The inventory is made by valuation sections. No valuation section extends across a State line. If, therefore, all valuation sections in a given State are summarized, the summary exhibits the total fixed property found in that State and the various inventories exhibit the details of that property. Overheads reckoned in percentages, as previously described, are applied by valuation sections and are embraced in the summary so that the total cost of reproduction new and reproduction less depreciation is given by States. THE LAND SECTION The land section inventories and appraises as of date of valuation, all lands and rights in lands held by the carriers, and keeps a record of subsequent changes occurring in such properties. This section also classifies the lands as to the character of use. The act requires that lands "owned or used for the purposes of a common carrier" shall be classified as carrier. The word "owned" does not necessarily refer only to lands which are owned by a carrier and used by it or some other carrier for transportation purposes, but also to lands which have not been in fact devoted to common-carrier use provided the public use is imminent. It sometimes happens that the amount of land which is devoted by the carrier to a particular use appears to be excessive but if the land is presently used for carrier purposes the reasonableness of the extent is not questioned. Only in very plain cases would the limits fixed by the carrier be changed. It is evident that while certain general rules may be laid down for the classification of lands between carrier and noncarrier use, much depends upon the circumstances of each individual case. The rule with us in classifying carrier lands has been much the same as is the rule of the courts in permitting the condemnation of lands for carrier purposes. Carrier lands.-The valuation act requires the Commission to state the original cost and the present value of all` carrier lands. The ascertainment of original cost is a function of the accounting section, discussed hereinafter. Present value as reported is nearly synonymous with market value. What is done is to ascertain the area of carrier land, to determine the market value of similar land adjoining or in the immediate vicinity per acre or other unit and to apply that price to the area. For the purpose of determining this present value the land section sends into the field its land appraisers, who make a personal inspection of the property and ascertain certain facts which bear upon the value. The property is first divided into zones, and each zone contains lands of substantially similar character and value. The appraiser having laid out his zone next proceeds to determine the market value of adjoining and adjacent lands. For this purpose he collects all recent sales, leases, and other conveyances which he can find of similar lands in the immediate vicinity. He also ascertains the assessed value of such lands and finally takes the opinion of different classes of well-informed persons as to such value. From a consideration or all these sources of information he reaches his conclusion as to the unit of market value. Often the reported market value is substantially different from the original cost as found and reported by the accounting section. Rights-of-way-No attempt is made to appraise easements for right-of-way purposes in terms of the values of adjoining lands. For rights-of-way the costs borne by the carriers in their acquisition are considered the best evidence of their value; such costs are reduced by the amount thereof assignable to the expired service life of the right-of-way on date of valuation. THE ACCOUNTING SECTION The Commission's accountants deal with the records of the carrier, and the report of that section embraces everything called for by the act which is derived from an examination of the books of account and other records and documents. After the basic original cost and other data have been determined, the accounting section has supervision over the examination and auditing of all units of property and their costs pertaining to new construction, extensions, retirements, classi-. fications, or other changes reported by carriers under the requirements of supplement No. 8 to valuation order No. 3, second revised issue. Among the subjects. handled, one of the most important is original cost to date. Original cost to date. The act requires the Commission to ascertain and report the original cost to date of the property owned or used by every common carrier subject to the act. For reasons stated in appendix 3 to our report in Texas Midland R., Valuation, 75 I. C. C. 1, we were generally unable at the time of the basic valuations to ascertain the original cost of railroad properties. Owing to the more recent construction of carriers by pipe line and our requirements for the recording of expenditures made by them, the investment in and original cost of the properties of common-carrier pipe-line companies can be and has been ascertained. The amounts reported for investment and original cost are determined from examination of their records of the cost of the property in existence on the basic valuation date, and subsequent changes reported under requirements of supplement No. 8 to valuation order No. 3, second revised issue, and the carrier's returns under valuation order No. 28, with such adjustments of the recorded costs as are required to bring them into conformity with our Uniform System of Accounts for Pipe Lines. While some items of property, the cost of which is included in our statements of investment and original cost, do not depreciate others wear out in service or become obsolete. Thus the original cost as determined represents, in part, property a portion of the service life of which has expired. Aids, gifts, grants, and donations.