The Coolidge examiner., 1933-06-09
Our Government
How 1t Operates
PROBLEM OF RAILROAD
RATES
BY William Bruckarf

THE Interstate Commerce COM
l. mission is going to have tough
job on its hands during the next few
years. Every one familiar with the
problems of the railroads is agreed
that the. next several years consti-
tute a period of great readjuStment,
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 commodi-
ties and organized labor seeking a
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 rea
sonable. That means, of course,
that both the shippers and the car
riers must be considered, and 1t
takes a good umpire to satisfy the
players on both teams.
The commission has q whole bag
full of powers to use in its jurisdic-
ton over railroad rates. Its own def
milton of its authority is compli-
Gated beyond Einstein's theory.
The commission has jurisdic-
tion," 1t reads, upon complaint, or
in proceeding instituted upon its
own initiative, and after full hear
ing, to determine and prescribe rea-
sonable rates, regulations and prac-
tices, 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
it may act summarily in itself estab-
fishing 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: a rail
road desires to increase a rate
which it 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 If the commission
gains an intimation or has an idea
about what ought to be charged for
hauling cobpipes over that distance
1t can suspend the schedule filed by
the railroad. That means it is In
operative. The purpose is to give
the commission a chance to look into
the reasonableness of the charge.
Congress, however, did not give
permission. for an indefinite suspen-
sion of the rates in question. II
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 a 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 asa result
of the increase until a decision is
had. If the commission eventually
denies the increase, then the car.
riers have to refund the money rep.
resenting the increase that it has
collected.
1t was back in 1910 that congress
expanded the commissions power to
give it jurisdiction over every phase
of rate-making. The Mann-Elkins
act laid down set of rules govern
ing through routes and rates, switch
connections, long and short hauls
(providing that there shall be no
discrimination against the short
hauls in favor of the traffic for long
distances), general freight classifi-
cations and a host of other matters.
Then, in 1917, and again in 1920
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, if the commission
considers that conditions warrant it,
an order may be issued causing one
carrier to transfer some of its equip
ment to another for use. Of course,
the user pays a rental, but the COM
missions order can hardly be de-
feated 1t can tell carrier when it
has enough equipment such as loco
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