Evening star., 1934-12-18
lee CITES BENEFIT
Of RATE CONTROL
!. C. c. Chairman Declares
UnreguIated Carriers Still
Discriminate.
(Continued From Twelfth Page.)

CONTINUED From Twelfth Page.)
IN the accomplishment Of properly re-
lated State and interstate rates.
We also cooperate with State Com
missions in connection with applica-
tions for certificates Of public con-
venience and necessity for the con-
struction of new lines or abandonment
Of existing lines Of railroad wholly
Commission to hold hearings, make
the record and submit such recon-
mendations as 1t may see fit to do.
Thus the knowledge Of local situations
possessed by State Commission is
made available to us in these mat
ters.
Commission Inquiry.
When 1t deems 1t necessary the
commission may institute an investi-
cation upon its own motion. Upon
judicial review its findings of fact are
conclusive If based upon an adequate
record and are not arbitrary. Many
controversies between shippers and
carriers are "ironed out" without re-
course to formal proceedings through
the mediation or advice of the COM
mission, and 1t endeavors to bring
this about whenver possible, thereby
saving time and expense to the parties
and the Government.
Another important phase Of the
commissions work has to do with the
financial affairs of the railroads. Since
1920 railroads have been required to
obtain authority from the commission
to construct new lines or to abandon
portions Of their lines. There can be
no interlocking directorates without
the commissions approval Railroads
can issue securities only after the
commission has given authorization
therefor. In a single year 1t has
passed upon securities with face
value Of over $50 million dollars. Ap-
plications for loans to railroads by the
Reconstruction Finance Corporation
must first be approved by the COM
mission.
The commission is also charged with
the administration of laws relating to
the safety Of railroad equipment, linn
iting the number of hours railroad
employees engaged in train operation
may be continuously on duty, investi-
eating collisions or other serious acci-
dents, requiring the installation of au-
tomato train control or train stop de-
vices, and inspection of locomotives to
determine whether they may be oper-
ated with safety. 1t has authority to
require the use of specified appliances
with the view to increasing safety in
train operation.
The commission preScribes rules
governing the form of the carriers
rate schedules and claSsificationS and
the manner Of filing and posting them
for public inspection. There are more
than 100000 tariff schedules and
supplements now on file. These carry
literally billions of rates.
Under the provisions of the car serv-
ice act, the commission has authority
to issue orders in emergencies arising
out Of car shortages, congestion at ter
minals, or other causes, designed to
relieve the situation, and particularly
to prevent any interruption of the
free flow of food, fuel. perishables,
live stock, etc.
Carriers are required to keep their
accounts In accordance with a uniform
system prescribed by the commission,
which inspects these accounts TO in
sure compliance with the law.
Probable violations Of the transpor-
tation laws, involving criminal pros
ecution, such as rebating, under
billing, and the working of employees
in excess of the limitations of the
hours-of-service act are investigated
by the commission and If it is felt that
the facts warrant a prosecution, the
matter is reported to the United States
attorney Of the proper district, who is
assisted by the commissions attorneys
IN the further prosecution Of the case.
Requirement of Reports.
Carriers under our Jurisdiction are
required to make annual, quarterly,
and monthly reports, which are COM
piled and the results published and
made available to the public. These
constitute a mass of valuable data
which shows the financial condition of
the carriers, efficiency of railway man.
agement and operation, the character
Of the traffic hauled, with tonnage fig
ures, wage statistics. in fact, data with
respect to practically every phase Of
transportation under our jurisdiction.
The commission is authorized to in
quire into the management of the busi-
ness of carriers and is directed to
keep itself informed as to the manner
and method in which it is conducted.
1t Is required to report annually to
Congress such information and data
collected as may be considered of
value in the determination of ques-
tions connected with the regulation OF
commerce, together with such recon-
mendations as to additional legisla-
ton as it may deem necessary.
1t Is unlawful for any railroad SUBJ
ject to the act to own or operate or
have any intereE in any water car
rier operated through the Panama
Canal or elsewhere with which the
railroad does or may compete for traf-
nc. The commission may determine
questions of fact as to the competi-
ton, or possibility of competition,
after q hearing on the application of
any railroad. II the commission be of
the opinion that any specified service
by water other than through the
Panama Canal is being operated in
the interest Of the public and Is of
advantage to the convenience and
commerce of the people, it may au-
thorize its continued operation by
railroad.
In 1918 Congress enacted the So
called valuation act, which was spon-
sored by the elder La Toilette.
The report accompanying the SIM
plifying and economizing amend
ments to the interstate commerce act
last year probably contains the best
reason for an up-to-date railroad val
uation. 1t is, that 1t constitutes "a
practical working tool and guide for
the commission in Its many regulatory
duties" and, Ito Congress itself when
the railroad situation is becoming so
acute" What is the extent of this
railroad property we are required to
value? Besides the 250,000 miles OF
what are designated main tracks and
400 900 miles Of all tracks to which
have already referred there are