The Railroad Question / A historical and practical treatise on railroads, and remedies for their abuses

by William Larrabee

The ancient Phœnicians early aimed at and finally obtained the empire of the sea by making themselves masters of the most commodious harbors of the Mediterranean Sea and the Arabian Gulf. They established a regular intercourse with the countries bordering on the Mediterranean as well as with India and the eastern coast of Africa. From these latter countries they imported many valuable commodities which were not known to the people of other parts of the world, and during a long period they held this lucrative branch of commerce without a rival. The character and the situation of the Phœnicians aided them greatly in acquiring this mastery of commerce. Neither their manners and customs nor their institutions showed any marked national peculiarity; they had no unsocial prejudices and they mingled with the people of other countries without the least scruple or repugnance. As their native country was small and quite barren, they early learned to rely upon commerce as the best source of riches and power. Like the other Semitic tribes, the Phœnicians were noted for their energy and acumen, and while they were not a literary people in the strict sense of the word, ancient civilization received probably a more powerful impetus through their commercial supremacy than through any other agency.

During the reign of King Solomon the Jews made an attempt to wrest from the Phœnicians at least a part of the world's trade. Solomon built ships and imported Phœnician sailors for his fleet. For a time it seemed as if the Israelites might become the rivals of their teachers in the art of navigation and in the mysteries of trade; but their peculiar religious customs in that early day proved a serious impediment to commercial ascendancy, as it rendered them incapable of that unreserved intercourse with strangers so essential in commerce.

The monopoly of the sea, at least of the Mediterranean, passed to the Carthaginians, their descendants. The latter extended their navigation toward the west and north. They planted colonies and opened new harbors, and up to the time of the Punic wars kept almost the entire trade of the countries bordering on the Mediterranean in their hands.

After the downfall of Carthage the control of the commerce of Southern Europe and Northern Africa descended to the Romans. When Rome became the capital of the world, it gathered the wealth and valuable productions of all its provinces. Under the consuls and the earlier emperors the vigilance of the Roman magistrates and the spirit of the Roman government gave every possible security to commerce and prevented for a time the rise of monopoly. Nowhere was national union so complete or commercial intercourse so perfect as in the Roman empire. The intelligence and the power of Rome stimulated and regulated the industry of her people and permitted them to enjoy the fruits of their efforts without public or private restrictions.

We have seen that the intercourse of Rome and her provinces was facilitated by the construction of roads and the establishment of imperial posts. During the decline of the empire the maintenance of these posts led, however, to a grave abuse. We are informed by Gibbon in his "Decline and Fall of the Roman Empire":

"But these beneficial establishments were accidentally connected with a pernicious and intolerable abuse. Two or three hundred agents or messengers were employed, under the jurisdiction of the master of the offices, to announce the names of the annual consuls and the edicts or victories of the emperors. They insensibly assumed the license of reporting whatever they could observe of the conduct either of the magistrates or private citizens, and were soon considered as the eyes of the monarch and the scourge of the people. Under the warm influence of a feeble reign they multiplied to the incredible number of ten thousand, disdained the mild though frequent admonitions of the laws, and exercised in the profitable management of the posts a rapacious and insolent oppression. These official spies, who regularly corresponded with the palace, were encouraged by favor and reward anxiously to watch the progress of every treasonable design, from the faint and latent symptoms of disaffection to the actual preparation of an open revolt. Their careless or criminal violation of truth was covered by the consecrated mask of zeal; and they might securely aim their poisoned arrows at the breast either of the guilty or the innocent, who had provoked their resentment."

