The Key West citizen. [volume] (Key West, Fla.) 1879-current, 1933-03-13
Our Covernrnent
How It Operates
INTERSTATE COMMERCE
COMMISSION
By William. Bruckars

1 LH
n always has been, not only to
permit, but enforce, free and open
competition. Rightly or wrongly. it
has been considered that this policy
was responsible for the very great
ness of our nation, commercially. 1t
seems something of paradox,
therefore, that we should have such
an autOcratic body as the Interstate
Commerce commission, an agency to
| which has been delegated, even di.
rected to use, the most dictatorial
powers. 1t stands almost alone in
this respect, yet the records reveal
very few times when sound criticism
has been leyeled at it.
The common conception of the
commission is that it rules the rail-
roads, but it goes far beyond that,
and the day is not far distant when
its scope of power will be broadened
beyond its present limitations. Con-
gress has seen fit to expand its au-
thority from time to time. and
changing conditions in the transpor-
tation field now are calling for fur
Their federal control.
AS the laws now stand, the COM
mission controls all common car
riers engaged in transportation of
commodities or passengers by rail-
road in interstate operation, trans
mission facilities of telephone, teIe-
graph and cable companies. express
companies, sleeping car, companies,
terminal facilities used by inter-
state carriers, car floats, car ferries
lighters, water transportation when
! that is conducted by the same com.
pany operating railroad in inter-
state traffic.
Over the operations of those cor
poratiOns, the commission rules as a
monarch, backed. of course, by the
laws which congress enacted. But
congress has given powers to other
agencies of the company much less
broad and at some time or other, bit.
ter criticism has been laid on their
doorsteps and scandal has tainted
| their records. The commission has
gone on since 1887, unscatched.
In the dusty pages of United
States laws, there is phrase which
says that the commission shall te-
quire all railroad rates and all 9TH
er rates subject to it's Jurisdiction
to be "just and reasonable" To
that one legislative enactment,
therefore. you may attribute the ba-
sis Of all charges which the carriers
make. whether in transportation of
freight or passengers.
Not so many years ago It was a
practice among some railroads to
give rebates to shippers and to give
free passes to private citizens or
public officials where such individ
uals might be of help to the car.
riers. These practices developed
real evils, because discrimination
among shippers became a common
result and undue political influence
resulted from the distribution OF
passes. So the commission set
about putting an end to the bust
| ness, and, based upon commission
findings, congress ended the condi
ton definitely by law.
In those days also. certain of the
railroads resorted to other tricks to
obtain business and throttle com
petitors. The commission has
watched these things through the
years and has recommended iegis
lation to congress to curb them. So
| the Interstate commerce laws" have
grown until in these days it Is even
impossible for stockholders of one
railroad to elect director or an
| official for their corporation unless
the Interstate Commerce commission
consents. 1t must be said that the
commission has no concern unless
/ the proposed selection be an indi-
vidual holding Office in another rail.
road. Then II is vitality concerned.
because it IL considered that inter,
locking of directorates is an tnwise
| policy and likely to iead to difficult.
ties for one or all of the roads so
managed. Minority stockholders
would be victims.
The commission started out with
five members. In 1906. its member.
ship was increased TO seven, and the
transportation act OF 1920, the lat.
est important piece OF rail legisla.
ton, inerea sed the membership Il
eleven. And there is work for all
to do, for the commission not only
may investigate and hear complaints
of parties claiming grievance
against railroad rates or services OF
practices, but II has authority tC
institute proceedings itself.
1 For example, under a law passed
In 1914, II was made unlawful fol
any Interstate railroad to own, op
eYate, lease or have any interest IN
amy competing carrier BY water.
In the same law. authority was
given the commission to determine
what constituted competition. So
It takes little imagination TO dis
cover how far reaching this powel
was. yet the decisions made unsiei
II have never been challenged II
court.
/ As another Illustration Of TIL
broad powers available TO the cona
mission, let II he stated that II can
and doea tell the carriers under IL.