Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1922-12-08
|. c. {. REPORT
REVIEWS WORK
FORPAST YEAR
Major Action In Rate Fixing
Is Ten Per Cent Cut In
Freight Rates.

Washington, Dec. 8.-An increased
scope Of activities, due partially to en-
larged Responsibility put upon it by
legislation Of recen years. and par
tally to use of emergency powers re-
CURED by industrial disturbances in
recent months, were described yester-
DAY in the annual report Of the inter-
state commerce commission. =
Z Together will its usual work in
regulation of railroad rates and serv-
ice. the commission reviewed opera
|tions which it assumed some degree
of actual control of railroads during
the mnle period Of emergency oc-
casioned by the double strike in the
coal mines and in the railroad shops;
presented summaries of results in its
supervision Of railroad securities, and
forecast the outlook for final conclu-
sion Of the protracted settlements of
financial accounts between the gov
eminent and the railroads arising out
of the federal control during the war.
Rate Reduction Effected.
It's major action in the rate fixing
field, the report said, was the ten
per cent reduction in freight charges
ordered last July.
"Manifestly. the existing rates are
no longer interfering with the free
Flow of commerce as a whole the
report said. 1.-The tonnage moving
has been steadily increasing in recent
months. Little opportunity has been
afforded for determination of the eff
feet of the reduced rate level upon
the net earnings Of carriers because
OF freight congestion and other alb
normal conditions which have result
ed from the coal strike, the shipments
strike, and other causes
h report reviewed how the COM
! mission, to meet the "menacing do
nestle and industrial consequences of
the strikes" had put priority orders
into effect, and co-operated with the
emergency organization of the federal
fuel distribution office. Though con-
ditions of disrepair of equipment
grew most serious on some impor-
tant trunk lines" before the strikes
wore out, it was said, the commission
a not found it necessary to lay en-
OF measures which congress legalized
While h danger vas greatest. \
In its mere traditional field, the
regulation of rates and service, the
commission was enabled during the
year to reach q. basis Of cooperative
understanding with state commissions
and regulative bodies, the report said,
n for the plan devised. hope of ul-
innate success was expressed. It had
also moved to require experimental
installation Of automatic train control
systems by a large number of rail-
roads, for accident prevention. and
a laid the basis for comparative
studies Of efficiency in railroad opera
ton. r.Js =
Approved Stocks to Bonds.
Control of railroad security issues,
vested in the commission, resulted
in Its approval during the year of
stocks and bonds having a total par
valuation Of $S~S3,719,71O with some
additional issues having no par value,
or a value expressed in corcign cur
rcncies. The Illinois Central and
Chesapeake e. Ohio railroads. the
commission said, had giyen "~encour-
aging Indications in the field Of rail-
road finance by demonstrating that
new capital could be secured for their
iexpansions by issuance of stock, in
stead of by increases Of bond indcbt-
cGncss.
Discussing the reimbursement of
railroads which Incurred losses in op-
erations during the first six months
after their return from government
to private control, the report said that
W ~ oStoOSI O1 Ld6t, lOtal payments
OF $45O.073,045 on that cou had
been authorized from the treasury.
Sums still payable to the carriers, who
were guaranteed reimbursement for
such losses, the commission estimated
lat ss5.s26,o00.. The report also cx-
pressed the conclusion that the fur
Their loans to railroads, authorized by
the transportation act, would not in
volve much money.
Reductions in it's estimates for ap-
preparations, made by the bureau of
the budget. o~ccasioned the commission
to %ecommend formally to congress
that amounts be given 1t Sufficient
to meet our absolutely necessary re-
quirements." For the current fiscal
year. its appropriations were $5,O45,-
$50, the commission said, and for next
year, it would require s5,2O4,50O
though the budget director had rec
commended that the amount be re-
duced to $4,4s4,5OO. With this small
er amount, the report said, the COM
mission would be forced to defer or
greatly restrict work"
Congress was further. requested to
enact legislation to make it criminal
to bride railroad employees to give
preference in car supply; to increase
use of a1l-steel passenger cars by rail
roads, and to Clarity sections of the
existing transportation act in relation
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