DAN. W. JONES,

Governor of the State of Arkansas:

In compliance with section 28 of an act of the Legislature of the State, entitled, “An act to provide for the regulation of railroad freight and passenger tariffs in this State, to prevent unjust discrimination and extortion in rates charged for the transportation of passengers and freight, and to prohibit railroad companies, corporations and lessees in this State from charging other than just and reasonable rates, and to punish the same, and prescribe a mode of procedure and rules of evidence in relation thereto; and to appoint Commissioners and to prescribe rules for their government and define their powers and duties in relation to same." Approved March 11, 1899.

We beg to submit the following report of the work of the Commission:

ORGANIZATION.

On March 18, 1899, at their office in the city of Little Rock, Arkansas, the Commissioners qualified and or

ganized the Commission by electing Hon. Robert Neill, one of their number, Chairman of the Commission.

Charles S. Collins was elected Secretary, at a salary of $1500.00 per annum, and James M. Collins elected Stenographer at a salary of $1000.00 per annum. During the months of May, June and July, W. J. Watson was employed a portion of the time at a salary of $4.00 per day to assist in arrangement.

August 9, 1899, E. G. Connelley was employed as Rate Clerk, at $100.00 per month for first fractional month, and $105.00 for month of September, and thereafter $125.00 per month for each subsequent month.

James M. Collins, Stenographer, resigned September 1, 1900, and June P. Wooten was elected in his stead.

HON. ROBERT NEILL, CHAIRMAN, RESIGNED.

December 1, 1899, the Hon. Robert Neill, Chairman, who had in many respects been a valuable man to the Commission, resigned the office of Commissioner, and Hon. Felix M. Hanley was appointed and qualified in his stead, and the Hon. Henry W. Wells, one of the undersigned Commissioners, was elected Chairman of the Commission, made vacant by the resignation of the Hon. Robert Neill.

PRELIMINARY DUTIES.

After the Commission organized, it found the act creating and defining the powers and duties of the Commission so defective in certain essentials that it would be impossible for the Commission to perform its functions without additional legislation. We, therefore, prepared a supplemental bill, which was amended by the Legislature and passed April 15, 1899.

No appropriation was made by the Legislature for the Commission until April 19, 1899, and after that, in

the nature of things, it required a month's time to furnish and equip offices and get upon a working basis. The working life of the Commission is now about one year and seven months.

We first addressed our attention to soliciting from all the States which had Commissions their annual reports to guide us in our operations; what was to us an untried field.

We then took steps to secure the rate sheets of every railroad in the State, and to ascertain and apply the very best form for filing and indexing them in permanent form as a record upon which to base whatever the Commission might later on do, when in possession of information necessary to act intelligently. All this was a great task embracing many details.

It devolved upon us to learn the published rates of the roads, for how could the Commission judge of the reasonableness of their rates unless it knew what their rates were. Another object was to hold rates stable and prevent discrimination between shippers until the Commission could revise the rate sheets of the railroads. The Commission, therefore, made an order adopting the rate sheets of the railroads for the time being, requiring strict observance to the same. This order also served as a test of the reasonableness of the then existing rates and of the prior practices of the roads. While the Commission had no knowledge of the fact, it was rumored that, in many instances, the roads were not adhering to their published rates, but that they were giving special rates to influential shippers and favored localities. The Commission knew if such was the case the above order would bring it to light. It was not disappointed. When beneficiaries of the old order of things applied to the roads for cut rates, they were told by the division freight agent