the corresponding number for 1935. The number of passengers on trains killed in 1936 was 17, or one less than in 1935. Of these, seven were killed in collisions or derailments in 1936 while no passengers were killed in this manner in 1935. Fatalities to employees on duty, including nontrain, numbered 555 in 1935 and 669 in 1936, an increase of 114 or 20.5 percent. This was relatively greater than the increase in the number of locomotive miles and motor-train miles of 11.7 percent and also relatively greater than the increase in the number of man-hours of 12.4 percent. The number of trespassers killed in 1936 was 2,738, which was approximately 1 percent greater than in 1935, but 3.1 percent less than in the peak year, 1933. The number of trespassers injured in 1936 was over 11 percent less than in the preceding year.

An interesting feature of the 1936 accident reports is the much greater increase in the number of injuries of employees than in the number of fatalities. This is probably the result of the more complete reporting of minor injuries as a result of special effort to secure complete reports, an effort in which the Association of American Railroads is cooperating. Under rules in force in 1937, 12,055 injuries to employees on duty were reported as causing a disability for more than 3 days, 7,721 with a disability beyond the day of the accident but not over 3 days, and 1,441 additional that caused no disability beyond the day of the accident but which involved amputation, fracture, impairment of vision, or some permanent injury.

In the first half of 1937, the number of fatalities from railway accidents to all classes of persons corresponding with the total of 5,174 given above was 5.4 percent greater than in the first half of 1936, while for employees on duty the increase was 16.1 percent.

The financial results of operations and changes in traffic and employment have been reviewed in a previous section of this report. A summary of selected railway statistics will be found in appendix C.

BUREAU OF TRAFFIC

The functions of the Bureau of Traffic have been described in our previous reports. (See Forty-fifth Annual Report, pp. 63–64.)

During the past year this Commission entered into a working arrangement with the United States Maritime Commission under which each Commission undertakes to inform the other of requests for suspension of carriers' proposed rate changes and applications for authority to make such changes upon short notice where competition of carriers subject to the jurisdiction of the other Commission appears to be a factor of material importance. In this connection provision is made for consultation, where time permits and circumstances warrant, between representatives of this Bureau and of the Division of Regulation of the United States Maritime Commission charged with the duty of developing the facts and making recommendations to the

respective Commissions with respect to such matters. The arrangement permits a more complete development of the factual situation as affecting each such competing form of transportation and the exercise of a more broadly informed judgment than would be possible without such cooperative handling. The final action in all instances, however, represents the independent action of the Commission having jurisdiction.

Data covering particular activities of subdivisions of this Bureau during the year are shown below.

SECTION OF TARIFFS

There were filed 96,980 tariff publications containing changes in freight, express, and pipe-line rates, passenger fares, and freight classification ratings. In addition thereto, 612 publications were received for filing, but were rejected for failure to give the notice required by the statute. Powers of attorney and certificates of concurrence filed aggregated 14,318. Applications received seeking special permission to establish rates or fares on less-than-statutory notice or waiver of certain of our tariff-publishing rules numbered 8,599. Specific orders were entered granting 7,833 and denying 729 of these applications. The remainder were disposed of otherwise. Correspondence relating to tariff construction in accordance with our rules and regulations promulgated under section 6 of the act consisted of 24,259 letters received and 20,430 letters written. For our own use, as well as for the use of other branches of the Government and of shippers, 3,291 rate memoranda were prepared. Our duplicate tariff file has been maintained for the use of the public.

SUSPENSIONS

Rate adjustments were protested and suspensions asked in 428 instances, an increase of 36 over last year. Of these protested adjustments, 152 represented reductions, 233 represented increases, 31 represented both increases and reductions, and 12 neither increases nor reductions. They covered not only a large number of rate schedules but many thousands of rates.

The following action was taken on the requests for suspension: Suspended (including supplemental orders).

163

Refused to suspend---

180

Schedules rejected, requests for suspension withdrawn, or protested schedules withdrawn_.

85

On this number, 131 were disposed of, a decrease of 3 under last year, 76 after formal hearing and report, and 55 through informal proceedings without report.

THE FOURTH SECTION

The number of applications was 543. The number of orders entered in response to applications was 544, of which 55 were denial orders, 286 were orders granting continuing relief, and 203 were orders authorizing temporary relief. One hundred and eighty-five formal reports were issued.

Applications withdrawn, wholly or in part, after correspondence with carriers, numbered 25; and 131 applications or portions thereof were heard in fourth-section proceedings.

The number of petitions for modification of orders was 413, of which 368 were granted, 19 were denied, 4 were withdrawn, and 22 are still pending.

