LETTER SUBMITTED BY THE MANHATTAN ELECTRICAL SUPPLY CO. (INC.). CHICAGO, July 10, 1919. Hon. J. J. ESCH, Interstate and Foreign Commerce Committee, Washington, D. C. MY DEAR SIR: In reply to your letter of the 2d desire to thank you for the copy of H. R. 4378. In compliance with your request, wish to state that I have no criticisms to offer. However, I would like to suggest that the words "the cost of capital" be added after the words "Operating costs," line 15, page 23, for the reason that on railroad indebtedness held by the public in the form of bonds, etc., are out at the present time on an interest basis of possibly 3 to 4 per cent. In the event the carriers desire to float another issue of bonds, we all know that they could not be let out at any such rate of interest, and that they would be forced to pay 5 per cent. This is the cost of capital, and is an item as essential to consider by the commission in reaching their conclusions as to the justness and reasonableness of any rate, fare, etc., and is also an item as important to consider as the cost of labor as provided for in the bill. Thanking you for giving this matter your consideration, I remain, Yours, respectfully, G. H. ANDERSON, Traffic Manager Manhattan Electrical Supply Co. (Inc.). LETTER SUBMITTED BY HON. G. W. EDMONDS. Hon. JOHN J. ESCH, HOUSE OF REPRESENTATIVES, Chairman Committee on Interstate and Foreign Commerce, MY DEAR COLLEAGUE: In regard to the matter in H. R. 4378 of which I spoke to you yesterday, might I suggest the placing of the word "adjacent" on line 17 of page 2 before the word "foreign": also to change the description of the term "water" as follows on page 3: "The term water' as used in this act shall include the lake. rivers, canals, and other waterways within or bordering on the United States, or the Territory of Alaska, the Panama Canal, tra versed by vessels while engaging in the coastwise trade of the United States." DEAR MR. ESCH: I am taking the liberty of handing you herewith some suggested amendments to your bill, known as H. R. 4378. Some of the preferences now enjoyed by the large packers can be controlled by the Interstate Commerce Commission. Some of such preferences probably can not be reached by that commission. It seems to me that any doubt existing could be removed by the slight amendments to your bill suggested in the inclosed proposal. You may, and probably will, be able to present my idea more clearly in your bill, but the principles of these amendments should, it. seems to me, be included. As to the legal right to do this, there appears to me to be no doubt that the discussion by the Supreme Court in the case of the German Alliance Insurance Co. v. Lewis (233 U. S., 389; 58 Law Edition, 1011), demonstrated the legal power in Congress to legislate as indicated in the amendments I propose. Many of the cases cited in the brief in this case support the authority for which I am contending. These amendments also, it seems to me, would meet the decision of the Supreme Court in the United States v. Pennsylvania R. R. Co. (242 U. S., 208). I shall be glad if you will lay this matter before your committee at the hearings you will soon hold. Yours, very truly, WATKINS, HARWELL & WATKINS, The amendments suggested by Mr. Watkins are as follows: Amend H. R. 4378 by adding thereto the following: After line 5, page 2, add: "(d) Icing and refrigerating plants used for the icing or refrigerating of freight in course of transportation. "(e) The ownership or control by others than the railroad company of cars used in the transportation of freight." After the word "companies in line 9, page 3, add the following: owners and lessees of cars used in the transportation of freight in interstate commerce; refrigerating and icing plants used to ice and otherwise refrigerate commodities in course of interstate transportation." After the word "tracks," line 17, page 3, insert the words: "private cars." After the word "service," line 10, page 6, insert: " whether cars are owned or rented." After the word "service," line 25, page 6, insert: "and distribution." Following the word "prescribed," line 11, page 23, insert the following: "practice as herein used shall include the furnishing and use of cars and the distribution of cars among shippers, whether carrier owned or privately owned." LETTER SUBMITTED BY MR. E. P. GOODRICH. NEW YORK, July 15, 1919. Hon. JOHN J. ESCH, Chairman Committee on Interstate and Foreign Commerce, DEAR SIR: I wish to thank you for the copy of H. R. 4378 relating to railroad legislation, which was duly received and which I have read with considerable interest. Through my experience, secured in connection with consultation work concerning the New York Barge Canal terminals and river traffic on the Columbia, Mississippi, Ohio, Cumberland, Missouri, and other waterways, I assume that you will be interested in the following suggestions: Motor trucking over interstate highways has become so common, and motor truck companies are doing such a business that I believe it wise to include them among (6 common carriers" in section 1. This is especially the case, since I know of one railroad which is using a motor truck line to reach a river point on the Ohio and compete with boat lines, the motor truckman being given power to sign bills of lading and otherwise represent the railroad. I am informed that the rates are such that the truckman can not by any device recoup himself for actual expenses, so that he must be actually carried by the railroad and be a part of their organization in one sense or another. So much is being said about aircraft that it would seem perfectly proper to explicitly include it among the various "vehicles, vessels, instrumentalities, and facilities of shipment or carriage" on page 4. At the end of section 1 classes of rates for transmission of informa tion are given, but not for the transmission of passengers and commodities. It would seem wise to include some wording with reference to the latter; for example, stipulating that as far as possible such rates should be proportional to distance, to the value of commodity and to the average density of its flow. It is well known that especially in southern classification territory rates are in radical contravention to the long and short haul clause of the commerce act and should be radically revised. This applies to a certain extent in western classification territory. With reference to