The Key West citizen. [volume] (Key West, Fla.) 1879-current, 1933-03-14
Our Government
How Il Operates
PROBLEM OF RAILROAD
RATES
BY William Bruckars

problems of the railroads is agreed
that the next several years cOnsti
tute period of great readjHstnient.
and the companies that own the
steam horses are no exception. SO.
with the railroads clamOring on the
one hand for more revenue and re
duced operating expenses and the
shippers demanding lower rates con
Sonant with new values of comm0di
ties and organized labor seeking
return to normal wages, the COM
missions situation is one not to be
envied.
This question of rates is one that
is especially worrisome. The stat
utes under which the commission
operates requires that the freight
and passenger rates be just and resl
sonable. That means, of course
that both the shippers and the ear
riers must be. considered. and il
takes good umpire to satisfy the
players on both teams.
The commission has q whole bag
full of powers to use in it's jurisdic-
ton over railroad rates. its own der
milton of its authority is compll
Gated beyond Einstein's theory.
THE commission has jurisdic-
tion," il reads, upon complaint, o.
in a proceeding instituted upon its
own Initiative, and after full hear.
ing, to determine and prescribe rea
sonable rates, regulations and prac.
tees. including minimum, and maxi.
mum and minimum rates: and also
! minimum. and maximum and mini
mum proportional rates to and from
ports, and to award reparatiOns to
injured shippers. . 1t is author
lied to require carriers to establish
through routes and joint rates, and
1t may act summarily in itself estab-
lisIhng through routes when, in its
opinion. an emergency exists"
Many more lines could be quoted
to show that the commission has
power to do the things it thinks best
for all of the interests served.
But to get down to cases: rail
road desires TO increase rate
which II charges for transporting
cobpipes from st. Louis to Denver,
The law requires that it must file
the new schedule of rates with the
commission, and il the commission
gains an intimation or has an idea
about what ought to be charged for
hauling cobpipes over that distance,
II can suspend the schedule filed by
the railroad. That means II is In.
operative. The purpose is to give
the commission chance,t to look into
the reasonableness Of the charge.
Congress, however, did not give
permission for an indefinite suspen-
sion of the rates in question. 1t
prescribed that the suspension could
not be for longer than $50 days,
which seems quite long enough for
any investigation. Yet many inves.
LEGATIONS are not completed in that
time, and the questioned charge be-
comes operative. AS cOunter.bal-
ance, the law provides that while
the rate may become operative, the
commission may require the car
riers involved to keep separate ac-
count OF money received as a result
of the increase until a decision is
had. II the commission eventually
denies the increase, then the car
riers hive &c refund the money rep
resenting the increase that it has
collected.
1t was back in 1910 that congress
expanded the commissions power to
give 1t jurisdiction over every phase
of rate-making. The Mann-Elkins
act laid down a set of rules govern
Ing through routes and rates, switch
CONNECTIONS long and short hauls
| (proFiding that there shall he no
discrimination against the short
liauIs In favor OF the traffic for long
Ilistancesl, general freight elassifi.
cations and host OF other matters
Then, In 1917, and again In 1870
when the transportation act was
passed. more power was given BE.
tween these two laws. there was
very little left which the railroads
| could call their own
For example. IL the commission
considers that conditions warrant il,
an order may he issued cruising enc
carrier 10 transfer some Of its equip
ment TO another for use. OF course
the user pays rental. but the com,
missions orsler can hardly be de
feaied. II can tell q carrier when II
has enough equipment such as loco
notires. ct It eau shy It's Supply oi
rolling stock is insufficient and il
must bay Hsa'rs. anal il can aud thsps
/ lay down tile rules under which II
may sell bonds or other securities
with which Ia obtain fmhis TOR
financing it, requirements.
la addition ta ali of these. tlse
Commission was directed hy tlle
/ transportation acf to preigtYe a gsIau
Tor consolidation as som a., Fn.s
Sihle 81 Oh raIiruad properties IN
tie United States Info "a limited
uagnher of systrIns- At the s.ause
time. tile railroads are authorized
To accomplish stch consultations
iaat u outstanding the statutes IRA
hIlAiffns formation ~ trusts
Tie commission has prs9arpsl
sslch plan Il proposes 70 iravs.
ossIy four Rsaior rafi systenas In tl..
Ieassern bali og tie esMmfry. bat the
= sarrSs4~4 have r.ssf rza.Sh..sE u, .. sss-.-.