-Carriers are required to file a return showing all aids, gifts, grants, and donations. The books and records of the carriers. are examined by the accountants in the light of this return and whatever they disclose is developed and reported. Corporate and financial history.-The date of organization of each corporation, what property was constructed by it, what became of that property and of the corporation itself is reported. The report of the accountant gives a complete picture of the corporate growth of the system from the beginning down to the date of valuation. In the same connection a full statement is made of all issues of stocks and bonds by each corporation, together with an account of the consideration either in money or in property which was paid for the same. The means resorted to by the carrier for the providing of its funds, the amounts paid in the way of discounts, and, indeed, everything connected with the financial history is fully shown. It will be seen that the accountant develops whatever facts are contained in the records of the carrier, and it is believed that the facts thus developed are of great significance in exhibiting what may be termed the financial equities of each case. REASONS FOR THE DIFFERENCES BETWEEN VALUES The Commission is required by the act to report not only an analysis of the methods by which the several cost values are obtained but also the reasons for their differences, if any. From what has been stated in this analysis of methods, it must be clear that the reasons for the differences in amount between the various cost values reported, i. e., the original cost to date, the cost of reproduction new, and the cost of reproduction less depreciation, are to be found in the essential differences in the nature of the inquiries which must be made in order to ascertain each of those cost values, respectively, based as they are and must be on varying assumptions, attended by varying conditions in which the actual and the hypothetical are contrasted, and affected by fluctuations and trends in the prices of labor and materials. Sec. TITLE 49. TRANSPORTATION CHAPTER 2.-LEGISLATION SUPPLEMENTARY TO INTERSTATE COMMERCE ACT 41. Liability of corporation carriers and agents; offenses and penalties. 42. (1) Liability of corporation common carriers; offenses; penalties; jurisdiction. (2) Liabilities for acts of agents; departure from published rates. (3) Receiving rebates; additional penalty and recovery thereof. Parties included in proceedings to enlorce law. 43. Proceedings in equity to enforce tariffs, etc.; United States attorneys; damages; witnesses; precedence. 44. Expedition of actions by United States involving general public importance. 45. Appeals to Supreme Court. 46. Self-criminating testimony; perjury; refusal to testify. 48. Immunity extended to natural persons only. 49. Mandamus to obtain equal facilities for shippers. 50. Agent in Washington for service; service in default of designation. 51. Proceedings relating to rail and water routes; orders. 52. Railroads to serve employees in valuation work; compensation. 53. Exception to law prohibiting free transportation. 54. 55. 56. Repealed. Policy in making rate adjustments; investigation of rates authorized. Repealed. 37. Auditing accounts of Commission. 58. Repealed. 59. Drought relief rates; carrier protected upon compliance with request of Federal agent. 60. Divesting prison-made goods of interstate character. 61-64. Repealed. 65. Government traffic: rates. 65a. Same; readjustment of fares, rates, and charges to shippers. 66. 67. Same payment for transportation for Government; deduction of overpayments. Transferred. § 41. Liability of corporation carriers and agents; offenses and penalties—(1) Liability of corporation common carriers; offenses; penalties, jurisdiction Anything done or omitted to be done by a corporation common carrier, subject to chapter 1 of this title, which, if done or omitted to be done by any director or officer thereof, or any receiver, trustee, lessee, agent, or person acting for or employed by such corporation, would constitute a misdemeanor under said chapter or under sections 41, 42, or 43 of this title, shall also be held to be a misdemeanor committed by such corporation, and upon conviction thereof it shall be subject to like penalties as are prescribed in said chapter or by sections 41, 42, or 43 of this title, with reference to such persons, except as such penalties are herein changed. The willful failure upon the part of any carrier subject to said chapter to file and publish the tariffs or rates and charges as required by said chapter, or strictly to observe such tariffs until changed according to law, shall be a misdemeanor, and upon conviction thereof the corporation offending shall be subject to a fine of not less than $1,000 nor more than $20,000 for each offense; and it shall be unlawful for any person, persons, or corporation to offer, grant, or give, or to solicit, accept, or receive any rebate, concession, or discrimination in respect to the transportation of any property in interstate or foreign commerce by any common carrier subject to said chapter whereby any such property shall by any device whatever be transported at a less rate