Evening Star Newspaper, December 18, 1934, Page 12

LEE CITES BENEF! OF RATE CONTROL 1. C. C. Chairman Declares Unregulated Carriers Still Discriminate. Unregulated transportation agencies work discrimination on shippers as to tes and charges today just as the flroads did before they were brought under the supervision of the Interstate Commerce Commission, William E. Lee, chairman of the comrhission, said last night in an address in the Na- tional Radio Forum. Chairman Lee’s talk was the first on railroads that has been given in the Forum, which is arranged by The Star and broadcast over a Nation-wide net- work of the National Broadcasting Co. “As a further justification for regu- lation,” he continued, “there should be such co-ordination between all forms of transportation that each may be utilized in the sphere where it can best and most economically serve the pub- lic. This is impossible under present conditions. The result is much waste- ful transportation and the public does not get the maximum of service at a minimum cost.” Commissioner Lee said he did not believe “that other transportation agencies should be regulated in pre- cisely the same way or to the same degree as the railroads, but each should have a form of regulation appropriate to its particular type of transporta- tion.” He emphasized that in regulating highway carriers, the safety factor should receive particular attention.” Full Text of Address. The text of Mr. Lee's address fol- lows: In all ages transportation has great- 1y influenced the lives of peoples and their modes of living. The develop- ment of transportation in our Nation has been colorful and at times dra- matic. In Colonial days, and later, there was the thrill of stage coaches dashing up to wayside inns; the con- struction and operation of canals was important between the 20s and 70s of the last century; the romance of steamboats on our rivers has been pre- served in song and story, and there were the pony express and the covered wagon of the Western frontier. But it was only with the construction of rail- roads that our transportation became national in scope. Railroads were re- sponsible for the peopling of our vast public domain and they laid the foun- dation for our great industrial prog- ress. I know of no single thing more adventurous and daring in the indus- trial and commercial history of the Nation than the throwing of iron rails across the continent, linking the At- lantic Seaboard with the Pacific, over- coming the difficulties of unsettled prairie, mouhtain ranges and desert, and always in the midst of hostile Indians. The men who were responsible for its accomplishment were in very truth pioneers. Only a few years ago the railway from Baltimore to Ellicott City, a distance of 13 miles, the first chartered railroad in the country, cel- ebrated its centenni the system which developed from this small be- ginning now operates 6,400 miles. To- day, in the United States there are about 250,000 miles of main tracks and about 400,000 miles of all tracks. What this has meant to the social, agricultural and industrial develop- ment of our country may be realized when I tell you that in 1932, the last year for which I have been able to obtain comparative figures, the na- tion most nearly approximating our mileage, Russia, operated about 52,000 miles. Further emphasis is given these figures by the fact that the area of that country is over 8,000,000 square miles, contrasted with the area of con- tinental United States af about 3,000,- 000 square miles. We may glean a further idea of the immensity of our land transportation when it is known that about 72 per cent of all motor vehicles in the world are registered in the United States. In addition, we have our inland waterways, coastal and intercoastal shipping, electric lines, airways and pipelines. 1. C. C. Jurisdiction. The Interstate Commerce Commis- sion has jurisdiction over railroads, sleeping car and express companies, and of water lines when both rail and water lines are under a common con- trol, management or arrangement for a continuous shipment; it also has jurisdiction over pipelines, except such as transport water and natural or artificial gas. Ours is a Nation of 48 sovereign States extending over a vast continent. With varying sectional am- bitions, diversity of political thought and economic interests, I know of no single instrumentality which has done 80 much to preserve the Nation’s unity as its transportation system. Where a journey from California to Wash- ington was once a matter of months, it is now one of a few days by rail and, if made by airplane, of hours. During the first 60 years of steam- railroad transportation, construction and operation was conducted with practically no Federal regulatory con- trol. Railway companies made their own rules and regulations and con- ducted their business as their man- agers saw fit. Lines were constructed for which there was little, if any, Jjustification, and the public lost money through these ill-conceived schemes. ‘With the expansion of the rail systems came intense compgtition and in the eagerness to secure traffic dis- crimination in favor of certain shippers and localities became com- mon. Rebates and special rates were indulged in. Rates were changed overnight without notice to the public. ‘There were notorious stock manipula- tions. As a consequence, there gradu- ally developed an increasing public de- - mand for Federal regulation, resulting in the act to regulate commerce in 1887. This was the beginning of the Interstate Commerce Commission. At first the number of commissioners was five. As its duties were enlarged in succeeding years, the number of com- missioners has from time to time been increased, and today consists of 11 members, only six of whom may be of the same political