Evening star., 1924-12-04
PREFERRED RATE
REVIVAL URGED
|. C. c. Would Favor Exports
to Go Abroad in Ameri-
can Ships.

Recommendation that Congress
consider the adjustment OF section 2s
of tho American merchant marine act,
now suspended, which is designed to
give preferential railroads rates to
american exports moving in American
ships, was renewed by the Interstate
Com mission Commission in its annual
=. report to Congress made public to-
day. The commission made no new
5rcquest for important additional
, II gislation.
Reviewing the history of its work
In connection with installation of
automatic train control devices on
American railroads, the commission
said: The Importance OF continuous
effort to prevent railway accidents,
F with their great loss of life, injury
TO persons and destruction of prop
erty, can hardly be overestimated'
Railroads under commission reEu-
lation, the report said, are not yet
receiving the So per cent annual
return on property investment which
is the aim of present rate legisla-
ion, under which the commission
functions. For the calendar year to
August 81 last the net income Of
,'lass | carriers WAS S912.G56,00O but
the commission declared that because
Of valuation and accounting work
still TO be done il was unable to
Say precisely what the percentage
of return indicated by the figures
would be. IT was noted that the
handling of transportation by roads
had proceeded during the year with
out complaint Of car shortage
congestion.
Progress of Valuation.
In recouuting the work done on
the enterprise of valuing the rail-
road property within the United
States for the purpose of determin-
ing what fair earnings should be, the
~eport said that 5.3 per cent of the
railroad mileage was now completely
accounted for. ON the balance. par
tial valuation work is being brought
toward conclusion.
When railroads earn more than the
fair return. the report pointed out,
The Government is entitled to recap
lure half Of the excess. To date
since 1920. when the transportation
net first inauGurated such proNi-
sion. $lO.S41, 600 has been reported as
due the government from more prof
liable lines. Much Of the amount is
still in controversy. but the tendency
nf the Governments share TO in
crease was shown by the figures for
1922. in which year Sl,102,000 became
due the Government as excess earn
ings. while in 1873 the amount was
s5,623, ,Q0G.
Approves OF Securities.
During the last fiscal year ending
June 30 the commission in its role of
supervising railroad securities ap-
proved the issuance Of stocks. bonds
notes and like evidences of invest
Ineut in railroads to a total OF ST.
.95.027. 900. While its temporary
financial activities in winding up the
Governments obligations under the
wartime public operation Of railroads
decreased the report estimated that
S2S,5O5.0Q0 remained to be paid out
TO carriers under the guarantee of
earnings which tho private owners
received from Congress during the
first six months after the properties
were turned back. The Government
will have paid. when the last of such
claims are settled, s507, 900 on this
score.
In reviewing the work Of fixing
rates for railroad service. the COM
mission remarked that far greater
uniformity than now exists Gin rail
road ratesl can be attained without
undue sacrifice Of practical considera-
tons" This principle was guiding
it, it was explained. in its general
inyesti cations and rate decisions.