The only applications filed under the 1910 amendment to the fourth section which have not been disposed of involve a jurisdictional question with respect to international rates.

CLASSIFICATION

The table below shows the progress that has been made in unifying the less-than-carload and any-quantity ratings in the official, southern, and western freight classifications since 1919 when publication of those classifications, which had theretofore been entirely separate, was combined in the so-called Consolidated Freight Classification. It will be observed that unification of the ratings has proceeded quite rapidly in the past 10 years. This is due largely to the fact that, pursuant to our findings in Southern Class Rate Investigation and Western Trunk Line Class Rates, through class rates were established between southern and official territories in 1928 and between official and western trunk-line territories in 1931. The rates between official and southern territories are governed by the southern classification while those between western trunk line and official territories are governed on west-bound traffic by the western and on east-bound traffic by the official classification. Formerly the rates for such interterritorial traffic were made by combining the separately established rates to and from the border of official territory. Although the combination method of assessing freight charges operated, as we found in the two proceedings referred to, as an unwarranted barrier to interterritorial traffic, nevertheless the establishment of through interterritorial class rates was productive of numerous rate maladjustments at border points by reason of the lack of uniformity in the ratings in the three classifications. As will be seen from the table,

these maladjustments have now been largely corrected on traffic moving under less-than-carload or any-quantity rates.

Of the tariff publications filed, 1,661 represent changes in express rates and classification ratings. Of the applications received seeking special permission to establish rates on less-than-statutory notice or waiver of certain of our tariff-publishing rules, 46 related to express

rates.

RELEASED RATES

There were filed five applications for authority, under section 20 (11) of the act, to establish rates dependent upon declared or agreed values. Of these, four were granted and one was withdrawn by the applicants. The one application pending at the time of our last report was withdrawn.

BUREAU OF VALUATION

During the year here under review the Bureau of Valuation has been engaged principally in meeting requests for valuation exhibits and analyses to be filed in proceedings for the reorganization of railroads under section 77 (b) of the Bankruptcy Act, and in the valuation of oil pipe lines. It has complied with calls for valuation exhibits, records, and analyses in connection with rate and service proceedings. The Bureau has continued its work of bringing inventories and records to date and keeping them current in compliance with the requirements of section 19a (b), paragraph fifth (f) of the act as amended June 16, 1933. This requires the Commission to keep itself informed of all new construction, extensions, improvements, retirements, and other changes in the condition, quantity, use, and classification of the property of all common carriers as to which original valuations have been made, and of the cost of all additions and betterments and of changes in the investment, with further pro

vision that the Commission may keep itself informed of current changes in costs and values in order that at all times it have available the information deemed by it to be necessary to enable it to revise and correct its inventories, classifications, and values of the property. Under this direction the Commission, through its Bureau of Valuation, has established and maintains continuous inventories and records which are properly checked, and which enable the Bureau on short notice to report standard "elements" specified in the act and recognized by courts, such as original cost, cost of reproduction new, cost of reproduction less depreciation, value of lands and rights, and determination of proper working capital. Conforming to the requirements of section 19a of the law, the Commission, through the Bureau, keeps up the history of corporate and financial affairs of the various carriers. As during the preceding year, the Bureau has continued to concentrate on the property and records of carriers involved or most likely to become involved, in receivership or in reorganization proceedings under the Bankruptcy Act.

Reorganization reports.-The seventy-fourth Congress amended the Bankruptcy Act by providing that in proceedings for the reorganization of railroads under section 77 the Commission may direct any of its agencies to file reports which shall be prima facie evidence, covering data with reference to property, business, earnings, and corporate organization of the debtor; and may call on such agencies to furnish aid in determination of plans and formulas for allocating earnings. It further provided that if it shall be necessary to determine the value of any property for any purpose under the section, the Commission shall determine such value and certify the same to the court in its report on the plan; and that the value shall be determined on a basis which shall give due consideration to earning power and all other relevant facts and only such effect shall be given to the present cost of reproduction new and less depreciation, original cost, and the actual investment as may be required under the law of the land.

During the year the Bureau of Valuation carried a heavy program of work under the provisions of the amendment to the Bankruptcy Act which became effective August 27, 1935. It has prepared exhibits covering railroads and systems of railroads aggregating 25,413 miles of main line; a total of 56 companies having 39,312 miles of all tracks. As of the close of the reporting year here covered, the total mileage of railroads thus covered is raised to 52,850. There are 88 corporations involved and their tracks total 78,755 miles. The totals for these properties show: original cost $3,747,923,149; cost of reproduction new $4,234,336,639; cost of reproduction less depreciation $2,888,066,266; value of lands and rights $463,033,786; and