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The decrease in the number of locomotives inspected during the year is due to the fact that a substantial percentage of the inspectors of locomotives were engaged in special work during most of the year. During November and December, 1917, and January, February, and March, 1918, almost all inspectors were directed to check the congestion at terminals in an effort to see that locomotives were properly furnished so that the coal movement might be facilitated and the fuel shortage relieved. This work contributed materially toward breaking the blockade and expediting the movement of coal and other freight. A number of inspectors of locomotives were permanently transferred to the service of the Director General because of their general knowledge of equipment and their special training in the work of conducting investigations.

The period covered by this report was the most difficult in the history of American railroads in which properly to maintain locomotives. This is primarily due to the war conditions, which made it necessary to use to their maximum capacity all locomotives that were serviceable and to return to service many locomotives that had been out of service for years awaiting disposition, and which in some cases, were put in service without having been thoroughly repaired. Proper maintenance of locomotives was also made difficult by the large number of mechanics who entered military service. The unusual demands for power resulted in the use of many locomotives in violation of Federal laws, no doubt, with the thought that the movement of traffic was being expedited thereby, but the results of this practice. were clearly demonstrated during the past winter.

During the year, 353 applications were filed for extension of time for removal of flues under the provisions of rule 10. Investigation showed 18 of these locomotives in such condition that no extension could properly be granted. Forty-two were in such condition that the full extension requested could not be granted, but an extension for a shorter period was allowed. Thirteen extensions were granted after defects disclosed by our inspectors had been repaired. Sixty-two applications were withdrawn for various reasons, and the remaining 218 were granted for the full period asked for. It will be noted that the number of applications for extension of time for removal of flues decreased about 50 per cent.

As provided in rule 54, 3,124 specification cards and 8,080 alteration reports were filed.

The locomotive headlight case, which has been pending for approximately three years, was finally disposed of June 7, 1918, by the withdrawal by the complainant and at the complainant's cost of bill in equity No. 226, United States District Court, District of Indiana, New York Central Railroad Company v. United States, in which it was sought to restrain the Commission from making an order prescribing a test which headlights must meet.

BUREAU OF VALUATION.

It was stated in our report for the year 1917 that the field work of the engineering section would be completed during the year 1919. While the war has interfered with the prosecution of this work to a greater degree during the current year than before, it is still hoped that this limit can be met. From October 1, 1917, to September 30, 1918, our road and track parties covered 53,244.56 miles of main line and 81,469.73 miles. of all tracks, which was in excess of any previous year. Some districts will finish slightly in advance of others, but it is still believed that our engineering field work can be substantially accomplished by January 1, 1920.

Our last report stated that the office work of the engineering section should be finished during the year 1920, but in view of the experience of the current year that statement must be somewhat modified. The effect of the war upon the office forces has been much more serious than in the field. For some reason it has been more difficult to maintain the integrity of that force, it having several times happened that more than 25 per cent of the office employees in a given district have changed during a single month. It is impossible to predict just what the effect of this will be, butunless conditions become worse, not much additional time will be required.

Our land section has not seriously felt, either in the field or the office, the effect of the war, but that section can not produce completed reports until certain information is received from the carriers as to their lands; and inability to obtain this has limited the progress of this section. At the present time carriers are doing fairly well in this respect and it is expected that this section will complete its work within the year 1920.

The greatest difficulty has been experienced by our accounting section in obtaining and retaining competent accountants owing to demands for this kind of service both by the Government and by private enterprises. The needed information can be readily collected from the books of the carriers, but it is difficult to find men who are competent to put this into the form of a completed report. The field work of this section will be finished in the first half of the year 1920, but there may be some delay in the preparation of final reports.

Attention is again called to the fact that, owing to the failure of carriers to furnish necessary information as to their equipment, and especially as to their lands, it is found necessary to stop work upon particular properties and proceed with other properties. To-day the work of the bureau in all branches is well advanced upon every considerable road in the country and is approaching completion. upon many of the most important, but reports have been delayed

by the lack of this information. Carriers did not realize at the outset the difficulties involved in compiling the original cost of their lands and unreasonably delayed the beginning of that work.

On the whole it is believed that while the war has seriously affected this work it will not greatly postpone the period of final completion nor increase the total expense.

Reports in the first contested cases which were exhaustively presented, in which the methods and principles employed have been stated, have been transmitted to Congress for its information. The methods and principles there stated are being applied to valuations now before us and will be followed in the further progress of our work.

STANDARD TIME ZONE INVESTIGATION.

By the act of Congress approved March 19, 1918, entitled "An act to save daylight and to provide standard time for the United States," we were directed to define by order the limits of the standard time zones provided by that act, having regard for the convenience of commerce and the existing junction points and division points of common carriers engaged in commerce between the several states and with foreign nations.

