on the West to the Mississippi and the
Northwest, and having close and permanent running arrangements with connecting roads, were able to draw to
their lines, naturally, the through trade, with less sacrifice
in competition and less outlay in obtaining freight.  Others
intersected the natural direct lines of trade between the
East and West, and could carry it only upon longer routes




7
and without convenient or advantageous connections. To
make up these disadvantages, these roads have in one or
more instances expended large sums in building up connecting roads that have in turn added but comparatively little to
their business, and expended sums upon means of water
transportation that have been wholly lost, thus using up the
profits and adding to the debts of the road, without any
commensurate gain in through trade. Circumstances have
conspired to render this strife for through trade an exciting
one, and scarcely less destructive to the value of railroad
property, than it was of honor and integrity in the dealings
of railroads among themselves.
But while this competition is reducing the rates upon
through trade, there is a natural and necessary tendency to
add, in something like equivalent proportions, to the charges
upon local trade.
A railroad manager desiring to secure dividends to the
stockholders, will be inclined to make up his losses on
through business, that he cannot control, by additions to the
local business that he can control. Though specific losses
upon one class may not be made up by specific additions to
the charges upon the other, yet a general failure to make
profits and divide dividends, must be followed by a general
advance in rates, which in turn, have heretofore been maintained as to local trade, and habitually disregarded in the
through trade.
Security in the possession of local trade leads to indifference to its claims and interest, and on the other hand a precarious hold on the through trade produces, as to it, sensitiveness and constant concessions. In behalf of the one is
enlisted the influence of heavy transactions and concentrated
wealth of the large cities. The interests of the latter are
feebly maintained by the former and the tradesmen of small
means, and the local public has its scattered capital, its business without organization, and its transactions detailed and
insignificant.
The danger, therefore, is that the local trade, dependent
and unprotected, will be charged with burdens beyond what




8
it ought to bear, and the through trade will secure concessions to which it is not entitled.
That charges for carriage of freight should not be in absolute proportion to distance, is undoubtedly true. There
are services-such as loading, billing, and unloading-that
are the same with all freight. Freights for short distances
cannot be carried to the same advantage as those for longer
distances, involving leaving empty cars at way stations, carrying of partial loads, and the inconvenient handling of
freight.  Adding the charges for these services, the just
rate per mile upon way freight must be increased with the
reduction of distance. The rule governing a just charge is,
however, in all cases the same,-the actual services rendered;
and whenever the charge for the materially longer distance
is less than that for the shorter, whether the freight be local
or through, an unjust discrimination is made against the
shorter distance.
An ingenious argument is made in the testimony in favor
of discriminating in rates in behalf of the shipper living at
a greater distance from market, that he may have equal advantages in it with the shipper living at a less distance.
However desirable it might be to secure entire equality of
all, in their access to the markets, neither justice nor public
policy will allow the use of such means. It involves either
a loss to the railroad, or an unjust burden upon the shipper
for the shorter distance. If the railroads adjust the rates so
as to make their average profitable to them, one shipper
must pay more than a fair profit, and the other less. If,
however, but a fair rate is charged to one shipper, the rate
to the other, if on the shorter distance, must exceed a fair
amount, and if on the longer distance must be below it; the
railroad in one instance receiving more, and in the other less,
than a just average compensation.
Railroads ought not to be used as charities for the benefit
of shippers remote from markets, nor ought one shipper be
required to defray any portion of the expenses of another.
The rule proposed, moreover, destroys all certain guides
as to the formation of rates, and removes all checks to dis



9
criminations however oppressive, both depending upon the
varying judgment of railroad officers, as to public policy
and the interest of trade, from which, necessarily, there is
no appeal.
It aids the aggressive demands of the through trade, excusing discrimination and cutting off rates in its favor.
The right to grant preferences to communities or particular shippers, with the view of developing and increasing
trade, is claimed by different roads in other forms. Especially upon roads leading into coal regions preferences are
granted in transportation to the regular miner or dealer,
over the irregular one; who are regular and who irregular
depend upon the personal feeling, imperfect information and
judgment of the officers of the road. Other preferences are
given that we will not occupy space to specify. In any form
in which the right of such preferences may be claimed, limited only by the judgment of the officers, and not carefully
restrained by law, it is inadmissible and fraught with great
public mischief.
It opens the door to favoritism and oppression in the hands
of weak, passionate, or corrupt officers, and to the improper
and yet insensible influence of personal partiality or prejudice in the hands of the honest ones, with no rule to guide
the officer or protect the public, except the real or pretended
judgment of the former, as to the interests of the public on
the road.
It tends not less to a monopoly injurious and oppressive
to the public.
It is corrupting in its tendencies. With the honest officer
a judgment, depending upon an uncertain rule of interest or
policy, may be powerfully influenced by personal partiality.
Preference obtained through mere influence in one case may
in others be bought for a consideration. With the control
of such immense means of fortune, the pressure upon a
railroad officer, for advantages in transportation and rates,
would weary the vigilance of the most upright. The immunity enjoyed by railroad officers from visitation and review
of the management, resulting from the complication of their




10
business, the multitude of stockholders, and the absence of
suitable legislative provision for it, would greatly increase
the temptation.
Such discriminations are prejudicial to the interests of the
road, by producing jealousy and complaint in the communities along its line. It connects the road with their business, its remuneration, its management, and its markets, and
thereby greatly increases difficulty and complexity in its own
affairs. Some of these mischiefs are illustrated in cases that
came under the observation of the committee, and are referred to in the testimony.
The Central Ohio Railroad, as shown in the testimony,
made arrangements with Mr. Kearney during the season of
the coal famine in Cincinnati, in 1863-4, as a regular shipper, giving him preference in transportation over irregular
shippers. With this preference, according to the testimony
of Mr. Warner, with the control of transportation in the
markets of Zanesville, he was able to exact 20 cents per
bushel of the consumer for coal that was purchasable of the
miner at 7 cents without moving a pound, or expending a
cent in the transaction himself.
On the Sandusky, Mansfield & Newark Road a like but
exclusive preference is given to Mr. Wheeler and Mr. Boalt,
in the coal trade. Under this arrangement Mr. Wheeler
has sole control of the coal trade to all the communities on
that road.
On the Cincinnati & Zanesville Road the most serious
trouble has grown out of the attempt of the road to manage
the coal trade through its control over the transportation.
The officers, after some years' experience, were disappointed
as to the value of that trade to their road. It found its market in Cincinnati, Dayton, Xenia, and other places in the
valleys of the Miami. In this market it could not compete
with the trade of the river, and therefore found the markets
profitable only when the river was low, its coal supply reduced, and prices advanced. Of course its margins were
uncertain, and often very small. This brought the miner
and the railroad into frequent negotiation as to rates. The




II
shipments being made only when profitable, were irregular,
both parties suffered, the miners from uncertain market,
and the road from the irregular use of its transportation. In
this neither were to blame, and yet each complained of the
other; the road that the miners badly managed their trade,
and the miners that the road, in season of low prices, would
not aid them in reduced rates. In connection with this dispute, as might be expected, there was much ill feeling, mutual accusations, and many unnecessary and irrelevant issues.
The complaints of the miners were helpless, and if patiently
and considerately borne must soon have died out. The road
had the power, and its officers determined to organize and
conduct the coal trade in a different manner, by confining
the miner to the simple work of mining, and placing a dealer
on the road to purchase the coal at the mines, and manage
the markets for its sale, giving to him the control of transportation to that end.
It was a broad and unwarrantable exercise of power over
the business of its local communities, under the pretence of
developing trade, increasing the business of the road, and the
misconduct of the miners.
The miners contended earnestly, and often with bad tenlper, for the right to manage their own business in their own
way. The road was too strong for them; they could do
nothing without transportation. The result was that an association, embracing all the miners on the road, with the
exception, perhaps, of one, was broken up, their business,
to a considerable extent, destroyed, some of the mines wholly
stopped, and their workmen thrown out of employment,
preference in transportation given to other miners, and those
doing business only able to obtain a reduced number of cars
by selling their coal to the adjoining station agent.
To these results are to be added a vindictive feeling toward the road, and a prevalent imputation against the integrity of its managers.
It can hardly be said that a power exerted at the mere
option of a railroad officer, with such results to private property and business, can be founded upon any sound reason
of public policy or safety.




12
The railroads are public uses.  The equality of the public
upon them  has always been a fundamental element in the
law. English legislation has, with great care and vigilance,
guarded it, and forbidden, in every form, preferences and
discriminations of the character we have discussed.
Managing such uses for equal public accommodation, the
officers of railroads have nothing to do with questions of
public policy or the general interests of the country, and
should be confined to the duty of common carriers, leaving
such questions, and the adjustment of the relative rights
of citizens and communities, to the public authorities, to
whom they belong, where partial interests have less direct
influence, and the public, who are directly concerned, have
representation.
As to the local trade, there is a very wide diversity of
rates upon the several roads of the State. This diversity
seems to have very little reference to difference in the cost
of construction, equipment, and operation of the roads, but
seems to depend more upon their financial necessities and
the amount of competition.  Upon the same road there is
found also great differences of rate at the several stations,
governed chiefly by competition at points on the roads with
other lines of transportation. The law of May 1, 1852, regulating rates where roads compete with the canal lines of
the State, is habitually disregarded. Special rates are also
made with particular shippers, very often from  personal
favoritism, or from employment on the road, but generally
the local tariff is followed, and not often changed. The discrimination against non-competing points, and the difference
between the rates of different roads is often very great.
This difference of rate is more marked in the coal trade.
Your Committee had not the time, and were not fully possessed of the means of analyzing the freight tariffs of the
different roads. Abuses and discriminations have resulted,
usually, from a departure from, rather than an observance
of, them. Besides, we could give but little information as
to the fairness of any particular rate; that must be determined with reasonable certainty by data not in our posses



