Los Angeles herald., 1906-07-10

/ her received by the Tribune correspon-
| dent and some Of the leading public
men I'm Washington, arrived too late to
affect the status Of the railroad rate
/ bill. Certainly several of the conferees,
among them Senator Cullom, did not
understand that lumber manufacturing
! interests were put I'm such grave danger
as anticipated by the protestants. Sem
| ator Cullom explained this afternoon
that lumber was exempted from the
prohibition because of appeals from the
far west and south where railroads
built only for lumber purposes were i'm
operation.
The great railroads were not engaged
in the lumber manufacturing business
so far as the conferees knew and they
doubt If they Will embark I'm this in
dustry now They did not think It fair.
according to Senator Cullom, to stine
enterprises which would have resulted
had railroads been forbidden to trans
port their own lumber and its manufac-
lures.
So far as the prohibition respecting
the ownership by railroads of coal
mines Is concerned, Senator Cullom said
the provision was clear and explicit
He called attention to the wording Of
the law, that a transportation company
should have no interest direct or in
direct. in any commodity shipped over
It's lines with the sole exception of
lumber as noted above.
Notwithstanding this view of Senator
Cullom, which Is shared by other MEM
bers Of the conference committee. the
interstate commerce commissioners be-
lieVe 1t will be possible for the rail-
roads to evade the law. The commits
sion does not intend to let this ques-
tion go by default but will take it into
court that decision of the highest
10 "a tNsfI, T.. H. l.. l
obtained. If the provision prove in
effective, as is feared a recommended
tlon specifically covering the case Will
be submitted to congress at its next
session 1t is confidently expected that, |
backed by public opinion, the necessary
corrective legislation will be secured.
The confederation the commission |
thus far has given to the rate law has
been fragmentary, because it's mem |
pers are engaged so busily in investi- |
cations intrusted to them by congress. !
Under It's terms, the law does not take
effect until August 2S. There are some |
preliminary arrangements which can be |
made for It's enforcement. For instance
the commission is authorized to require
all common carriers to maintain a uni
form system of accounts and to deter
mine the mapner in which such account
shall be kept. This is most important,
in the judgment of the commission be-
cause uniformity of bookkeeping will
enable comparisons that will Pot it in
better position to carry out the pur-
poses of the act.
The commission has in its employ
Prof. Henry G. Adams of Ann Arbor,
Mich, considered one of the best rail-
road statisticians in the United States.
1t is proposed to suggest to various
railroads to send their accountants to
Washington to confer with Prof. Adams
in order that system of bookkeeping
may be devised which will be satisfac-
tory to every one concerned.
To Have Copies of Contracts
The commission will require also
copies of schedules and tariffs of rates,
fares and charges, and all contracts,
agreements or arrangements between
carriers. Common carriers will
be directed to present annual reports
which must show in detail the amount
of capital stock issued, the amounts
paid and the manner OF payment there !
for; dividends paid, surplus funds. if
any, and number OF stockholders, the
funded and floating debts and interest
paid thereon; the cast and value Of car ;
riers' property, franchises and equip
ments; the number of employees and s
salaries paid each class; the accidents [
to passengers, employees and other per-
sons and causes thereof; amounts eX-
pended for Improvements each year, !
how expended and character of such
improvements; the earnings and re-
ceipts from each branch business, and
from all sources; operating and other
expenses. the balance of profit and loss, I
and complete exhibits of financial
operations of a carrier, including an an {
nual balance sheet.
1t is evident the railroads if they fur 6
nish the information the law requires
will not he able to deceive the public
Or their stockholders as to their actual T
and that they will find diff !
Guilty in concealng practices which are =
forbidden or questionable,
The commission also proposes to take IL