HENRY D. MCHENRY, August 2, 1878, Chairman.

LUCIUS DESHA, August 2, 1878.

W. H. PETTUS, August 2, 1878.

L. H. HOLLOWAY, August 2, 1878, Secretary.

J. FLETCHER JOHNSTON, September 1, 1880, Chairman.

C. H. ROCHESTER, September 1, 1880.

C. E. KINCAID, September 1, 1880.

LANSING BURROWS, September 1, 1880, Secretary.

D. HOWARD SMITH, 1882, Chairman.



HENRY T. STANTON, 1882, Secretary.

J. P. THOMPSON, 1884, Chairman.

JOHN D. YOUNG, 1884.

A. R. BOONE, 1884 (Died January 27, 1886.)

I. A. SPAULDING, May, 1886 (Appointed to fill unexpired term of A. R. Boone, deceased).

CLARENCE EGBERT, 1884, Secretary.

I. A. SPAULDING, May, 1888, Chairman.

W. B. FLEMING, May, 1888.

JOHN F. HAGER, May, 1888 (Resigned).

GEORGE M. ADAMS, 1891 (Appointed to fill unexpired term of John F. Hager, resigned).

WM. F. GRIFFITH, Secretary.

C. C. MCCHORD, May 24, 1892, Chairman (Resigned).

UREY WOODSON, May 24, 1892.

CHARLES B. POYNTZ, May 24, 1892.

JAMES N. SAUNDERS (Appointed to fill unexpired term of C. C. McChord,


D. C. HARDIN, May 24, 1892, Secretary.

JOHN C. WOOD, December 10, 1895, Chairman.

H. S. IRWIN, December 10, 1895.

J. F. DEMPSEY, December 10, 1895.

S. D. BROWN, December 10, 1895, Secretary.

C. C. MCCHORD, December 12, 1899, Chairman.

JOHN C. WOOD, December 12, 1899.

J. F. DEMPSEY, December 12, 1899.

MURRAY R. HUBBARD, February, 1900, Secretary.

C. C. MCCHORD, December 8, 1903, Chairman (Resigned).

MCD. FERGUSON, December 8, 1903.

A. T. SILER, December 8, 1903.

W. P. WALTON (Appointed to fill unexpired term of C. C. McChord, re


JOHN E. NEWMAN, Rate Clerk, 1906.

MOSES R. GLENN, December 8, 1903, Secretary.

G. H. BOONE, Official Stenographer, 1906.

A. T. SILER, Chairman, December 12, 1907.

MCD. FERGUSON, December 12, 1907, to June 17, 1909 (Deceased).

L. P. TARLTON, December 12, 1907.

JOHN P. HASWELL, JR. (Appointed June 24, 1909; served until December 1, 1909).

LAURENCE B. FINN, December 1, 1909.

ROY WILHOIT, Secretary, December 12, 1907 (Promoted to Rate
Clerk, May 1, 1908).

D. B. CORNETT, Secretary, May 1, 1908.

MINNIE MURPHY, Official Stenographer, December 12, 1907.

LAURENCE B. FINN, Chairman, December 1, 1909.

W. F. KLAIR, December 15, 1911.

H. G. GARRETT, December 15, 1911.

R. TOBIN, Secretary, December, 1911.

W. J. J. PREUSS, Rate Clerk, December, 1911.
B. N. GORDON, Stenographer, December, 1911.






To the Honorable James B. McCreary, Governor of Kentucky:

Section 834 of the Kentucky Statutes provides that the Railroad Commission "shall annually on the first day of December make a report to the Governor of all matters relating to their office of the preceding year and such as will disclose the practical workings of the railroads in this State and such suggestions in relation thereto as they may deem necessary and proper and shall have printed and laid before each Legislature within the first ten days of its session five hundred of their reports for the preceding two years."

Questions of such vital importance to the State were pending at the time that this report should have been filed as to make it impossible to submit the report to your excellency as the foregoing provision required and the Chairman of the Commission reported this fact to your excellency and further time was granted.

The year 1912 was one of the busiest years in the history of the Commission. Many complaints were filed and disposed of by the Commission and a summary of the most important cases heard and decided, together with the opinions and orders of the Commission entered therein accompany this report. Numerous cases have been adjusted without formal complaint or hearing. The work of the Commission is rapidly increasing and the public is beginning to realize the usefulness of this branch of the State government, and are seeking

through it to remedy many conditions heretofore borne for failure to realize the functions of this important department of the State government.

The exact status of State jurisdiction and control in the regulation of public service corporations has not yet been fully determined by the Federal courts. The case mentioned in our last report to you of December 15, 1911, known as the Greenbrier Distillery Company vs. Louisville & Nashville Railroad Company, has not yet been decided by the Supreme Court of the United States. Other Commissions from other States have kindred questions pending in the United States Supreme Court and these have not yet been decided and until the questions involved in these cases are decided the powers and limitations of the State Commissions in the regulation of rates cannot be definitely determined.

A simplified statement of one of the main questions involved may be of some interest. The Federal Constitution provides that Congress shall have the power to regulate commerce between the States, etc. In regulating purely intrastate rates over which State Commissions have exclusive jurisdiction, it frequently happens that to change an intrastate rate indirectly affects a change in some interstate rate, whereupon it is contended by the carriers that the State Commission has exceeded its jurisdiction and encroached upon the power of the Federal government in that the changing of the intrastate rate changes the interstate rate, over which the Federal government has exclusive jurisdiction. If this contention of the carriers is approved by the Federal courts the control by State Commissions of intrastate rates will be extremely limited and inducements will be offered for all carriers to fashion their interstate rates so that any change in the intrastate rates will effect the interstate rate. After this contention is thoroughly established (if it should be) it will be just as plausible for the carriers to contend that the Interstate Commerce Commission has no power to interfere with interstate rates which effect intrastate rates, and the carriers will contend that any order of the Federal Commission which of necessity changes an intrastate rate is beyond its jurisdiction as an interference with a State rate over which the Federal government has no jurisdiction. The one contention seems as tenable as the other and if the Federal Court sustains the

first there is no reason why they should not sustain the latter. In which event a large proportion of the rates existing, both inter- and intrastate could not be interferred with. The present progressive spirit would not allow such a condition to exist very long and it is to be hoped the opinion of the courts will be in line with our scheme of government as fashioned by the founders of our republic and the dual powers of the State and Federal government, maintained in full force and vigor.

In our last report heretofore referred to, we made suggestions concerning needed legislation to further regulate common carriers. Those suggestions were as follows:

"The State of Kentucky has attempted to regulate railroads by statute only to a very limited extent, and so conservative have our people been in the past that it has been an easy task to convince a considerable number that almost any State regulation of railroads would be radical. In many of the States, however, strict government regulation has so long been the established order that the railroads accept such regulation as a matter of course, and no political party could live in those States if it should take a backward step in that matter. But notwithstanding the conservatism of the Kentucky people they have at last awakened to the fact that we are now far behind even the most conservative of the States in the matter of government regulation of railroads, and are demanding a forward step. As crude and imperfect, however, as our present law is, we believe that it is not the part of wisdom to attempt at this time to procure the enactment of an enirely new law for the regulation of railroads, but that we should be content for the present with an amendment of the existing law to the extent that experience has clearly shown it to be defective, and before attempting to procure the enactment of a comprehensive law regulating every detail of railroad operation and management, such as has been enacted in New York, we should await the result of further experience.

"Our statute relating to railroads imposes various important duties for the failure to perform which no penalty whatever is imposed, thus making the statute a dead letter. Sec

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