party. The commission now administers more than 30 acts of Congress. Some of its activities are purely administra- tive or executive, its rate-making pow- ers are of a legislative nature and other functions are of a distinctly judicial character. It is an independent agency of the Federal Government, GIVE FURNITURE for Xmas Shop at our new and spacious store for enjoyable and lasting furniture. Inc Located at 2004 14th St. N.W. T Tl Guaranteed Quality Furniture that is, it is not attached to or a part of any of the executive departments. The original act has been amended from time to time, in order to keep pace with the economic and industrial progress of the country, and as ex- perience in regulatory administration has required. Prof. Sharfman, in Ris comprehensive work on the Inter- state Commerce Commission, of which two volumes have already been issued, says, “The very fact that the commis- sion has succeeded in maintaining a high tradition of performance, despite its strikingly extensive character of activities, has led to its utilization as a sort of service department of the |the Federal Government in all matters di- rectly or remotely related to the sphere of its primary jurisdiction. Fair and Reasonable Rates. With respect to his reference to the commission as & sort of Federal serv- ice department, you recall that when the last Congress enacted legislation relating to airmail contracts, concern- ing which there had been a good deal of controversy, it directed the com- mission to determine fair and reason- able rates for the transportation of mail by airplane, and, at least once every year from the date of the let- ting of any contract to review the compensation being paid, in order that there may be no unreasonable profits from airmail contracts. It has been called upon by Congress to fix the limitations of the four standard- time zones. The commission deter- mines the compensation to be paid the railroads for the transportation of the mails, and changes can only be made in the parcel post rates upon its ap- proval. The commission was even di- rected, in 1919, to prescribe the man- ner and form of books to be kept by gas and electric utilities in the District of Columbia. In fact, its activities and duties are so many that in the time at my disposal this evening I can only touch upon some of them, and ‘the.u not in such detail as I would like. Judge R. V. Fletcher in his treatise on the growth of American administrative law says: “The magni- tude and importance of the economic interests subject to the commission’s jurisdiction, .coupled with the extraor- dinarily wide range of power and discretion vested gn and exercised by the commission, have even led to such sweeping statements as the following: ‘It is a common saying that it is the most powerful body in the world, ad- ministrative or otherwise, and when its authority is closely examined, there will probably be few dissenters from this view.'” While we do not take this view of the power of the Inters state Commerce Commission, we are willing that its importance be judged styles, too. We Are exterior, carve motif, hogany inlay. inches long .. designed; lock and key Quoting a Few Other Cedar Chests Cedar-lined chest with walnut by the record of its accomplishment, as illustrated by its 204 bound vol- umes of decisions. In 1917, Congress, the great volume of work coming before the commission, and with a view to its expedition, pro- vided that it might act in divisions to consist of not less than three commis- sioners. During its entire history the com- mission has been singularly free from political partisanship or executive or legislative interference. In all of its more than 47 years of existence, no shadow of scandal has touched the commission or any commissioner in adminiscration of the various du- ties imposed by Congress. If I may be permitted a personal reference, it was the commission’s record of achievement and the oppor- tunities afforded for national public service which greatly influenced me to resign membership on the Supreme Court of my State, in which position and environment I was most happy, to become a member of the Interstatg Commerce Commission. Demands of the Law. The law declares that rates, fares, charges, practices and classifications shall be just and reasonable, shall not be unjustly discriminatory, or give any undue or unreasonable preference or advantage to any person, traffic, or locality or subject any person, traf- fic or locality to undue prejudice or disadvantage. It also declares it to be unlawful for any carrier to charge any greater compensation in the ag- gregate for the transportation of pas- sengers or property for a shorter than for & longer distance over the same route, or to charge a greater com- pensation as a through rate than the WASHINGTON, aggregate-of-intermediate rates. Upon adequate showing and in the public interest the commission may author- ize departures from the provisions of this so-called “fourth section.” One of the most important provi- sions of the act is the requirement that every carrier subject to its pro- visions shall file with the commission and print and keep open to public inspection schedules showing all the rates, fares and charges for trans- portation between different points on its own line and between points on lines of other carriers with which it has joint rates. I say this is one of the most important provisions because it enables a shipper to know the freight charges of his competitors. It was this lack of publicity in rates which was one of the chief causes leading up to the act to regulate com- merce. A Senate committee reporting & bill in 1886, whith was the founda- tion of the act to regulate commerce, in its report stated: “The provisions of the bill are based upon the theory that.the