or charges and concurrences between freight forwarders and common carriers by motor vehicle shall become effective, and provides for the manner in which tariffs covering such rates and charges shall be filed.

RELATED ACTS AFFECTING INTERSTATE COMMERCE

Elkins Act. The act of February 19, 1903, commonly called the Elkins law, prohibits rebating, allows proceedings in the courts by injunction to restrain departures from published rates, and provides that cases prosecuted under the direction of the Attorney General in the name of the Commission shall be included within the expediting act of February 11, 1903.

District Court Jurisdiction Act. The Urgent Deficiency Appropriation Act, approved October 22, 1913, provided that the Commerce Court should be abolished from and after December 31, 1913, and that the jurisdiction theretofore vested in the Commerce Court under act approved June 18, 1910, be transferred to and vested in the several district courts of the United States.

Expediting Act. The act of February 11, 1903, provides that suits in equity brought under the act to regulate commerce wherein the United States is complainant may be expedited and given precedence over other suits, and that appeals from the circuit court (district court) lie only to the Supreme Court.

Clayton Antitrust Act.-Jurisdiction is conferred upon the Commission to enforce certain provisions of the act approved October 15, 1914, to supplement existing laws against unlawful restraints and monopolies, insofar as such provisions relate to carriers subject to the act to regulate commerce. The act prohibits, with certain exceptions, carriers from discriminating between purchasers in sales of commodities, and from making leases or sales of commodities and from acquiring stock or capital of other corporations engaging in commerce tending to substantially lessen competition or create a monopoly; makes it a felony for a president or other specified officers to misappropriate a carrier's funds; and, as amended by act approved January 12, 1918, provides that, effective January 1, 1919, no carrier shall have dealings in securities or supplies, or contract for construction or maintenance, to the amount of more than $50,000, in the aggregate, in any one year, with another corporation or organization, when, by reason of common officers or otherwise, there exists a community of interest between the carrier and such other corporation or organization, except as a result of free competitive bidding under regulations to be prescribed by the Commission. The Commission is further authorized to investigate violations of the act by carriers and to require the guilty parties to cease therefrom, and its findings of fact in such investigations shall be conclusive when supported by testimony.

Railway Mail Service Pay Act.-The act making appropriations for the service of the Post Office Department, approved July 28, 1916, empowers the Commission to fix and determine fair and reasonable rates and compensation for the transportation of mail matter by railway common carriers and services connected therewith, prescribing the method by weight or space, or both, or otherwise.

The act making appropriations for the services of the Post Office Department for the fiscal year ending June 30, 1919, empowers the Commission to fix and determine fair and reasonable rates and compensation for the transportation of mail matter by urban and interurban electric railway common carriers.

Standard Time Act.-By the act approved March 19, 1918, the Commission is authorized to fix the limits of the standard time zones established for the continental United States and Alaska, having due regard, in doing so, to the convenience of commerce and the junction and division points of common carriers whose movements are to be governed by the standard time of the zones so fixed. Safety Appliance Acts.-The act of March 2, 1893, known as the Safety Appliance Act, provides that railroad cars used in interstate commerce must be equipped with automatic couplers, and drawbars of a standard height for freight cars, and have grabirons or handholds on the ends and sides of each car; and that locomotive engines used in moving interstate traffic shall be equipped with a power driving-wheel brake and appliances for operating the train-brake system. The act directs the Commission to lodge with the proper district attorneys information of such violations as may come to its knowledge. The act of March 2, 1903, amended this act so as to make its provisions apply to Territories and the District of Columbia, to all cases when couplers of whatever design are brought together, and to all locomotives, cars, and other equipment of any railroad engaged in interstate traffic, except logging cars and cars used upon street railways; and provides for a minimum number of air-braked cars in trains.

By act of April 14, 1910, the safety appliance acts were supplemented so as to require railroads to equip their cars with sill steps, hand brakes, ladders, running

73211°-80-2-2d ed.46

boards, and roof handholds, and the Commission was authorized to designate the number, dimensions, location, and manner of application of appliances.

Accident Reports Act. By act of May 6, 1910, the prior accident reports law was repealed and a new statute enacted requiring carriers to make full reports of all accidents to the Commission and increasing the scope of the Commission's authority in making investigations of all accidents resulting to persons or the property of the carrier.

Hours of Service Act.-The act of March 4, 1907, makes it the duty of the Interstate Commerce Commission to enforce the provisions of the act wherein it is made unlawful to require or permit employees engaged in or connected with the movement of trains to be on duty more than a specified number of hours in any 24.

Ash Pan Act.-The act of May 30, 1908, makes it the duty of the Interstate Commerce Commission to enforce the provisions of the act wherein it is provided that after a certain date no locomotive shall be used in moving interstate or foreign traffic, etc., not equipped with an ash pan which can be emptied without requiring a man to go under such locomotive. Penalties are provided for violations

of this act.

