The Mitchell capital. (Mitchell, Dakota [S.D.]) 1879-1918, 1909-12-23
VALUE
OF RAILWAYS IS
URGED BY BOARD
Enormous Increase in Net Earn.
ings of Roads During Past
Year Shown.

Washington, Dec. 23.-Vigorous rec
concentrations for changes in the pres
ent law regulating transportation COM
panies are contained in the 23rd annual
report of the Interstate Commerce
commission, transmitted today to con-
gress.
lions made, however, the report, in this
respect, is notable rather for what it
does not, than for what 1t does, con-
tain. Five of the suggestions made by
the special committee selected by
President Taft to draft changes in the
existing interstate commerce act are
offered in the report. 1t is known that
the commission. as a body, favors the
plans proposed by that COMMITTEES; but,
as a matter of courtesy, it has re-
Trained. in its report, from discussing
the changes in advance of the special
message on the subject which Presi-
dent Taft has indicated he will send to
the congress-.
The commission expresses its con-
viction that certain amendments to
present Law are necessary to enable it
fully to accomplish the OF
congress. Briefly summarized. the pro-
posed amendments are as follows:
For Physical Valuation.
That a physical valuation be made
Of the interstate railroads of the coun-
try is h first recommendation. The
commission points to the difficulty ex-
perienced in certain cases where Its or
ders are attacked in court in meeting
the testimony as to physical value Of
its rates are to be defended. some
method must be furnished by which a
value can be established which shall be
binding OH the courts n the commits
sion.
The commission again suggests that
it 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.
For Joint Rate Power. D
The commissions authority to estab-
fish a joint rate n through route Is
limited to cases where no such route
exists, and the commission recon-
mends that this limitation be stricken
out of the law, SO that it may estab-
lish a through route wherever upon in
v~estigation 1t is found that the public
necessity and convenience require such
action.
A further recommendation is 10 the
effect that in certain instances the
shipper be permitted to direct the in
termediate routing of his trafflc. It is
further requested that the law be so
amended as to give the commission I'M
doubted authority to enter a corrective
order as the result Of an Investigation
instituted by the commission upon It's
OWE motion.
The commission again calls to the at
tention OF congress the increasing i'm
portance of some form of federal con-
troll over railway capitalization and ex-
presses the opinion that adequate legis-
lation upon this subject is required by
the interests involved.
Revenues Of Roads.
The annual reports to the conilI..ission
from the carriers show that for the
fiscal year ended June 30, 1908. the gross
operating revenues Of all railroads in
the United States were 81, 461. 52I. 345.
M the operating income derived by
~subtracting operating expenses and
taxes) was 1856. AS, 321. For 1909 the
operating revenue was 81, 494, lis, $50 and
the operating income $742, $751; s1. indi-
eating an increase for 1909 of 1872, 594. pa
in gross earnings and $50, sos, $40 in net
earnings. The average number of miles
operated in 1908 was 22S, 1854 and in 1909
233, 002. The large increase in net as
compared with gross earnings is ac-
counted for by a reduction Of operat-
ing expenses in 1909 below those Of 1908
Of SIS, 224, 9S3.
Many Complaints Filed.
The report indicates that a larger
number of formal complaints was filed
with the commission in 1909 than in
1908. During the last year 1907 formal
proceedings were instituted and during
the same period 7SS formal cases we're
disposed OF. Approximately 5000 in
formal complaints, of which about half
involved informal PREPARATION claims,
were adjusted during the year.
Six hundred and one hearings and in
vestigations-an average of two for