Kingsbury County independent. (DeSmet, Kingsbury County, S.D.) 1894-1929, 1910-01-07
PHYSICAL 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
emit law regulating transportation COM
panies are contained in the 23rd annual
report of the Interstate Commerce
commission, transmitted today to o
gress.
Notwithstanding the recommended
lions made, however, the report, in this
respect, is notable rather for VIVA. -
does not, than for what Ii does. con-
tain. i've of the suggestions made Dy
the special committee selected by
President Taft to draft changes In the
existing interstate act are
offered In the report. 1t Is known that
the commission, as a body, favors the
plans proposed by that committee; but.
as a matter Of courtesy, Ii has re-
Trained, In it's report, from discussing
the changes In advance of the speciai
message q. tho s.S;cc. -sh.ch p.esi--
dent Taft has indicated he will send to
the congress.
The commission expresses Its con-
viction that certain amendments 10
present law are necessary to enable IL
fully to accomplish the purposes or
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 the 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
fered by the carriers, and says that TX
its rates are to be defended, some
method must be furnished by which a
value can be established which shall be
binding on the courts n the commits
sion.
The commission again suggests h a
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 reasonabieness of the proposed
change.
For Joint Rate Power.
The commissions authority to estab-
i,sh a Joint rate and 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 1t 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 to the
effect hat In certain instances the
shipper be permitted to direct the in
termediate routing OF his traffic. 1t Is
further requested that the law be SO
amended as to give the commission un-
doubted authority to enter a corrective
order as the result of an investigation
instituted by the commission upon its
own motion.
The commission again calls to the at
tention of congress the increasing inn
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 commission
from the carriers show thai for the
fiscal year ended June 80, 1908, the gross
operating OF all railroads In
the United States were ST. 61, 521, 345,
and the operating income derived by
s~ubtracting operating expenses and
taxes) was $3.50, AIS, 321. For 1909 the
operating revenue was ST. 94, lis, 5S9 and
he operating income $742, 987, 191. indi-
eating an increase for 1909 of 1872, 594, 244
I'm gross earnings and $50, 56S, $40 in net
earnings. The average number of miles
operated in 1908 was 223, fe4 and In 1903
233, 002. The large increase in net as
compared with gross earnings is ac-
counted for by g reduction OF operst-
''o SNPNASS5 III lSoO oSloW lHUSG III l1U6
Of $50, 224, 1888.
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 yea 1897 formal
proceedings were instituted and during
the same period 1888 formal cases were
disposed of. Approximately 5000 n
formal complaints, of which about half
involved informal reparation claims,
were adjusted during the year.
Six hundred and one hearings and in
yestigations-an average OF two for
each working day-all involving alleged
violations of the interstate
act, were held at sessions OF the COM
mission In Washington and in various
cities Of the country, at which 81, 900
pages OF testimony were taken. -
Since December /, 1908, 35 indictments
for criminal violations of the Interstate
commerce law have been returned and
AZ prosecutions have been concluded.
Practically all of h prosecutions were
for some form of rebate or concession.
The fines collected under those indict-
ments aggregated 1904. 233.8 "a. The opin-
ion is expressed that violations of the
law, such as rebating is one form or
in another, is decreasing.
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