Transportation of Explosives Act. The act of May 30, 1908, as amended by act approved March 4, 1921, directed the Interstate Commerce Commission to make regulations for the safe transportation of explosives and dangerous articles by common carriers engaged in interstate commerce. Penalties are provided for violations of such regulations. By act approved October 9, 1940, jurisdiction over transportation by common carriers by water of explosives and other dangerous articles was transferred to the Secretary of Commerce, effective April 9, 1941. Jurisdiction in the Commission with respect to requirements on shippers of such articles by common carriers by water was undisturbed.

Locomotive and Boiler Inspection Acts.-The act of February 17, 1911, confers jurisdiction upon the Commission to enforce certain provisions compelling railroad companies to equip their locomotives with safe and suitable boilers and appurtenances thereto.

By amendatory acts approved March 4, 1915, June 7, 1924, and June 27, 1930, the powers of the Commission to inspect and to prescribe standards of safety for locomotive boilers and appurtenances thereto was extended to include "all parts and appurtenances of the locomotive and tender."

Block signal and automatic train-control safety devices.—The Urgent Deficiency Appropriation Act approved October 22, 1913, contained an appropriation of $25,000 to enable the Commission to investigate and test block signals and appliances for the automatic control of railway trains and appliances or systems intended to promote the safety of railway operation, including experimental tests of such systems and appliances as shall be furnished in completed shape to the Commission for investigation and test, free of cost to the Government, in accordance with the provisions of joint resolution approved June 30, 1916, and Sundry Civil Appropriation Act approved May 27, 1908. Provision was made in the Sundry Civil Appropriation Acts approved August 1, 1914, March 3, 1915, July 1, 1916, June 12, 1917, and July 1, 1918, for continuing the investigation and testing of these systems and appliances.

By an act approved August 26, 1937, section 26 of part I of the Interstate Commerce Act, changed to section 25 by the Transportation Act of 1940, was so amended as to authorize the Commission to require any carrier by railroad subject to that part (including any terminal or station company), and any receiver or any other individual or body, when in the possession of the business of a carrier subject to the section, to install the block-signal system, interlocking, automatic or similar appliances, methods and systems intended to promote the safety of railroad operation, which comply with specifications and requirements prescribed by the Commission, upon the whole or any part of its railroad, and thereafter to make such changes in the requirements, and in requirements concerning pertinent reports and records of the carriers, as the Commission might find necessary. Railroad Retirement Act.-This act, approved August 29, 1935, as amended by the act of June 24, 1937, creates a Railroad Retirement Board of three members, and it directs the Commission, upon request of the Board or upon complaint of any party interested, to determine after hearing whether any line of railroad operated by electric power is in fact a street, interurban, or suburban electric railway, exempt from the terms of the act.

Railroad Labor Act.-By act approved June 21, 1934, a National Railroad Adjustment Board and a National Mediation Board, to provide for the prompt disposition of disputes between carriers and their employees, is provided for, and by the terms of the act, the Commission is directed, upon request of the Board or

upon complaint of any interested party, to determine after hearing whether any line of railroad operated by electric power is a street, interurban, or suburban electric railway, exempt from the provisions of the act.

By the Carriers Taxing Act, approved June 29, 1937, which provides for the payment of excise taxes by certain carriers and the payment of income taxes by the carriers' employees, but does not apply to either street, suburban, or interurban electric railways, unless such railways are operated as parts of general steam-railroad systems of transportation, the Interstate Commerce Commission is authorized and directed, upon request of the Commissioner of Internal Revenue, or upon complaint of any party interested, to determine, after hearing, whether any line operated by electric power falls within the terms of said exception.

Under the Railroad Unemployment Insurance Act, approved June 25, 1938, the Commission is required to determine after hearing whether any line operated by electric power falls within the terms of the exemption proviso included in section 1 (a) of that act, when requested to do so by the Railroad Retirement Board or in a complaint filed by an interested party.

Civil Aeronautics Act of 1938.-The first sentence of subsection (b) of section 1003 of the Civil Aeronautics Act of 1938, as amended, is further amended by act of May 16, 1942, to permit air carriers to establish reasonable through service and joint rates with other common carriers, except that with respect to transportation of property, air carriers not directly engaged in the operation of aircraft in air transportation (other than companies engaged in the air express business), may not establish joint rates with common carriers subject to the Interstate Commerce Act.

