INTERSTATE COMMERCE LAW, THE. See INTERSTATE COMMERCE COM MISSION: RAILWAYS.
The law creating the Commission, passed by Congress in 1887, and based on the above clause, was the result of a demand voiced by the farmers of the Middle West, between whom and the railroad companies considerable friction over freight rates had developed. In tome cases extortionate freight rates were charged, making the growers of produce for distant markets economically dependent on the railroads.
With regard to railroads, sleeping car companies and express companies, no free transportation was permitted, with certain exceptions. Railroad companies were forbidden to transport free of charge commodities belonging to them selves, excepting timber and equipment. Railroad companies must lay switches to accommodate any and all parties desiring to ship freight. There must be no dis crimination in favor of or against any private firm or corporation, desiring to ship goods. Th^re must be no special charges for short hauls. There must be no pooling of freight and division of earnings. Rate and fare schedules must be published and posted in certain places visible to the public. Contracts between railroad companies and between com panies and private firms must be filed before the Interstate Commerce Commis sion, and be formally approved by it.
To enforce these provisions, the Inter state Commerce Commission was created, whose eleven members are appointed for terms of six years, subject to the ap proval of the Senate. No •more than three members of the Commission may Le partisans of the same political party.
The Commission is empowered to in quire into the business of all carriers; railroad, steamship and express com panies. It may compel testimony and requisition papers and documents, and it has the right to investigate on all complaints that are made before it. It must publish full reports on all such in vestigations. The power most widely associated with the Commission, however, is that of fixing transportation rates, for both freight and passenger traffic. Its decisions regarding rates are final, and remain valid for two years. The Com mission m ty also award damages where private pc,rsons or firms can prove in jury received through any of the carrier companies coming under its jurisdiction. It may examine the books and accounts of such companies. It may require from them annual, or even monthly, reports of their finances and business transactions.
Summed up, the Commission is, in fact, a court of adjustment in transportation matters, with all the powers of a court. Its headquarters are in Washington, D.
C., but its sittings may be in any part of the country.
Transportation Act, Trans portation Act, 1920, provides for the ter mination of Federal control and limits the powers the President may thereafter exercise under the Federal-control act to those necessary to wind up and settle matters arising out of Federal control; for the turning over to the Secretary of Wat for operation and settling up of all matters arising out of Federal control in connection with boats, barges, tugs, and other facilities on the inland, canal, and coastwise waterways acquired by the United States under the Federal-control act, and requiring him to provide ter minal facilities for the interchange of traffic with carriers, and renders the operation of the boats and facilities sub ject to the provision of the interstate commerce act to the same extent they would be if not owned by the United States. This act also authorizes the President to advance moneys to the car riers for certain purposes out of the re volving fund created by the Federal-con trol act, and requires the commission to ascertain and certify to the Secretary of the Treasury the amounts to be thus ad vanced to the carriers. It also provides for the appointment by the President of an agent to act as defenda,it in actions at law, suits in equity, proceedings in admiralty, and before the commission, based on matters arising out of Federal control, and confers upon the commission jurisdiction over all claims for reparation pertaining to the Federal-control period, whether arising in respect of intrastate or interstate traffic; that, pending ac tions, suits, proceedings, and reparation claims shall not abate, but that repara tion awards in such cases shall be paid out of the revolving fund; that the period of Federal control shall not be computed as a part of the periods of limitation in actions against carriers or in claims for reparation based on causes of action arising out of matters pertain ing to Federal control; and that a judg ment in favor of the United States is the only one that may be levied against the property of the carrier where the judg ment is based upon such matters.