Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1909-12-22
Of
RAILROADS
WANTED
COMMERCE COMMISSION
WOULD REQUIRE IT BY LAW
Vigorous Recommendations
Concerning Regulation 0 f
Transportation Compa les
Contained in Annual Report,
lBy Morning journal Special Leased wirsl

(By Morning journal Special Leased Wirel
Washington, Dec. 2l.---Nigorous
recommendation for changes in the
present law regulating transportation
companies are contained in the TWEEN
ty-thrd annual report of the inter-
state commerce commission transmit
ted today to congress.
Notwithstanding the recommended
tions made however, the report in
this respect is notable rather for what
: 1t does not, than for what it does,
contain. Five of the suggestions
made by the special committee Sc
lected by President Taft to draft
changes in the existing interstate
commerce act are offered in the re-
port. 1t is known that the commits
sion, as a body, favors the plans pro-
posed by that committee, but, as a
matter of courtesy it has rcfrained in
its report from discussing the changes
In advance of the special message on
! the subject which President Taft has
indicated he will send to the congress.
The commission expresses its con-
viction that certain amendments to
present laws 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
4 o1.the interstate railroads of the coun-
+ try. The commission points To the
! difficulty experienced in certain cases
whore its orders are attacked in court
! in meeting the testimony as to physic-
al value offered by the carriers, and
says that If its rates are to be defend
ed some method must be furnished
by Which Il value can be established
which shall be binding ON the courts
and the commission.
The commission again suggests that
II be given power Ia prevent advances
In rates or changes i'm regulations or
practices to the disadvantage of the
shipper, pending an investigation into
the reasonableness of the proposed |
change. 1t is stated that where n
rate has been in effect for years it Is
presumably reasonable ana that there I
would be no hardship on the carrier !
in giving the commission authority to /
require continuance OF the rate until ,
opportunity had been afforded to in !
vestigate the proposed advance.
The commissions authority to es-
tablish Joint rate and through route .
Is limited to cases where no such ,
route exists, and the commission rec
ommends that this limitation be
stricken out of the law, so that it may
establish a through route wherever
upon investigation it is found that the
public necessity and convenience re-
quire such action. A further recon-
mendation is to the effect that in cer-
tain instances the shipper be permit
ted to direct the intermediate routing
of his traffic. 1t is further requested
that the law be so amended as to give
the commission undoubtcd authority
to enter a corrective order as the re-
suit of an investigation instituted by
the commission upon its own motion.
The commission again calls to the
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.
The annual reports to the commits
sion from the carriers show that for
the fiscal year ended June 80. 1868.
the gross operating revenues of all
railroads In the United States were
81, ,46f, ,521,3i5 and the operating in
come (derived by subtracting operat-
ing expenses and taXes) was $685.
41S,321. For 1909 the operating rev. !
enue was $2,49I,115,5S9 and the OPP
Grating income $742,9S7.19t, indicat- I
ing an increase for 1903 of $32,394,- ;
2ii in gross earnings and SS6,56S,S70 {
In net earnings. The average number !
Of miles operated i'm 1908 was 22S,1sf ,
and in 1909 233,002. The large in l
crease in net as compared with gross
is accounted for by "A reduc-
Iion of operating expenses i'm 1909 be- !
low those of 1908 of $5g,224.9S3.
The report indicates that larger {
number of formal complaints was z
filed with the commission in 1909 q
than i'm 1908. During the last year S
,037 formal proceedings were insti- =
Iuted and during the same period 7SS a
formal cases were disposed of. APP i
5000 informal com !
plants. OF which about half involved I
Informal reparation claims. were adj q
usted during the year. Six hundred {
ind one hearings and invcstigations- r
M average of two for each working a
lay-ali involving alleged violations Of r
he Interstate commerce act. were held T
a sessions of the commission in c
and in various cities of II
he country. at which 6i,000 pages-of {
testimony were taken. I
since December 1. 1908. thirty-five a
for criminal violations Of n
he interstate commerce law have n
,een returned and forty-two prOsecu- y
ions have been concluded. Practical "a
y all of the prosecutions were for Il
ome form Of rebate or concession. Il
rhc Zines collected under these In s.
lictments aggregated sS0s. 233.S4 The Is
opinion il expressed that violations Of o
hc lsiw. such A. rcbating in enc form q