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THE INTERSTATE COMMERCE COMMISSION.

MARTIN A. KNAPP, of New York, Chairman. JUDSON C. CLEMENTS, of Georgia.

CHARLES A. PROUTY, of Vermont.

FRANCIS M. COCKRELL, of Missouri.
FRANKLIN K. LANE, of California.
EDGAR E. CLARK, of Iowa.

JAMES S. HARLAN, of Illinois.

EDWARD A. MOSELEY, Secretary.

REPORT

OF THE

INTERSTATE COMMERCE COMMISSION.

WASHINGTON, D. C., December 23, 1907.

To the Senate and House of Representatives:

The Interstate Commerce Commission has the honor to submit its twenty-first annual report for the consideration of the Congress.

Little more is attempted in this report than a general statement of the work performed by the Commission during the past year in the discharge of its official duties. A considerable part of the time has been occupied in giving administrative construction to various provisions of the law for the guidance of both shippers and carriers. To secure the best results of legislation with the least possible delay there was obvious need of a correct and uniform interpretation of the statute. Therefore, without reference to questions arising in particular cases, and to avoid unnecessary controversy, it has seemed our duty to construe the law in advance wherever it appeared obscure or ambiguous, so that the obligations of the railroads and the rights of the public might be promptly understood. This has resulted in numerous rulings explaining our view of the meaning and application of different sections and paragraphs of the statute. These rulings have in practically every instance been accepted by the carriers, even ‘in cases where their legal advisers were not entirely in accord with the opinion of the Commission. The rulings and regulations already promulgated will be revised and printed in a separate document.

The benefits of this course are beyond question. The Commission has endeavored to adopt a workable construction of the law in all cases, and has as a rule announced its conclusions in matters of importance only after conference and discussion with representative shippers and traffic officials. This is especially true with reference to tariff regulations, a subject which is treated at some length in a subsequent part of this report. This matter is fundamental in any scheme of public regulation. There is scarcely a complaint or controversy which is not based upon the schedules of rates and charges established by the carriers. If those schedules are clear and definite in their statements, there is no excuse for disregarding them. If the

rates and regulations are reasonable and plainly announced, the shipper knows his rights and the railway official knows the obligations of his company. If the charges are claimed to be excessive or discrimi natory, the question can be intelligently determined after the full hearing which the statute provides. It is believed that the efforts of the Commission in this direction have already been fruitful of good results and that they will prove of increasing value in the future.

The amended law has now been in force for upwards of fifteen months, and some opinion may be expressed as to its operation and effects. The substantive provisions of the original act, forbidding the exaction of unreasonable charges and prohibiting discriminations between persons and places, were unchanged by the legislation of 1906. The main purpose of that legislation was to provide more adequate means for the enforcement of rights and duties already declared to exist. The vital principle of a right is found in the obligation to respect it. Without remedial procedure the declaratory portion of any law is little more than the statutory expression of a sentiment, but when efficient machinery for securing observance is provided the performance of definite duties and the recognition of definite rights may be expected to follow in ordinary conduct without resort to litigation. That this is true in regard to the amended act, and to an extent not generally appreciated, is confidently asserted. Just as the value of criminal laws is measured by the peace and security of society rather than the occasional conviction of offenders, so the salutary effects of the present statute are shown in the more general enjoyment of previously existing rights rather than by the number of cases in which the authority of the Commission has been invoked or the list of decisions and prosecutions which makes up the record of administration.

It is likewise true that the substantial and permanent benefits of this law are indirect and frequently unperceived even by those who in fact profit by its observance. It means much for the present and more for the future that the principles of this law have gained greatly in general understanding and acceptance. The injustice of many practices which were once almost characteristic of railway operations is now clearly apprehended, and an insistent public sentiment supports every effort for their suppression. By railway managers almost without exception the amended law has been accepted in good faith, and they exhibit for the most part a sincere and earnest disposition to conform their methods to its requirements. It was not to be expected that needed reforms could be brought about without more or less difficulty and delay, but it is unquestionably the fact that great progress has been made and that further improvement is clearly assured. To a gratifying extent there has been readjustment of rates and correction of abuses by the carriers themselves. Methods and usages of one

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