Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1925-12-11
|. C. C. ASKS REPEAL
CONSOLIDATION LAW
PUNISH BRIBERS

Washington, Dec. 10.-(AP)-Con-
gress was asked today by the In
tersNte Commerce Commission to
repeal the law requiring it to work
out plan for consolidation of all the
country's railroads into a score or so
of systems. At the same time, it
suggested that the sections of the
Transportation Act which contemplate
the gradual consolidation of existing
railroads into fewer systems be
strengthened and extended, with the
commission retaining power to ap-
prove or disapprove. the mergers I'M
dertaken
The commissions views were set
forth in its annual report, made pub
lie today, along with the text of legis-
lation which it considered likely to
accomplish the end desired The ma
Jarity of it's members now believe, the
report said. that results as good and
perhaps better are likely to be accom-
plished with less loss of time if the
process of consolidation is permitted
to develop, under guidance of the
commission in a normal way.
e every case, the report stated, fed
eral power to allow or block any par
ticular consolidation should be lodged
in the commission, in order to make
sure that better service, additional
economy, and no undue restraint of
competition may result.
In its other annual recommends
lions to Congress, the commission re-
peated suggestions that penal stat
ute be enacted to punish shippers who
bride railroad employees to obtain car
service; and that the sections of the
merchant marine law which provide
preference for American shipping in
the maintenance of export ard import
rates be modified.
Reviewing it's routine work for the
fiscal year, the commission said that
railroad earnings were still below a
fair return standard on the basis of
the value of property but that better
results were in prospect for the pres
ent fiscal year Railroads in 1924, it
pointed out, failed to obtain as much
net income as they did in 1916, in
spite of traffic and investment in
creases.
"A partial explanation of these diff
ferent results nearly a decade apart
is that, in 1916. the proportion of rev.
enues going into the pay roll of these
roads was 40.S per cent" the report
said, whereas in 1924 it was Az
per cent. The increase in costs of
material and supplies and other ex-
penses, and an increase in taxes. gem
orally account for the remainder"
In the endeavor to enforce new
safety requirements upon railroads.
during the last fiscal year, 609.4 miles
OF line were equipped at the commits
sion's order with automatic train con-
troll devices. the report continued. A
slight reduction in the number of ac-
cidents at grade crossings also was
noted from 521S in 1923 to 5217 in
1924.
In its task of fixing the valuation
of the railroads of the country under
taken several years ago, the commits
sion reported considerable progress.
With respect to steam railroads, IS
per cent of the accounting reports, 20
per cent of the engineering reports,
and 81 per cent of the land reports
have been completed, while work on
the balance was said to be we'll ad-
vanced. The valuation work is linked
with the recapture by the United
States of half of railroad earnings
which exceed a fair return" and this
was declared to have brought pay
ments of s5,941,s39 to the Treasury,
where they are placed in a railroad
contingent fund.
The issuance by railroads of securi-
ties having a total par value of S907,-
$4,000 was approved during the
year, and among the more important
of its activities directly touching rail,
road charges, the report noted action
taken under the Hoch-Smith congress
sional resolution, which directed in
vestigation particularly of rates on
agricultural products. The situation
in the western half of the country. it
said, has been brought under examina-
ton in proceedings under the resolu-
tion.
Although the hearings now being
held in the western district are broad
in scope" the report added. cit is
recognized they will not afford rec
ord upon which the mandate of the
Hoch-Smith resolution can be fully
complied with even in the western
district. However. it is hoped that
these hearings will afford a means
whereby situations of pressing impor-
lance in the western district may be
brought before us for consideration
prior to a more comprehensive study
to be made Of the rate structure as a
whole.
1--WE are now engaged IN working
out the details of comprehensive
plan for such a study. The task as
signed to us by the resolution is one
of magnitude which it will take time
to complete. Current work is taxing
the capacity of our forces and when
the nationwide study we contemplate
is under way those forces will be in
adequate.