Western news and the Libby times. [volume] (Libby, Mont.) 1920-1933, 1933-06-08
The On1&1nS Of fhe < < Q;
How 1t Operates
By-Wi3lism- Braeksrs-
PROBLEM OF RAILROAD
RATES

horses are no exception. So, with the
railroads clamoring on the one hand
for more revenue and reduced oper.
aaing expenses and the shippers de-
handing lower rates consonant with
new values of commodities and orga.
nized labor seeking return to norm
al wages, the commissions situation
Is one not to be envied.
This question of rates Is one that
is especially worrisome. The statutes
under which the commission operates
requires that the freight and passen-
ger rates be Just and reasonable. That
means. OF course that both the ship
pers and the carriers must be con-
sidered. and 1t takes good umpire
to satisfy the players On both teams
The commission has whole bag
full OF powers to use In its jurisdic
tion over railroad rates. And as one
who is decidedly not a rate expert,
would say 1t needs all of the powers
and handful OF tricks besides. Its
own definition of Its authority is com
pllcated beyond Einstelns theory.
1.-THE commission has jurisdiction"
1t reads. upon complaint, or In pro
ceeding instituted upon its own initia
tive, and after full hearing, to deter
mine and prescribe reasonable rates
regulations and practices. including
minimum, and maximum and mini
mum, rates; and also minimum, and
maximum and minimum. proportional
rates to and from ports, and to award
reparations to injured shippers. Il. T. 1t
Is authorized to require carriers to
establish through routes and Joint
rates. and II may act summarily In
Itself establishing through routes
when, IN its opinion. an emergency
exists
Many more lines could be quoted
to show that the commission has pow
er to do the things It thinks best for
all OF the interests served.
But to get down to cases: n railroad
desires to Increase rate which 1t
charges for transporting cobpipes
from st. Louis to Denver. The law
requires that 1t must file the new
schedule of rates with the commits
sion. and Ii the commission gains an
intimation or has an idea about what
ought to be charged for hauling cob
pipes over that distance, 1t can sus-
pend the schedule filed by the rail
road. That means 1t is imperative.
The purpose is to give the commission
a chance to look into the reasonable
ness OF the proposed charge.
Congress, however, did not give per-
mission for an indefinite suspension
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 investIga-
tion. Yet many investigations are not
completed In that time, and the ques-
toned charge becomes operative. AS
counter balance, the law provides
that while the rate may become op-
erative, the commission may require
the carriers involved to keep a sep
arate account OF money received as
result of the Increase until de
cisIon Is had. II the commission
eventually denies the Increase. then
the carriers have to refund the money
representing the increase that 1t ha:
collected.
1t was back In 1910 that congress
expanded the commissions power I.
give II Jurisdiction over every phase
OF rate-making. The Mann Elkins
act laid down set OF rules govern
Ing through routes and rates, swltcl
connections, long and short hauls
providing that there shall be no dis
elimination against the short hauls
In favor of the traffic for long dis
tances). general freight classificatlons
and host of other matters. Then,
In 1017. and again In 1920 when the
transportation act was passed. more
power was given. Between these two
laws. there was very little left which
the railroads could call their own.
For example, II the commission con-
siders that conditions warrant 1t, an
order may be issued causing one car
rier to transfer some of It's equip
ment to another for use,s OF course,
the user pays rental, but the com
missions order can hardly be defeated.
II can tell carrier when Ii has
enough equipment such as locomo-
tives, or II can say its supply of
rolling stock Is insufficient and 1t must
buy more, and 1t can and does lay
down the rules under which 1t may
sell bonds or other securities with
which to obtain funds for financing Its
requirements.
In addition to all of these, the com
mission was directed by the trans
portatlon act to prepare plan for
consolidation as soon as possible of
all railroad properties In the United
States into "a limited number OF
systems" AT the same time. the rail-
roads are authorized to accomplish
such consultations notwithstanding
the statutes prohibiting formation of
trusts"
The commission has prepared such
plan. 1t proposes to have only four
major rail systems In the eastern half