13
sion, consisting, in part, of the cost of each road, the expense
of keeping it in repair, and of operating it, and the relative
expenses of transportation for different distances, and descriptions of freight. This data is derivable only from statistics of each road carefully collected and analyzed for a
series of years.
To this end ordinary railroad reports furnish but little aid,
and among the railroad men that we examined, the estimate
of the cost of carrying freight varied from one half cent to
four cents per ton per mile. Many of the most intelligent
declined to give any estimate. Yet it is manifest that with
each road this ought to be ascertained with a degree of
certainty. It doubtless differs with different roads, being
affected by difference of grades, curves, situation of roads
as to structurcs, drainage, embankments, and water-courses,
its cost of construction, and the nature and amount of its
business.
However strictly, and even severely the State may deal
with railroad management, it ought to deal with indulgent
liberality with railroad investments. They have been of incalculable benefit to the State, developed its resources, aided
its population, and opened its ways to market. Investments
in these public uses were made under an implied assurance
that they should be carefully protected, and the right to a
reasonably profitable compensation guaranteed.  The expectation of profit has been generally disappointed.  The
stock in most of the roads has been either unproductive,
capitalized to a small per cent. of its original amount, or
wholly sunk. Not one-fourth, probably, of the railroad investments in the State pays a dividend this year. It is therefore manifest that, assuming the present management to be
judicious and faithful, railroads are not producing a fair compensation generally for the investment in them.
Until the State, therefore, shall have provided a means for
ascertaining the amount of a fair compensation, including a
reasonable profit, and of exposing and correcting the mismanagement of railroad officers, the stockholders of railroads
would be exposed to the danger of great injustice, in a rate
now necessarily to be fixed upon a guess.




14
The adjustment of local rates to different distances is of
far more difficulty than fixing the fair average, inasmuch as
it cannot be proportioned entirely to distance.
But while your Committee are able to discover no wise or
just means of ascertaining the fair amount of rates, and believe that any attempt at interference by the Legislature in
that respect, would probably result in injustice and embarrassment, yet we are satisfied that there are fundamental
provisions against unfair or oppressive discriminations in the
local trade, which should be adopted by the Legislature and
strictly enforced:
1. No railroad company should be permitted to charge
more for a shorter distance than for a longer one.
2. Every company should be required to publish its tariff
of rates, and strictly prohibited, under penalties, from allowing reductions from it to individual shippers, or classes of
shippers.
3. Preferences in transportation, except such as are allowed
to live stock, perishable freight, and the like, and undue advantages of all kinds, whether to classes of freight or shippers, should be prohibited.
The difference between the cost of transporting local and
through business from one end to the other of a road is very
small, and generally none at all, and yet the difference of
rates is frequently very great. The witnesses examined on
this point concur in the statement that the local business is
much more profitable, in proportion to its amount, than
through business. And when we reflect that railroad investments of the State yield a trifling average of profit, and
most of them none at all, it is apparent that through rates
must at least be below its proper cost of transportation.
This is the result of a competition in which the railroads
seem to have been in some measure helpless, and in part
reckless.  The strife has been to. gain the through business:
those having it, to retain it, others to acquire; one class
recklessly reducing rates, another helplessly yielding to the
decline, all certainly, at times, falling below cost. Partial
expedients, conventions among railroads of very short dura



15
tion, have been adopted, to no purpose.  It has been a ruinous contest, producing confusion in railroad affairs, trickery and empiricism  in their management, and an isolation
and distrust among the roads, to be found in no other branch
of business.  This we believe is the result of a want of that
prudence, capacity, or faithfulness that characterizes the
business management of the country in other branches.  Ordinary mercantile competition is checked by private interest,
and the laws of honorable trade seem to have had very little
influence with the managers of railroads, in their competition with each other.
The unsteadiness of rates resulting from this competition,
disturbs prices, and makes business profits uncertain.  To
provide against this, the prudent merchant must increase his
general margins, and the consumer becomes in the end the
sufferer. It is therefore a mischief, in which the public are
interested and by which it is oppressed.
Undoubtedly the complete remedy for this mischief is a
capable and faithful management of the roads.  Legislation
by this State is necessarily partial in its operations. It would
restrain our own roads in this competition, and leave the
others free.  If we were in possession of sufficient information to determine the cost of transportation, we might, perhaps, limit the reduction of rates to that point.  We are
without such information.
There is, however, in our judgment, one rule that may be
adopted with entire safety to the interest of the roads of the
State as against competing lines, namely: that the roads and
their agents be required to publish, in proper form, their
freight tariffs, which they shall observe with all shippers
until changed by other published tariffs.  Whilst this may
not of itself materially arrest a ruinous competition, it will
secure the equality of shippers, and aid toward the maintenance of established tariffs agreed upon between competing lines.
The congress of the four Eastern trunk lines, held in STew
York last year, opens, it is to be hoped, a new era, that with
the aid of concurrent legislation upon the part of this State,




16
Maryland, Pennsylvania, and New York, railroad traffic and
the relations of railroads among themselves may be placed
upon the fair and honorable footing upon which the other
business of the country is conducted.
There are other discriminations in favor of the through
trade of which complaints have been made, and which are,
as the Committee believe, in part well founded. It is alleged
that preference is given in transportation to this trade. To
what extent this is true we had not the time fully to inquire.
With the through trade acquired in part by the facilities and
dispatch afforded to it, and the local trade held without those
accommodations, we scarce see how, in the present condition
of management, a preference could be prevented. To this
tendency is to be added a feeling of patronage, and in some
cases of contempt, with which we found the trade regarded
by railroad managers in the State, the controlling consideration being given to the through trade.
4. In the strife for through business, with as many competitors in the market, almost, as there are railroads, the
policy of employing soliciting agents in all the larger cities,
and even in the smaller markets, was established. In some
cases, issuing bills of lading in their own name, and in all
cases, intervening between the carrier and the shipper, the
carrying trade in a large measure soon passed under their
influence and direction, and could be turned upon any line
of transportation that would give them the largest salary or
percentage. They became expensive to railroads in proportion to amount of business they could command. To insure
their fidelity and diligence, commissions were generally substituted for salaries. Evidently many of the roads, certainly
not all, were determined to have business, whether profitable
or not, no doubt with the view of being able to make it
profitable when secured, and therefore paid to their agents
commission upon the amount, instead of the value of the
freight they obtained, and the officers not being able to know
the condition of the markets, or exigencies' of competition,
were also compelled to leave to him a large discretion as to
rates. The result was inevitable. Rates were cut with sole




17
regard to increase of business, and all established tariffs
were of course broken down as soon as published. Regular
custom to any road was impossible. Rates being thrown
into the market, the shrewd merchant changed from  one
line to another, according to the advantage in rates he could
secure. Thus, these agencies, instead of building up a permanent custom  to each road, destroyed that of all, and
placed rates wholly beyond their control. Unable to combine among themselves, the roads were in a great measure
helpless, compelled either to leave the market or pay large
sums to the agencies, and accept a traffic that yielded little
or no profit. Conventions among the roads, honorably maintained, would have been a remedy to this oppressive evil.
As it was, a resort to freight lines became an unfortunate
alternative.
5. The merchant has had two causes of complaint as to
the conduct of the through trade by the railroads, viz.: Delays in the shipment of his goods, and difficulty of procuring
settlement of losses and damages.
With the greater speed of railroad transportation, has occurred a change in the mode of transacting mercantile business. Instead of purchases in large amounts and at long intervals, the merchant runs his stock close, and buys upon
order daily, as his daily wants require. Promptness in forwarding becomes highly necessary. For the same reason
losses occurring in continual small shipments, it is also important to the merchant, because of their frequency, to be
able to adjust them with ease and promptness. Yet continual delays in forwarding embarrassed his business, and in
adjusting losses he was often required to trace it through
connecting lines, and unable to fix it anywhere, was frequently compelled to abandon the claim altogether. This
resulted from want of proper organization of their common
business by connecting lines, but not wholly from mismanagement. Through lines were composed, in the main, of a
greater or less number of fragmentary local roads, forming
in part, accidental connections, and, working independently,
with everything to learn in a new system of transportation,
2




18
frequent difficulties were to have been expected. That organization of the through business, effected more recently
by arrangement between connecting roads, was prevented by
the jealousies and distrust arising out of the unregulated
competition heretofore spoken of.
Commission merchants and freight agencies availed themselves of this confusion to organize freight lines upon the
routes for which they were employed, and with their control
over the shipping business of the country they were able to
command advantageous contracts with roads.
They issued their through bills of lading, and provided
agencies at the points of delivery for the adjustment of losses,
and supplied thereby the' great want of the mercantile
community, of prompt dispatch of freight and settlement of
claims. The roads were separately powerless. It was a
sorry choice between the ruinous rates of soliciting agencies,
or dividing receipts with freight lines. The choice of the
latter was, no doubt, in many cases an advantageous one.
We have inquired with much care into the operation of
these lines, the uses they perform, and their effect upon the
interest of stockholders and the public, in railroad property
and conveniences. There are two classes of these outside
organizations or freight lines in operation upon the roads in
Ohio. One class issue their own bills of lading, and receive
a percentage of the earnings of the freight from the road
that carries it. Of this class is the Central Express Company, operating between New York and Chicago, over the
Cleveland & Toledo Road. That road allows them  their
lowest rate per hundred pounds, and agrees to forward their
freight by the fastest freight trains, promptly investigate and
allow just claims, and allow to the company four per cent.
of gross earnings on eastward bound, and six per cent. of
westward bound freight.
This leaves the Express Company to make any advance
rate it may with the shipper, and the railroad all the labor
of transportation, paying a percentage for obtaining the
business.
Of the same class is the Erie Transportation Company,