Section 1003 (b) of the Civil Aeronautics Act of 1938, as amended, was further amended on August 4, 1947, to provide that in case of through service by air carriers and common carriers subject to the Interstate Commerce Act, it shall be the duty of the carriers parties thereto to establish just and reasonable rates, fares, or charges and just and reasonable classifications, rules, regulations, and practices affecting such rates, fares, or charges, or the value of the service thereunder, and if joint rates, fares, or charges shall have been established with respect to such through service, just, reasonable and equitable divisions of such rates. This amendment further requires the carriers participating in such through service and joint rates to include in tariffs filed with the Civil Aeronautics Board or the Interstate Commerce Commission, a statement showing such through service and joint rates, fares, or charges.

Subsection (b) of section 412 of the Civil Aeronautics Act of 1938, as amended, is amended by act of May 16, 1942, to provide that the Authority shall by order disapprove any such contract or agreement, whether or not previously approved by it, that it finds to be adverse to the public interest, or in violation of this act, and shall by order approve any such contract or agreement that it does not find to be adverse to the public interest, or in violation of this act; except that the Authority may not approve any contract or agreement between an air carrier not directly engaged in the operation of aircraft in air transportation and a common carrier subject to the Interstate Commerce Act, governing the compensation to be received by such common carrier for performing transportation services.

MARITIME COMMISSION, UNITED STATES

NOTE.-On February 7, 1942, under authority of the First War Powers Act (Public Law 354, 77th Cong.) by Executive Order 9054 (7 F. R. 837), the President established the War Shipping Administration within the Office of Emergency Management. Certain functions, duties, and powers set forth below were transferred by that order from the Maritime Commission to the War Shipping Administration. The functions of the War Shipping Administration as of August 30, 1946, were transferred to the Maritime Commission, and the War Shipping Administration ceased to exist as of September 1, 1946, under Section 202 of Public Law 492, 79th Congress.

The United States Maritime Commission was created by the Merchant Marine Act, 1936, approved June 29, 1936 (49 Stat. 1985), which is entitled "An act to further the development and maintenance of an adequate and well-balanced American merchant marine, to promote the commerce of the United States, to aid in the national defense, to repeal certain former legislation, and for other purposes." The Commission is an independent establishment of the executive branch of the Government, charged with the determination and administration of certain governmental financial aids to private citizens for the construction and operation

of vessels in the commerce of the United States. It also exercises other business functions. In addition to its business functions, the Commission possesses regulatory powers over common carriers in the foreign water-borne commerce of the United States and over persons carrying on the business of forwarding or furnishing terminal facilities in connection with the common carriers by water.

The act directs that the Commission shall be composed of five members, appointed by the President and confirmed by the Senate. The chairman is designated by the President. The Commission may elect one of its members as vice chairman and is authorized to appoint and fix the salaries of a secretary, a general counsel, and other officials and employees.

The terms of office of the Commissioners first appointed were fixed at 2, 3, 4, 5, and 6 years; their successors are appointed for terms of 6 years. Three Commissioners were appointed and took office on September 26, 1936. A full Commission was appointed and took office on April 16, 1937.

By the terms of the act, the United States Shipping Board Merchant Fleet Corporation was dissolved and all its records, books, papers, and property were taken over by the Commission. Likewise, all money, notes, bonds, mortgages, contracts, lands, vessels, terminals, property, and interests of every kind, owned by the United States and controlled by the Department of Commerce as the successor to the powers and functions of the former Shipping Board, were transferred to the Commission by the act.

Ocean mail contracts made by the Postmaster General were terminated effective June 30, 1937. The holder of any such contract was authorized to file an application with the Commission to adjust and settle all the rights of the parties under the contract, subject to appeal by the Attorney General.

Under the act the Commission, as successor to the powers and functions originally vested in the United States Shipping Board and later transferred by Execu tive Order No. 6166, issued on June 10, 1933, to the Department of Commerce, possesses all the powers and functions delegated in the Shipping Act, 1916, as amended, the Merchant Marine Act, 1920, as amended, and the Intercoastal Shipping Act, 1933, as amended. The Commission's powers have been extended or clarified by acts of Congress on several occasions since enactment of the Merchant Marine Act, 1936.

The duties of the Commission include the investigation and determination of the ocean services, routes, and lines from points in the United States to foreign markets essential for the development and maintenance of the foreign commerce of the United States and the determination of what additions and replacements of the American merchant marine are required to create an adequate and wellbalanced merchant fleet to provide shipping service on all routes essential for the flow of the foreign commerce of the United States, the vessels to be so designed as to be capable of serving as naval or military auxiliaries in time of war or national emergency; and investigation of other maritime problems arising under the act.

