Brownsville herald. [volume] (Brownsville, Tex.) 1910-current, 1928-12-06
|. c. c. WANTS
MORE POWER,
REPORT SAYS
Authority to Control
And Direct Consoli-
dation of Lines Is
Requested By Body

WASHINGTON, Dec. 6.-P-A
lengthy list OF both major and minor
changes in the federal law relating
10 railroad regulation IL asked Of
congress by the Interstate Com
merce Commission in submitting to-
DAY ITS annual report
Broader and more specific powers
10 control and direct the c~onsolida-
ton or existing systems Of railroad
into larger units Tor the commission
itself was among the points touched
upon. In addition, citing the contin-
nal growth in the variety and vol
nme Of work before is members, the
commission asked for legal power 10
delegate duties in regard TO hearings
and decisions to its individual mem
bers and employees.
IN the direction Of limiting its wi
authority. the commission asked con
gress TO exempt completely from its
jurisdiction the operation Of electric
railways, except such "as inter
change standard freight equipment
with steam railways and participate
an through interstate freight rates
With such carriers
Want Joint Mexico Rate
The report also proposed that rail-
roads in the United States be per-
mitted by law to make joint through
rates with Canadian and Mexican
lines; and suggested amendments TO
the penal code to make workable
sections applying fines 10 shippers
who mis-bill goods 70 avoid paying
freight rates. Former proposals
WnF. Nanaaf.I L~s gku Rnnf uauaNfnp
that wooden passenger cars should
ne eliminated by law from general
railroad service.
After frequent mention in its re-
port of the recent trend toward unit
ing the steam carriers Of the u
try into larger units, and after re
viewing the status Of individual
projects before il looking IN that
direction, the commission summed
up It's suggestions for changes in the
railroad consolidation law. To cope
with the trend toward consolidation
the commission asked congress to
make II impossible for one carrier
10 gain control Of another in any
u whatsoever except with our
specific approval and authorization"
IL sought also power 10 require a
grouping OF carriers 10 include other
railroad systems within their scheme.
Study Competition Need
"a method Of effecting dominance
In the affairs Of competing carriers
that may seriously affect the main
tcnance Of competition and other re-
lations among carriers the commits
sion said in discussing the CONSOLE
dation situation, els the acquisition
by individuals OF groups OF individ-
uals Of control Of two or more such
carriers. Whether such financial OF
other relations can or should be pre-
vented under existing law u a qucs-
tion 70 which we have not hereto
fore had occasion To give considera-
tion. The first instances Of such
individual acquisitions OF relatively
large railroads have only recently
been brought TO our attention.
Railroad continue 10 extend the
length OF present lines and build
into new territory, the report lndi-
Gated Ia estimating hat the commits
sion last year had approved projects
for the construction Of az miles Of
new line. AT the same time, il all
lowed the abandonment Of 5o7 miles
Of line which operating corporations
no longer found profitable. Review
ing general statistics, the commits
sion concluded that. while general
railroad freight business has been
satisfactory, steam rail carriers Of
passengers showed a continued de-
cline from the competition ~ motor
vehicles and other methods ~ trans
9ortati0n.
Valuation Work Complete
One large branch Of enterprise un-
der its direction-thc valuation OF
railroads-was said by the commits
sion 10 have reached practical COM
pletion last year. though the find
ings and methods are awaiting SUI
prcnc court approval ID pending test
litigation. Once the valuation find
ingS arc accepted and put into use.
the commission will use the totals 10
direct rate making. and also TO re-
capture from any railroad Oue-half
the amount of earnings II mag az
tain In excess Of s per ceu- upon It's
valuation. Though All of the re-
capture situation IS involved IN the
pending test litigation, the commits
sion noted that II now held S9.lS4.-
O00 paid over 70 the government by
railroads which have not chosen 70
contest the recapture clause. No
estimates were presented SIS 10 the
amount of r~e-capture funds the gov
rrument may collect when valuation
is completely established.
Demand for the change Of law
that will allow American roads 10
make joint rates with Canadian and
Mexican carriers arose, the report
explained, from litigation over news
print shipments from Canada. The
commission, in proposing the law,
said that congress should give IT
Jurisdiction over such joint rates as
American carriers may pStahlfxb