19
operating over the Lake Shore, Cleveland, Columbus & Cincinnati, and Little Miami, and organized in connection with
the New York & Erie Railroad. We have had but little opportunity to investigate into the operation and effect of these
companies upon the interest and income of the roads.
The second are far more numerous. They issue their own
bills of lading, and in some cases receive and load and unload and deliver their own freight, and in all cases adjust the
losses. They generally pay to the roads so much per car at
an estimated tonnage. This rate varies with different roads
and different freight lines. They make their own rates with
the shippers. Of this class is the Merchants' Despatch,
owned by the American Express Company, and operating
from the New York Central over the Lake Shore, Cleveland
& Columbus, Columbus & Xenia, Little Miami, Cleveland &
Toledo Railroads, &c., the Great Western Despatch, owned
by the United States Express Company, and operating from
the New York & Erie Road over the Atlantic & Great Western, Cincinnati, Hamilton & Dayton, Cleveland & Toledo,
&c., the Empire Transportation Company, operating from
the Philadelphia & Erie Road over the Lake Shore, Cleveland
& Toledo, Cleveland & Columbus Roads, &c., the Star Union
Line, operating from the Pennsylvania Railroad over the
Pittsburg & Fort Wayne, Pittsburg, Columbus & Cincinnati,
Columbus & Indianapolis, Little Miami, &c., and the Great
Eastern Despatch, organized upon and operating chiefly over
the Cincinnati, Hamilton & Dayton, and Dayton & Michigan
Railroads. The Great Eastern Despatch was the only one
of these lines organized in this State, and having its principal office here, and therefore the only one whose organization, operation, and profits we could fully examine. The
Empire Line, so far as we have learned, and the Star Line,
in its contract with the Pittsburg, Fort Wayne & Chicago
Road, pay a rate per hundred pounds, formed by an estimated
average of rates received from like freight in the general
traffic of the roads.
The balance of the contracts, so far as we have obtained
them, except that of the Great Eastern Despatch, are for a




20
car load rate, based upon a fixed tonnage of eight tons to the
car, a fixed classification of that amount, and the through
rates of the road from time to time established. The Merchants' Despatch pays the line from Erie, by way of Cleveland and Columbus to Cincinnati, for 12,000 pounds of first
class freight, and 2000 pounds of second and third classes
each, yielding the highest compensation to the roads of any
of the lines.  The Union Star Line pays upon all the roads
except the Pittsburg, Fort Wayne & Chicago Road, for 5000
pounds of first class, 4250 pounds of second and third classes
each, and 2500 pounds of fourth class freights, a classification far less favorable to the roads than that with the
Merchants' Despatch.  The Great Eastern Despatch have a
similar arrangement, and pay the Cincinnati, Hamilton &
Dayton Road about $20 per car from Dayton to Cincinnati,
a distance of sixty miles.  These lines were charged for any
amount exceeding the limits of eight tons. The Great Eastern Despatch was charged fourth class rates for eight tons,
with the privilege of carrying ten tons.  The relative freight
rates of the different classes of freight may be illustrated by
one or two examples: The through rates, from Cincinnati to
New York, per 100 pounds, were, November 6, 1866, 1st
class, $1.90, 2d class, $1.60, 3d class, $1.25, 4th class, 80c.
From  Cincinnati to Toledo, the rates were, on 1st class, 60
cts., 2d class, 50 cts., 3d class, 40 cts., 4th class, 20 cts., the
4th class being respectively, in the above cases, two-fifths
and one-third of the 1st class.
The Union Railroad and Transportation Company, known
as the Star Union Line, is a corporation under the laws of
Pennsylvania, organized in the fall of 1863, with a capital
of $1,100,000, subsequently increased to $3,000,000, and
went into operation, January, 1864. It operates over the
Pennsylvania Central Road, and extends from  its termini
eastwardly and westwardly over roads leading to and connected with the Central road. Its principal movers were commission agents of that road in Philadelphia and Pittsburg,
and is said to embrace a portion of the officers of the road
among its managers and stockholders. Its stock was exten



21
sively distributed and sold at various prices; to railroad men
in Ohio, so far as we have learned, at fifty per cent. of its par
value. It built, at first, 700 cars, and subsequently 300 more
were added, making in all 1000 cars, costing something over
$1,000,000. It leased one pier in New York, and owns a
small amount of real estate.
This company has paid upon its stock, since.it went into
operation, a steady dividend of one per cent. a month, with
a surplus that has increased its assets to an amount probably
exceeding the par value of its capital stock issued. The
stock has sold at $85 per share of $50, and is bought and
held by the shrewdest of our business men as a safe and productive investment.  In one instance, coining to the knowledge of your Committee, $22,800 of the stock, costing the
owner thereof a little over $7100, was, after a careful examination by the Board of Equalization of Hamilton County,
valued and assessed for taxation at $80 per share, or $36,480.
We are led to believe that this fact is a measurably just indication of the enormous profits derived from its business.
It may be remarked, on the other hand, that one of the roads
in Ohio over which it operates is in the hands of a receiver,
with one-half of its capital stock transferred to pay arrears
of interest on its bonded debt, and the other half receiving
no dividends. It increased the transportation over roads it
operated on, east and west, to the number of its own cars,
which were adjusted to suit the different gauges, but was
allowed mileage by the roads for their use. It carried goods
from New York to their Western destination without change
of bulk, loaded and unloaded, and delivered them, and billed
and collected the freight, assuming the whole responsibility
to the shipper for losses.
The Great Eastern Despatch was a partnership under the
name of Williams & Slocomb, with a capital stock of $30,000,
divided into six shares, two of which were taken and held
for the benefit of the Freight Agent and Superintendent of
the Cincinnati, Hamilton, and Dayton Road. Fifteen thousand dollars were paid in, in connection with their arrangement with the road as to transportation. Williams & Slocomb




22
rented the second and third stories of the freight depot of
the C., H. & D. Road, in Cincinnati, and invested $6000 in
horses, drays, and other necessary property. They went into
operation on the 1st of January, 1865, and at first operated
exclusively upon the C., H. & D. Road, and the Dayton and
Michigan Road, which the C., HI. & D. Road had perpetually
leased, forming the line from Cincinnati to Toledo. They
arranged with various Lake transportation lines, and employed agents upon various connecting lines of roads, and
upon the river south of Cincinnati, to direct freight over the
Cincinnati and Toledo route consigned to them. Subsequently they made an arrangement with the Chicago and
Eastern,-a road connecting with the Hamilton and Eaton
branch, leased by the C., H. & D. Road, to operate on that
line.  There is, however, no evidence of any considerable
amount of business having been done under this arrangement.
It is doubtful whether the Despatch materially increased
the business of the roads. The chief effect was, probably,
merely to consign business, naturally passing over the roads,
to them. This was the effect of their arrangement with the
transportation lines terminating at Toledo, and sending
freight southward. Mr. Reed, Freight Agent, says the Despatch obtained about one-half of all the freight from Cincinnati to Toledo, between which points there was no other
rail route, and therefore no rail competition. During the
first business year of the Dayton and Michigan Road, after
the Despatch went into operation, the gross earnings fell off
$117,829.51, and the net earnings $91,046.03 from the previous year; and in the same time the gains in the gross
earnings of the C., H. & D. Road fell off $38,818.48 over the
previous year ending April 1, 1865, and $111,488.43 over
the year 1864. But while there was no falling off of actual
gross earnings of the road, there was an actual loss in the
net earnings, notwithstanding the Atlantic and Great Western Road had just begun to pour the whole volume of its
traffic over it, and the recently opened Chicago and Eastern
was bringing an increasing trade. Besides, for some years




23
previous, the C., H. & D. Road had been making cash dividends; yet, at the end of the first business year, after the
Despatch went into operation, it issued $500,000 of new
stock, and paid the.usual dividend to the stockholders with
a portion of the stock so issued.  Other causes may have,
and doubtless did contribute to the change in the financial
showing of the road; yet we feel entirely warranted in
assuming that it was in part owing to the injurious operation of this arrangement.
On the other hand, the Despatch, with the actual investment of but about $6000, made in the first eighteen months
of their operations $130,000 of profit, about 41 per cent.
upon the entire capital stock of the road. To these enormous profits, to make up the gross receipts of the Despatch,
are to be added their expenses, including rent of warehouse,
salaries of agents, &c. It is not disputed that these large
sums of profit and expenses were, with trifling exception,
taken from the freight earnings of the roads. In some cases
the evidence shows that of the freight paid by the consignee,
the road received $36, and the Despatch received from $40
to $48 per car. The road received for a few shipments $16
per car, from Toledo to Cincinnati, being $4 less than received from the Great Western Despatch from Dayton to
Cincinnati, less than one-third the distance; and the rates
received of the Despatch, by the road, from Toledo to Cincinnati, ranged from $16 to $36 per car, whilst those received
by the Despatch from the shipper varied from $21 to $95
per car.
The services rendered by Williams & Slocomb to the road
for this heavy draught upon its earnings, was substantially
the organization and superintendency (' +he freight collection, and of the soliciting agencies, the road, with its own
employ6s, attending to the loading and unloading of the
freight. In estimating the necessity and value of these services, it is to be borne in mind, in the first place, that in the
ordinary management of roads they are embraced in the
duties of freight agent and superintendent, who were in this
case partners of Williams & Slocomb; and in the second




