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REPORT

OF THE

INTERSTATE COMMERCE COMMISSION:

WASHINGTON, D. C., December 15, 1913.

To the Senate and House of Representatives:

The Interstate Commerce Commission, pursuant to the requirements of the act to regulate commerce, presents its twenty-seventh annual report to the Congress.

The work of the Commission has increased rapidly and considerably in all its branches. It has become almost impossible for the members of the Commission to absent themselves from the Commission's headquarters to carry on investigations and take testimony in cases at points other than Washington, as was formerly the custom. It is necessary, therefore, that the commissioners be relieved of many details in connection with the less important cases in order that they may be able to more fully consider the more intricate matters and cases of major importance. It is believed, however, that the Commission has full authority to so arrange its work and forces as to secure this relief without additional legislation, and plans to that end are now being formulated.

INFORMAL DOCKET.

When an informal complaint is received respecting any matter within the jurisdiction of the Commission, it is taken up with carriers by correspondence in an effort to secure adjustment or satisfaction of complaint. These complaints are given serial numbers upon what is known as the informal docket of the Commission. During the past year 7,600 such complaints have been received, an increase of 1,050 over the preceding year.

SPECIAL DOCKET.

Upon our Special Docket, which covers applications by carriers for authority to refund to shippers amounts which have been collected in accordance with tariffs conceded to be for one reason or another unlawful, 6,730 applications have been filed during the year, an in

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crease of 721 over the preceding year. Upon this docket orders have been issued during the year in 4,610 cases, an increase of 1,514 over the preceding year. Reparation has been awarded thereunder during the year in the sum of $349,167.45, an increase of $54,155.55 as compared with the previous year. During the current year 1,818 cases have been dismissed or otherwise disposed of without the making of orders for reparation, an increase of 1,019 over the previous year.

FOURTH-SECTION DOCKET.

During the year ending November 1, 1913, 1,252 special applications were filed for relief from the provisions of the fourth section, a decrease of 741 as compared with the previous year. For the same period 1,256 fourth-section orders were issued, 199 of which were permanent in character and 1,057 were for temporary relief. One hundred and fourteen applications were withdrawn. This is a decrease of 458, as compared with the previous year, in number of applications disposed of.

A brief reference to this part of our work appears in another portion of the report.

INVESTIGATION AND SUSPENSION DOCKET.

The number of investigation and suspension proceedings instituted during the year is 159, an increase of 39 over the previous year. One hundred and fifty-one cases were disposed of: In 32 instances the tariffs under suspension were voluntarily withdrawn by carriers; in 41 instances the changes were allowed as filed; in 32 instances they were allowed in part; in 42 instances the proposed changes were disallowed; and in 4 instances the protests were withdrawn and proceedings subsequently dismissed.

Reference to this work will be found in another portion of the report.

FORMAL DOCKET.

The number of formal complaints filed during the year is 1,023, an increase of 268 as compared with the previous year. During the same period 724 cases have been decided and 139 have been dismissed by stipulation or otherwise, making a total of 863 cases disposed of during the year, as compared with 778 during the previous year, an increase of 85.

During the year the Commission has conducted 1,401 hearings, as compared with 1,154 hearings during the previous year, in the course of which approximately 140,000 pages of testimony have been taken, an increase of 15,000 pages.

RATE SCHEDULES AND APPLICATION OF RATES.

During the 12 months ended November 30, 1913, 141,257 tariff publications containing changes in rates, fares, or charges were filed with the Commission. This is an increase of about 32,500 over the preceding 12 months. The increase is accounted for by the fact that the carriers in so-called official classification territory reissued practically all of their tariffs, showing an increase in rates of approximately 5 per cent, which tariffs were, as mentioned elsewhere in this report, suspended by the Commission. The number of such tariffs, including the supplements thereto giving notice of the Commission's suspension, was about 40,000. There has been a steady decrease in the number of effective tariffs since the Commission was authorized to prescribe rules and regulations governing the filing of tariffs, and at the present time the number of current tariffs in its files is less than at any time since the act was amended in 1906. No change of importance or of public interest has been made in the policy or methods in this branch of the work, although the subject is given constant study with a view to a further simplification of rate schedules where this seems possible. The rate work of the Division of Tariffs increases and grows in importance, and through this division the Commission has been of service to various State commissions and numerous shippers and carriers throughout the entire country.

There has been no change in the situation with respect to telephone, telegraph, and cable companies, as outlined in our twenty-fifth annual report, as to the application of section 6 of the act and of the Elkins Act to such companies.

DIVISION OF INQUIRY.

Since December 1, 1912, 61 indictments for criminal violations of the act to regulate commerce and the Elkins Act have been returned, many of which are against two or more defendants jointly. Of these indictments 28 are against carriers or carriers' agents, and 33 are against shippers, passengers, or interested parties other than carriers. During the year 72 prosecutions have been concluded, in 50 of which the defendants pleaded guilty, or nolo contendere. In 1 case a jury rendered a verdict of guilty; in 3 cases juries rendered verdicts of not guilty, in 2 cases the jury disagreed; in 16 of the cases the Government entered a plea of nolle prosequi. In practically all of the cases that were dismissed or nolle prosequied alternative indictments had been drawn, based on the same facts, so that in case of trial conviction could be had under that section of the act which the evidence might show to have been violated. The penalties assessed

ranged in amount from $100 to $20,000, the aggregate fines imposed during the year amounting to $145,400.

The prosecutions begun and concluded during the year were distributed over the following States: California, Colorado, Georgia, Illinois, Indiana, Iowa, Kentucky, Massachusetts, Maine, Michigan, Missouri, Minnesota, New York, Ohio, Oklahoma, Louisiana, Pennsylvania, Tennessee, Texas, and Virginia.

The number of indictments returned and prosecutions concluded, as well as the aggregate amount of fines recovered, for violation of the act during the past year are less than for the previous year. The value of penal and criminal laws generally is to be measured by the peace, order, and security of society resulting from their observance rather than by the amount of punishment for their infraction. Tested by this standard the year's showing indicates a gratifying tendency among carriers and shippers alike to understand and conform to the law. Not only is it true that the vigorous enforcement of the Elkins and Hepburn Acts have discouraged willful violations of the rights declared by these laws, but it has also called to the attention of wellintending railroad officials and shippers the inherent wrong involved in practices which were but a few years ago prevalent.

The false billing of freight by shippers continues. During the year a large number of instances of this kind have been investigated. In cases where it appeared possible that the offending shipper was honestly mistaken as to the proper classification under which to ship his goods a warning as to the future has been resorted to rather than prosecution. In many cases, however, the misbilling or false weighing has been clearly willful, and in all such cases prosecution has been undertaken. During the year fines for these offenses amounting to $16,750 in the aggregate have been recovered.

A large number of other instances of false billing as to kind and weight of commodities shipped by firms in New York City have been investigated, and further indictments for this offense are expected in the southern district of New York within a short time. The temptation to the dishonest shipper to commit the offense forbidden by section 10 is in many cases so strong and the injustice resulting to competitors who scrupulously observe the law is so great that it is believed these offenses can only be effectually checked by the tendency of the courts, already observable, to increase the punishment for them.

The amendments of 1910 to section 10 of the act make it an offense for a shipper or consignee to secure transportation at less than the published rates by means of false claims for damage. Investigation disclosed that several consignees of eggs located in New York City were, as a practice, making claims against the carriers for damage to shipments of eggs much greater in amount than the actual damage

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