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trade. Mr. Sidney Buxton was then president of the board of trade, is now governor general of South Africa. I found the board of trade was a great organization, and they are always on the job and guard jealously the development of England's trade in every trade area of the world. And that is what we need here. I do not know of any reason why the Shipping Board, having been created-and so far it has proved itself equal to the task-should not continue to be vested with the power to administer this law, and if there should be conflicts in the future, then those conflicts can be met by legislation, so that their work can be coordinated with that of the Interstate Commerce Commission, and any possible conflicts may be remedied by legislation.

The CHAIRMAN. The committee is very much obliged to you, Judge. STATEMENT OF HON. GEORGE W. EDMONDS, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF PENNSYLVANIA.

The CHAIRMAN. Mr. Edmonds, do you want to supplement Mr. Alexander's remarks?

Mr. EDMONDS. Yes. Mr. Chairman, Judge Alexander and myself represent the Merchant Marine Committee. The Merchant Marine Committee, after the Esch bill was introduced, went over the bill very carefully and unanimously agreed that it would be a calamity to the shipping of this country if the bill as originally introduced was passed; that is, that the supervision of the Interstate Commerce Commission was definitely placed over the foreign shipping of the country and definitely placed over the shipping in the Great Lakes and in the coastwise traffic. I have had prepared by Mr. Manghum, who is an expert, a pamphlet here, showing the conflicting provisions of the two bills which, if you would like, I will put in the hearings at this time.

The CHAIRMAN. You mean between the bill and the shipping act? Mr. EDMONDS. Yes; your bill and the shipping act.

The CHAIRMAN. Yes. Very well.

(The paper referred to is as follows:)

JURISDICTIONAL PROVISIONS OF THE ORIGINAL SHIPPING ACT AS COMPARED WITH CONFLICTING PROVISIONS OF THE ESCH BILL, H. R. 4378.

In examining the appended statement, it must be borne in mind that the provisions of the Esch bill extending the jurisdiction of the Interstate Commerce Commission over the water carriers now subject to the Shipping Board will likewise subject such carriers to many provisions of the act to regulate commerce, which were never included in the shipping act.

U. S. shipping act.

SECTION 1, PARAGRAPH 2. The term 'common carrier by water in interstate commerce" means a common carrier engaged in the transportation by water of passengers or property on the high seas or the Great Lakes on regular routes from port to port between one State, Territory, District, or possession of the United States and any other State, Territory, District, or possession of the United States, or between places in the same Territory, District, or posses-ion.

The term "common carrier by water" means a common carrier by water in foreign commerce or a common carrier by water in interstate commerce on the high seas or the Great Lakes on regular routes from port to port.

H. E. MANGHUM, Examiner.

Esch bill, H. R. 4378.

SECTION 1. That the provisions of this act shall apply to all common carriers engaged in(a) The transportation of passengers or property *by water.

**

(c) The transmission of intelligence by wire or wireless-From one State or Territory of the United States, or the District of Columbia, to any other State or Territory of the United States, or the District of Columbia, or from one place in a Territory to another place in the same Territory, or from any place in the United States through a foreign country to any other place in the United States, or from any place in the United States to an adjacent foreign country, or from an adjacent foreign country to any place in the United States; and also to such

U. S. shipping act.

SEC. 1, PAR. 4. The term "other person subject to this act" means any person not included in the term "common carrier by water" carrying on the business of forwarding or furnishing wharfage, dock, warehouse, or other terminal facilities in connection with a common carrier by water.

Esch bill, H. R. 4378.

transportation of passengers and property

and also to the transportation in like manner of property shipped from any place in the United States to a foreign country and carried from such place to a port of transshipment, or shipped from a foreign country to any place in the United States and carried to such place from a port of entry either in the United States or an adjacent foreign country. The term "water" * ** shall include the lakes, rivers, canals, and other inland waterways within or bordering on the United States or the Territory of Alaska, the Panama Canal, and all waters within or without the three-mile limit from the coast of the United States or the Territory of Alaska traversed by vessels permitted to engage in the coast wise trade of the United States.

and

SECTION 1, SUBPARAGRAPH (C), PARAGRAPH 2. *The term "transportation" *** shall include *** vessels, and all instrumentalities and facilities of shipment or carriage, * * all services in connection with the receipt, delivery, elevation, and transfer in transit, ventilation, refrigeration or icing, storage, and handling of property transported.

