The limitations of our powers needed also careful consideration. These limitations are found in the constitution of the United States and of this State; in the charters of the railroad companies and in the act itself. Both the constitutions inhibit any interference with the chartered rights of railroads. "Freight which comes from or goes beyond the boundaries of the State" is by the act itself in express terms excepted from the control of the Commissioners. Thus extra-State commerce is excluded from our jurisdiction, except that its rates shall not exceed the local freights fixed by the Commission. This exception is very large, including at one stroke all imports and all exports. It does not, however, apply to passenger rates, nor affect the power of the board over joint rates within the State. The regulations established by the Commission, under the law, are enforced by ample penalties to the State and damages to individuals—so stringent that the board feels a deep sense of responsibility and anxiety for the just exercise of powers so large and enforced by such penalties. In the report of the Wisconsin Commissioner, we observe that his powers are felt to be inadequate to his duties; he is to make brick without straw; quite the reverse in many particulars in our case. There is no sense of weakness, but rather of anxiety in the use of large powers -positive; not merely negative, which, like thumbscrews, take a power

One good result is that the railroads will perceive the advantages, and
more fully and readily appreciate the necessity of such bookkeeping as
really throws most light on their own operations. We are now earnestly
engaged in this difficult work on which really the whole railroad problem
hinges. A Circular will be shortly issued for temporary use-and there-
after a more carefully prepared method be recommended.

The most important rule adopted by the Commission and the most far-
reaching in its consequences in the prevention of unjust discrimination is
Rule No. 6, by which discrimination is prevented as between communities
as well as between individual customers.

We have as yet scarcely assailed those parts of our duty which em-
brace joint rates, contracts between railroads, the condition of the railroads
themselves, needed legislation, and the like. All these duties we will
enter upon as soon as the first and chief duty is done, and embrace results
in our next report.

We have the honor to be very respectfully yours,

JAMES M. SMITH,
CAMPBELL WALLACE,
SAMUEL BARNETT,
Railroad Commissioners of Georgia.