After the downfall of the Romans, commerce remained paralyzed during the period of Gothic ignorance and barbarism. The crusades for the recovery of the Holy Land from the Saracens, in the eleventh and following centuries, opened again communication between the east and the west by leading multitudes from every European country into Asia; and though the object of these expeditions was conquest, and not commerce, their commercial effects were both beneficial and permanent. The crusades were especially favorable to the commercial pursuits of the Italian states. The vast armies which marched from all parts of Europe toward Asia gave encouragement to the shipping of Venice, Genoa, and Pisa, which sometimes transported them, and always supplied them with provisions and military stores. Besides the immense sums which these states received on this account, they obtained commercial privileges of great consequence in the settlements which the crusaders made in the East. All the commodities which they imported or exported were exempted from every imposition, the property of entire suburbs in some of the maritime towns, and of large streets in others, was vested in them, and all questions arising among persons residing within their precincts, or who traded under their protection, were decided by their own laws and by judges of their own appointment. When the crusaders took Constantinople, the Venetians did not neglect to secure to themselves many advantages from that event. Nearly all the branches of commerce were in time transferred from Constantinople to their city. At the end of the crusade period Venice had monopolized nearly all the foreign trade of Europe. She supplied the people of Italy, France and Germany with those commodities with which the crusaders by their intercourse with more refined nations had become acquainted. The possession of many Eastern ports and the maintenance of a powerful navy made it possible for the Venetians to retain their monopoly for several centuries.

The growth of commerce in Central Europe was but slow, owing to the dangers to which it was exposed in those days of feudalism. The mountain fastnesses of robber knights, which controlled every road and navigable river, were so many toll-gates at which the wayfaring merchant was stopped to pay tribute. In time this system of plunder grew to such an extent that hundreds of feudal lords relied upon it for their support. Such a tax upon commerce greatly enhanced the value of all commodities, and this deplorable state of things lasted until the cities made their power felt by forming alliances for mutual protection. One of these alliances, the Rhenish League, comprised in time seventy towns, and the ruins of the strong castles destroyed by its forces still exist along the Rhine, picturesque memorials of these lawless times.

Perhaps the most powerful commercial union of the middle ages was the Hanseatic League. To protect their commerce, the cities of Hamburg and Lubeck formed about the middle of the thirteenth century an alliance for mutual defense. The advantages derived from this union attracted other towns to the confederacy. In a short time about eighty of the largest cities lying between the Baltic and the Rhine joined this famous league, which in time became so formidable that its alliance was courted and its enmity was dreaded by the greatest monarchs. The League divided its territory into several districts. Its members, like railway associations of the present day, made their own laws, and met for this purpose at regular intervals in the city of Lubeck. The original object of the League, mutual assistance against outside attacks, was soon lost sight of, and its constantly growing power was used to obtain still greater commercial privileges in the adjoining countries, and even to force their rulers to concede to its members a commercial monopoly. In 1361 a controversy arose between the League and the King of Denmark, which led to a long and bitter war between them. This war was participated in by no less than seventy-seven cities on the part of the League. It terminated in 1370, leaving the Hansa master of the situation. For many years after this the League exerted its power in Denmark, Sweden and Norway, and the rulers of these countries were compelled to respect the wishes and even submit to the orders of these proud merchants. The countries bordering on the Baltic Sea remained the domain of the League for several centuries. They gathered there immense quantities of raw material, which they sold in the various ports of Europe. The influence of the League even reached as far as Novgorod in the east and London in the west. In both cities the League had its quarters, and within them it virtually exercised the right of sovereignty. Its main market was at Bruges in Flanders, which was then a bee-hive of industry and thrift. There the Italian traders came with the products of the east, such as spices, perfumes, oil, sugar, cotton and silk, to exchange them for the raw materials of the north. While taxes and imposts everywhere else harassed merchants, commerce was free in the cities of Flanders, owing to the liberality, or rather shrewdness, of her rulers. In Bruges the members of the Hansa met the merchants of Venice on equal terms, and the exchange of the products of the north for those of the east and south could be effected there to the greatest advantage of both.

While it must be admitted that the Hanseatic League developed the resources of Northern Europe, and that, even at the time of its greatest power, there was always competition among its own members, the fact remains that it abused its power by the suppression of all outside competition, and that it usurped rights which belong only to the state, thus often producing abuses as great as those which it was organized to remedy. Its final downfall was caused by the development of national power in the northern kingdoms and the growth of commerce and navigation in Great Britain. A stubborn assertion of antiquated privileges on the part of the Hansa involved it in a feud with the illustrious and lion-hearted Queen Elizabeth of England. In 1589 the Queen caused sixty of their vessels to be captured on the Tagus, and later even took possession of their hall and wharves in London. After this the League's decline was very rapid, though its organization was kept up till 1669, when its delegates held their last session.