It has been observed that the effect of the law is the same as that of the protective tariff on Ohio wool against California wool. It goes much further than this. If it bars California wool out of the European market, it is protective on other California industries which hitherto have not paid so well as wool. It will act as a protective tariff on all the separate local units or groups. It tends to divide the country up into separate economic units with a tariff around each.
Reasoning upon it in another way we reach the same result. There is no place in the world where railroads are as important as on this North American continent. It is a vast, solid piece of territory, cut by few water inlets when compared with Europe. Inside of it railroad communication is of commanding importance. So long as railroads are new, and their economic operation is as yet undeveloped, this continent must be the scene of many rude and abrupt changes, vicissitudes, and difficulties due to the development of transportation. The general effect, however, has been to open up the whole continent to superficial settlement, to unify the whole continent in industrial organization, to make local division of labor, to establish the widest and most healthful, because freest, industrial organization that ever has existed. In doing this railroads have often acted as if they laid one square mile over another or as if they drew a remoter place nearer than a nearer one. By giving greater mobility to capital and population they have distributed and redistributed them; have concentrated or dispersed them as the forces might act.
Now, to limit, counteract, and reverse the action of the roads, by the short-haul clause which really antagonizes the most peculiar and important fact in the