24
place, that the remaining partners were young men, with
one exception, without business experience, and two of them
absent for some time after the beginning of business.
However bad this showing may be of the profit and usefulness of this class of freight agencies, it is to be said that
at the time the Despatch was established but comparatively
little was known of their operation, that the officers were
desirous of protecting themselves against the effect, as they
believed, of similar agencies on other roads upon their business, and that the whole arrangement was submitted to and
approved by the Board of Directors.
We have stated with more particularity the organization
and results of the Great Eastern Despatch, because it fully
exemplifies the more essential mischiefs of that class of
freight agencies, compressing them within one view, without
that magnitude of operation that imposes upon, and those
specious conveniences that embarrass, the judgment. InI it
is found the usual temptations to officers in the grossest
forms, the expensive uselessness of the services, and the
vexatious hardships upon the unfortunate stockholders, necessarily belonging to this class of agencies.
The freight of these lines is hauled upon the tracks, usually
in the cars, and always by the motive power, under;he direction of the working force of the roads. The mea Is and
labor of transportation are wholly afforded by thenm. All
that is claimed for freight lines in matter of transportation
is that they occasionally build and furnish cars, thereby supplying deficiencies in the freight equipment of roads, provide
agents along the routes at points of transfer or connection,
following the shipments, and in case of freight blockade or
accident, seeing that their freight is got out and sent forward.
In case of accident, it is the duty of the roads to repair
breaches, and forward the freight as rapidly as possible. If
this is not done, the agents of freight lines simply perform
the proper work of road officers; they have no more ability
to obtain hands, and ought to have no more skill in hiring
and working them at the point of accident. These accidents




25
seldom occur at points where other transportation can be
had. In fact, in all of our investigation we have heard of
but one instance in which any of these lines attempted to
provide any means of transferring freight over a point of
accident, and that was of merchandise by an Express Company, and but two or three cases in which new means of
transportation was provided in cases of delay. Accidents
and blockades affect the business of freight lines generally
to the same extent as other transportation, and in any event,
affecting so trifling a part of the whole traffic of the country,
they do not form any adequate foundation for such extended
and expensive organizations.
We know of only three freight lines having cars of their
own, viz., The Great Eastern Despatch, 11 cars; Star Union
Line, 1000 cars, and the Empire Line. There may be more.
During the war, when the Government was using very
largely the freight equipment of the Pennsylvania Central,
and almost exclusively of the Baltimore and Ohio, the business pressure. upon the remaining transportation of the
country was very great, and the supply of cars inadequate.
This temporary want the Star Union Line in part supplied.
Both before the war and since, however, the aggregate
equipment of the country has been more than sufficient for
its trade. It is this excess of transportation facilities that
gave rise to the violent competition before the war, and is
starting it since. There is no general convenience, therefore, arising from the addition to it now.
In so far as they may load and unload their cars, and bill
and collect their freight, it is but a question as to who shall
employ the clerks and laborers, and the relative advantages
of two or more organizations over one in managing the
same general business.
That these lines have heretofore carried and delivered
freight with more promptness and despatch than formerly
by railroads alone, there is no doubt. How is this done?
In part, by providing agents along the route with full information from the shipping point of the freight moving; to
watch and see that it is not unnecessarily delayed by a dis



26
abled car, or other obstruction, and neglected on side tracks.
This is simply a guard against the negligence of railroad
employds, and if provided in the interest of the whole traffic,
would exert a good effect in improving the promptness of
railroad transportation. This greater promptness is also in
part owing to preference in forwarding their freight, improperly obtained by tampering with the employes of the
roads, or by secret contracts with railroad officers.
Every railroad president and superintendent, and every
agent of the freight lines that we have examined, deny,the
allowance of such preference. In one of our examinations,
as will be seen, a superintendent swore that, so strict was
their rule, that he would summarily dismiss an employe who
would permit it.
*      *       *       *       *      *       *
Most of the railroad presidents whom we have examined
have been offered stock on favored terms, or as a gratuity,
by these organizations.  The presidents of two roads were
offered gratuitously 10,000 shares each of the stock of a
Pennsylvania corporation, in connection with a contract
pending with their companies, and, with the approval of
their board of directors, they accepted it in a secret trust for
their use. Indeed, it may be safely affirmed, without specifying the particular cases that have come to our knowledge,
that every one of these organizations has sought to distribute
their stock upon terms more or less favored among railroad
officers.  We shall hereafter advert to the actual interest of
these officers in them.
On the other hand, these lines having no facilities of their
own, are constantly tempted to deceive the public by promises they cannot perform, and by representing advantages
they do not possess.  They have afforded a convenience to
the shipper, which, in the isolation and strife among railroads, they did not for a time afford him, in settling losses
promptly by agent at the place of delivery. Railroads heretofore having but partial running arrangement, and declining responsibility for each other, delayed the shipper with
tracing losses, and often compelled him to go to distant




27
roads to recover them. In this respect there has been a
steady improvement.  It is not now  a serious evil, and a
wiser and closer co-operation among railroads will afford to
the public a complete remedy.  But in connection with this
convenience, these organizations are giving rise to a kindred
danger.
Our courts have maintained the general common-law
liability of carriers for losses against attempts to limit or
abridge it, by contract or otherwise. The American Law
Register, during the past year, has published elaborate articles to show that the law does, and if not it ought to, materially qualify the liability of carriers of this character, especially express companies, because they have no control of
the means of transportation. The railroads, it is assumed,
are not liable, because they are not parties to the contract
with the shipper.  Thus, between the two agents of transportation, it is proposed to deprive the public of security for
their freight in the liability of either.
We have already given some facts showing the enormous
profits of these organizations. These profits are either derived from an increased rate to shippers, in which case it
becomes a burden to the public, or by taking a part of the
fair earnings of the railroads, in which case they are impoverished, or in part from both, which last is probably the true
hypothesis.  The case is a simple one.  There is an additional party to provide for, with no moderate wants, requiring heavy dividends and large surplus.  The roads already
impoverished with their own strifes, can spare but a part;
rates must be increased and the public pay the balance. The
price is a heavy one for the temporary convenience afforded,
but must be paid.
In the meantime stockholders are without dividends, the
roads are out of repair, and without fences, and the public
are losing life and property from  defective roads and machinery, and still paying high rates for their accommodation.
Some of the roads over which these organizations operate,
undergoing repeated capitalization of stock, are in the hands
of receivers for the benefit of their creditors, and others,




28
with their stock wholly sunk, are being sold to pay off their
debts.
A long step, in the right direction, towards the relief of
the railroads, has been made in the voluntary co-operative
movement of roads forming lines of transportation, to organize their through freight business under one management
for their sole benefit. Of this character is what are known
as the White and Red Lines.  The Red Line was established
by the New York Central, the Lake Shore Roads, and
Michigan Southern and Northern Indiana, to include also
the Central Massachusetts Roads, forming lines from  Boston, New  York, and Albany, to Chicago.  The White
Line was established by the same roads east of Cleveland, the Cleveland, Columbus, and Cincinnati, Columbus,
and Xenia and Little Miami, and Bellefontaine Railway
Companies, intending to  embrace all connecting roads,
East and West, that desired to become a part of the organization, forming through lines  between Boston and New
York in the East, and Cincinnati, Louisville, Evansville,
and St. Louis, and such other cities in the East and West
as deemed advisable, and all intermediate points."  Each
road furnishes its quota of compromise cars to the line,
which has its superintendent and agents. It has to the public the unity of ordinary freight lines. It traces and locates
losses, and settles them at the point of delivery. After paying expenses, the balance of the common earnings is distributed among the roads according to the service each
rendered in the common business, the through rates of the
several roads being charged.  This plan secures the advantage of a common agency in all the markets, under the immediate supervision of the roads, dispenses with irresponsible and expensive commission agencies, and relieves the
road from the burden of outside freight organizations. It
substitutes co-operation among the roads for mutual opposition and injury, places rates upon a steadier footing, and
above all,.it places the whole trade of each road under a
management in the same interest, and thereby secures the
equality of the public in transportation.  It provides a dis



29
tinct organization and management of the through business
of each road, without depriving it of its profits. The through
business, provided with its separate facilities, no longer conflicts with the conveniences of the local trade, and the officers
and agents of the road, relieved in a great measure from
care of the one, can devote so much the more attention to
the accommodation of the other.
This plan may have abuses, and doubtless will have, in its
details.  These must be guarded against, in part, no doubt,
by legislation.  They must be provided against as they appear. Nor do we intend to approve of any precise plan, but
only the general principle of co-operation among the roads of
the country, indicated in the Red and White Line organizations.
The result, therefore, of our examinations has been, that
outside freight organizations ought to be discouraged or
prohibited by legislation.
That ample authority should be given to our own roads,
to make all necessary co-operative contracts with each other,
and with the roads and transportation lines of other States,
for the transaction of their conmmon business.
Before dismissing this subject, we cannot forbear to call
attention of the Senate to a theory and plan of railroad
management now extensively, and in a degree secretly entertained by railroad officers and transportation men, of especial concern to local interests. It is proposed, that instead
of discouraging freight lines and transportation companies,
the railroad companies shall themselves withdraw from the
carrying trade of the country, and opening their road as a
highway, shall, with their own locomotives, and according to
their own time-table, draw the cars of every person or company that may desire to come upon their road.  This plan is
urged in manifest forgetfulness of all accommodation to
local communities, and in sole view of the interest of the
through trade.  Under it, such communities only could have
freight facilities, that could afford trade of sufficient regularity and amount to induce some freight company to regularly to connect with it.  The time, the extent, the manner,




