The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1933-06-02
OurGoperumeut
How 1t Operates
BY William Brzckart
INTERSTATE COMMERCE
COMMISSION

-
always has been, not only to per-
init. but to enforce, free and open COM
petition Rightly or wrongly. II has
been considered that this policy was
responsible for the very greatness of
our nation, commercially. 1t seems
something of a paradox. therefore.
that We should have such an auto
cratic body as the Interstate Com
merce commission. an agency to which
has been delegated. even directed to
use, the most dictatorial powers II
stands almost alone In this respect.
yet the records reveal very few times
when serious or sound criticism has
been leveled at 1t.
The common conception Of the COM
mission is that Ii rules the railroads.
but IT goes far beyond that. and the
day is not far distant when its scope
OF power will be broadened beyond
It's present limitations. Congress has
seen fit to expand its authority from
time to time, and changing conditions
In the transportation field now are
calling for further federal control.
AS the laws now stand, the commits
sion controls all common carriers en-
gagged in transportation Of commodi-
ties or passengers by railroad in in
t@state operation, transmission ia
cilities Of telephone. telegraph and
cable companies, express companies.
sleeping car companies. terminal IA
cilities used by interstate carriers,
car floats, car ferries, lighters. water
transportation when that is conducted
by the same company operating rail-
road In Interstate 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 sometime or other. Bit
ter criticism has been laid on their
doorsteps and scandal has tainted
their records. The commission has
gone on since 1887. unscathed.
In the dusty pages of United States
laws. there is a phrase which says
that the commission shall require all
railroad rates and all other rates sub
ject to its jurisdiction to be lust and
reasonable" To that one legislative
enactment. therefore. you may attrib-
ute the basis Of all charges which the
carriers make whether in transporta-
ton Of freight or passengers.
Not so many years ago 1t was a
practice among some railroads to give
rebates to shippers and to give free
passes to private citizens or public
officials where such individuals might
! be of help to the carriers. These
practices developed real evils, because
discrimination among shippers became
common result and undue political
| influence resulted from the distribu-
ton of passes. So the commission set
about putting an end to the business
| and. based upon commission findings,
congress ended the condition definite
ly by law.
In those days also, certain Of the
railroads resorted to other tricks to
obtain business and throttle competi-
tors. The commission has watched
these things through the years and has
recommended legislation to congress
to curb them So the interstate COM
merce laws" have grown until in these
days II Is even impossible for stock
holders Of one railroad to elect a d.
rector or an official for their corpor-
alton unless the Interstate Commerce
commission consents. II must be said
that the commission has no concern
unless the proposed selection be an
individual holding Office In another
railroad. Then II is vitality concerned.
because II is considered that interiock-
ing Of directorates is an unwise pol
icy and likely to lead to difficulties for
one or all of the roads so managed.
Minority stockholders would be vic
tins.
The commission started out with
five members. In 1906. it's member
ship was increased to seven. and the
transportation act OF 1920. the latest
important piece Of rail legislation. In
creased the membership to eleven
And there Is work for all to do. for the
commission not only may investigate
and hear complaints Of parties claim
ing grievance against railroad rates or
services or practices. but it has au-
thority to institute proceedings itself.
For example, under a law passed in
1914, 1t was made unlawful for any
Interstate railroad to own, operate.
lease or have any Interest in ANY COM
peting carrier by water" In the same
law. authority was given the commits
sion to determine what constituted
competition. So. 1t takes little imag-
nation to discover how far reaching
this power was, yet the decisions made
under it have never been challenged in
court. recourse allowed dissatisfied
parties.
AS another illustration of the broad
powers available to the commission
let IL be stated that II can, and does
tell the carriers under its jurisdiction
how to keep their books. II carn and
does. prescribe the forms. the actual
designs and columns and arrangs.
ments. upon which the records for day
to day and week to week and month
TO month operations are shown
BY far the most intricate and com
pick of any of its functions. however.
is the management of rates. freight
and passenger This subject. there
fore, should be dealt with In a sep
arate discussion
G. 1892. Western Newspaper Union