Omaha daily bee., 1909-01-12
REVIEW Of The RHTTRtADS'
Interstate Commerce Commission Sub
mits Its Annual Report
HARTMAN CASE DISCUSSED
Attention of Congress called Co
Decision that LEGISLATION May De
Enacted TO Meet Conditions
Rs They Exist.
HARTMAN CASE DISCUSSED

WASHINGTON, Jan. 1.-THE Interstate
Commerce commission today transmitted to
congress It's twenty-second annual report.
being for the year 1905.
The report states that the temporary
financial depression from which the eoun-
try is now emerging resulted In the dim
mutton of railway revenues considerably
below the high point reached In 1901 the
banner year in American railroad history
in respect of gross and net earnings, as
well sas volume of traffic, and that in sew
eral instances the necessity for placing rail-
road properties I'm the hands OF receivers
was wholly or partially due to the serious
and unexpected decrease In earnings In
view, however. of the widely circulated re-
ports that the loss Inflicted upon the rail-
roads was so severe as to warrant uni
versal advances in rates or reduction In
wages, or both, It is interesting TO note
that the gross earnings OF all railroads for
1903, although S1G4, 46t.9i1 less than tho gross
earnings for 1907, were 9S,S75,470 in excess
OF the gross earnings for 1896 and $3ie,l5s.2St
In excess of those for 1905, and that the net
earnings for 1908, although Sill, ,O6 less
than for 1907 and $50, 349. 1873 less than for
1906. were $37, $685. H in excess Of those foe
1905. These figures indicate that whatever
may have been the fact in individual cases.
the railroads Of the country. as a whole.
did not suffer so severely in comparison
with years of normal traffic and business
conditions as may have generally been sup
posed. The recent change in accounting
methods may affect to some extent the ac-
curacy of these comparisons, but II is be
lieved that the variations due to that cause
did not materially alter the general result.
II Is pointed out that a continuing business
depression could not be held to justify the
maintenance of particular rates which are
unreasonable In themselves or unduly dis
criminatory, since the right to,eauaI treat
ment at reasonable rates does not depend
upon the financial condition Of the carrier.
Remedy for Hartman Case.
Continuing the report reviews at some
length the Hartman case and the decision
OF the supreme court that it could not re-
quire Mr., Hartman to testify before the
commission as to the price~he paid for
railroad stock. II was the opinion of the
&C mmission, the report says, when Mr.
Hartman assumed control of the, Union
Pacific railroad he ceased to be a private
Individual to that extent, and it was. the
opinion of the commission chat he might
be required to answer the question:: At
tention of congress- is called to the decision,
with the suggestion that If there is. TO be
any full investigation of, these financial
dealings some action by congress must be
taken.
Routine work OF ommission
During the year ,5,l9 complaints were
filed before the commission. The number
OF formal cases and Investigations insti
tuted during the year was 554, or an in.
crease of 1875 per cent; 513 hearings were
had at Washington and other places
throughout the country. More than two
thirds of the complaints have been salts
factorily adjusted by correspondence and
without resorting to hearings. Previous to
July !, 1908, Only one suit to set aside an
order of the commission had been filed,
but after that date sixteen such suits have
been instituted. In some of these suits
the right of congress to delegate to any
tribunal the right to establish an Interstate
rate Is denied. The most serious practical
question:, 1t is stated, relates to the right
OF the courts to review the orders Of the
commission. The commission renews its
recommendation Of a year ago that It be
given authority to restrain the advance
Of a rate or the change of a railway regu-
lation or practice pending the proceeding
before it to determine the rea sonableness
OF an advance or change, and it calls at
%tention to need for immediate action.
Decrease In Accidents.
The report calls attention to a remark
able decrease in the number of casualties,
both to employees and passengers, due to
some extent to a decrease in traffic. The
number Of passengers killed was 1876 in
1908, as compared with 4O the previous
year. The number of employees. killed in
coupling accidents was 20 per cent less
J than the year before. Considerable space
? is devoted to a discussion of the growing
! application of safety appliances. II also
: discusses prosecutions in the criminal
2 courts. Since December /. 1906, f~orty-six
indictments have been returned for giving
or receiving rebates. In the same period
d forty-one prosecutions were concluded,
I twenty-four by convictions or pleas OF
g guilty in the trial court, seven by convic-
n tons on appeal, three by acquittaI, one BY
quashing an Indictment by. the court OF
d appeals after conviction in tho lower court
h and six by. the entry of ,ncfIe, proseopi ne.