1942: Interstate Commerce Commission

Transportation was the first of the great industries of the country to be affected by the imminence of war and finally by the war itself. As a consequence, the work of the Interstate Commerce Commission in 1942 was, in great measure, directly related to problems arising from wartime conditions. Government supervision and control of transportation were intensified by the operations of new agencies, such as the Office of Defense Transportation, War Production Board, and Office of Price Administration. All of these fast-functioning instruments of government have made much use of the Commission's statistical data and its organization for obtaining facts with respect to transportation matters and have called upon the Commission's staff to supply much information having direct relation to operations.

Economic conditions have had positive effects in 1942 upon carrier earnings and expenses. An increase in wages granted railroad employees late in 1941, was followed by a request from railroads for an increase in freight rates and passenger fares to offset such increases as well as other increases in operating expenses. The Commission authorized an increase in railroad passenger fares of 10 per cent, effective Feb. 10, 1942, and an increase in freight rates effective Mar. 18, 1942 (248 I.C.C. 545). The increase in freight rates was 6 per cent generally, but only 3 per cent on certain basic products, with small specific increases on coal and coke, and no increase on iron ore. These increases averaged about 4.6 per cent.

The Commission's Bureau of Service continued and expanded its work of expediting movements of traffic. During the eleven-month period, January to November, over 30 service orders were issued directing carriers to accord joint use of certain important terminals, to divert traffic from congested routes and to take certain other emergency actions affecting car service.

Highway transportation by motor carriers has also created problems of administration to the Commission in this year of war. The matters presented have dealt with requests for emergency operating authority and with conditions arising from the urgent need for conserving essential materials and the necessity for utilizing truck capacity to the fullest possible extent. The Commission has issued more than 4,000 authorizations for emergency operation. It has also ordered motor carriers of property to disregard routing instructions in bills of lading and to move freight in compliance with the orders of the Office of Defense Transportation.

In this year this jurisdiction of the Interstate Commerce Commission over transportation agencies was further expanded by the enactment of a statute, approved May 16, 1942 (U. S. Code, Title 49, Sec. 1001 et seq.), which added Part IV to the Interstate Commerce Act. This part gives the Commission broad regulatory authority over freight forwarders comparable in scope with its authority over carriers by rail, by motor vehicle, and by water. Freight forwarders assemble and consolidate shipments of freight, dispatch it by railroad or other common carrier to destination, and there distribute it to the various consignees.

Their functions and operations are important factors in the transportation field. The shipper employing a forwarder is afforded a service under which the forwarder assumes full responsibility for the shipment from the point of origin to the point of final delivery and utilizes the services of common carriers by rail, by motor truck, or by water to the best advantage. Applications for permits to operate have been filed by 154 forwarders.

The duties of the Bureau of Water Carriers were extended in 1942 to include administration of the new Part IV of the Act regulating freight forwarders.

In connection with the issuance of authority to carriers by water to engage in such service, their operations have been divided into five classes, dependent upon the type of vessels used. (1) Self-propelled vessels; (2) non-self-propelled vessels (barge-line service); (3) towing vessels; (4) vessels rented to others, and (5) sailing vessels. The number of applications filed by water carriers to continue or to institute operations was 932 at the close of 1942. Because of the broad scope of the exemptions in the act, probably the major portion of the freight carried on inland waters is not subject to regulation by the Commission. The exemptions are such as to exclude from regulation the principal movements of coal, bulk petroleum, bulk grain, and iron ore.

Important accounting and statistical orders were issued in 1942. Among them are orders requiring railroad companies, beginning with 1943, to introduce a system of accounting for depreciation of road property.

During this year the reorganization of the Wabash, in receivership since 1931, was completed. Reorganization of the Minneapolis & St. Louis, in receivership since 1923, is nearing completion. During the year, plans for the reorganization of three railroads were returned to the Commission by the court for further consideration, and the plans for four roads have been carried to the Supreme Court.