The San Juan islander. [volume] (Friday Harbor, Wash.) 1898-1914, 1903-12-24
GREAT EARNINGS
INTERSTATE COMMERCE COMMITS
SION'S REPORT GIVEN OUT.
Gross and Net Earnings of the Rail-
roads Much Larger Than in Pre-
vious Ycars--Elkins Law Benefi-
cial-. General and Concerted Adj
vance in Rates.


teenth annual report of the interstate
commerce commission, trnsmitted to
congress, says in part:
The preliminary income account for
the year ending June 80, 1908, shows
returns for 201 ,475 miles of line, which
is approximately SO ner cent of the en-
tire mileage in the United States.
Gross earnings for that year amount
ed to 81, $3.50, so, 1879, or 1882 per
mile of line. Operating expenses ag
gregated 81 24S, 500, 4S3, or So, per
mile, leaving net earnings of $641 $780,
1876, or $3,185 per mile. Fifty-three
million dollars in taxes are not includ-
ed in this statement of operating ex-
penses.
Compared with the pevious yea. the
net earnings are greater by some 1884,
600, 900, and stock dividends are great
er nearly $4,000, 900. In 1897 the
gross earnings averaged only $6,l22,
and operating expenses 81, 100 per mile
of line.
The report discusses at length the
Elkins law. The commissioners say
that the original law, the act to regu.
late commerce, embraces two distinct
objects-or seeks to correct two kinds
of railroad abuees: First, to secure
the publication of tariff rates which
shall be just and reasonable, and free
from determinations; and, second, to
compel carriers to observe the tariffs so
published without variation or excep.
ton.
Affected by Elkins Law.
Broadly pseaking, the latter class of
offenses only are affected by the Elkius
act, the provisions of which are mainly
designed to prevent or more effectually
to reach those infra.tions of law. like
the payment of rebates and kindred
prcatices, which are classed as misde-
meanors.
Under this amendment the railway
corporation is liable itself to prosecu.
ton in all cases where it's officers and
agents are liable under the former law.
This change corrects q defect which
has always been a source of embarrass-
ment, because it gave immunity to the
principal and beneficiary of a guilty
transaction. 1t is believed that much
benefit will result from the fact that
proceedings can now be taken against
the corporation.
Adds Nothing to Power.
The other class of offenses which the
original act prohibited is not at all re-
trained by the amendment in question.
Valuable as such amendment is, it has
a 1ded nothing whatever to the power of
the commission to correct tariff rate
which is unreasonably high or which
operates with discriminating effect. 1t
greatly aids the observance of tariff
charges, but affords no remedy for those
who are injured by such charges, either
when they are excessive or when they
are inequitably adjusted.
The commission further points out
theat the effect Of the Elkins amend
ment has been to bring about in many
cases an increase of railroad charges.
This is doubtless one explanation of the
marked increase in the number of for
NAL complaints ade to the commits
sion during the present year. The fact
that such complaints multiply is high
iy significant Yet the authority of
the commission in respect to these mat
tiers has not been enlarged in the least
by the amendment in question.
One of the most significant things in
railway operations for the past three
years has been the marked and general
advance in rates. Such increase ap-
plies in almost all sections of the coun-
try and to all kinds of traffic. These
increases are general, and they amount
The effect of these advances has been to
correspondingly increase the tax laid
upon the general body of producers and
consumers in This country for the bene-
fit of the owners of railway property.
These advances have been usually, if
not always, the result of concerted &C.
tion by the carriers. 1t is idle to say
that where such condition exists there
has not been an understanding between
the carriers. The theory of our law
has been that competition between diff
ferent carriers would prevent unreason
able advances and secure reasonable
rates.
Competition Is Evaded.
Without expressing ma opinion as to
whether the action OF these carriers has
amounted to violation of the law, the
commission desires to point out clearly
and emphatically the fact that such
concert of action does prevail as practi-
callv eliminates all competition in tar
iff rates. The requirement of the law
that carriers shall compete affords no
protection to the publi3c.