Especially noteworthy in 1941 was the organization within the Commission of a new bureau of water carriers to have charge of the administrative work connected with the widened jurisdiction over such carriers. The number of applications received for common carrier certificates or contract carrier permits to operate over waterways covering operations in effect Feb. 1, 1941, was 747. In addition there have been 109 applications for authority to engage in new operations as water carriers. Also, 397 applications for exemptions were filed. Tariffs of common carriers by water and minimum rate schedules of contract carriers were required to be filed March 1. District supervisors for water carriers have been appointed at San Francisco, Chicago, and New Orleans.
The impact of National Defense activity was felt especially in the Commission's Bureau of Service. It was necessary to increase greatly the field force of that bureau to investigate matters relating to the proper use, supply, movement, and interchange of freight cars in transportation service.
In the field of accounting requirements the most noteworthy developments were the recommendation by the Bureau of Accounts of a revised uniform system of accounts for carriers by water and the recommendation that the mandatory depreciation charges be extended to cover fixed property of railroads as well as the equipment now covered, both to be made effective Jan. 1, 1942.
Reorganization of railroads placed in control of the courts as a result of financial difficulties in the recent depression is steadily proceeding. In 1941 the Commission approved plans for the reorganization of the St. Louis Southwestern, the Fort Dodge, Des Moines & Southern, the Alabama, Tennessee & Northern, and the Fonda, Johnstown & Gloversville under section 77 of the Bankruptcy Act.
The Commission submitted to creditors, and in some cases to stockholders, for acceptance or rejection, plans approved by the Commission and the courts for the reorganization of the Erie, the Chicago & North Western, the Fort Dodge, Des Moines & Southern, the Kansas City, Kaw Valley & Western, and the Missouri Pacific. Three new proceedings for reorganization were instituted during the year.
During 1941, hearings were begun in the comprehensive investigation of class rates and freight classifications. This involves such matters as differences in freight levels in the various rate territories, methods to be used in constructing interterritorial class rates, percentage relations among the various classes in the rate structure, and the establishment throughout the country of a simplified and more nearly uniform classification of freight, as well as the relation of the various classifications applicable to rail, motor, and water transportation. Among the exhibits introduced in this proceeding by a witness for the Commission is one which undertakes to show what it costs the railways to carry freight per 100 pounds for various distances in each rate territory and for varying loads per car.
Another pending proceeding of general interest relates to the charges by pipe line companies for the interstate transportation of crude petroleum. In an opinion dated Dec. 23, 1940 (243 I.C.C. 115), the Commission indicated that these carriers should reduce their bases of rates by percentages averaging 24.46 per cent, but ranging for individual companies from 3.75 to 55.01 per cent, the purpose being to limit earnings of the carriers to approximately 8 per cent on the value of their property. The case has been reopened for further hearing.
Extended consideration was also given to the rates on refined petroleum charged by rail carriers and by pipe lines from mid-continent territory to certain points in western trunk-line territory, Illinois and Indiana. By a decision of March 11, 1941, these rates by railroad were reduced about 10 per cent (243 I.C.C. 589). The proceeding is of special interest because of the discussion of 'multiple-car rates'; that is, rates made lower if a minimum tender of 25 tank-car loads is made at one time. Such rates are proposed upon the ground that the cost of transportation should be less. They were not expressly approved by the majority in this proceeding.
The regulation of motor carriers continues to be one of the Commission's important activities. The Commission issued a special report upon the Federal regulation of sizes and weights of motor vehicles. It was found, although not unanimously, that a need existed for such regulation and it was recommended that the Commission be authorized to determine upon complaint whether State requirements are unduly burdensome.
On July 1, 1941, the Interstate Commerce Commission had 2,840 employees, of which 1,383 were assigned exclusively to motor carrier regulation. See also RAILROADS; TRANSPORTATION.
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