30
and even the existence of transportation facilities upon the
road must depend wholly upon the changing interest, ability,
and fortune of the companies that would operate on them.
Such facilities might be depended upon between important
commercial depots, but could not be secured to the smaller
local stations. There is no obligation to furnish them,
chargeable upon any responsible party that has a dollar's
worth of property in this State that may not be removed in
twelve hours' time, or any corporate existence amenable to
legal process, or any interest in the communities of the State
further than the trade that for the passing hour they can
afford. Entire protection to the local interest of the State
demands that railroads should not be permitted to abdicate
any part of their offices, or farm out their duties to others
to perform.
During the war various causes contributed to largely increase the amount of goods carried by express companies
upon the passenger trains, which imparted a new character
to the business, and gave great importance to those companies, as a new channel to the more valuable commerce of
the country. Had this continued, it would have presented
some serious questions as to the safety of travel and the interests of railroads, for perhaps the Legislature, and certainly railroad managers to solve. With the removal, however, of the active causes of increase during the war, and
the great improvement in freight facilities since, their business in carrying freight has declined, and the tendency certainly is, as trade and prices become settled, to restore to the
ordinary freight transportation the whole carriage of merchandise and other valuable freight, heretofore shipped in
part by express. This change will certainly take place if the
plan inaugurated by the Baltimore and Ohio Road, of running a light freight train at passenger speed, carrying freight
at the usual rates, should be generally adopted by the other
roads.
The largely augmented profits of the Express Companies,
resulting from this temporary increase of their business,
produced its natural result. A new company was started,




31
with a formidable capital, widely distributed among the mercantile communities of the United States, giving to it at once
the advantage of a large trade. The three old companies,
the Adams, the United States, and the American, had divided
the territory over which they operated among themselves,
established common rates between the larger points where
they should compete, and arranged to carry the freight of
each other to its destination when taken by one company to
be delivered within the territory of the other. They thus
established for themselves substantial monopolies in the express business within their respective territories.  Their rates
were fixed arbitrarily, and of course were influenced by no
competition.
Immediately upon the Merchants' Union Express, the new
company, going into operation, a private circular was issued
by one or more of the old companies, forbidding their agents
from  having  "business relations with this organization
(M. U. Ex. Co.) directly or indirectly," and commanding that
" no express matter of any description is to be received from
them  or delivered to them, whether paid or unpaid, consigned or unconsigned."  They were also directed "to retain the business....... at whatever reduction in price
may be necessary," on all routes competing with the Merchants' Union Express Company, but to maintain their rates
upon others. The new company was treated as an intruder,
and outlawed. The business the old companies determined
to maintain, was the whole express business, within their
respective territories, "on the routes occupied" by those
companies. To maintain this monopoly, honorable and liberal business relations with the intruding company were forbidden, their obligations as common carriers to receive and
carry freight from all repudiated, and a wholesale and unlimited cutting of rates at competing points entered on.
This attempt to interfere with and prevent the establishment of a competing business is certainly not entitled to
favor. Against it all rights ought to be protected, and all
obligations enforced. We are not prepared, however, to
advise any legislation in reference to the matter.




32
6. We have already adverted to the apparently uniform
policy and practice of freight and express companies, of
having portions of their stock in the hands of railroad officers.  At the time the law of last winter, relative to the
ownership of such stock by the officers and agents of railroads, was enacted, the larger number of those we examined
were owners of it in one or more companies, but had, in
most instances, disposed of it after the passage of that law.
In some instances they yet retain it. The law referred to,
though not carefully enough considered in some of its provisions, was a wise one in its object, and has proven already
very useful in its effects.  It is founded upon the principle
that the integrity and fidelity of railroad officers and agents
shall not be tempted by inconsistent interests, or embarrassed by inconsistent duties.  It is a simple and fundamental principle in the laws of all civilized communities,
and governs every prudent man in the management of his
private business.  No business man permits his clerk to become the agent of his customer; no court allows a trustee to
deal with or speculate in his trust; no law allows a man to hold
inconsistent offices. In railroad management, by reason of
the easy concealment the complexity of its affairs and the
practical impossibility of their examination affords to unfaithfulness and peculation, this becomes an indispensable
rule of protection to railroad stockholders.
Yet we are compelled to say as the result of our examination, and an extensive intercourse with railroad officers and
agents, that this rule is to a great extent ignored in railroad
management in this State.  Agents and officers of every
grade, sometimes openly, with the approval of the Board
of Directors, or superior officers, often secretly, deal with
the road, accept offices and employments inconsistent with
their duties to it, and engage in business interfering with
the rights and accommodations of its patrons.  We can
advert to only a few illustrations.
In the case of the Cincinnati and Zanesville Railroad, already referred to, the station agent at New Lexington, the
medium  of communication between the shippers at that




33
point, and the road, is permitted to engage in the purchase
and shipment of coal from the mines, with all the temptations to abuse the advantages of his place to advance his
own interest, and with a pending controversy between the
road and miners as to transportation. Pending this same
controversy, with a part of the mines closed and others
working with reduced force for want of cars to ship the
coal to market, the President and two of the Directors purchase coal lands upon the road and organize a large coal
company to engage in the business of mining, the only difficulty of which has been the limited and expensive transportation of the road. In this case, these officers must deal
with their own company as to rates, and decide their disputes
with other shippers, as to facilities. So in the case on the
Central Ohio, in the season of coal famine, when with the
aid of distant roads sufficient transportation could not be
had, the superintendent advances money to a coal dealer,
and in return shares his profits. Is it surprising that this
dealer shall be able, with the control of cars, to command in
the market a profit of nearly'two hundred per cent. in his
sales of coal, without expending a particle of labor, or a
dollar of money?
On the Atlantic and Great Western, the freight agents in
New York and Cincinnati, bound by their offices to devote
their whole exertions to the increase of its traffic, are employed, with the knowledge of their superior officers, as
soliciting agents of a rival transportation line. On the same
road the general freight agent, charged with duty of guarding its rights as against shippers, and its interests, caused to
be made out in his office, the accounts against it, of a freight
line operating over it, and received from the proprietor
thereof $1500 for the year 1865. In the case of the Great
Eastern Despatch, the freight agent and superintendent
became partners in a freight line, operating over their road,
from  which they receive a yearly profit more than three
times as large as their salaries.
It will be observed in the evidence, that the President of
one road is part owner in a transportation company operat3




34
ing in competition with it. But we must refer the Senate,
in part, to the testimony for further illustration of the confusions of duties and interest widely admitted into railroad
management in this State. It prevails in the supply department as well as the employments of the roads.
In one respect, particularly, a practice prevails, which,
owing to its extent, deserves to be mentioned. We refer to
the employment of station agents by express companies. It
tends to improper interference with the rights of the public
in the carriage of baggage and parcels on passenger trains,
with the interest of the road in its freight traffic, and with
the rights of competing express companies.
Is it surprising that with such rules of business management, with such relations existing between officers and
agents and their roads, the stock should become worthless,
or yield irregular dividends to stockholders? Can it be expected that, in the strife between private interest and official
duty, the latter must not wholly or partially give way? In
even the more flagrant cases which we have examined, they
seemed to have proceeded, not so much from corruption as
from a confusion of all distinctions of interest or duties in
the relations of the officers, and the thoroughly unsound
rules of management so extensively prevailing among railroad managers.  In this respect there ought to be a thorough
change. Railroad agents and officers, as strictly as men
holding fiduciary employments or trusts in other cases, should
not be permitted to assume duties or acquire interests inconsistent with the interests of their roads.
We have examined matters relating to the safety of travel,
but are able to add nothing to what is generally known as
to the cause of accidents. Their prevention is to be generally secured by maintaining a sound physical condition, and
a prudent and faithful management of roads, and preventing
intrusion, interference or misconduct of passengers or others.
Far the larger proportion of accidents to life and limb result
from misconduct of passengers in standing on the platforms,
passing from one car to another whilst in motion, or otherwise violating the rules of the road, the thoughtless or reck



35
less driving, riding, or walking on or across the track, placing
obstructions on, or other malicious interference with the
roads, running over the cattle straying or driven on them,
or other default or misconduct of other persons than railroads
and their agents.
These, as well as matters relating to the condition of the
road, and the conduct of its agents, are matters of detail, to
be provided for by numerous regulations, some of which
must be committed to the discretion of a State supervising
officer and the officers of the roads, and all carefully considered with reference to the rights and convenience of the
people, the efficiency of the road, and the protection of both.
Some of these regulations we have deemed proper to submit
to the consideration of the Senate, in the bill we shall present herewith.
Other matters affecting the convenience and rights of both
the public and railroads have been brought to our attention
in the form of representations or complaints, some of which
appear in the testimony, and many of which are entitled to
the careful consideration of the Legislature. At numerous
places in the State, at railroad depots, and especially at the
junctions, pickpockets and robbers gather and steal, and in
the night season waylay and rob passengers and depot
agents. At some points this is becoming a source of great
danger and alarm to adjoining communities and the travelling public, and being without the means of effective local
police, the only remedy seems some police provision by the
State.
Great complaint also exists as to the failure of railroads to
make fences, as required by law. This is a source of constant loss and irritation to the farmers along the lines of the
railroad. The obligation to make fences is not adjusted,
perhaps, on exactly equitable principles. In some cases, as
a part of the consideration of the right of way, the roads
assumed the burden of fencing.  This obligation should be
strictly and unconditionally enforced. In other cases, where
the right of way is acquired for a consideration paid to the
owner without such agreement, we see no reason why the