SEC. 2, PAR. 5. Whenever the commission shall be of opinion that shortage of equipment, congestion of traffic, or other emergency requiring immediate action exists ** * the commission shall have, and it is hereby given, authority

by order to require such joint or common use of terminals as in its opinion will best meet the emergency and serve the public interest, and upon such just and reasonable terms between the carriers as the commission may prescribe, **

SEC. 4. All carriers subject to the provisions of this act shall, according to their respective powers, afford all reasonable, proper, and equal facilities for the interchange of traffic between their respective lines, and for the receiving, forwarding, and delivering of passengers, property, *** to and from their several lines and those connecting therewith, and shall not discriminate in their rates, fares, and charges between such connecting lines. The commission may require the terminals of any carrier to be open to the traffic of other carriers upon just and reasonable terms and conditions,

Section 9 authorizes the commission:

(a) To establish physical connection between the lines of the carrier and the dock at which interchange of passengers or property is to be made by directing the rail carrier to make suitable connection between its line and a track or tracks which have been constructed from the dock to the limits of the railroad right of way, or by directing either or both the rail and water carrier, individually or in connection with one another, to construct a suitable dock and construct and connect with the lines of the rail carrier a track or tracks to the dock. Such dock shall be considered a terminal, within the meaning of that term as used in other sections of the act, and the powers here conferred are in addition to those provided in other sections. The provisions of this paragraph shall extend to cases where the dock is not owned by any carrier involved.

SEC. 5. * ** That whenever the commission shall be of opinion, after hearing upon application of any carrier or carriers subject to this act, or upon its own initiative, that the unification, consolidation, or merger by purchase, lease, stock control, or in any other way, similar or dissimilar, of two or more carriers subject to this act, or of the ownership or op

thereof, or that the pooling of their traffic, earnings, or facilities to the extent indicated by the commission, will be in the interest of better service to the

SEC. 15. That every common carrier by water, or other person subject to this act, shall file immediately with the board a true copy, or, if oral, a true and complete memorandum of every agreement with another such carrier or other person subject to this act, or modification or cancellation thereof, to which it may be a party or conform in whole or in part, fixing or regularing transportation rates or fares; giving or re-eration of their properties, or of designated portions ceiving special rates, accommodations, or other special privileges or advantages; controlling, regulating, preventing, or destroying competition; pooling or apportioning earnings, losses, or traffic; allotting ports or restricting or otherwise regulating the number and character of sailings between ports; limiting or regulating in any way the volume or character of freight or passenger traffic to be carried; or in any manner providing for an exclusive, preferential, or cooperative working arrangement. The term "agreement" in this section includes understandings, conferences, and other arrangements.

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public, or economy in operation, or otherwise of advantage to the convenience and commerce of the people, the commission shall have authority by order to approve and authorize such unification, consolidation, merger, or pooling, under such rules and regulations, and for such consideration as between the said carriers and upon such terms and conditions as shall be found by the commission to be just . and reasonable in the premises.

U. S. shipping act.

The board may by order disapprove, cancel, or modify any agreement or any modification or cancellation thereof, whether or not previously approved by it, that it finds to be unjustly discriminatory or unfair as between carriers, shippers, exporters, importers, or ports, or between exporters from the United States and their foreign competitors, or to operate to the detriment of the commerce of the United States, or to be in violation of this act, and shall approve all other agreements, modifications, or cancellations.

Agreements existing at the time of the organization of the board shall be lawful until disapproved by the board. It shall be unlawful to carry out any agreement or any portion thereof disapproved by the board.

All agreements, modifications, or cancellations made after the organization of the board shall be lawful only when and as long as approved by the board, and before approval or after approval it shall be unlawful to carry out in whole or in part, directly or indirectly, any such agreement, modification, or cancellation.

Every agreement, modification, or cancellation lawful under this section shall be excepted from the provisions of the act approved July 2, 1890, entitled "An act to protect trade and commerce against unlawful restraints and monopolies," and amendments and acts supplementary thereto, and the provisions of sections 73 to 77, both inclusive, of the act approved August 27, 1894, entitled "An act to reduce taxation, to provide revenue for the Government, and for other purposes," and amendments and acts supplementary thereto.

