Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1909-12-21
COMMERCE BOARD
ASKS LAW 'CHANI[S
VIGOROUS RECOMMENDATIONS
OFFERED FOR REGULATION
OF TRANSFORMATION.
CHANGES ARE NECESSARY
TO MAKE BOARD EFFECTIVE
Asks to Be Empowered to Prevent Ad-
vances in Rates and Power to Estab-
fish Joint Rates-Report Shows Big
Increase in Net Earnings of Rail-
roads.

for changes in the pres
snt law regulating transportation COM
oanies are contained in the twenty
third annual report Of the interstate
commerce commission, transmitted to-
lay to the congress.
Notwithstanding the recomm enda
tions made, however, the report, in
this respect, is notable rather for what
It does not, than for what it 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 tina,
the commission, as a body, favors the
as matter of courtesy, it has re-
Trained, in its report, from discussing
the changes in advance of the special
on the subject which Presi-
dent Taft has indicated he will send
to the congress.
New Amendments Proposed.
The commission expresses its convic-
ton that certain amendments to the
present law are necessary to enable
it fully to accomplish the purposes Of
congress. Briefly summarized, the pro-
posed amendments are as follows:
That a physical valuation be made of
tho MT toto il~p ~F <ho
try. The commission points to the diff
ficulty experienced in certain cases
where its orders are attacked in court
In meeting the testimony as to physical
value offered by the carriers, and says
that if its rates are to be defended,
some method must sbe furnished by
which value can be established (which
shall be binding on the courts ahd the
commission.
The commission again suggests that
1t 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 reasonable1fess OF the proposed
change. 1t is stated that where a rate
has been inl effect for years 1t is pre-
sumably reasonable and that there
would be no hardship on the carrier
in giving the commission authority to
require continuance OF the rate unHl
opportunity had been afforded to in
vestigate the proposed advance
Would Have Joint Rate Powers. :
The commissions authority to estab-
lish joint rate and thru route is lin
tied to cases where no such route ex-
lists. and thu commission recommends
that this limitation be stricken out of
the law, SO that it may establish thru
route wherever upon investigation, II
is found that the public necessity and
convenience require such action. A fur
ther recommendation is to the effect
that in certain instances the shipper lie
permitted to direct the intermediate
routing of his traffic. 1t is further re-
quested that the law be so amended
as to give the commission undoubted
authority to enter corrective order
as the result of an investigation insti-
tuted by the commission upon it's own
motion.
The commission again calls to tine
attention Of congress the increasing
Importance of some form of federal
control over railway capitalization and
expresses the opinion that adequate
legislation upon this subject is re-
quired by the interests involved.
Net Earnings Increase.
The annual reports to the commits
sion from the carriers show that fol
the fiscal year ended June 80 1908, the
gross operating revenues of all rail-
roads in the United States were So
461,521, ,345, and the operating income
derived by subtracting operating ex-
penses and taxes) was $656,418,32 Fol
1909 the operating revenue was $2.494,-
1859 and the operating insome s742,-
987,191, indicating an increase for 1905
of $32,594,244 In gross earnings and
$86,56S,870 In net earnings. The aver
age number of miles operated in 1905
was 22s,164 and in 1909 $4,000. The
large increase in net as compared will
gross earnings Is accounted for by q
reduction Of operating expenses In 100!
below those of 1908 of $59,224 1888.
More Complaints Heard.
The report indicates that larger
number of formal complaints was filet
with the commission In 1909 than ir
1908. During the last year 1097 forma
proceedings were instituted and during
the same period 7SS formal cases were
disposed Of. Approximately 5000 in.
formal complaints, of which about hall
involved informal reparation claims
were adjusted during the year. Sis
hundred one hearings and 1investiga.
tions-an average Of two for eacf
working day-all involving alleged vio.
lations Of the interstate commerce act
were held at sessions Of the commits.
sion in Washington and in various cit
les of the country, at which $1,000
pages Of testimony were taken.
Since Dec. 1, 1908, thirty five In.
dictments for criminal violations of tn,
interstate commerce law have been re.
turned and forty-two prosecution.
have been concluded. Practically al
Of the prosecutions were for, some form
of rebate or concession. The fines col
looted under these indictments aggre.
gated $804,233S4. The opinion is ex,
pressed that violations OF the law, sucl
as rebating in one form or in another
are decreasing.