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APPENDIX C.

METHODS OF CARRIERS IN THE CONSTRUCTION, PUBLICATION, AND FILING OF RATE SCHEDULES.

METHODS OF CARRIERS IN THE CONSTRUCTION, PUBLICATION.

AND FILING OF RATE SCHEDULES.

INTERSTATE COMMERCE COMMISSION, AUDITOR'S OFFICE, Washington, December 1, 1891. Following the organization of the Commission numerous communica tions were received from railroad officials making inquiries as to whether the methods adopted for the construction and publication of rate sheets were in compliance with the act. The number and variety of the questions submitted upon this subject precluded their separate disposition. It was also apparent that any rules the Commission might announce at that time radically changing the prevailing methods could not at once be adopted by the carriers without inconvenience to all and possibly hardship to some. The answers, however, to many of these inquiries were to be found in the words of the act itself. In such cases the Commission promptly furnished all information possible. In reply to other and more recent inquiries the Commission has expressed definitely its interpretation of the law, and in certain instances correspondence has been published in circular form embracing the rulings of the Commission upon the points presented. Various circulars have also been issued from time to time pointing out the requirements of the act in relation to the publication of rates, no other general rules regarding the construc tion of tariffs have been prescribed under the authority given in section 6 of the act.

Carriers have been allowed to work out for themselves all details in the publication of tariffs, and the Commission has accepted these meth ods where they were in substantial compliance with the law and sufficient for public information.

The work in connection with the examination and filing of tariffs has brought to light many irregularities in their construction. It has been customary in such cases, by correspondence or otherwise, to point out these deficiencies and to suggest such improvements as appeared necessary, directing attention to the object of the act and the desirability of having all tariffs so plainly constructed that the Commission could give to them the supervision the statute intended, and that the shipper might at all times be able to determine for himself the legal charges. The Commission has also had frequent occasion to remind the carriers, through decisions and by correspondence, of their indifferent compli ance with the act in these respects.

The suggestions made by the Commission for the improvement in tariffs have been in many cases complied with, and some schedules may now be said to be faultless where formerly tariffs announcing the same rates served no purpose under the law. Considering the vast number of rate sheets issued by the 600 roads filing with the Commission, it has been impossible to take up with each carrier separately the question of revision of particular tariffs. Much has been accomplished in this direction. There are still, however, many tariffs in effect which, to a greater or less degree, are defective and imperfect in their construction, and do not present the rates or the rules and regulations governing the same with clearness, and omit much of the information the law intended should be published for the guidance of shippers,

The following are presented as suggestions for improvement in the construction of tariffs:

The principal features found in the sixth section of the act are— (1) Carriers shall print schedules showing fares and charges.

(2) Schedules shall be kept open to public inspection.

(3) Schedules shall plainly state the places between which persons and property are to be carried.

(4) Schedules shall show the classification of freight in force.

(5) Terminal charges, and any rules or regulations which in anywise change, affect, or determine any part of the aggregate of the rates, fares, or charges shall be plainly stated upon the schedules.

(6) Schedules shall be plainly printed in large type.

(7) Schedules for the use of the public shall be posted in two public and conspicuous places in every depot, station, or office where passengers or freight are received for transportation, which schedules shall be accessible to the public and in such a form that they may be conveniently inspected.

(8) Schedules covering freight received in the United States to be carried through a foreign country to any place in the United States shall be printed and kept open to public inspection.

(9) No changes in rates which have been established shall be made except after previous notice of ten days in case of increase, or three days when reduced, which notice shall plainly state the changes to be made in the schedules then in force, and the time when the increased or reduced rates, fares, or charges will go into effect; the proposed changes shall be shown by printing new schedules, or shall be plainly indicated upon the schedules in force.

(10) Carriers shall not charge, demand, collect, or receive any greater or less compensation for the transportation of passengers or property, or for any services in connection therewith, than is specified in such schedules of rates, fares, and charges as may at the time be in force. (11) Carriers shall file with the Commission copies of hedules, and shall promptly notify the Commission of changes made in the same. (12) Carriers shall file with the Commission copies of all contracts, agreements, or arrangements with other common carriers in relation to any traffic affected by the provisions of this act to which they may be a party.

(13) Where several carriers unite in establishing joint tariffs copies shall be filed with the Commission.

(14) Joint tariffs shall be made public by all carriers when directed by the Commission, and the Commission shall prescribe the measure of publicity which shall be given them, or such part of them as it may deem practicable for such carriers to publish, and the places in which they shall be published. (See order of the Commission of March 23, 1889, in re Publication of Joint Tariffs, and in case of Lehmann, Higginson & Co. on Joint Tariffs at conclusion of this exhibit.)

(15) The Commission shall be given ten days' notice of an advance, or three days' notice of a reduction in joint rates, and such notice shall plainly state the proposed changes and the time when they will go into effect. The Commission may make public such proposed advances or reductions in such manner as may in its judgment be deemed practicable from time to time, and prescribe the measure of publicity which common carriers shall give to advances or reductions in joint rates. (See order of Commission of March 23, 1889, in re Publication of Joinţ Tariffs, p. 258.

(16) The Commission may determine and prescribe the form in which the schedules shall be prepared and arranged, and may change the forra from time to time as found expedient.

TARIFFS SHOULD BE PRINTED IN LARGE TYPE.

It will be observed that the act plainly states that schedules shall be printed in large type. The word "type" can not be assumed to have been here used by Congress in any other than its literal sense; it was undoubtedly intended that all tariffs for publication should be so printed. Many roads have fully complied with the law in this respect and print in suitable type all tariffs which they issue; with other roads it is considered that the law has been sufficiently complied with if tarifts are produced by any of the various duplicating processes, such as hectograph, mimeograph, typewriter type, etc. Much can be said against these methods; the hectograph copy will fade in the light, and imperfect impressions are printed by either process. It frequently occurs that tariffs so printed have to be returned to the railroads because they can not be deciphered, and from their vague construction do not give sufficient information for a clear understanding of their application. Agents of the railroads receiving tariffs so constructed no doubt meet with similar difficulty, and such tariffs when posted are of no value to the shipper.

In most cases the roads having the larger traffic, and consequently the greater number of tariffs, print in type nearly all class or general tariffs applying between the principal points; such as are produced by the duplicating process are usually special tariffs or sheets issued hurriedly, covering one commodity and a limited number of points. During a year the number of such tariffs often reaches a high figure. The smaller roads are found to produce tariffs by these methods very generally and not a few of such sheets cover important traffic. With many roads the argument is freely offered that the duplicating process is less expensive than printing in type, while others state that by this plan tariffs may be prepared and issued quicker. From the short notice given in numerous instances of changes in rates it is believed that the latter reason is more often the real one, and that the question of expense has not been carefully considered. It is thought that the tariffs of many roads, which are not now printed in type and containing rates which should be published, if arranged with a view to permanency of form, could be so printed at little or no greater expense than is now necessary to produce the same tariffs by the duplicating process.

SCHEDULES SHALL PLAINLY STATE THE PLACES BETWEEN WHICH THE RATES APPLY.

To meet the above requirement it is most important that titles of the tariff's should serve to describe the rates they contain.

Tariffs are differently and indiscriminately named, as:

Freight tariff;

Through freight tariff;

Joint tariff;

Through joint tariff;

West-bound tariff;

East-bound tariff;

Special joint tariff;
Tariff of rates;
Fertilizer tariff;
Lumber tariff;
Live-stock tariff, etc.

S. Mis. 31-16

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