36
same rule should not be applied as to fencing, as exists with
reference to conterminal proprietors in other cases,-each
building one half the fence. But in any event, the obligation to fence should be enforced absolutely, in the interest of
public safety, and the claims for building fences should have,
in their collection, the priority and speedy process of taxation against the road, to protect private rights of adjoining
proprietors, and against both parties, to protect the safety of
persons and property of the public in transportation.
It is not necessary to discuss or even specify all the grounds
of complaint. All of them are constantly aggravated by the
frequent inattention or insolence of railroad agents, adding
a feeling of oppression to the sense of loss.
It is, however, much easier to discover grievances than to
devise a remedy.  Some arise from temporary causes, which
we may rely upon the early effects of events to remove;
others proceed from  causes imperfectly understood, or en'tirely unknown; and still others are incident to the workings
of a new system of immense magnitude and complication,
which we must in part endure.  It has not yet been half a
century since the first railroad began operation, and yet the
railway system  of the United States affects every interest
and value, and directly reaches and controls, in a greater or
less degree, all the business transactions and personal movements of its people. The science of railway management is
yet in its infancy, and the relations of railroads to each other
and the public very imperfectly understood. Legislation, to
be safe, must be limited to what experience may have shown
to be practicable and expedient. Beyond this it is dangerous, blind, and therefore inevitably mischievous.
Some abuses have been wanton and unnecessary. But
impatience with all would be unreasonable.  If we vigilantly
watch and punish corruption, cut off excrescences and unnecessary burdens, and foster the railroads with the indulgent
care the magnitude of the interest and its immense value to
our people so fully justify, the abatement of abuses and
causes of complaint will soon follow. On the other hand, a
hostile spirit toward them is alike destructive to public and




37
private interest. The public benefits conferred by railroads
cannot be enumerated or valued. To the church and school
they stand next as agencies of civilization, of material and
social progress.  They are the means of our growth and
power, and the foundations of our wealth.
There are two interests in railroads equally to be protected,
and yet carefully limited.  One is that of the public, for
whose benefit they were built, in whose behalf the corporate
franchises were conferred, and the eminent power of the
State in appropriating private property, that final dominion
over private right which she reserves for public use, was exerted.  The other is the private interest of stockholders,
who have made investment of their means to construct and
operate railroads, under the authority to manage them, and
charge the public sufficient amount for their use to yield a
reasonable profit upon their investment.
The duty of the Legislature to fully protect the public interest is undisputed; it is not less its duty to protect private
rights. Protective legislation ought always to be strictly
limited to the necessities existing. Private interests in railroads are peculiarly helpless and exposed. Its business is
so extensive and complicated that investigation by the stockholders is practically impossible. The annual reports of the
officers, which show nothing but the results, is all that they
see. The footings of the accounts may provide no dividends;
his stock is marketable property of itself, distinct from the
property of the corporation, which he can sell; if it ceases
to be of value to hold, he can find the relief in the markets
which he cannot get in the offices and management of his
company.  In this way the annual reports become practically
conclusive; all back of them is a sealed book.
We have had occasion to observe, during the progress of
our investigation, the difficulties a stockholder must meet in
any attempt at examination into the affairs of his company.
In the multitude of stockholders, scattered and strangers to
each other, co-operation is out of the question.  There are
but few men, alone, who have sufficient determination and
courage to encounter the odds against them  in such an




38
inquiry, the influence of the officers, and the labyrinth of
railroad transactions and accounts. He is accused of malice
and meddling; generally without aid; any clerk or foreman
may mislead him, and in the end he has to meet the contingencies of a failure, though it may not show that he ought
not to have succeeded. The majority of roads in Ohio have
been, financially, failures, and yet how little is known beyond the abstract of the accounts in official reports? A portion of these roads have been for years in the hands of receivers, some of whom, it is said, have delayed filing accounts
for over a year, and in one or more cases for as long as three
years. These receivers are also, in many cases, presidents
of the companies whose roads they have charge of. It is
obvious that with the control of the corporation to which he
must in fact account, and which is the representative of the
stockholders in the suit in which he is acting as receiver, the
difficulties of examination to the stockholders are greatly
augmented. Other roads having gone on to the Stock Boards
of New York, their stock has become simply cards for its
brokers to gamble with, leaving the -roads without private
interests represented in a form to protect the road from the
peculation of officers, if the means even were afforded.
Owing, therefore, to the circumstances and condition of
private interests in railroads, and the public use they support, it is not merely the right but the imperative duty of
the State to intervene in their behalf, and afford to them full
and adequate protection.
Your Committee, after a very careful consideration of the
subject, have become convinced that the initial in, and the
necessary foundation to, a wise and efficient system of railroad legislation, is a State officer, charged with the duty of
collecting the statistics and the experience of railroad management in the State; of observing its immediate wants and
defects; of attending to the enforcement of the laws against
them, and of examining into the abuses in railroad affairs
with the view to protect the rights of the stockholders, and
the rights and safety of the public.  With limited powers at
first,-they may be enlarged as experience may show to be




39
safe,-no embarrassment to the railroads, from improper interference with the management of their affairs, can exist,
nor any supervision of them to which an honest railroad
officer can object.
Of the other hand, it will afford present relief to many
abuses that ought to be abated at once; remove many complaints, upon full information that showed them unfounded;
relieve officers from suspicion arising from circumstances not
understood; and provide for an enforcement of the laws as
to railroads, scarcely any of which are now fully observed,
and many of them utter dead letters upon our statute books.
The business of managing railroads requires the same
business judgment, and is governed by the same general
business rules, that apply to other branches of business.
There is, nevertheless, by reason of the circumstances heretofore mentioned, great ignorance as to railroad management,
which becomes the occasion of every description of suspicions affecting its integrity and fairness, unjustly injuring
the reputation of many honest officers, and destroying public favor and confidence in railroads. The appointment of
the officer and the exercise of the powers above described,
will greatly diminish or entirely remove this serious evil.
Respectfully submitted.
WARNER M. BATEMAN,
SAMUEL WILLIAMSON,
JAMES C. HALL.




40
A  BITII
TO PROVIDE FOR THE APPOINTMENT OF A COMMISSIONER OF RAILROADS
AND TELEGRAPHS, AND TO PRESCRIBE HIS DUTIES.
SECTION 1. Be it enacted by the General Assembly of the State
of Ohio, That there shall be appointed by the Governor, by
and with the advice and consent of the Senate, within
days after the passage of this act, a person to be styled the
commissioner of railroads and telegraphs, who shall hold his
office for a period of   years, and until his successor is
appointed and qualified.  The person who is so appointed
shall be an elector of this State, and shall have no official
connection with any railroad, nor during his term of office
own or be interested in the stock, or in the employ of any
railroad. In case of vacancy by death, resignation, removal
from the State, or otherwise, the Governor shall fill the vacancy and report the name of such appointee to the Senate
if in session, and if not, within ten days after the commencement of the next session, who by the advice and consent of
the Senate, shall hold his office for the full term of  years,
as hereinbefore provided, from the day of his appointment.
SEC. 2. Before entering upon the discharge of the duties
of his office, said commissioner shall take an oath or affirmation to support the Constitution of the United States and of
this State, and to faithfully and honestly discharge his duties
as such commissioner, and that he is not an officer, stockholder, or employe of any railroad or in any way interested
therein.
SEC. 3. He shall receive for his services   thousand dollars
per annum, and shall be furnished with an office, office furniture, and stationery, at the expense of the State. He shall
have power to employ a clerk to perform such duties as may
be assigned by him, to be paid out of the State treasury at the




41
rate of    dollars per annum, the time of actual service to
be certified by the commissioner to the auditor of the State.
SEC. 4. Said railroad commissioner shall have the right
of passing, free of charge, in the performance of his duties,
on all the railroads in this State, and to take with him any
person in his official employment, or to send any person employed to assist him in the performance of his duties upon
such railroads, free of charge.
SEC. 5. It shall be the duty of such commissioner, whenever it shall come to his knowledge, either upon complaint
or otherwise, or he shall have reason to believe that any of
the officers, employds or agents of any railroad in this State
are violating any of the laws of this State relating to railroads, to examine into all such violations; and if such complaint shall be found true, he shall report the same to the
Governor with his annual report, to be laid before the General Assembly. In making such examination, he shall have
power to issue subpoena for witnesses and administer oaths.
He shall prosecute or cause to be prosecuted, all violations
of any of the laws relating to railroads, if in his opinion such
prosecution will be of public advantage.
SEC. 6. Whenever the commissioner shall have reasonable
grounds to believe, either on complaint or otherwise, that any
of the tracks, bridges, or other structures of any railroad in
this State are in a condition which renders any of them unfit
for the transportation of passengers with reasonable safety,
or dangerous, it shall be his duty to inspect and examine the
same; and if on such examination in his opinion any of such
tracks, bridges, or other structures or works are unfit for the
transportation of passengers with reasonable safety, or dangerous, it shall be his duty to give to the superintendent or
other executive officer of the company working or operating
said defective track, bridge, or other structure, notice of the
condition thereof and of the repairs necessary to place the
same in a reasonably safe condition; and may also order
and direct the rate of speed of passing trains near such dangerous or defective track, bridge, or other structure until the
said repairs are made, and the time within which such repairs




42
shall be made by the company; and if any superintendent
or other executive officer aforesaid, receiving such notice and
order, shall wilfully neglect, for the period of  days after
receiving such notice and order, to direct the proper subordinate officers of the company to run the passenger trains
over such defective track, bridge, or other structure at the
speed so prescribed by the commissioner; or if any engineer,
conductor, or other employd of such company, shall knowingly disobey such order, every such superintendent, officer,
conductor, or employd, shall be deemed guilty of a misdemeanor, and on conviction thereof upon indictment, shall be
fined in any sum not exceeding five hundred dollars. If
said company shall, without reasonable cause, neglect to
make said repairs within the time prescribed by said commissioner, such company, for each and every day that ensues
thereafter and until said repairs are made, shall forfeit and
pay to the State the sum of one hundred dollars.
SEC. 7. It is hereby made the duty of the president or
other officer in charge of any railroad company in this State,
annually, during the month of October, to prepare and
transmit to the commissioner a full and true statement,
under oath, of its affairs for the preceding year, ending on
the first Monday of July, specifying:
1st. The amount of capital stock paid in.
2d. The amount of capital stock unpaid.
3d. The amount of funded debt per last report.
4th. The amount of funded debt paid since last report.
5th. The increase of funded debt since last report.
6th. The present amount of funded debt.
7th. The amount of floating debt per last report.
8th. The amount of floating debt paid since last report.
9th. The increase of floating debt since last report.
10th. The present amount of floating debt.
11th. The estimated value of the road-bed, including iron
and bridges.
12th. The estimated value of its rolling stock.
13th. The estimated value of its stations, buildings, and
fixtures.