But 11 days intervened between the approval of the act and the last Sunday in March, 1918, when the act required that the standard time in each of the zones fixed should be advanced one hour. The interval of time being wholly insufficient for the detailed examination requisite to the prescribing of the limits of the several zones in the manner required by the law, an interim order was entered by us which, in effect, fixed the limits of the United States standard eastern, centrál, mountain, and Pacific time zones as those within which as to each common carrier, locality, body politic, public authority, or person, natural or artificial, subject to the act and affected thereby, the times known as eastern, central, mountain, and Pacific time were observed and used, respectively.

Immediately a comprehensive investigation was commenced by us upon our own motion in order that the limits of each zone might be defined with some assurance of permanency, with regard to the convenience of commerce and the existing junction points and division points of interstate common carriers. Wide publicity was given to the proceeding, and public hearings were held throughout the country. Tentative limits of the four zones were indicated in a proposed report which was furnished to each railroad, the Director General of Railroads, the governors of the states, and to the mayors of more than 250 cities which were thought to be affected by the changes in zone limits proposed. Upon consideration of the exhaustive record the Commission has by order prescribed the limits for the first four zones, effective January 1, 1919, 51 I. C. C., 273,

The adjustment accomplished leaves 32 states intact and 4 other states practically wholly within the limits of a single time zone, and has considerably lessened the number of time-breaking points of interstate carriers.

The act provides that the standard time of the fifth zone, which shall include only Alaska, shall be based upon mean astronomical time of the 150° of longitude west from Greenwich, and shall be known and designated as United States standard Alaska time. Representations were made to the Commission to the effect that the mainland of Alaska extends from approximately 130° to 168' west of Greenwich which, translated into time, is more than two and one-half hours. As interpreted by us, the act of Congress did not vest any discretion in the Commission as to the standards of time to be observed in Alaska and the remedy for the situation rests with Congress. We have also interpreted the act as applicable only to "the territory of continental United States" and, therefore, as not controlling in the Hawaiian Islands.

STATEMENT OF APPROPRIATIONS AND EXPENDITURES AND OF PERSONS EMPLOYED BY THE COMMISSION.

Statement of appropriations and aggregate expenditures for the Interstate Commerce Commission for the fiscal year ended June 30, 1918.

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Sundry civil act of June 12, 1917-For all other authorized expenditures necessary in the execution of laws to regulate commerce:

General.

Deficiency act of June 4, 1918....

Repayment on account of stores furnished to the rail

road administration.....

1, 100, 000. 00
60,000.00

7,537.93

Sundry civil act of June 12, 1917-To further enable the Interstate Commerce Commission to enforce compliance with section 20 of the act to regulate commerce as amended by the act approved June 29, 1906, including the employment of necessary special agents or examiners.. Sundry civil act of June 12, 1917-To enable the Interstate Commerce Commission to keep informed regarding compliance with acts to promote the safety of employees and travelers upon railroads, investigation and testing of block-signal and train control systems, and the investigation of hours of service, including the employment of inspectors....

Sundry civil act of June 12, 1917-For the payment of all authorized expenditures under the provisions of the act of Feb. 17, 1911, "To promote the safety of employees and travelers upon railroads by compelling common carriers engaged in interstate commerce to equip their locomotives with safe and suitable boilers and appurtenances thereto❞

1, 167, 537.93

300,000.00

250,000.00

225,000.00

Sundry civil act of June 12, 1917-To enable the Interstate Commerce Commission to carry out the objects of the act approved Mar. 1, 1913, providing for the valuation of the several classes of property of carriers:

Valuation.

Repayment on account of stores furnished to the

railroad administration....

$3,500,000.00

358.04

Sundry civil act of June 12, 1917-Five and ten per cent increase of compensation, Interstate Commerce Commission...

Total.....

Amounts expended under appropriations for the fiscal
year ended June 30, 1918:

As salaries to Commissioners and secretary.
All other authorized expenditures...

Examination of accounts, act approved June 29, 1906.
Safety appliance, block-signal, and hours of service..
Locomotive inspection, act approved Feb. 17, 1911..
Valuation.....

Increase of compensation...

Unexpended balance of appropriations:

As salaries to Commissioners..

All other authorized expenditures from general appro-
priation...

Examination of accounts, act approved June 29, 1906.
Safety appliance, block-signal, and hours of service...
Locomotive inspection, act approved Feb. 17, 1911..
Valuation.....

Total..

$86, 888.89

1, 145, 705. 23

273, 630.80

239, 055.39

210, 389.81

3, 384, 444. 31

132, 412. 49

-$3,500, 358.0

132, 412. 4

5, 666, 975. 12

5,472, 526.92

4, 777.77

21, 832.70

26, 369.20

10, 944. 61

14, 610. 19

115, 913. 73

194, 448. 20

5,666, 975. 12

A detailed statement showing the names of employees and expenditures for the fiscal year ended June 30, 1918, constitutes Part II of this report.

WINTHROP M. DANIELS, Chairman.

EDGAR E. CLARK.

JAMES S. HARLAN.

CHARLES C. MCCHORD.

BALTHASAR H. MEYER.

HENRY C. HALL.

CLYDE B. AITCHISON.

ROBERT W. WOOLLEY.

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