SEC. 14. That no common carrier by water shall directly or indirectly:

First. Pav, or allow, or enter into any combination, agreement, or understanding, express or implied, to pay or allow, a deferred rebate to any shipper. The term "deferred rebate" in this act means a return of any portion of the freight money by a carrier to any shipper as a consideration for the giving of all or any portion of his shipments to the same or any other carrier, or for any other purpose, the payment of which is deferred beyond the completion of the service for which it is paid, and is made only if, during both the period for which computed and the period of deferment, the shipper has complied with the terms of the rebate agreement or

arrangement.

Second. Use a fighting ship either separately or in conjunction with any other carrier, through agreement or otherwise. The term "fighting ship" in this act means a vessel used in a particular trade by a carrier or group of carriers for the purpose of excluding, preventing, or reducing competition by driving another carrier out of said trade."

Third. Retaliate against any shipper by refusing, or threatening to refuse, space accommodations when such are available, or resort to other discriminating or unfair methods, because such shipper has patronized any other carrier or has filed a complaint charging unfair treatment, or for any other reason.

Fourth. Make any unfair or unjustly discriminatory contract with any shipper based on the volume of freight offered, or unfairly treat or unjustly discriminate against any shipper in the matter of (a) cargo space accommodations or other facilities, due regard being had for the proper loading of the vessel and the available tonnage: (b) the loading and landing of freight in proper condition; or (c) the adjustment and settlement of claims.

SEC. 16. That it shall be unlawful for any common carrier by water, or other person subject to this act, either alone or in conjunction with any other person, directly or indirectly:

First. To make or give any undue or unreasonable preference or advantage to any particular person, locality, or description of traffic in any respect whatsoever, or to subject any particular person, locality, or description of traffic to any undue or unreasonable prejudice or disadvantage in any respect whatsoever. Second. To allow any person to obtain transportation for property at less than the regular rates then established and enforced on the line of such carrier, by means of false billing, false classification, false weighing. false report of weight, or by any other unjust or unfair device or means.

Esch bill, H. R. 4378.

The commission may from time to time, for good cause shown, make such supplemental orders in the premises as it may deem necessary or appropriate, and may by such supplemental order modify or set aside the provisions of any previous order as to the extent of the pooling, or as to the rules, regulations, terms, conditions or consideration currently moving in respect of any unification or consolidation of operation and not of ownership, or of pooling, so theretofore approved and authorized.

The carriers affected by any such order shall be, and they are hereby, relieved from the operation of the "antitrust laws," as designated in section 1 of the act approved October 15, 1914, entitled "An act to supplement existing laws against unlawful restraints and monopolies, and for other purposes," and of all other restrainst or prohibitions by law, in so far as may be necessary to enable them to affect any unification, consolidation, merger, or pooling so approved by order under and pursuant to the foregoing provisions of this section.

SECTION 1, subparagraph (c), paragraph 3. All charges made for any service rendered or to be rendered in the transportation of passengers or property * * * or in connection therewith, shall te just and reasonable, and every unjust and unreasonable charge for such service or any part thereof is prohibited and declared to be unlawful.

SEC. 3. That if any common carrier subject to the provisions of this act shall, directly or indirectly, by any special rate, rebate, drawback, or other device, charge, demand, collect, or recei e from any person or persons a greater or less compensation for any service rendered, or to be rendered, in the transportation of passengers or property *** subject to the provisions of this act, than it charges, demands, collects, or receives from any other person or persons for doing for him or them a like and contemporaneous service in the transportation * * * of a like kind of traffic under substantially similar circumstances and conditions, such common carrier shall be deemed guilty of unjust discrimination, which is hereby prohibited and declared to be unlawful.

SEC. 4. All carriers subject to the provisions of this act shall, according to their respective powers, afford all reasonable, proper, and equal facilities for the interchange of traffic between their respec-. tive lines, and for the receiving, forwarding, and delivering of passengers, property * ** to and from their several lines and those connecting therewith, and shall not discriminate in their rates, fares, and charges between such connecting lines.

*

SEC. 8, PAR. 1. *** nor shall any carrier charge or demand or collect or receive a greater or less or different compensation for such transportation of passengers or property * * or for any service in connection therewith, between the points named in such tariffs than the rates, fares, and charges which are specified in the tariff filed and in effect at the time; nor shall any carrier refund or remit in any manner or by any device any portion of the rates, fares, and charges so specified, nor extend to any person any privileges or facilities in the transportation of passengers or property ** except such as are specified in such tariffs: Provided, That wherever the word "carrier" occurs in this act it shall be held to mean "common carrier."

