ANNOUNCEMENTS AND SPECIAL RULES OF PRACTICE UNDER FEDERAL CONTROL. INTERSTATE COMMERCE COMMISSION, ANNOUNCEMENT. June 20, 1918. The act for the federal control of railroads and certain recent orders of the Director General have raised questions regarding the status of some of the cases before the Commission, attacking rates not initiated by the Unites States Railroad Administration. Inquiry has arisen how far the existence of rates initiated under section 10 of the federal control act, will limit or preclude the Commission from making lawfully effective orders in proceedings brought prior to such initiation of rates. The Commission has always lent its active assistance to the settlement of complaints and difficulties between carriers and shippers through informal adjustment. Thousands of complaints and difficulties have been thus disposed of. There seems every reason why under federal control this policy should be continued with reference to complaints involving rates initiated by the United States Railroad Administration. Such action on our part would seem to be mandatory under section 8, of the federal control act, and we intend to accord our advice, assistance, and cooperation to that end wherever possible. We understand that the Director General is in accord with this plan of composing difficulties as regards rates initiated by the United States Railroad Administration. Failing such efforts to compose difficulties or settle causes of complaint informally, the Commission is required under section 10 of the federal control act upon complaint to enter upon a hearing concerning the justness and reasonableness of so much of any order made thereunder as establishes or changes any rate, fare, charge, classification, regulation, or practice of any carrier under federal control. Save for the applicable provisions of this statute the jurisdiction of the Commission remains what it has been in the past. The Commission has not made and can not make any commitment which will prelude its full exercise of the jurisdiction vested in it. A rate initiated by the United States Railroad Administration can not be lawfully altered by the Commission, except on complaint after hearing at which the United States Railroad Administration is entitled to be heard. It follows that inasmuch as a new freight-rate structure becomes effective June 25 next, some of these rates might conflict with orders which the Commission might enter prescribing rates for the future, even though the orders were entered on the basis of the records in complaints now pending before us. It seems, however, that in certain cases the Commission can make lawfully effective orders in proceedings brought prior to such federal initiation of rates. Thus any pending complaint, where the complainant desires to use the finding of the Commission as a possible basis for a suit at law for reparation, will be disposed of on the present record so far as that matter is concerned. The same is true of cases pending in so far as they seek reparation for damage from rates unlawfully exacted. Allegations of discrimination may, in certain cases, be disposed of on the records now before us. We do not prejudge the question which has been raised whether by amendment to pleadings in pending cases the United States Railroad Administration may be made a party against which a lawfully effective order may be entered. The Commission will, as of course, continue consideration and reach conclusions as above indicated in pending cases; where it is possible to make a lawfully effective order without amendment of the pleadings that will be done; and, so far as is possible, the records heretofore built up will be made available for the determination of the The dockets in pending cases will be analyzed, and where it appears that doubt exists whether, without amendent or supplemental hearing, the Commission can enter a lawfully effective order, the parties will be so notified. ssues. Such appropriate changes as the federal control act may render necessary will be made in the Commission's Rules of Practice. Following our announcement of June 20, 1918, the question there reserved was argued before us on July 24, 1918, and waiver was made for the Director General of any requirement that the justness or reasonableness of tariff changes initiated by him should be heard and determined by us only upon original complaints in new proceedings. Proceedings before us vary greatly as to subject matter and relief sought. Some are brought under the act to regulate commerce, as amended, and others under other statutes. In some the moving parties are shippers, and in others carriers. Some are investigations instituted by us of our own motion. Several proceedings are sometimes consolidated for hearing or disposition. As indicated in our former announcement, the federal control act and the orders which the Director General acting for the President is empowered to make thereunder have raised questions concerning the status of proceedings pending before us. This status can best be determined in each case upon consideration of the elements disclosed. Without attempting to determine their status according to the classes in which they seem to fall, it may be found helpful if we here indicate certain of the criteria which may properly be applied in making such determination. We are of the opinion that in cases now pending before us, whether heard and submitted or not, in which complaint is made of rates, fares, charges, classifications, regulations, or practices of any common carrier or carriers now under federal control, the Director General of Railroads: 1. Is or may be a proper party defendant where the cause of action accrued wholly prior to federal control, and no order is sought for the future; 2. Is or may be a proper, if not a necessary party defendant where the cause of action accrued in part or in whole during