Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1909-12-27
Recommended for Inter
slaie Commerce Law
Valuation Of Railroads and
sleaieI Power for Commission
e MI rs Greater Control Over
ffslrAt Rates Are Suggested.


reconf Nadations for changes in the
,stRresey iaa regulating transportation
IN ppr Dies are contained in the TWEEN
y I'd annual report Of the Inter-
u Gofnpperce Commission.
N notwithstanding stbe recommends
81 ms made, however, the report, in
Ibis respect. IS potable rather for what
it does not, than for what it does, con-
E.tain- Five Of the suggestions made
by the special committee selected by
President Taft to draft changes in the
Z existing interstate commerce act are
I. offered in the report. 1t is known that
the Commission, AZ body, fayors the
plans proposed by that committee; but,
as. matter Of courtesy, it has re-
Trained, in its report, from discussing
the changes in advance Of the special
message on the subject which Pres
dent Taft has indicated he will send
to the Congress.
The Commission expresses its con-
vlctiOn that certain amendments to
present law are necessary TO enable it
fully to accomplish the purposes Of
Congress. Briefly summarized, the
proposed amendments are as follows:
That physical valuation be made
OF the interstate railroads Of the coun-
try. The Commission points to the
difficulty experienced in certain cases
where its orders are attacked in court
in meeting the testimony as to physi-
cal value offered by the carriers, and
says that If its rates are 70 be de-
Tended. some method must be fur
hished by which a value can be estab-
lished which shall be binding on the
courts and the Commission
The Commission again suggests that
/. be given power to prevent advances
in rates or changes in regulations or
practices to the disadvantage of the
shipper, pending an investigation into
the reasOnableness Of the proposed
change. 1t is stated that where d rate
has been in effect for years it is pre-
sumably reasonable and that there
would be no hardship on the carrier in
giving the Commission authority to re-
quire continuance Of the rate until OPP
portunity had been afforded to in
Vestigate the proposed advance.
The Commissions authority to c*-
tabiish joint rate and through route
Is limited To cases where no such route
exists, and the Commission recom-
inehds that this limitation be stricken
OUT OF the law, so that il may cetab-
lish through route wherever upon
investigation, it is found that the pub
Tic necessity and convenience require
Such action. A further rccommcnd;-
tion is to the effect that in certain in
Stances the shipper be permitted TO
direct the intermediate routing Of his
IIdihc. IL Is further requested that
'He law be 50 amended as to give the
commission undoubteG authority to
enter a corrective order as the result
vi all investigation Instituted by the
COMMISSION upon it's own motion.
me Commission again calls to the
attention or Congress the Increasing
Importance OF some form of federal
''''''"i over railway capitalization and
express The opinion that adcntIato
RECREATION upon this subject is re-
Hulrcd by the interests involved
IN" annual reports to the Commits
nioh from the carriers show that for
VI" HScal year ended June goth 1903
''e gross operating revenues Of all
Id'iToads IN the tinted States vero
S1''bi'b2l, 345, and the operating in
'''e 'oerlVed by SubStracting operat-
ING expenses and taxc:) was s65641s
"-l. f"r 1909 tn" operating revenue
was '494,ll5,589 and the operating
income $742,987,191; indicating an in
'''as" Tor 1903 Of $32,59i,2d4 in gross
earnings and $S6 ,56s $50 in net earn
lhHs The average number OF miles
operated in 1903 was 22s,ls4 and in
l'o' Z33,0o2 The large increase in
net as compared with gross earnings Is
accounted for by a reduction of oner-
h'ing expenses in 1909 below those of
1908 of s59,224.3S3.
The report indicates that a larger
number of formal complaints was filed
WIN the Commission in 1909 than in
1909. During the last year .o97 for
maj proceedings were Instituted and
curing the same period 1888 formal
cases were disposed of. approximate
~ 5000 informal complaints. of which
apout haif involved Informal repara-
tion claims. were adjusted during the
year DIX hundred and one hearings
ana ihVestlgatlons-an average of two
lor each working day-all involving
alleged violations of the inter-state
commerce act. were held at sessions of
the Commission in Washington and in
various cities of the country. at which
6l,O00 pages of testimony were TAX
en-.
since December LIST. 1908, thirty five
indictments for criminal violations of
the inter- commerce law have
peen returned and forty-two prosecu-
ions have been concluded. Practical
~ all OF the prosecutions were for
some form of rebate or concessions
Ihe fines collected under these indict-
mehts aggregated 1904 233.S4. The
opinion is expressed that violations of
the law. such as Relating in one form
or in another, is decreasing
some account is given OF the pro-
ceedihSs mad during the year in the
enforcement of the safety appliance
law, and the Commission states that