*

SEC. 13, PAR. 2. The commission shall have au

thority, after full hearing, to make such findings and orders as may in its judgment tend to remove any undue preference or prejudice as between persons or localities in State and interstate or foreign commerce, or any undue burden upon interstate or foreign commerce, which is hereby forbidden and declared to be unlawful.

U. S. shipping act.

Third. To induce, persuade, or otherwise influence any marine insurance company or underwriter, or agent thereof, not to give a competing carrier by water as favorable a rate of insurance on vessel or cargo, having due regard to the class of vessel or cargo, as is granted to such carrier or other person subject to this act.

ance,

Esch bill, H. R. 4378.

SEC. 7. That every common carrier subject to SEC. 18. That every common carrier by water in this act shall file with the commission and print interstate commerce shall establish, observe, and en- and keep open to public inspection schedules showforce just and reasonable rates, fares, charges, classi-ing all the rates, fares, and charges for transporation fications, and tariffs, and just and reasonable regula-*** between different points on its own route tions and practices relating there to and to the issu- and between points on its own route and points on form and substance of tickets, receipts, and the route of any other carrier subject to this act bills of lading, the manner and method of presenting, when a through rate and joint rate have been estabmarking, packing, and delivering property for trans- lished. If no joint rate over the through route has portation, the carrying of personal, sample, and ex- been established, the several carriers in such cess baggage, the facilities for transportation, and all through route shall file, print, and keep open to other matters relating to or connected with the re- public inspection, as aforesaid, the separately estab ceiving, handling, transporting, storing, or deliver- lished rates, fares, and charges applied to the ing of property. through transportation **. The schedules printed as aforesaid by any such common carrier shall plainly state the places between which property and passengers will be carried * * and shall contain the classification of freight * in force, and shall also state separately all terminal charges, storage charges, icing charges, and all other charges which the commission may require, all privileges or facilities granted or allowed, and any rules or regulations which in any waise change, affect, or determine any part or the aggregate of such aforesaid rates, fares, and charges or the value of the service rendered to those for whom the service is performed. Such schedule shall be plainly printed in large type, and copies for the use of the public shall be kept posted in two public and conspicuous places in every depot, station, or office, such carrier where passengers or freight, respectively, are received for transportation, in such form that they shall be accessible to the public and can be conveniently inspected. The provisions of this section shall apply to all traffic, transportation, *** and facilities defined in this act.

Every such carrier shall file with the board and keep open to public inspection, in the form and manner and within the time prescribed by the board, the maximum rates, fares, and charges for or in connection with transportation between points on its own route; and if a through route has been established, the maximum rates, fares, and charges for or in connection with transportation between points on its own route and points on the route of any other carrier by

water.

No such carrier shall demand, charge, or collect a greater compensation for such transportation than the rates, fares, and charges filed in compliance with this section, except with the approval of the board and after 10 days' public notice in the form and manner prescribed by the board, stating the increase proposed to be made; but the board for good cause shown may waive such notice.

Whenever the board finds that any rate, fare, charge, classification, tariff, regulation, or practice, demanded, charged, collected, or observed by such carrier is unjust or unreasonable, it may determine, prescribe, and order enforced a just and reasonable maximum rate, fare, or charge, or a just and reasonable classification, tariff, regulation, or practice.

SEC. 17, PAR. 2. Every such carrier and every other person subject to this act shall establish, observe, and enforce just and reasonable regulations and practices relating to or connected with the receiving, handling, storing, or delivering of property. Whenever the board finds that any such regulation or practice is unjust or unreasonable it may determine, prescribe, and order enforced a just and reasonable regulation or practice.

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sion shall be of opinion that any individual or joint rate, fare, or charge whatsoever demanded, charged, or collected by any common carrier or carriers subject to this act for the transportation of persons or property *** or that any individual or joint classification, regulation, or practice whatsoever of such carrier or carriers *** is or will be unjust or unreasonable or unjustly discriminatory or unduly preferential or prejudicial, or otherwise in violation of any of the provisions of this act, the commission is hereby authorized and empowered to determine and prescribe what will be the just and reasonable individual or joint rate, fare, or charge, or rates, fares, or charges, to be thereafter observed in such case, or the maximum or mini mum or maximum and minimum to be charged, and what individual or joint classification, regalation, or practice is or will be just, fair, and reasonable, to be thereafter fllowed, and to make an order that the carrier or carriers shall cease and desist from such violation to the extent to which the commission finds that the same does or will exist, and shall not thereafter publish, demand, or collect any rate, fare, or charge for such transportation

other than the rate, fare, or charge so prescribed, or in excess of the maximum or less than the minimum so prescribed, as the case may be, and shall adopt the classification and shall conform to and observe the regulation or practices › prescribed.

