FEDERAL LEGISLATION ON RAILROADS
Daniel Webster once said: "A strong conviction that something must be done is the parent of many bad measures." He made the observation early in his career; but it was a sign of his statesmanlike power to detect the common element in heterogeneous incidents of public life that he should have made it; scarcely a year passes which does not give us a new illustration of its truth. The next instance of headlong legislation with which this country is threatened is an act regulating railroads.
Two fallacies are of constant repetition in propositions for more government regulation. The first and widest is to argue that competition is not perfect in its action and does not satisfactorily solve the problem; it is inferred that we must have some form of government regulation. Plainly this inference is a non sequitur, unless it can be shown that government regulation will produce perfect and satisfactory results; or that regulation, although imperfect, will just complement and make up for the imperfections of competition. The second fallacy is illustrated when, after trying for a long time to solve a problem of the social order without success, we declare, in despair, that the state will have to take it in hand and legislate about it. This is a worse non sequitur than the other.
Both these fallacies are involved in the current arguments for the proposed legislation about railroads. Railroads are still new and still in their infancy. It seems reasonable to believe that they are capable of
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