The Washington times., 1906-07-10
INTERSTATE BUSY
WITH RATE LAW
Commission Studying Care
fully Every Detail OF Rate
Legislation.
NEW SYSTEM FOR REPORTING
Under Enforcement of Statutes Much
Litigation Will Arise in Form
Of Test Cases.

The busiest department under this
Government for an indefinite time in
future is going 20 be the Interstate
Commerce Commission. With a start
ling multiplication Of demands on it's
time. with Investigations galore In
progress or in prospect. with a new law
10 be studied and put into operation
this strenuous commission IS not dis
eouraged, but rather IS disposed TO go
right ahead attending to business and
reaching out for new duties and respon-
sibilities.
The commission thinks there many
more features that ought 10 be added 10
The law.
Every railroad executive and general
solicitor in the country IS studying the
new law. The commission and its eX-
Derts are doing the same
New System of 4.ccOunting.
on Thursday Of this week Statistician
Adams will be here for conference with
the commission concerning the inaugu-
ration of a new system of accounting
for railroads. This IS regarded by ex-
perts as the most important power con-
ferred by the new law. II gives real
publicity of financial affairs; and IL is
declared that publication Of "A few
sample cases of railroads paying for
great extensions or improvements out
Of their earnings. and then issuing stocks
and bonds and cutting melons" for the
benent Of shareholders. thus making the
public pay twice for the betterments.
viii cause a vigorous public demand for
legislation to prevent these operations.
Supervision of some details of physical
operation Is intrusted 70 the commission.
Authority over traffic will be more effec-
tive after the new law takes effect than
ever before. The extent and limitations
Of this authority Will be tried out very
soon. Every possible phase Of the new
law viii be given test in very short
tiae.
Scientific Appraisals.
The next session Of Congress will see
the La Toilette proposition for a scien-
tifa appraisal of the values Of all the
railroad properties pressed upon the at
tention of Congress and the public. The
Wisconsin Senator tried TO get il into
the rate bill but failed
The new law gives power 70 fix maxi
mum reasonable rates. There was
strong insistence that the commission
ought 10 be given power also 10 estab-
Nsh minimum rates, or the relation be-
tween rates; but this was too radical
for Congress and failed
Many Test Cases Will Arise.
There is no doubt that a great number
Of lawsuits Of large interest, and involv-
ing immense concerns, viii grow out
Of the new law. Thus the requirement
that railroads must get out of the coal
business, though IL does not take effect
for a long time is expected 10 inspire
various attempts at more or less direct
evasion. Generally. the commodity sec
tiou. prohibiting carriers producing the
things they transport, viii be difficult
OF enfor cement and Will almost Ger
t4inly cause liiEatiOns. The status Of
pipe lines VIII very early give rise 10
lawsuits.
La Toilette Proposition Favored.
Another Indirect effect OF the work
of the commission will he the renewal
Of thu fight 10 have all oil and coal
lands still owned by Ire Government
Withdrawn from entry. Senator La Fol-
lette made a hard fight for this pro-
V0sal. and secured the Presidents sup
port for it.
There will have 10 be a large increase
In the general force OF the commission.
The increase from tve to seven mem
hcrs was largely in recognition Of the
fact that its duties Will be more onerous
than ever before Another change
which will be urged tn the near future.
IL is understood. is one permitting a
minority Of the commission 10 hear "A
case and writ a report on II, which
shah be reviewed by the suu commits
son before an order is made. As mat
tors now stand. it is necessary 10 have
a quorum of the commission sit on every
case, which greatly increases the bur
den and will make the Increase in mem
heTship rather an embarrassment than
q benefit
one change IN the law is that which
makes the initial carrier responsible for
i4maEes, whether occurring on its line
Or th8t Of a connecting company. The
new law makes the initial carrier re-
sponsible 10 the shipper. and gives the
initial carrier right of action against
the line on whose rails the damage
takes place.