federal control, and no order is sought for the future; 3. Is a necessary party defendant where the cause of action is as to rates, etc., which since the filing of the complaint have been or shall have been increased or changed by order of the Director General under the federal control act, and the relief sought includes an order for the future limiting said rates, etc., or fixing their relationship to other rates, etc. Complainants in such cases desiring to bring in the Director General as an additional defendant should so advise us immediately, and as soon as may be thereafter apply for leave to file supplemental complaint setting forth their cause of action against the Director General. Such application must be made as provided in our forthcoming special rules of practice governing the procedure to be followed in matters growing out of federal control. If granted, the record theretofore made may be supplemented in so far as necessary or appropriate. Failing such application on or before October 1, 1918, unless that time is extended by us for cause shown, complainants will be understood as electing to stand upon the issues as made. Parties will be expected to govern themsevles accordingly, and that part of our announcement of June 20, 1918, which reads: "The dockets in pending cases will be analyzed, and where it appears that doubt exists whether, without amendment or supplemental hearing, the Commission can enter a lawfully effective order, the parties will be so notified." is hereby withdrawn. Cases now pending before us otherwise than upon complaint will be made the subject of a separate announcement should occasion require. Original complaints in new proceedings against the Director General alleging that rates, etc., initiated by him are unjust or unreasonable should name as defendants in addition to the Director General, the carriers not under federal control, and should specify the carriers, or the principal carriers, under federal control, over whose lines the rates, etc., apply. Answer by the Director General will suffice for joinder of issue as to carriers under federal control. The special rules of practice thus far adopted are the following, effective forthwith: SPECIAL RULES OF PRACTICE GOVERNING THE PROCEDURE TO BE FOLLOWED IN MATTERS ARISING OUT OF FEDERAL CONTROL, ADOPTED AUGUST 3, 1918. 1. Except as hereinafter provided, proceedings arising out of federal control will be governed by the Commission's Rules of Practice, in so far as applicable. 2. In cases now pending before the Commission (a) Complainants desiring that the Director General of Railroads be made an additional defendant should apply therefor as soon as may be, and not later than October 1, 1918. Failing receipt of such application within the time specified, complainants will be understood as electing to stand upon the issues as made. (b) The application shall be made by filing a motion in writing that the Director General be brought in as party defendant, and that leave be granted to file a supplemental complaint, which must accompany the motion. The motion shall briefly state the grounds therefor, indicating whether the Director General is regarded as a proper or a necessary party defendant, and whether, if he be made a party defendant, the complainant desires further hearing or further argument. The supplemental complaint shall set forth the material facts which have occurred since filing of the original complaint, and state the alleged cause or causes of action against the Director General. It shall not be necessary in any supplemental complaint to set forth any matters in the original complaint unless the special circumstance of the case may require it. (c) Complaintants must furnish a sufficient number of copies of the motion and supplemental complaint for service upon the existing defendants and interveners and the Director General, together with 12 extra copies for the use of the Commission. The motion will be decided either ex parte or on notice in the discretion of the Commission, and the parties advised. Service will be made by the Commission. (d) The defendants named in the supplemental complaint may within 20 days after service thereof by the Commission file answer thereto, at the same time indicating whether further hearing or argument is desired. 3. Original complaints filed in new proceedings under section 10 of the federal control act, approved March 21, 1918, should name as defendants, in addition to the Director General of Railroads, the carriers not under federal control, and should specify the carriers, or the principal carriers under federal control, over whose lines the rates, fares, charges, classifications, regulations, or practices apply. The complainant must furnish as many complete copies of the complaint as there may be parties defendant to be served, including receivers and operating trustees of carriers not under federal control, as many additional copies for the Director General as there are carriers under federal control specified in the complaint, and not named as defendants, and seven additional copies for the use of the Commission. Service of the complaint will be made by the Commission. 4. Answers must comply with the provisions of Rule IV of the Rules of Practice, but answer made by the Director General on behalf of carriers under federal control will be deemed sufficient to join issue as to those carriers. 5. In special cases and for good cause shown the time specified in the foregoing rules within which some act may be performed may be extended by the Commission. 6. Motions, supplemental complaints, and answers must be typewritten on one side of the paper only, or be printed. In either case they must conform to the specifications of Rule XXI of the Rules of Practice. 7. Intervention may be had by any person under the terms and conditions prescribed in Rule II of the Rules of Practice. |