52 Railroad Transportation

commission, interstate, act, commerce, rates, carriers, power, control, railroads and lines

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A.ffcommodities clause° prohibited railroads from transporting in interstate commerce any products produced by themselves, except timber and lumber products and commodities in tended for use by the railroads in their busi ness as common carriers. The so-called Car mack Amendment required carriers receiving traffic for interstate shipment to issue bills of lading and held such railroads liable for loss or damage to property caused by any carrier over whose lines the traffic passes in moving to its destination. The Commission was given the power to fix a reasonable maximum rate for one found, after full hearing upon corn plaint, to be unreasonable or unjustly dis criminatory, and this rate-making power in cludes interstate freight charges of any kind, passenger fares, rate divisions and through or joint rates. The orders of the Commission were declared to be binding unless specifically set aside or superseded by a Federal court of competent jurisdiction. To give effect to the Commission's power to prescribe a uniform system of accounts it was now provided that carriers may keep no other set of books than those prescribed by the Commission, and that it may employ special agents and examiners to inspect all their accounts and records. To fur ther expedite the work of the Commission it was given additional power to call upon the carriers, not only for the usual annual statis tical reports, but for monthly reports of earn ings and expenses and special reports on any matter within its jurisdiction.

The Interstate Commerce Act was again amended in 1910 when the Mann-Elkins amend ment was passed. The Commission was au thorized to suspend proposed rate advances before they go into effect. The original sus pension holds, during the time authorized' by law for hearings and investigation of the pro posed rates, after which the Commission may permit them to become effective or suspend them permanently. A special Commerce Court was created to handle review cases appealed from the Commission, and various other classes of railroad cases. This court, however, was abolished in 1913. The long-and-short haul clause, which had been rendered ineffec tive by court interpretation of the words °under substantially similar circumstances and conditions?) was amended by striking this limiting phrase out of the clause. There may be no violation of the long-and-short-haul principle unless the Commission, in particular instances, expressly waives its application. The Commission was also authorized to fix maxi mum rates on its own initiative, and to regu late freight classifications. Shippers were au thorized to select the through routes over which their shipments are to move; and the railroads were required to quote rates upon written request to their agents. They were directed to bring suit against the United States, and the Department of Justice was placed in charge of all litigation in volving appeals from the Commission's orders. Each carrier, moreover, was re quired to designate an agent at Washington, D. C., upon whom orders and notices may be

served. A Securities Commission was created to report on and make recommendations - to Congress concerning railroad stocks and bonds. Telegraph and telephone companies engaged in interstate commerce were brought within scope of the Act.

A further amendment to the Interstate Commerce Act is contained in the Panama Canal Act of 1912. The Commission was given power to establish physical connec tions between rail and water carriers; to fix maximum proportional rail rates to and from ports; to establish through routes and maximum joint rates over rail and water lines; and, if it finds a railroad entering into ar rangements with an ocean carrier at any port, to require it to enter into similar arrange ments with all other ocean carriers operating from such port to the same foreign country.

The Panama Canal Act also prohibits rail road-controlled steamship lines which are or may be in competition with the proprietory railroad from navigating the Panama Canal. Railroad ownership or control of steamship lines, operating elsewhere than through the Canal, which are or may be in competition with the controlling railroads, is prohibited unless the Interstate Commerce Commission permits such railroad control to continue. The Com mission may grant such permission only if it is of the opinion that the controlled steamship line is operated in the interest of the public, and that the continued ownership will not prevent or reduce competition.

In 1913 the Interstate Commerce Act was enhanced by the passage on 1 March of the Railroad Valuation Act. In 1915 the Cummins' amendment providing for full settlement of loss and damage claims was enacted, only to be radically reamended the following year. In 1917 a *car service amendments increased the Commission's powers over car distribution and cai• service rules; a *priority amendment" au thorized the President, during the war, to grant priority to designated traffic, a power which he exercised through a Priority Director; a '

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