Whenever there shall be filed with the commis. sion any schedule stating a new individual or joint rate, fare, or charge, or any new individual or joint classification, or any new individual or joint regulation or practice affecting any rate, fare, or charge,

U. S. shipping act.

SEC. 21. That the board may require any common carrier by water, or other person subject to this act, or any officer, receiver, trustee, lessee, agent, or employee thereof, to file with it any periodical or special report, or any account, record, rate, or charge, or any memorandum of any facts and transactions appertaining to the business of such carrier or other person subject to this act. Such report, account, record, rate, charge, or memorandum shall be under oath whenever the board so requires, and shall be furnished in the form and within the time prescribed by

the board.

SEC. 22. That any person may file with the board asworn complaint setting forth any violation of this act by a common carrier by water or other person subject to this act, and asking reparation for the injury, if any, caused thereby. The board shall furnish a copy of the complaint to such carrier or other by the board, satisfy the complaint or answer in person, who shall within a reasonable time specified writing. If the complaint is not satisfied the board shall, except as otherwise provided in this act, investigate it in such manner and by such means, and

Esch bill, H. R. 4378.

the commission shall have, and it is hereby given, authority, *** to enter upon a hearing concerning the lawfulness of such rate, fare, charge, classification, regulation, or practice; and pending such hearing and the decision thereon the commission upon filing with such schedule and delivering to the carrier or carriers affected thereby a statement in writing of its reasons for such suspension may suspend the operation of such schedule and defer the use of such rate, fare, charge, classification, regulation, or practice, but not for a longer period than 120 days beyond the time when it would otherwise go into effect; and after full hearing, whether completed before or after the rate, fare, charge, classification, regulation, or practice goes into effect, the commission may make such order with reference thereto as would be proper in a proceeding initiated after it had become effective. If any such hearing can not be concluded within the period of suspension, as above stated, the proposed change of rate, fare, charge, classification, regulation, or practice shall go into effect at the end of such period, but, in case of a proposed increased rate or charge for or in respect to the transportation of property, the commission may by order require the interested carrier or carriers to keep accurate account in detail of all amounts received by reason of such increase, specifying by whom and in whose behalf such amounts are paid, and upon completion of the hearing and decision may by further order require the interested carrier or carriers to refund, with interest, to the persons in whose behalf such amounts were paid such portion of said increased rates or charges as by its decision shall be found not justified. At any hearing involving a rate, fare, or charge increased after January 1, 1910, or of a rate, fare, or charge sought to be increased after the passage of this act, the burden of proof to show that the increased rate, fare, or charge, or proposed increased rate, fare, or charge, is just and reasonable shall be upon the common carrier, and the commission shall give to the hearing and decision of such questions preference over all other questions pending before it and decide the same as speedily as possible.

SEC. 16. The commission may, in its discretion, prescribe the forms of any and all' accounts, records, and memoranda to be kept by carriers subject to the provisions of this act, including the accounts records, and memoranda of the movement of traffic as well as of the receipts and expenditures of mon eys. The commission shall at all times have access to all accounts, records, and memoranda, includ ing all documents, papers, and correspondence now or hereafter existing, and kept or required to be kept by carriers subject to this act, and the provisions of this section respecting the preservation and destruction of books, papers, and documents shall apply thereto, and it shall be unlawful for such carriers to keep any other accounts, records, or memoranda than those prescribed or approved by the commission, and it may employ special agents or examiners, who shall have authority under the order of the commission to inspect and examine any and all accounts, records, and memoranda, including all documents, papers, and correspondence now or hereafter existing, and kept or required to be kept by such carriers.

SEC. 7, subparagraph (b), paragraph 10. The commission shall require periodical or special reports from all carriers subject to this act hereafter issuing any securities, including such notes, which shall show in such detail as the commission may require, the disposition made of said securities and the application of the proceeds thereof.

SEC. 13, PAR. 2. The commission shall have authority, after full hearing, to make such findings and orders as may in its judgment tend to remove any undue preference or prejudice as between rersons or localities in State and interstate or foreign commerce, or any undue burden upon interstate or foreign' commerce, which is hereby forbidden and declared to be unlawful, and such findings or orders shall be observed while in effect by the carriers parties to such proceeding affected thereby

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