para- mount evil chargeable against the operation of the transportation sys- tem of the United States as now con- ducted, is unjust discrimination be- tween persons, places, commodities or particular description of traffic. The underlying purpose and aim of the matter is the prevention of these discriminations, both by declaring them unlawful and adding to the remedies now available for securing redress and enforcing punishment, and also by declaring the greatest practicable degree of publicity as to the rates, financial operations, and methgds of management of the car- Despite its many activities, touch- ing so closely upon the commercigl, Night Final Delivery ‘The “Pink Edition” of The Star, known as the Night Final, printed at 6 p.m,, is delivered throughout the city at 55c per month or, together with The Sunday Star, at 70c per month. This is a special service that many ople desire for uie very latest and complete news of the day. Call National 5000 and say that u want the “Night Final” delivered regularly to your home, and delivery will start immediately. This Cedar-lined Chest has a walnut exterior and is 48 inches long....$24 CEDAR C IN THE POPULAR DARK H Those who are looking for cedar chests this Christmas will find much to interest them in the present Mayer & Co. display. Many beautiful chests with mahogany and walnut exteriors and some distinctive Below d front PIHC}?‘.{ $29-00 Queen Anne type walnut cedar-lined chest with ma- 5 $34.50 Maple cedar-lined chest; 48 inches long and charmingly $27.50 Mahogany cedar-lined chest with attractively turned legs. 48 inches long; lock and key ... $27.50 Many Others Esmond Blankets $4.95 A lovely gift item Seventh Street and & warm one, too. ‘Two - tone Es- mond Blankets with their fa- mous Pelage finish. Beauti- ful satin edging. ESTS WOOD FINISHES Wing Chair, $49.75 A quality Wing Chair—decora- tive and comfortable—assorted upholsteries. A beautiful chair that will make a nice gift. T;ea Wagon, $21.50 This Tea Wagon comes from Grand Rapids and possesses & removable glass tray and drop leaves. A good value and a wel- come gift. Hundreds of Other Lifetime Furniture Gifts MAYER & CO. Between D and E. ' D agricultural, industrial and social life of the country, generally one has only & vague idea of the commission's work. It has ne publicity director. The commission is probably best known through its decisions in rate lcuel. It has been estimated by com- petent authority that cases involving more than three hundred million dollars & year have come before the n. The commission has been referred to as a poor man’s court. are no filing fees or “court costs.” When a shipper de- sires to attack a rate or rates which he thinks violative of the law, he may file a complaint, copies of which are served on the carriers, who must answer within a definite time speci- fied by the commission’s rules. It has been the endeavor of the com- mission to make rules and regulations which tend toward simplification of pleadings and conduct of hearings. Legal technicalities so often only ob- structive are not tolerated. Lengthy cross-examinations, which frequently occur in some trial courts and are often merely a battle of wits and add nothing of a factual nature, are frowned upon. In a single year nearly 2,000 formal complaints have Lithographed Tins 'meo F TUESDAY, DECEMBER 18, 1934 been filed with the commission and almost the same number disposed of during the same period. Assignment of Cases. Cases are assigned for hearing be- fore a commissioner or examiner, usu- ally at a point requested by the com- plainant or at some place convenient to him. The commission has au- thority to subpoena witnesses and order the production of records and other documents at any hearing. An official reporter records all the testi- mony givep by witnesses under oath. In most cases an examiner prepares & proposed report containing a state- ment of the issues and facts and findings and conclusions which he thinks should be made. This report is served upon the parties, who are permitted to file such exceptions to it as they deem appropriate. The case may then be argued orally before the commission, after which it is con- sidered in conference and a final re- port or decision published. Where the parties agree, a case may be submitted and decided without oral hearing on memoranda of facts and written argu- ments. ' Carriers have the right in the first instance to initiate such rates, fares, charges, etc, as they deem appro- priate. But upon complaint of any shipper or other interested party upon adequate showing, the commission may suspend the effective date of the proposed schedules and enter upon a hearing concerning - their lawfulness. The commission may also suspend rates upon its own initiative. The law provides that the commission shall give to the hearings and de- cisions of these questions preference over all others and decide them as speedily ag possible. The law autherizes co-operation and conference between State Commis- sions and the Interstate Ccmmerce Commission with respect to the rela- tionship between rate structures and practices of carriers engaged in inter- state and intrastate commerce. The State Commission retains jurisdiction over the intrastate situation, but each ‘body reaches its conciusion on a com- mon record made at a joint hearing and after a conference between the State and Interstate Commissions. | Co-operation with the State Commis- sions has been most helpful, especially e sl (Continued on Thirteenth Page.) | have no holiday baking | Sanico Bakery Make. It No Longer Necessary Only seven more days! Seven busy days of shopping, wrapping, rushing— every minute must count—yet there is one consolation—you can dismiss holiday baking from your mind. 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