than that named in the tariffs published and filed by such carrier, as is required by said chapter, or whereby any other advantage is given or discrimination is practiced. Every person or corporation, whether carrier or shipper, who shall, knowingly, offer, grant, or give, or solicit, accept, or receive any such rebates, concession, or discrimination shall be deemed guilty of a misdemeanor, and on conviction thereof shall be punished by a fine of not less than $1,000 nor more than $20,000: Provided, That any person, or any officer or director of any corporation subject to the provisions of sections 41, 42, or 43 of this title or of chapter 1 of this title, or any receiver, trustee, lessee, agent, or person acting for or employed by any such corporation, who shall be convicted as aforesaid, shall, in addition to the fine herein provided for, be liable to imprisonment in the penitentiary for a term of not exceeding two years, or both such fine and imprisonment, in the discretion of the court. Every violation of this section shall be prosecuted in any court of the United States having jurisdiction of crimes within the district in which such violation was committed, or through which the transportation may have been conducted; and whenever the offense is begun in one jurisdiction and completed in another it may be dealt with, inquired of, tried, determined, and punished in either jurisdiction in the same manner as if the offense had been actually and wholly committed therein. (2) Liabilities for acts of agents; departure from published rates In construing and enforcing the provisions of this section, the act, omission, or failure of any officer, agent, or other person acting for or employed by any common carrier, or shipper, acting within the scope of his employment, shall in every case be also deemed to be the act, omission, or failure of such carrier or shipper as well as that of the person. Whenever any carrier files with the Interstate Commerce Commission or publishes a particular rate under the provisions of chapter 1 of this title or participates in any rate so filed or published, that rate as against such carrier, its officers or agents, in any prosecution begun under sections 41, 42, or 43 of this title, shall be conclusively deemed to be the legal rate, and any departure from such rate, or any offer to depart therefrom, shall be deemed to be an offense under this section. (3) Receiving rebates; additional penalty and recovery thereof Any person, corporation, or company who shall deliver property for interstate transportation to any common carrier, subject to the provisions of sections 41, 42, or 43 of this title, or for whom as consignor or consignee, any such carrier shall transport property from one State, Territory, or the District of Columbia to any other State, Territory, or the District of Columbia, or foreign country, who shall knowingly by employee, agent, officer, or otherwise, directly or indirectly, by or through any means or device whatsoever, receive or accept from such common carrier any sum of money or any other valuable consideration as a rebate or offset against the regular charges for transportation of such property, as fixed by the schedules of rates provided for in said sections, shall in addition to any penalty provided by said sections forfeit to the United States a sum of money three times the amount of money so received or accepted and three times the value of any other consideration so received or accepted, to be ascertained by the trial court; and the Attorney General of the United States is authorized and directed, whenever he has reasonable grounds to believe that any such person, corporation, or company has knowingly received or accepted from any such common carrier any sum of money or other valuable consideration as a rebate or offset as aforesaid, to institute in any court of the United States of competent jurisdiction, a civil action to collect the said sum or sums so forfeited as aforesaid; and in the trial of said action all such rebates or other considerations so received or accepted for a period of six years prior to the commencement of the action, may be included therein, and the amount recovered shall be three times the total amount of money, or three times the total value of such consideration, so received or accepted, or both, as the case may be. (Feb. 19, 1903, ch. 708, § 1, 32 Stat. 847; June 29, 1906, ch. 3591, § 2, 34 Stat. 587). AMENDMENTS 1906-Act June 29, 1906, amended section generally and divided section into subsections. § 42. Parties included in proceedings to enforce law In any proceeding for the enforcement of the provisions of the statutes relating to interstate commerce, whether such proceeding be instituted before the Interstate Commerce Commission or be begun originally in any district court of the United States, it shall be lawful to include as parties, in addition to the carrier, all persons interested in or affected by the rate, regulation, or practice under consideration, and inquiries, investigations, orders, and decrees may be made with reference to and against such additional parties in the same manner, to the same extent, and subject to the same provisions as are or shall be authorized by law with respect to carriers. (Feb. 19, 1903, ch. 708, § 2, 32 Stat. 848; Mar. 3, 1911, ch. 231, § 291, 36 Stat. 1167.) CHANGE OF NAME "District court" was substituted for "circuit court" to conform to act Mar. 3, 1911, which transferred the powers and duties of the circuit courts to the district courts |