The Guthrie daily leader. [volume] (Guthrie, Okla.) 1893-1996, 1909-12-21
FEDERAL CONTROL OF
RAILWAY CAPITALIZATION
Vigorous Demands for Changes
in Law Regulating Trans
pOTiatIOn Companies

WaShingiOni II. o.. lice l.--
Vigorous recommendation Tor
changes III the present law regulating
transportation companies are con
tanned in ihe twenty-third annual re-
port of the Interstate Commerce com
mission Transmitted today to the
congress.
Notwithstanding the recommends
tions made, however. the report, in
his respect, is notable rather for
what It does not than for what it
does. contain Five OF the sngges-
tons made By the special committee
selected by President Taft 70 draft
changes in the existing Interstate
commerce act are offered IN the re-
port. II IS known hat the commits.
sion. as a body favors the plans prD'
posed by that committee, but, as a
matter of courtesy. 1t has refrained.
in lis 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.
Certain Amendments Necessary.
The commission expresses it's con
sicti0n that cesiain amendments 70
present laws are necessary 70 enable
Il fully to accomplish the purposes OF
eougrdss Brief sunni ,riaed The
proposed amendma .ls are as follows
That a physical valuation be made
Of the intcrgtaie railroads of the
country The commission points 10
the difficulty experienced la certain
eases where It's orders are attacked
in court In meeting The testimony as
70 physical value offered by The ear.
riers. and SAYS that il IT'S rates are
10 bo defended, some method must be
furnished by witch i value can be
established which shall be binding
on the courts and The commission
The commission again suggests
that II be given power TO prevent
advances IN rates 0t changes in rcg
platiOns or practices to the fiEad
panlago of ne shipper pending an
Investigation into The reasonablcness
cf The proposed change II Is stated
that where r rate has been vi effect
for years il is presumably reasnnahle
and hat there would be no hardship
on tho carrier IN giving the commits.
sion authority to Heuaire continuance
of the rate until opp0fluuiy had
hecn afforded 10 investigate the pro
posed advance
Wants Authority Extended.
Tho commissions authority io eR
lablish Joint rate and through
route ls limited 10 cases where no
such route exists aud the commits
sion recommends that this limitation
be- stricken oui Of the law 50 tint
II may establish through route
wherever upnn Investigation. Il is
found that The public necessity and
congcnence require such action. a
further recommendation Is 20 the q
fect that IN certain instances the
shipper BE- permitted 70 direct the
Intermediate routing Of his ifallie II
is further requested that iho law be
So amended as rs give the commits
sion nnd0ubied authority 10 enter q
corrective order as the result Of an
investigation instituted by The com
mission upon IFS 0eu motion.
The commission again calls TO the
attention Of congress the increasing
importance Of some form OF Fedetal
control over railway capitalization
and express the opinion that adequate
legislation upon this subject Is fe.
uui ed by The interests involved
Railroad Earnings and Expenses.
The annual reports TO the com
mission from the carriers show that
lof the fiscal year ended June 20.
1905. the gross operating revenues oI
all railroads to the United states
we're S2.4Gl.52l 3i5. and the opefat.
ing income derived by snbtfacflng
operating expenses and taxesl was
se56.4f8.32l. For 1868 she operating
revenue was S2.494li5.5s9 and tho
operaiing income S7429S7 lsl indicat
ing an increase for 1909 Of s3z.59f.21i
In gross earnings and s86 56s $40 TT
nei earnings. The average number
, II rifles operated in 1908 was 22s.lbi
and Id 1909, 233002. The large ~
crease in net as compared with gross
earnings is accounted for By redac
fion Of operating expenses IN 1903
below those 81 1905 Of sa922l.gsS
The report indicates that larger
number Of formal complaints WIS
flcd with the commission IN 1907
than ia 1905 During the last veal
g97 formal proceedings we're iusii
inied and during he same oeriod lsf
formal cases were disposed Of Al
proximately e.0oa inlorma. complaints
of which ahoas half involved informal
reDafallon cleims. were adjusted dur