To aid the citizen of the United States in the construction of a new vessel to be used on a service, route, or line in the foreign commerce of the United States determined to be essential, the Commission is empowered to have the vessel constructed in a shipyard in the United States, to pay such construction cost, and to sell the vessel to the applicant for an amount equal to the estimated cost of the construction of the vessel if it were constructed in a foreign shipyard. The plans and specifications are required to be approved by the Secretary of the Navy, the Commission being directed to cooperate with the Navy Department as to national-defense needs and the adaptation of the merchant fleet to nationaldefense requirements. The difference between the cost of constructing the vessel in the United States and the estimated cost of constructing the vessel in a foreign shipyard is termed a construction-differential subsidy, but in no case may such subsidy exceed 50 percent of the cost of the vessel. The applicant is required to pay 25 percent of the price at which a vessel is sold to the applicant, and the balance, payable within 20 years at 31⁄2-percent interest per annum, must be secured by a first preferred mortgage upon the vessel.

Aid may be extended to any citizen of the United States in the construction of a new vessel to be operated in the foreign or domestic trade (excepting vessels engaged solely in the transportation of property on inland rivers and canals exclusively), in cases where no construction-differential subsidy is to be allowed, although the Commission is authorized to pay the cost of any national defense features incorporated in such new vessels. The applicant is required, in case the vessel has a gross tonnage of 3.500 or more tons and a speed of 16 knots or more, to pay not less than 121⁄2 per centum of the cost of the vessel, and in case of a vessel

of less tonnage or less speed, not less than 25 per centum of the cost of the vessel; and the balance, payable within 20 years at 3-percent interest per annum, must be secured by a first preferred mortgage and otherwise as the Commission may direct.

If it is found that the national policy declared in the act and the building program contemplated by the act cannot be realized within a reasonable time, after approval by the President, the Commission may have new vessels constructed and old ones reconditioned. Such vessels may be chartered or sold under the Merchant Marine Act, 1936.

The Commission is empowered to grant an operating-differential subsidy to aid a citizen of the United States in the operation of a vessel to be used in an essential service, route, or line in the foreign commerce of the United States. The operating-differential subsidy, which is intended to place the proposed operations of such vessels on a parity with those of foreign competitors, is the excess of the cost of items of operating expense in which it is found the applicant is at a substantial disadvantage in competition with foreign vessels over the estimated cost of the same items of expense if the vessels were operated under registry of a foreign country whose vessels are substantial competitors of the vessels covered by the contract. Certain reserve funds are required to be set up by the vessel operators, and no operating-differential subsidy may be paid for coastwise or intercoastal vessel operations.

The Commission is authorized (under the 1939 amendments to the act) to acquire any obsolete vessel or vessels not less than 17 years old, which have been owned by citizens of the United States for at least 3 years prior to the date of such acquisition, in exchange for credit on the purchase of a new vessel or vessels from the Commission or on a new vessel or vessels constructed in a domestic shipyard and documented under the laws of the United States. The allowance is to be the fair and reasonable value of the old vessel as determined by the Commission after consideration of the scrap value, the depreciated value, and the market value for operation.

The Commission administers, under regulations prescribed jointly with the Treasury Department, construction reserve funds established by American shipowners who may deposit therein proceeds from the sales or indemnity for loss of vessels and earnings from operations of vessels, for use in the construction or acquisition of new vessels. Any deposits so used which represent gain on the sale or loss of a vessel are exempt from the taxes on capital gain, but the tax basis of the new vessel will be reduced by the amount of such gain not taxed.

During a national emergency proclaimed by the President, or whenever the President proclaims that the security of the national defense makes it advisable, the Commission may terminate charters on vessels owned by the Commission, and may requisition any vessel or other watercraft owned by citizens of the United States, or under construction in the United States, subject to provisions for the payment of just compensation.

The Commission regulates the sales to aliens, and the transfer to foreign registry, of vessels owned in whole or in part by citizens of the United States and documented under the laws of the United States and, in time of war or national emergency proclaimed by the President, of vessels so owned without regard to documentation.

The 1938 amendments added a new title to the act which provides for a Federal ship mortgage insurance fund to be administered by the Commission. Under authority conferred by this new title the Commission may, upon application of a mortgagee, insure mortgages on all types of passenger, cargo, and fishing vessels, vessels and tugs, towboats, barges, and dredges of not less than 200 gross tons, owned by citizens of the United States. To be eligible for such insurance the mortgage must be to secure a new loan or advance to aid in the construction, reconstruction, or reconditioning of a vessel and the amount of the mortgage insured may not exceed 75 percent of the cost of such new construction, reconstruction, or reconditioning. The premium charge for the mortgage insurance is fixed by the Commission but shall not be less than one-half of 1 percent per annum nor more than 1 percent per annum of the amount of the mortgage obligation outstanding at any time. The premium charge is to be paid by the mortgagee.

The Commission is directed to investigate employment and wage conditions in ocean shipping and to incorporate in contracts for operating differential subsidies minimum-manning scales, minimum-wage scales, and reasonable working conditions for all officers and crews employed on vessels receiving an operating differential subsidy. All licensed officers of vessels documented under the laws