The Waterbury Democrat., 1931-06-20
NEA Service Writer

NEiA Scrvlce WT1ucr Copyright, 1881, NEA Service, Inc.) Washington.-The Interstate Com- merce commission is the most inn portant tribunal in this country ex- cept the United States supreme court.
 The railroads of America now come before it, insisting that res- iteration of prosperity hinges largely on its attitude toward their petition for a IS per cent increase in freight rates. Opponents of the increase argue that the I. C.. C., by granting it, would further intensity the de- pression.
 Whole industries and sections have often held that their econom- ic welfare depended on the commis- sion. So it seems obviously worth while to inquire into such body. it's history, its personnel, it's problems and its mode of operation. There are these elementary facts:
 Deals With Billions
 The I. c. c. has II presidentially appointed members who operate with about 1000 employees in 8 wide, deep. History building on upper Pennsylvania avenue 8 couple of blocks from the White House.
 It wields more power and trans acts more business than any other independent federal commission or any federal court but the very high est.
 It deals with vast amounts of money --as in the case of the 12 billion dollar difference of opinion about the value of the railroads--and 1t may decide whether you pay few dollars more or less on your new au- tcmobile.
 It is the oldest of the federal reg ulatory commissions, forerunner of such groups as the tariff commis- sion, federal reserve board and fed eral power commission.
 To-day it is empowered to fix both maximum and minimum railroad rates. It controls the issuance of "a ailway securities. It insures ad- eouate service to the country and may either permit or require the abandonment or construction of new railroad mileage. It promulgates all railroads. Its findings of fact are final and there is no appeal from its decisions except on points of law.
 Created in 1887 Creation of the commission by congress in 1887 followed a period O. railroad history marked by stock jobbery, political graft. land grabs. rate determinations and inequalities, rebates and pooling. The railroads of that day held the prosperity of cities, states and communities in their hands. Favored shippers were enriched at the expense of rivals who were sometimes ruined. "All the traffic will bear" was likely to be the rule of rates.
 Rate discriminations caused the most resentment and led to the Granger movement and passage of regulatory laws in states of the west and northwest. But the supreme court ruled that the states could not, by regulations. taxes or tolls direct ed at the carriers, interfere with in- terstate commerce. After various at tempts at national legislation the I. c. c. was created not to regulate in- terstate commrece but to regulate railroads.
 The original purpose of this com- mission was to secure just and rea- sonable charges, eliminate unjust discrimination in service and undue preferences to corporations or local- it.es, abolish combinations for freight poolings and in general to equaltzo rates ana SerVice. Has New Powers What power the commission then had was gradually whittled down by the supreme court. which finally killed its regulatory powers in 1897 by deciding that 1t could not set rates. Gradually, however. the com mission has regained its powers by acts of congress and has been grant, ed many new and more sweeping ones. For many years the railroads fought the commission and any ex- | tension of it's powers at every turn lobbying in congress and hollerine in the courts. but in the last decade or so they have come to agree that 1t is q necessary institution and fur nishes them much needed protec' ton.
 The Hepburn act of 1906 and the Mann -flklns amendment of l0lt which strengthened it gave the l. Q c. power to prescribe maximum rates and charges as well as resula' tons and practices and the penalty for violation of orders was put a' sb,00O a day. Backed by these pro. visions and raised from it's origina membership of i've to seven, ths commission piowed into its task ane showed that it meant business. Aftel the war and the period 0f goveHr. Tnent control the Transportation ac of ie20 gave the !. c. c. its power | to nx minimum es well ns maximum faian--doaIanod 10 avoid rate WAfl