Had the state been ably and honestly represented in this manner in the past, it is almost certain that the history of our land grants would to-day present a very different record.

A COMMISSION WITH ADEQUATE POWERS.

It is manifest that if the policy of state supervision of railways is to have permanency, it should also have efficiency. And it is no less manifest that there can only be efficiency where there is unity of purpose and sufficiency of authority.

Your present commissioners do not covet added powers. Every personal consideration would lead them to an avoidance of increased responsibility. But they cannot honestly and fully discharge their duty to the state, as they understand it, without pointing out what their investigations have led them to regard as absolutely essential to success in working out a practical solution of the transportation question.

It has appeared in the foregoing discussion that specific rates of charges fixed by any authority independent of the railway companies who have the responsibilities of management, are everywhere X found to be impracticable that statutory provisions for the control of a business so intricate, and involving such an infinite variety of particulars, must of necessity be practically worse than useless unless broad and general in character, compelling observance of established principles, rather than imposing regulations for all the details of practical operations. It is no less manifest that any department or board charged with duties in this behalf should not only be charged with the general enforcement of all laws designed to protect the transportation interests of the public, but should have the exercise of reasonable discretionary authority to apply such laws with the nearest possible approach to equal justice to all the interests involved.

SUMMARY OF CONCLUSIONS.

Having thus completed as full and careful a survey as possible of the whole field of inquiry, your commissioners present the following summary of the more important conclusions they have formed:

The only form of railway control likely to prove successful under present conditions, is the legislative, supplemented by direct supervision; the legislature laying down general rules of action, but 91⁄2-R. R.

leaving the application and enforcement of those rules to a commission. A judicious application of this method requires

1. A determination, by the commissioners, of the actual cash value of each railroad; such value not to be greater than the actual cost thereof, and the valuation subject to legislative revision.

2. An annual determination of the gross and net earnings of each company, from the reports of companies, by actual inspection of books and affairs, and by all other practicable methods.

3. A division of roads into two classes: the first class including all roads paying a reasonable compensation on valuation, and the second class including all other roads.

4. A maximum of rates of fare and freight for roads ascertained to belong to the first class; such maximum being subject to legislative revision.

5. No restriction of earnings upon roads of second class, except by way of remedying unjust discriminations.

6. A prohibition of unjust discriminations and unreasonable or excessive rates on all roads; any person complaining of discrimination or extortionate charges having the right of appeal to the board of commissioners, under such rules as to evidence of facts as the commissioners may determine; the board determining the fact of discrimination on evidence and notice to both sides, and its conclusiors to be prima facie evidence as to fact of discrimination, or of unreasonable charges.

7. Additional police regulations, especially as to running connections, and the passage of freight from one road to another.

8. Limited power of the commissioners to require repair of roads, improvement of roads or rolling stock, and increased accommodations for passenger travel.

9. Full and complete publicity of rates of fare and freight.

10. Publicity of all important contracts and agreements between railway companies, and of their business transactions generally.

11. Greater uniformity and completeness of accounts, as well as greater fullness and frequency of reports.

12. Adequate penalties for the falsification or concealment of earnings and expenditures, or other facts.

13. Efficient means for the prompt enforcement of all provisions of the law, at the expense of the state.

Respectfully submitted,

JOSEPH H. OSBORN,
GEORGE H. PAUL,
JOHN W. HOYT,

OFFICE OF THE RAILROAD COMMISSIONERS,

MADISON, January, 1875.

Commissioners.

OFFICIAL PAPERS

OF THE RAILROAD COMMISSIONERS, WITH PORTIONS OF

THEIR CORRESPONDENCE.

[CIRCULAR NO. 3]

CLASSIFICATION OF ROADS AND RATES OF FARE AND
FREIGHT.

OFFICE OF RAILROAD COMMISSIONERS,

MADISON, May 14, 1874.

To any individual, company or corporation, owning, operating, managing or leasing any railroad or part of a railroad in the state of Wisconsin:

NOTICE IS HEREBY GIVEN by the undersigned, Railroad Commissioners for fro the state of Wisconsin, appointed in pursuance of chap. 273 of the general laws of said state, approved March 11, 1874, that the following classification

76424,7=

of railroads, classification of freights, maximum rates of fare, and maximum 24,7 rates of freight, have been established by law, and by said commissioners, in pursuance of authority conferred upon said commissioners by said act.

CLASSIFICATION OF ROADS.

CLASS A.-All railroads or parts of railroads, in the state of Wisconsin, now owned, operated, managed or leased, either by the Milwaukee and St. Paul Railway Company, the Chicago and Northwestern Railway Company, or the Western Union Railway Company.

CLASS B.-All railroads, or parts of railroads, owned, operated, managed or leased by the Wisconsin Central Railway Company, the Green Bay and Minnesota Railway Company, or the West Wisconsin Railway Company. CLASS C.-All railroads, or parts of railroads, in this state, not herein before enumerated.

CLASSIFICATION OF FREIGHT.

All freights hereafter transported upon any railroad, or part of railroad, in this state, are divided into four general classes, to be designated as First, Second, Third and Fourth Classes, and into seven special classes, to be designated D, E, F, G, H, I, J.

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