Norwich bulletin., 1910-01-08
MESSAGE OF THE PRESIDENT
Trusts AkdWud of
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AACAlo Oc pFOkHPliy uieQ WiIu tue CULT mission, but subject to all the pro visions of the interstate commerce act and subject to the right of any parties to such agreement to cancel 1t as to all or any of the agreed rates. fares. charges or classifications by thirty days notice in writing to the other parties and to the commission.
 Much complaint is made by shippers over the state of the law under which they are held bound to know the legal rate applicable to any proposed ship ment without. as a matter of fact, having any certain means of actually ascertaining such rate. I think that the law should provide that carrier, upon written request by an intending shipper. should quote in writing the rate or charge applicable to the pro- posed shipment under any schedules or tariffs to which such carrier is party and that if the party making such request shall suffer damage in consequence of either refusal or omfs- sion to quote the proper rate or in con sequence of a misstatement of the rate the carrier shall be liable to a penalty in some reasonable amount, say $25O, to accrue to the United States and to be recovered in civil action brought by the appropriate district attorney.
 Under the existing law the commis- sion can act only with respect to an alleged excessive rate or unduly dis criminatory practice by a carrier on a complaint made by some individual affected thereby. l see no reason why the commission should not be author ized to act on its own initiative as well as upon the complaint of an individual and also that the com mission shall be fully empowered be- yond any question to pass upon the classifcations of commodities for pur- poses of fixing rates, in like manner as it may now do with respect to the maximum rate applicable to any trans portation.
 Public Pays increased Rates.
 Under the existing law the commis- sion may not investigate an increase in rates until after it shall have be- come effective. On the other hand, if the mission shall make an order finding that an existing rate is excess i've and directing it to be reduced the carrier affected may by proceedings in the courts stay the operation of such order of reduction for months and even years. It has therefore been sug- gested that the commission should be empowered, whenever a proposed increase in rates is filed, at once to en- ter upon an investigation of the req condolences of the increase and to make an order postponing the effective date of such increase until after such investigation shall be completed.
 To this much objection has been made on the part of carriers They contend that this would be, in effect, to take from the owners of the rail- roads the management of their prop critics and to clothe the interstate con- merce commission with the original rate making power, policy which was much discussed at the time of the pas sage of the Hepburn act in 1005-6 and which was then and has always been distinctly rejected.
 They point to the provision of the in- terstate commerce act providing for restitution to the shippers by carriers of excessive rates charged in cases where the order of the commission re- ducing such rates are affirmed. It may be doubted how effective this
 
 shown that many, perhaps most ship perS do not resort to proceedings to recover the excessive rates which they may have been required to pay, for the simple reason that they have add ed the rates paid to the cost of the goods and thus enhanced the price thereof to their customers and that the public has in effect paid the bill
 Impossible to Supervise Tariffs.
 On the other hand, the enormous vol ume of transportation charges, the great number of separate tariffs filed annually with the interstate commerce commission, amounting to almost 2OO.- GOO, and the impossibility of any con- mission supervising the making of tariffs in advance of their becoming effective on every transportation line within the United States to the extent that would be necessary if their ac- tive concurrence were required in the making of every tariff have satisfied me that this power, if granted should be conferred In a very limited and re- stricted form. I therefore recommend that the interstate commerce commis- sion be empowered, whenever any pro- posed increase of rates is filed. at once, either on complaint or of it's own motion, to enter upon an Investigation into the reasonab bleness of such change and that 1t be further empowered in its discretion to postpone the effective date of such proposed increase for period not exceeding sixty days be- yond the date when such rate would take effect. If within this time it shall determine that such increase is unreasonable it may then by it's order either forbid the increase at all or fix the maximum beyond which it shall not be made. If, on the other hand. at the expiration of this time the commission shall not have con- pleted it's investigation. then the rate shall take effect precisely as it would under the existing law. and the com- mission may continue its investigation
 Shipper to Have Ihoiee of Routes.
 I know of no reason why a shipper should not have the right to elect be- tween two or more established through