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After a long consultation it was agreed on behalf of the Transportation Committee that a request should be made upon the railroads for an exception in favor of foreign exhibits, so that while the exhibit of manufacturers in this country could be charged as originally proposed, namely, full rates outbound, with free return, the exhibits from foreign countries delivered to you by steamship lines on the seaboard should be charged at half rates in both directions.

I hope you will see your way not only to lay this before your people and to recommend it, but also to take it up with the association over which Mr. Goddard presides.

We are all of course vitally interested in the success of the Exposition, and more particularly in making it an international rather than a local affair. If by this slight concession we can materially increase the number of foreign exhibits, as the foreign commissioners believe, it should by all means be done; and the objections which you urged with so much force against the half rate do not, it seems to me, obtain in the case of foreign exhibits.

I feel confident that not only the roads in your association, but those in the Trunk Line Association as well, are disposed to deal with the Exposition in a liberal spirit, and I trust that this not unreasonable request may be complied with.

The carriers submitted this application, and asked "to be advised by the Commission of their views upon the subject." The purpose of this inquiry, it is assumed, was to obtain the opinion of the Commission as to the legal right to carry foreign and domestic exhibits at different rates or on different terms. Having no discretion in the matter, the Commission could only call attention to the equality provisions of sections 2 and 3 of the act, as modified by the following paragraph in section 22, viz:

That nothing in this act shall prevent the carriage, storage, or handling of property free or at reduced rates for the United States, State, or municipal governments, or for charitable purposes, or to or from fairs and expositions for exhibition thereat. Under this exception it is apparent that merchandise, whether imported or domestic, may be lawfully carried from the seaboard or elsewhere to the exposition, "for exhibition thereat," free of charge to the shipper or at such reduced rates as may be agreed upon, subject, however, to the provisions of sections 2 and 3, which require like kinds of property to be carried on the same terms under the same circumstances, In construing these equality provisions of the statute, the Commission has held that foreign merchandise can not lawfully be allowed lower rates or other preference by the inland carrier, but is on the same basis of equality with domestic goods in the matter of rates, charges, facilities, and treatment, and must be carried according to the tariffs established for the transportation of domestic merchandise of like character.

The order made by the Commission to carry into effect this ruling is respected and observed by most, though not all, of the carriers, and will be contested by some of them in the courts.

It can not be said, therefore, that the law is entirely settled as to what discriminations or preferences, if any, carriers may legally concede to the shippers of imported articles for whatever purpose intended.

The Commission is not advised as to whether the carriers would, in any state of the law or under any circumstances, concede to foreign exhibits half rates each way, as requested by the Exposition; nor, except as above stated, has any request been made of the Commission respecting such rates either on behalf of the carriers or the managers of the Exposition.

In view of the urgency with which this concession is requested, and the disposition of certain carriers to question the correctness of the decision above referred to, the subject is deemed of sufficient importance to justify its submission to Congress.

AMENDMENTS.

The statute requires that the annual report of the Commission shall contain such recommendations as to additional legislation relating to the regulation of commerce as the Commission may deem necessary.

In this connection the attention of Congress is respectfully asked to what is contained in previous annual reports on the subject of safety appliances, car mileage, ticket brokerage, payment of commissions, authority to call for reports from carriers and to appoint special agents to take testimony, interchange of business, through traffic at through rates over connecting lines, uniform classification, and indictment of corporations.

The Commission deems necessary and recommends amendments as follows:

(1) That some time be fixed within which carriers shall be required to adopt uniform classification of freights.

(2) That the tenth section of the act be so amended that corporations as well as their agents and employés shall be indictable.

(3) Amend the sections of the act in relation to procedure substantially as suggested on page 22 of this report.

All of which is respectfully submitted.

WILLIAM R. MORRISON.
WHEELOCK G. VEAZEY.
MARTIN A. KNAPP.

APPENDIX A.

NAMES AND COMPENSATION OF ALL EMPLOYÉS, TOGETHER WITH A STATEMENT OF APPROPRIATION AND EXPENDITURES.

APPROPRIATION, STATEMENT OF EXPENDITURES AND PERSONS EMPLOYED BY THE COMMISSION.

STATEMENT OF APPROPRIATIONS AND AGGREGATE EXPENDITURES FOR THE INTERSTATE COMMERCE COMMISSION FOR THE FISCAL YEAR ENDING JUNE 30, 1891.

Sundry civil act, August 30, 1890.-For salaries of Commission

ers, as provided by the "Act to regulate commerce" ..... $37,500.00 For salary of Secretary, as provided by the "Act to regulate commerce"

For all other necessary expenditures to enable the Commission to give effect to and execute the provisions of the said "Act to regulate commerce"

Deficiency act, March 3, 1891.-To enable the Interstate Commerce Commission to properly carry out the objects of the "Act to regulate commerce".

Amount paid as salaries to Commissioners and Secretary,
(Commissioner Augustus Schoonmaker's term of office hav-
ing expired Dec. 31, 1890, and Commissioner Martin A.
Knapp having been appointed March 2, 1891)..
Amount expended for all other purposes.

Unexpended balance June 30, 1891

3,500.00

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MEMO. The unexpended balance given comprises the amount of appropriation for salaries of Commissioners unexpended (due to vacancy above)

And the amount of appropriation for all other purposes, unexpended

10, 155. 67

$1,250.00 8, 905. 67

10, 155. 67

The third annual report of the Statistician is now being printed, and the cost thereof, not yet ascertained, is to be paid out of the above unexpended balance. DETAILED STATEMENT OF EXPENDITURES OF THE INTERSTATE COMMERCE COMMISSION FOR THE FISCAL YEAR ENDING JUNE 30, 1891.

Salaries of Commissioners and Secretary (one Commissioner's term of office having expired December 31, 1890, and one Commissioner having been appointed March 2, 1891) .

Employés:

One auditor, 12 months, at $250 per month...

One statistician, 12 months, at $208.334 per month..

Two law clerks, 12 months, at $166.663 per month

One law clerk, 11 months and 6 days, at $166.66 per month

One law clerk, 10 months, at $166.66% per month

$39, 750.00

$3,000.00

2,500.00

4,000.00

1, 948.92 1,750.00

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