43
14th. The estimated value of all its other property.
15th. The length of single main track.
16th. The length of double main track.
17th. The length of branches, stating whether they have
single or double track.
18th. The aggregate length of sidings and other tracks
not above enumerated.
19th. The maximum grade, with its length in main road,
and also its branches.
20th. The total rise and fall in main road, and also in
branches.
21st. The shortest radius of curvature, with length of
curve in main road, and also in branches.
22d. The total degrees of curvature in main road, and
also in branches.
23d. The total length of straight line in main road, and
also in branches.
24th. The number of bridges, aggregate length, and
whether wood or iron, distinguishing between main track
and branches.
25th. The whole length of road unfenced on both sides.
26th. The number of miles run by passenger trains.
27th. The number of miles run by freight trains.
28th. The number of tons of through freight carried.
29th. The number of tons of local freight carried.
30th. The rate of speed adopted for express passenger
trains, including stops.
31st. The rate of speed actually attained by express passenger trains.
32d. The rate of speed adopted for mail and accommodation passenger trains, including stops.
33d. The rate of speed actually attained by mail and
accommodation trains, including stops and detentions.
34th. Its monthly earnings for transportation of passengers.
35th. Its monthly earnings for transportation of freight.
36th. Its monthly earnings from all other sources.




44
37th. The amount of expense incurred in the running and
management of passenger trains.
38th. The amount of expense incurred in the running
and management of freight trains.
39th. All other expenses incurred in the running and
management of the road.
40th. The amount expended for repairs of road and maintenance of way, including renewal of iron and repairs of
bridges.
41st. The amount expended for motive power and cars.
42d. The amount expended for station houses, buildings,
and fixtures.
43d. All other expenditures for maintenance of way.
44th. All other expenditures, either for management of
road, maintenance of way, motive power and cars, or for
other purposes.
45th. The rate of fare for passengers and its tariff of
freights, as published for the government of its agents.
46th. A statement of all casualties resulting in injuries
to persons, and the extent and cause thereof.
47th. What express companies run on their roads, and
on what terms.
48th. What freight or transportation companies run on
the road, and on what terms.
49th. The number and description of new bridges built.
50th. The greatest age of bridges.
51st. The average age of bridges.
52d. The length of rail relaid, new, rerolled, or old.
53d. The number of switches on the road, and how
many private.
54th. The number of road crossings.
55th. How many provided with flagmen.
56th. How many level and how many bridged.
57th. The number of wheels and of axles in use in passenger trains.
58th. How many have been removed during the year,
and such other information as may be required by the com



45
mission.  The commissioner shall prepare and furnish to
each railroad company, and to each telegraph company or
chief manager thereof, in this State, blank forms for making
the reports required by this act.
SEC. 8. Every president or other officer in charge of any
railroad, who shall wilfully neglect or refuse to make and
furnish such report at the time prescribed in section seven,
shall forfeit and pay a sum not exceeding one thousand
dollars, to be recovered in the name and for the use of the
State of Ohio, and he shall be subject to a like penalty for
every period of         days after the time that he shall
wilfully neglect or refuse to make such report.
SEC. 9. It shall be the duty of the chief manager or agent
of each telegraph line or company in this State, annually,
during the month of October, to furnish to the commissioner, under oath, such information, and in such form as
he may require.
SEC. 10. It shall be the duty of the commissioner aforesaid, to make to the Governor, on or before the first day of
January of each year, a full and accurate report of the condition and affairs of all the railroad companies and railroads,
and telegraph companies and telegraph in the State; also of
all accidents resulting in injury to persons, and the roads
upon which they occurred, and the circumstances and cause
thereof; and such other information, suggestions, and recommendations as he may deem  of advantage to the State,
to be by him laid before the General Assembly.
SEC. 11. This act to take effect from and after its passage.




46
A. 3BIII-,
TO REGULATE RAILROADS.
SECTION 1. Be it enacted by the General Assembly of the State
of Ohio, That all railroad companies that have been, or shall
be incorporated under the laws of this State, except those
which operate by animal power alone, shall have the powers
and privileges, and be subject to the duties and liabilities,
and other provisions of this act, except when otherwise
specially provided in their respective charters.
SEC. 2. It shall be the duty of every company owning or
operating any railroad in this State, to make out a table of
rates for the carriage of freight in freight trains upon its
road, which rates shall be made upon each article, or class
of freight, according to its weight, or the measure thereof
in feet, bushels, or barrels; and such rates shall not be varied
with reference to the amounts of shipments, upon any freight
carried for any corporation, association, or individuals engaged as common carriers, in the transportation thereof on
said road; and such company making such table of rates,
shall cause a copy thereof, plainly describing the articles
and classification thereof, and the charges to be made
thereon to the different points of shipments, to be posted in
some prominent and accessible place in each freight office,
or in the office or offices of every freight agent of such company in this State: Provided, that such company shall have
the right to change such published rates at any time, at its
discretion, upon making, publishing, and posting, as aforesaid, a new table of rates containing such changes.
SEC. 3. No company, operating any railroad in this State,
shall charge, or receive other, or different rates or amounts
for the carriage of freight, than such as may be provided for
in the table of rates made, published, and posted as provided




47
in the foregoing section; nor shall it be permitted to contract
for, or, in fact, to carry any freight at a fixed estimated
amount or classification thereof for a car load, but shall
charge the rates aforesaid, upon the actual amount and
classification of such freight, neither shall it, nor any agent
by it employed within this State, contract for, or in fact pay
or allow to the shipper, any sum in the nature of a drawback, or reduction to him from the rates aforesaid, or as a
compensation for his custom.
SEC. 4. That any such company, that shall violate the
provisions of the two preceding sections of this act, shall
forfeit and pay a sum of not less than one hundred dollars,
nor more than one thousand dollars, at the discretion of the
court, for each offence; and any agent of such company who
shall violate the provisions of section three, shall forfeit and
pay a sum not less than fifty dollars nor more than one hundred dollars, at the discretion of the court; said penalties to
be collected in a civil action in the name of the State of Ohio,
and one-half thereof paid to the informer, and the balance
into the treasury of the State; and every shipper who shall
pay the full rates to such company, so violating the provisions of section three of this act, shall be entitled to recover
back from the company the difference between the rate paid
by him, and the rate actually paid by the shipper to whom
such drawback or reduction was allowed.
SEc. 5. That every such company shall afford all reasonable facilities for receiving, and forwarding, and delivering
of freight upon and from the several railways or lines of
water transportation, over, or from which such freight may
be directed to be carried, and for carrying, forwarding, and
delivering freight to and from all way stations, or the termini
of the road of such company, or roads connected therewith;
and no such company shall make or give any undue or unreasonable preference or advantage, to, or in favor of any
particular person or community, or company, or any particular description of freight, in any respect whatsoever; nor
shall any such company subject any particular person, company, or community, or any particular description of freight,




48
to any undue or unreasonable prejudice or disadvantage, in
any respect whatsoever.
SEC. 6. Whenever connection does or shall exist between
the tracks of two or more railroads within this State, or
whenever the tracks of such railroads shall, in fact, so join
or meet each other, as that the cars of each may, without
any change of gauge, or new work of construction, pass
from  the track of one to the track of the other, the companies owning or operating such railroads, shall pass freight
over their respective railroads, from  one another, to the
places of its destination, without breaking bulk, and shall
sell passenger tickets, and check baggage, from any station
on their respective roads, to any station on the other, where
their trains may stop, upon such terms and conditions as
they shall agree, and in default of such agreement, upon
such reasonable terms as the court that may have cognizance of the matter may prescribe; and any such company
operating a railway in the State, having such connection
with two or more railroads, shall receive freight and passengers from, and pass them to such railroads, without giving
any undue or unreasonable advantage to either, or subjecting either to any undue or unreasonable prejudice, delay, or
disadvantage, in any respect whatever.
SEC. 7. No company, owning or operating any railroad in
this State, shall be allowed for the carriage of frieght or
passengers upon its road, a greater rate for any distance,
than for any other longer distance, but the charges aforesaid
shall have due and reasonable proportion to each other,
having reference to the relative distance, and costs and inconvenience of the service of transportation, and the rate
per mile for the carriage of passengers shall not be, for any
distance, more than thirty per cent. greater than the lowest
rate per mile charged upon such road.
SEC. 8. In case of a violation of any of the foregoing sections, by any railway company in this State, a civil action
may be brought by any person or corporation aggrieved
thereby, to recover damages therefor, or to restrain such
violation, or to compel such company to specifically perform




49
the duty imposed in his or its favor, by said sections; and in
case such company shall establish any rule or order, or maintain or permit any practice, in violation of said sections, or
shall omit or neglect the performance of the duties imposed
upon it, the commissioner of railroads and telegraphs shall,
upon complaint made, or at his own instance, if he shall be
satisfied that the public interest will be advanced thereby,
bring a civil action in the name of the State of Ohio, in the
Superior Court of Cincinnati, or in the Court of Common
Pleas of any county through which such railroad may pass,
as may be most convenient, against such company, to restrain such violation, or to compel the specific performance
of the duties so neglected to be performed.
SEC. 9. No president, superintendent, or freight agent of
any railroad company of this State, shall hold any office or
employment in any other railroad company, either in or
outside of this State, except in the transaction of the joint
business of such companies, or where the railroad of one
company shall be leased by the other; nor shall such officers,
or the agents of any railroad company in this State, in matters relating to or affected by their agency, acquire or hold
any interest, direct or indirect, in any contract, business, or
employment, with or upon said road, or hold, or have any
interest in the stock of any express company, freight or
despatch company, or in any line of water transportation
connecting or competing in part or wholly with their road;
and every such officer or agent violating the provisions of
this section, shall forfeit and pay to the State of Ohio, for
each offence, a sum not less than fifty, nor more than one
thousand dollars; and every contract made by such officer
or agent, to acquire, transfer, or otherwise affect the title,
profits, emoluments and advantages of the office, employment, business, stock or interest, prohibited by this section,
shall be wholly void.
SEC. 10. The commissioner of railroads shall, upon complaint made in writing by any number of stockholders or
creditors, not less than five, assigning sufficient reason therefor, visit and inspect the railroad of any company in this
4