commodities, furthermore, it should be stipulated that they may carry differentials between rates charged for traffic on water, rail, and highway. In section 2, page 6, it is suggested in addition to car service, other means of conveyance be included, such as motor and horsedrawn vehicles and floating equipment. This may not be wisely interpolated at that particular point but it is believed should be included somewhere. At line 8, on page 6 in section 2, after the word "safe," it is suggested that the words "equitably distributed" be inserted, as the railroads are known to have practiced methods of car distribution so as to benefit favorites at the expense of others and to practically refuse to supply cars for interchange with water lines on the plea of inadequate supply, although they were filling all demands of old shippers. On pages 7 and 8 in addition to granting the power of determining priority, the imposition of embargoes, etc., the Interstate Commerce Commission should be given power to distribute traffic between carriers on both land and water whenever the need arises. About line 10, on page 8, it is suggested that boat service be added to car service, unless the former is elsewhere included. It would seem equitable that expansions of boat lines be made to comply with the same conditions as are stipulated on page 9, for example, with reference to railroad lines. No hardship can possibly be involved in this condition which would then bear equitably on all competing in terests. Near the close of section 3, on page 12, it is suggested that explit exception be made with reference to differentials which may ext between rail, water, and highway transportation rates. At line 12, on page 12, it is recommended that explicit directions be given for the interchange of traffic between rail and water lines. It is suggested that in section 5, on page 13, positive consent be given to pooling of interests which will increase water transporta tion. On page 24, the explanation with reference to electric passenger railways not engaged in the general business of transporting freight leads me to suggest what may possibly have escaped your notice, that many railroads are using electric lines and motor truck companies as feeders to increase their freight business. Such feeder lines should certainly be brought under the jurisdiction of the commission in so far as they handle interstate business on through bills of lading. It is assumed that the evident misprint or omission in line 3, on page 29, will be corrected. Hoping that these more or less random comments may be of some value, I remain Very truly, yours, E. P. GOODRICH. LETTER SUBMITTED BY THE COMMERCIAL EXCHANGE OF PHILADELPHIA. COMMERCIAL EXCHANGE, Philadelphia, July 16, 1919. The CHAIRMAN COMMITTEE ON INTERSTATE AND FOREIGN COMMERCE, House of Representatives, Washington, D. C. DEAR SIR: This exchange has a membership of over 400 merchants engaged principally in receiving and shipping grain and grain products, provisions, etc. (both domestic and export), a considerable tonnage of which comes across the Lakes. It has come to our attention that a bill has recently been introduced by Congressman Esch in the House of Representatives, known as H. R. 4378, which proposes to amend the act to regulate commerce so as to give the Interstate Commerce Commission complete jurisdiction over water carriers. This exchange feels that such legislation would be detrimental to the interests of the United States and the board of directors as well as the transportation committee, therefore, hereby enter protest against the enactment of this bill and respectfully request that you use your utmost endeavors to prevent the measure from becoming a law. Very truly, yours, A. B. CLEMMER, Secretary. LETTER SUBMITTED BY THE MONARCH FURNITURE CO. (INC.). Mr. JOHN J. ESCH, JAMESTOWN, N. Y., July 16, 1919. Chairman House Committee on Interstate Commerce, DEAR SIR: There is now pending in Congress the so-called EschPomerene bill, which proposes to further amend the act to regulate commerce bestowing additional powers upon the Interstate Commerce Commission. While we indorse the principles of this bill, we believe that certain parts should be amended, as follows: We recommend omitting that part which seeks to confer upon the Interstate Commerce Commission jurisdiction over traffic wholly water borne, and we further recommend that the words "and the cost of capital" be added after the words "operating costs," in line 15, page 23, of that bill, making the paragraph in which these words appear read as follows: The commission, in reaching its conclusions as to the justness and reasonableness of any rate, fare, charge, classification, regulation, or practice, shall take into consideration the cost of labor and other operating costs, and the cost of capital, in so far as they become material in any case under investiga tion. We also recommend that legislation be enacted placing the arbitration and settlement of disputes between railroad managements and their employees over wages and conditions of service under the jurisdiction of the Interstate Commerce Commission. Yours, truly, MONARCH FURNITURE Co. (INC.), LETTER SUBMITTED BY THE A. C. NORQUIST CO. Mr. JOHN J. ESCH, JAMESTOWN, N. Y., July 17, 1919. Chairman House Committee on Interstate Commerce, Washington, D. C. DEAR SIR: We have noted the Esch-Pomerene bill, now pending in Congress, and heartily indorse the general principles of this bill. However, we believe it would be for the best interests of all concerned to omit that part of the bill which places traffic wholly water borne under the jurisdiction of the Interstate Commerce Commis sion. We also feel that the words "and the cost of capital" should be inserted after the words "operating costs," in line 15, page 23 of that bill, in order to insure the financial soundness and necessary improvements in the transportation service of the country. We further recommend that legislation be enacted placing the arbitration and settlement of disputes between the railroad manage ments and their employees under the jurisdiction of the Interstate Commerce Commission. Yours, truly, THE A. C. NORQUIST CO. LETTER SUBMITTED BY THE CATSKILL EVENING LINE. Hon. J. J. ESCH, NEW YORK, July 19, 1912. House of Representatives, Washington, D. C. DEAR SIR: We are advised that the Committee on Interstate Commerce is now considering what is know as the Esch-Pomerene bill o |