50
State, its rails, switches, road crossings, buildings, stations,
works, bridges, and the engines and cars belonging thereto,
and shall investigate the condition of such railroad, and examine its by-laws and regulations, and the conduct of its,officers and agents, and make any and all other inquiries,
needful to determine whether the affairs of such company
are managed conformably to law, to the rights of stockholders, and to the rights, convenience, and safety of the
public.
SEC. 11. Every railroad in this State shall be provided by
the company operating the same, with a ticket office at
every station at which any of its trains regularly stop, which
shall be kept open, not less than thirty minutes previous to
the departure of each passenger train therefrom, for the sale'of tickets; and also one ticket office in every city of the first.and second class at its termini or along its line, centrally
located therein, in addition to the ticket office at its depot,
which shall be kept open during the business hours of every
day in the week, for the sale of tickets.
SEC. 12. Every passenger who shall wilfully neglect or refuse to procure a ticket before getting on the train, for the
distance he designs to travel on the road, shall forfeit and
pay to the State of Ohio, for each offence, a sum not less
than       dollars, nor more than         dollars, and shall
be liable to pay to the conductor of such train, in addition
to his regular fare, the sum  of ten cents for any distance
under fifteen miles, fifteen cents for any distance over fifteen
and under thirty miles, and twenty-five cents for any distance over thirty miles.
SEC. 13. Any officer or agent of a railroad company, that
shall demand from any passenger a greater rate of fare than
is or may be authorized by law, shall forfeit and pay to the
State of Ohio a sum not exceeding ten dollars, at the discretion of the court.
SEC. 14. Any agent or officer of a railroad company who
shall wilfully mislead or deceive any passenger to his prejudice in reference to the route of travel, connection of trains,
or other matters relating to the expense, convenience, or




51
length of his trip, shall be liable to a fine of not less than
five dollars nor more than one hundred dollars, or be imprisoned in the jail of the county for a term not exceeding
six months, or both, at the discretion of the court.
SEC. 15. Comfortable seats in the cars shall be provided
for every passenger, who shall have become entitled to a
ride therein by the purchase of the proper ticket, or the payment or tender of payment, of the lawful fare therefor, and
such passenger shall be entitled to the use of such seat to
such place as he shall have acquired the right to ride as
aforesaid; and every railroad company shall, from the first
day of November of each year, provide on its passenger
trains, for the free use of passengers, a good quality of
drinking-water, to be distributed with the use of clean and
suitable cups or tumblers,, and other vessels, to the passengers of each car, at intervals not exceeding ninety minutes.
SEC. 16. Every conductor, brakeman,. and baggageman,
employed upon the passenger trains of any railroad company in this State, and every baggage-master at any depot
upon the railroad of such company,, shall wear, when on
duty, so as to be readily seen,. a badge or mark indicating
their respective offices and duties,. and the company by
whom they are employed.
SEC. 17. Every railroad shall. provide for the care and
preservation of the baggage, give to each passenger a check
for such as may belong to him as evidence of his right thereto, and provide for the convenient receipt and delivery or
transfer thereof; and every agent or employs of the road
who shall recklessly or carelessly abuse,. injure, or handle
any baggage, package, or parcel belonging to such passengers, shall forfeit and pay to the State of Ohio not less than
three nor more than ten dollars, at the, discretion of the
court, and both he and the company by whom he is employed, shall be liable in damages to the party injured.
SEC. 18. No railroad company, having had a system  of
commutation of fares in force for four years, shall abolish,.
alter, or modify the same, except for the regulation of the




52
price charged for such commuted fares; and such price shall,
in no case, be raised to an extent that shall alter the ratio
existing between such commuted and regular way fares on
the 1st day of January, 1867, or at the end of said term of
four years, if the same shall not have then expired, on the
railroad of such company, on the said 1st of January, 1867.
SEC. 19. No railroad company shall run, or permit to be
run upon its road, any train of cars for the transportation of
passengers, unless there is placed upon the train one trusty
and skilful brakeman to every two cars in the train.
SEC. 20. If in consequence of the intoxication or any gross
or wilful misconduct, or negligence in his office or employment, on the part of any conductor, engineer, or of any
switch or bridge tender, brakeman, signalman, or any other
servants of a railroad company, any loss of life or the breaking of a limb, or other serious injury to the person shall be
caused, such servant shall be deemed guilty of a felony, and
shall be punished by imprisonment in the penitentiary for
a term not exceeding ten years nor less than six months.
SEC. 21. Every such conductor, engineer, switchtender,
bridgetender, brakeman, signalman, or other servant of
such company,, who shall by reason of his intoxication, or
gross or wilful misconduct, or negligence in his said office
or employment, place in peril or endanger the safety of person or property, shall be deemed guilty of a misdemeanor,
and fined in a sum not less than twenty-five nor more than
two hundred dollars, and imprisoned in the jail of the county
not more than       months nor less than       days, at the
discretion of the court.
SEC. 22. Any person who, after a railroad is opened for
use, rides, leads, or drives a horse, or other animal on the
same, without the consent of the corporation or its agent,
except in places where the road is crossed by a turnpike
road, railroad, or way upon the same level therewith, shall
for every such offence, forfeit and pay to the State of Ohio,
a sum not exceeding one hundred dollars, and be liable for
all damages thereby sustained by any person.




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SEC. 23. Any person who shall wilfully and maliciously
obstruct the passage of any engine or car on a railroad within
this State, or in any way injure such road, or anything appertaining thereto, or aids or abets in such trespass, or shall
throw stones or other missiles, at, or into any car passing on
said road, shall be punished for such offence, by a fine not
exceeding one thousand dollars, or imprisonment in the
county jail for a termn  not exceeding one year, or both, at
the discretion of the court.
SEC. 24. Any person who shall wilfully and maliciously
commit any of the acts mentioned in the preceding section,
in such manner as thereby to endanger life,. shall be punished by a fine not exceeding one thousand dollars, or by
imprisonment in the county jail not exceeding one year, or
both fine and imprisonment in the jail, or by imprisonment
in the penitentiary not exceeding twenty years.
SEC. 25. No person who is intoxicated, or who is in the
habit of becoming intoxicated, shall be employed or perrnitted to perform  the duties of conductor, engineer, or
brakeman upon any train, or of train despatcher, switchtender, bridgetender, or flagman, or hold any other place
or employment upon any railroad, that may affect the safety
of persons lawfully passing over or upon such railroad; and
any railroad company, or any officer thereof, having control
or supervision of persons performing said duties, that shall
knowingly violate the provisions of this section, shall forfeit
and pay to the State of Ohio a sum not less than
dollars, nor more than         dollars, at the discretion of
the court.
SEC. 26. Persons who, without authority from the railroad company, shall walk upon its track, or who shall, whilst
the train is in motion, contrary to the rules of such company,
stand upon the platform when sufficient room is afforded by
the company inside of the cars, or pass from one car to another, shall do so at his own risk, the company, however, not
being released from the duty of care in avoiding an accidelnt
or injury.




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SEC. 27. Any train despatcher, conductor, engineer, brakeman, switch or bridge tender, or flagman, who shall be intoxicated whilst in the performance of the duties of his said
employment, or who shall, while so employed, wilfully violate any of the written or printed rules of the company by
whom he is employed, affecting the safety of persons, or of
passengers and property being transported upon the cars
thereof, shall be subject to a fine of not less than twenty-five,
nor more than five hundred dollars, or to imprisonment in
the county jail not exceeding six months, or both, at the discretion of the court.
SEC. 28. Railroad companies shall have authority to adopt
and enforce reasonable by-laws and regulations concerning
the receipt and delivery of baggage, and the custody and
care thereof, upon the trains, or in the depots, the conduct
and arrangement of passengers upon the trains, the use and
occupancy of their tracks, grounds, depots, or other property,
and the receipt, delivery, and care of freight, subject, however, to be set aside or modified by the commissioner of
railroads.
SEC. 29. Every railroad company receiving freight or baggage for transportation, shall be entitled to the same rights,
and subject to the same liabilities, as common carriers; and
no such company, or other common carrier, within this
State, shall be permitted to lessen, or, directly or indirectly
abridge their common law liability as such common carrier.
SEC. 30. In all examinations the commissioner of railroads
may be authorized or required by law to make, he shall have
power to subpoena witnesses, administer oaths, and require
the production of books and papers; and any person who
shall neglect or refuse to obey his subpoena and orders
therein, or who shall wilfully interfere with, obstruct, or disturb him in such examination, shall be liable to a fine of not
less than        dollars, nor more than         dollars, or
be imprisoned in the jail of the county not exceeding thirty
days, or both, at the discretion of the court.
SEC. 31. No railroad company shall engage or become in



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terested in any business, trade, or enterprise, other than the
carriage and transportation of freight and passengers, as provided by law; nor shall they erect or maintain aly building,
structure, or other place for carrying on such business, trade,
or enterprise, except when expressly and clearly authorized
by law to do so.
SEC. 32. This act shall take effect on its passage.